Vietnam hosts over 100,000 expatriates, from digital professionals in Da Nang to executives in Ho Chi Minh City. Whether holding a work visa, Temporary Residence Card (TRC), or operating a business, Personal Income Tax (PIT) directly affects your net income and planning.

This guide delivers a concise, authoritative summary of 2025 regulations.

Classification of PIT Taxpayers

Under Personal Income Tax Law 2007 and Circular 111/2013/TT-BTC, foreign individuals earning income in Vietnam are classified into two categories:

1. Tax Residents

• Present in Vietnam ≥ 183 days in a calendar year or 12 consecutive months from first arrival
• OR has a regular place of residence in Vietnam: Registered under residency law or rented accommodation with lease ≥ 183 days in the tax year

 2. Non-residents

• Does not meet the 183-day threshold
• No regular residence and income sourced in Vietnam only

 Accurate residency status determines: tax calculation method and applicable rates.

Taxable Income

Foreign individuals pay PIT on Vietnam-sourced income, including:

• Business: Profits from licensed production, trading, or independent practice.
• Salary/Wages: All employer payments (salary, bonuses, allowances).
• Capital Investment: Interest, dividends, bond gains, capital increases.
• Capital Transfer: Gains from equity, securities, or other capital sales.
• Real Estate Transfer: Proceeds from property sales.
• Prizes: Lottery, promotions, legal betting, contests.
• Franchise: Royalties from commercial franchise agreements.
• Royalties/IP: Income from IP or technology transfer.
• Inheritance & Gifts: Assets received via will, law, or donation.

PIT Rates

1. Tax Residents (Circular 111/2013/TT-BTC, Articles 7–15)

• Salary & Business Income: Progressive partial rates (Article 22, PIT Law).
• Other Income (e.g., capital, royalties, transfers): Flat rates per category.

2. Non-residents (Circular 111/2013/TT-BTC, Articles 17–23)

• Business Income:

Goods trading: 1%

Services: 5%

Production, construction, transport, other: 2%

• Salary/Wages: 20% × taxable Vietnam-sourced income
• Other Income: Full progressive flat rates per type

Non-residents: No family deductions.

Mixed income: Prorate by Vietnam workdays / total workdays per Labor Code.

Tax Filing & Finalization

Foreign individuals must declare and finalize PIT per regulations. Income payers withhold and remit on behalf of employees.

1. Tax Residents (Salary/Wages)

• Before leaving Vietnam: File final return with tax authority
• Authorization allowed: Employer or third party may finalize
• First-year rule: If <183 days in calendar year but ≥183 in 12 consecutive months → finalize after 12 months from arrival

2. Non-Residents

• Withholding by payer is final tax (no self-filing unless multiple sources)

Keep records: Invoices, receipts for income and deductions

Language support: Authorize JC & Associates professionals for accurate, timely compliance

About JC & Associates Vietnam

JC&A Vietnam is a part of JC&A Global, a reputable group with over 15 years of experience in North America and the Asia-Pacific region, we bring clients a unique combination of deep expertise and a strong international network.

With a team of seasoned professionals holding CPA, CA and CFA designations and backgrounds at Big 4 and leading market firms, we provide solid financial and strategic advisory services to businesses of all sizes and sectors.

We also assist foreign investors in establishing and growing their presence in Vietnam, offering practical guidance and end to end support for FDI setup and market entry.