Tax
20 percent corporate income tax, personal rates to 35 percent, VAT cut to 8 percent
Corporate income tax is 20 percent with incentive rates as low as 10 percent for encouraged sectors. Personal income tax is progressive to 35 percent, and standard VAT of 10 percent has been repeatedly reduced to 8 percent for most goods.
Key rules
- Jurisdiction — The General Department of Taxation administers national taxes through provincial offices. Vietnam applies a global minimum top-up tax from the 2024 tax year for in-scope multinational groups.
Governing law
- Law on Corporate Income Tax No. 14/2008/QH12as amended
- Law on Personal Income Tax No. 04/2007/QH12as amended
- Law on Value Added Tax No. 48/2024/QH15
In practice
Residents are taxed on worldwide income, non-residents at a flat 20 percent on Vietnam-source employment income; residence is 183 days or a permanent residence including a leased dwelling of 183 days or more. Incentives are project-based rather than entity-based, granted by location and sector, and can include four years exempt then nine at half rate. Foreign contractor withholding tax applies to payments to offshore suppliers, combining a deemed CIT and VAT element, and it catches cross-border services routinely. Transfer pricing rules follow OECD lines with local file requirements and an interest deductibility cap of 30 percent of EBITDA.