Vietnam tax
Tax residence: At least 183 days in calendar year or 12 consecutive months from first day of presence. Special regime for new residents: 5-year personal income tax exemption.
Checked against official sources on Change log
Tax residence
- At least 183 days in calendar year or 12 consecutive months from first day of presence · Resident individual for personal income tax
- The law takes effect on 1 July 2026; the rules on business income and resident employment income apply from the 2026 tax period (article 29).
- Applies from the 2026 tax period (article 29).
Special regimes for new residents
Special regime
Vietnam: 5-year personal income tax exemption for high-quality digital technology and high-tech personnel (Law 109/2025/QH15 article 5)
0% tax
Details
- On: Salary, wages and similar employment income of eligible personnel
Salary and wage income of high-quality digital technology industry personnel in listed activities, and of high-technology personnel doing high-tech or strategic technology research and development, is exempt from personal income tax for 5 years. 1
Taxed on
Salary, wages and similar employment income of eligible personnel.
Who it applies to
- Digital technology personnel: income from projects in concentrated digital technology zones, from research, development and production of key digital products, semiconductor chips and artificial intelligence systems, or from digital-industry workforce training (article 5(2)).
- High-technology personnel doing research and development of high technology or strategic technology listed under the high-technology law (article 5(3)).
- The law leaves the detailed conditions to a Government decree (article 5(6)) and does not say when the 5 years start.
Exclusions
- Other income of the same person is taxed under the ordinary rules.
Visas
The exemption depends on the activity, not the visa. Holding a UĐ1 visa does not by itself give the exemption.
Other taxes
Social insurance contributions are separate.
Checked against official sources on Change log
Which visas the regimes apply to
- 5-year personal income tax exemption: UĐ1 digital talent visa. The exemption depends on the activity, not the visa. Holding a UĐ1 visa does not by itself give the exemption.
Standard rules and foreign-source income
Standard rules
Vietnam individual income tax: residence, worldwide scope and 2026 rates (Law 109/2025/QH15)
Progressive rates
Details
- On: Taxable income arising inside and outside Vietnam for residents
- Limit: ₫120M/yr ≈ $4,630
Vietnam tax residents (183 days or more in a calendar year or in 12 consecutive months from first arrival, or with a regular residence) are taxed on income inside and outside Vietnam; resident employment income is taxed on a 5% to 35% progressive scale from the 2026 tax period. 1
Taxed on
Taxable income arising inside and outside Vietnam for residents; Vietnam-source income for non-residents, whose employment income is taxed at a flat 20% on pay for work in Vietnam regardless of where it is paid.
Who it applies to
- Resident: present in Vietnam 183 days or more in a calendar year or in 12 consecutive months from the first day of presence, or having a regular residence (registered permanent residence or a lease with a fixed term) (article 2).
- Resident employment income scale, annual taxable income (article 9): up to VND 120 million (≈ $4,630) 5%; over 120 up to 360 million 10%; over 360 up to 720 million 20%; over 720 million up to 1.2 billion 30%; over 1.2 billion 35%.
- Personal deduction VND 15.5 million (≈ $600) a month (VND 186 million (≈ $7,180) a year) and VND 6.2 million (≈ $240) a month per dependant (article 10).
Exclusions
- Non-residents are taxed only on income arising in Vietnam; their employment income for work in Vietnam is taxed at a flat 20% wherever it is paid (article 21).
Limits
- VND 120,000,000 a year (≈ $4,630) · Top of the 5% band for resident employment income
- VND 360,000,000 a year (≈ $13,900) · Top of the 10% band
- VND 720,000,000 a year (≈ $27,800) · Top of the 20% band
- VND 1,200,000,000 a year (≈ $46,300) · Top of the 30% band; 35% above
- VND 186,000,000 a year (≈ $7,180) · Personal deduction for the taxpayer (VND 15.5 million (≈ $600) a month)
Days in the country
- At least 183 days in calendar year or 12 consecutive months from first day of presence · Resident individual for personal income tax
Tax residence
The law takes effect on 1 July 2026; the rules on business income and resident employment income apply from the 2026 tax period (article 29).
Visas
Tax residence depends on days present or regular residence, not visa type.
Other taxes
Social, health and unemployment insurance contributions are deductible from employment income; VAT and corporate taxes are separate.
Checked against official sources on Change log
Standard rules
Vietnam: personal income tax on business income of resident individuals (Law 109/2025/QH15 article 7)
20% tax
Details
- On: Taxable income equal to revenue less related expenses for the tax period
- Limit: ₫500M/yr ≈ $19k
Resident individuals with annual business revenue of VND 500 million (≈ $19,300) or less pay no personal income tax; above that, tax is charged on profit at 15% to 20% by revenue band, or on revenue above VND 500 million (≈ $19,300) at rates of 0.5% to 5% for revenue up to VND 3 billion (≈ $116,000). 1
Taxed on
Taxable income equal to revenue less related expenses for the tax period; alternatively revenue above VND 500 million (≈ $19,300) multiplied by a rate by activity for individuals with revenue up to VND 3 billion (≈ $116,000).
Who it applies to
- Resident individual carrying on business, including independent professional practice and e-commerce or digital-platform business.
Exclusions
- Rental of real estate other than accommodation business is taxed at 5% on revenue above VND 500 million (≈ $19,300).
Limits
- VND 500,000,000 a year (≈ $19,300) · Annual revenue up to this level: no personal income tax
- VND 3,000,000,000 a year (≈ $116,000) · Revenue over 500 million up to 3 billion: 15% on profit, or optional rates on revenue above 500 million (goods distribution 0.5%, services 2%, production and transport 1.5%, other business 1%); revenue over 3 billion up to 50 billion: 17% on profit
- VND 50,000,000,000 a year (≈ $1,930,000) · Revenue above this level: 20% on profit
Days in the country
- At least 183 days in calendar year or 12 consecutive months from first day of presence · Resident individual for personal income tax
Tax residence
Applies from the 2026 tax period (article 29).
Visas
Tax treatment follows residence and activity, not visa type; business activity under a visa class still follows licensing rules.
Other taxes
VAT and social insurance are separate.
Checked against official sources on Change log
VAT, social security and other taxes
- Social, health and unemployment insurance contributions are deductible from employment income; VAT and corporate taxes are separate.
- Social insurance contributions are separate.
- VAT and social insurance are separate.
Questions people ask
When do you become a tax resident in Vietnam?
At least 183 days in calendar year or 12 consecutive months from first day of presence (Resident individual for personal income tax). The law takes effect on 1 July 2026; the rules on business income and resident employment income apply from the 2026 tax period (article 29).
Who qualifies for 5-year personal income tax exemption?
Digital technology personnel: income from projects in concentrated digital technology zones, from research, development and production of key digital products, semiconductor chips and artificial intelligence systems, or from digital-industry workforce training (article 5(2)). The exemption depends on the activity, not the visa.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (1)
Official sources
- Law No. 109/2025/QH15 on Personal Income Tax (adopted 10 December 2025), Official Gazette No. 37, 22 January 2026 · Official Gazette of Vietnam · checked 2026-10-10 · published 2026-01-22