Income Tax in Vietnam

Find out all you need to know about employee’s income tax in Vietnam here.

How to calculate income tax

In Vietnam, income tax can be calculated by deducting non-taxable income from the employee’s total income. Almost all income in Vietnam is subject to taxation, with the exception of employee’s meal allowance that is capped at VND 730,000).

Is there a difference between calculating income tax between local and foreign employees?

Yes, there is. Vietnamese employees are subject to a 10% rate of income tax during their probation period, whereas foreign employees customarily are not required to go through the probation period.

Should employees start a permanent employment in the company, they will be subjected to a progressive tax system.

Who is responsible of submitting employee’s income tax to the tax authority?

By default, the employer is responsible for deducting the appropriate amount of income tax from the employee’s salary and submitting their monthly tax filing to the General Department of Taxation (GDT)