1) VAT (Value added tax): The standard rate is 10% which shall be applied for you. In addition, there are other rates of 5% and 0% and VAT exemption.
Payment schedule is on quarterly basis (the last day of the following month of quarter).
2) CIT (Corporate income tax): standard rate 20% on the taxable profit. Payment schedule is on quarterly basis (the last day of the following month of quarter) and 90 days for the year-end finalization.
Expenses are CIT deductible if they meet the following requirements:
- Relevant to business activities;
- Having sufficient legitimate invoices and vouchers;
- Settlement via forms of non-cash payment for transaction more than VND20 million;
- Paying via the registered bank account; and
- Not specifically identified as being non-deductible.
3) BLF (Business license fee):
| Business License Tax (BLT) Rates for Economic Entities | |
| Registered capital (billion VND) | BLT/year (VND) |
| Over 10 | 3,000,000 |
| Under 10 to 10 | 2,000,000 |
Payment schedule is yearly 31st January.
4) PIT (Personal income tax):
a) For non-resident employee: 20%
b) For resident employee with Labor Contract:
| Tax bracket | Monthly taxable income (million VND) | Tax rate |
| 1 | Up to 5 | 5% |
| 2 | Over 5 to 10 | 10% |
| 3 | Over 10 to 18 | 15% |
| 4 | Over 18 to 32 | 20% |
| 5 | Over 32 to 52 | 25% |
| 6 | Over 52 to 80 | 30% |
| 7 | Over 80 | 35% |
Compulsory insurance rates for Expats:
Compulsory insurance rates for Local Employees:
Payment schedule is on monthly basis (the last day of each month).