How is income tax calculated in Vietnam?
Henry Morales
Published Apr 03, 2026
The individual income tax formulas to remember:
- Payable individual income tax = Taxable income xTax rate X ( 1 )
- Taxable income = Assessable income – deductions ( 2 )
- Assessable income = Gross salary – Non-taxations ( 3 )
What is Vietnam average income?
Average Local Salary: The average monthly salary of a worker in Vietnam is about $148 per month; those in high paying jobs bring home around $500 per month.
How do I pay tax in Vietnam?
If you are filing and paying your taxes on your own, you can do it in two ways, cash payment or bank transfer. You can pay directly to the state treasury and receive a tax voucher indicating that you have filed and paid before the deadline.
Is Bulgaria a tax haven?
Bulgaria. Bulgaria has the lowest personal and corporate tax rates within the European Union (Andorra isn’t a member), both of which are a flat rate of 10%.
What income do you not have to report to IRS?
The minimum income amount depends on your filing status and age. In 2020, for example, the minimum for single filing status if under age 65 is $12,400. If your income is below that threshold, you generally do not need to file a federal tax return.
Do foreigners pay tax in Vietnam?
Tax residents are subject to PIT on their worldwide employment income, regardless of where the income is paid or earned, at progressive rates from five percent to a maximum of 35 percent. Non-resident taxpayers are subject to PIT at a flat rate of 20 percent on their Vietnam-sourced income.
When do you have to report income to Vietnam?
In case someone arrives from a country/jurisdiction without a Double Tax Agreement with Vietnam, if they are present in Vietnam for more than 182 days in the first calendar year of arrival, individuals are required to report pre-arrival income earned from the beginning of such a year for Vietnamese tax purposes.
How to calculate personal income tax in Vietnam?
For a taxpayer who has two children as his dependants, if he earns 20 million VND, the taxable income and the tax he has to pay are calculated as follows: Taxable income= 20 million- (4 million + 1,6 million * 2 )= 12,8 million. PIT= 5 million x 5%+ 5 million x 10% + 2,8 million x 15%= 1,17 million VND.
How much tax do you pay as a non resident in Vietnam?
Non-Resident: In the case that foreigners are classified as non residents in Vietnam, the flat tax rate is 20%. In the above-mentioned example, he will have to pay 4 million VND in tax.
What is the flat tax rate in Vietnam?
b. Non-Resident: In the case that foreigners are classified as non residents in Vietnam, the flat tax rate is 20%. In the above-mentioned example, he will have to pay 4 million VND in tax.
