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).