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)|
|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%|
Compulsory insurance rates for Expats:
Compulsory insurance rates for Local Employees:
Payment schedule is on monthly basis (the last day of each month).