VietnamExpat Tax Residency in Vietnam
Last reviewed: · by TaxProsRated editorial
Key points
You become a Vietnamese tax resident if you spend 183 or more days in Vietnam in a calendar year, in any 12 consecutive months from arrival, or if you maintain a permanent or leased residence in the country. Residents are taxed on worldwide income at progressive rates from 5% to 35%; non-residents pay a flat 20% on Vietnam-source employment income.
Vietnam's personal income tax (PIT) framework draws a firm line between tax residents and non-residents. The rules are set out in the Law on Personal Income Tax No. 04/2007/QH12 as amended by Law No. 26/2012/QH13 and are operationalised by the Ministry of Finance through Circular 111/2013/TT-BTC. Understanding which side of that line you fall on determines both the scope of income subject to Vietnamese PIT and the rate structure that applies.
When are you a tax resident of Vietnam?
Under the Law on Personal Income Tax No. 04/2007/QH12 (as amended), an individual is a Vietnamese tax resident if they meet either of two conditions. The first is the presence test: 183 or more days in Vietnam within a single calendar year (1 January to 31 December) or within any 12 consecutive months counted from the date of first arrival. Days of presence need not be continuous; all days within the relevant period are aggregated [1][2]. The second is the permanent-residence test: an individual who has a permanent residence registered in Vietnam or a leased dwelling in Vietnam under a definite-term lease is treated as resident for that tax year, even if physically present for fewer than 183 days [2]. Under Circular 111/2013/TT-BTC, a non-resident asserting tax residence in another country must produce a Certificate of Residence from that country (or passport evidence for treaty countries that do not issue such certificates) to rebut the permanent-residence presumption [3].
What income is taxable for residents and non-residents?
Tax residents are subject to Vietnamese PIT on their worldwide taxable income wherever it is earned or paid, as confirmed by the General Department of Taxation (GDT) and cross-checked against PwC Worldwide Tax Summaries [1][2]. Non-residents are subject to Vietnamese PIT only on income sourced in Vietnam or related to work performed in Vietnam, regardless of where payment is made [1]. For country-level context see Vietnam country overview and consider consulting a qualified cross-border tax professional before filing.
What PIT rates apply?
For tax residents earning employment income, Vietnam applies a five-bracket progressive scale effective from 1 January 2026 under the revised PIT framework. Non-residents pay a flat rate of 20% on Vietnam-source employment income regardless of amount [1][2][4].
| Category | Monthly Income Bracket (VND) | Rate |
|---|---|---|
| Tax Resident | 0 - 10 million | 5% |
| Tax Resident | 10 million - 30 million | 15% |
| Tax Resident | 30 million - 60 million | 25% |
| Tax Resident | 60 million - 100 million | 30% |
| Tax Resident | Above 100 million | 35% |
| Non-Resident | All Vietnam-source employment income | 20% (flat) |
Residents earning business income of 500 million VND or below annually are exempt from PIT on that business income. Rates from 1% to 5% apply for non-resident business income depending on sector [2].
What personal deductions do residents receive?
Tax residents are entitled to automatic personal allowances effective 1 January 2026 under National Assembly Standing Committee Resolution 110/2025/UBTVQH15, which replaced the earlier Resolution 954/2020/UBTVQH14 [4][5]. The personal allowance is 15.5 million VND per month (186 million VND per year). An additional 6.2 million VND per month applies for each registered dependent, subject to documentation submitted to the tax authority. Mandatory employee contributions to Vietnam's social, health, and unemployment insurance schemes are also deductible. Non-residents are not entitled to the personal or dependent allowances [2].
How does tax registration and a tax code work?
All individuals earning taxable income in Vietnam must register for a tax code (ma so thue, or MST) with the General Department of Taxation. Vietnamese citizens receive a code synchronised to their personal identification number; foreign nationals are issued a separate tax code on registration [1]. For employment income, registration and monthly or quarterly provisional declarations are typically handled through the employing entity, which files with the local tax office and remits PIT on the employee's behalf by the 20th of the following month or end of the following quarter. Annual PIT finalisation is due by the end of the fourth month following the tax year for individuals filing directly, or the third month for employer-filed reconciliations. Expatriates departing Vietnam permanently must complete a PIT finalisation return before leaving. Refunds require a valid tax code and a Vietnamese-dong bank account at a domestic institution [1]. A qualified local tax professional can assist with registration and filing for your specific circumstances.
Frequently asked
How many days in Vietnam trigger tax residency?
Under Law No. 04/2007/QH12 as amended by Law No. 26/2012/QH13, 183 or more days of physical presence in Vietnam within a single calendar year or within any 12 consecutive months from your first arrival date establishes tax residency. Days need not be consecutive. Each calendar year and 12-month window is evaluated independently. Maintaining a permanent or leased dwelling in Vietnam can establish residency even with fewer days present.
Are Vietnamese tax residents taxed on income earned outside Vietnam?
Yes. Tax residents are subject to Vietnamese PIT on their worldwide taxable income regardless of where it is earned or where payment is received. Non-residents are taxed only on income sourced in Vietnam or related to work performed in Vietnam. Vietnam has concluded double taxation agreements with approximately 80 countries; treaty provisions may reduce or eliminate Vietnamese tax where the source country has primary taxing rights or where a foreign tax credit applies.
What flat rate applies to non-residents on Vietnam employment income?
Non-residents pay a flat rate of 20% on all Vietnam-source employment income, with no personal allowance and no progressive brackets. The employer withholds and remits this tax on the non-resident employee's behalf. Other categories of non-resident income carry different rates: for example, capital assignment is taxed at 20% of net gain or 2% of proceeds, and real estate sales at 2% of proceeds.
What personal allowances can tax residents claim in 2026?
From 1 January 2026, Resolution 110/2025/UBTVQH15 raised the personal allowance to 15.5 million VND per month and the dependent allowance to 6.2 million VND per month per registered dependent. These replaced the prior levels of 11 million and 4.4 million VND respectively. Mandatory social, health, and unemployment insurance contributions are also deductible. Non-residents are not entitled to these allowances.
How does an expatriate get a Vietnamese tax code and file a return?
Foreign nationals earning taxable income register for a tax code (ma so thue) with the General Department of Taxation, typically through their employer for employment income. Employers file monthly or quarterly provisional PIT declarations and pay by the 20th following the period. Individuals file an annual finalisation return by end of the fourth month after the tax year. Expatriates departing permanently must complete a PIT finalisation before leaving. Refunds require a valid tax code and a domestic Vietnamese-dong bank account.
Country overview
Tax in Vietnam
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Vietnam as of June 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.