Vietnam Tax Guide
Everything you need to know about taxes as an expat in Vietnam.
Disclaimer
This guide is for informational purposes only and does not constitute tax advice. Always consult with a qualified tax professional for your specific situation.
Overview
Vietnam operates a progressive income tax system for residents taxed on worldwide income, while non-residents are taxed only on Vietnam-sourced income at a flat rate. The tax system is relatively straightforward but careful planning is essential for US expats due to the lack of an effective tax treaty.
Tax Residency Rules
You become a Vietnamese tax resident if you meet ANY of these conditions: **183-Day Rule:** Present in Vietnam for 183+ days within a calendar year OR any 12 consecutive months from first arrival. **Permanent Residence:** Holding a TRC or lease of 183+ days. **Counting Method:** Arrival and departure dates each count as full days. Brief departures don't reset the count. **Implications:** - Tax Resident: Taxed on worldwide income at progressive 5%-35% rates - Non-Resident: Taxed only on Vietnam-sourced income at flat 20%
Income Tax Rates
| Income Range | Tax Rate |
|---|---|
| 0 - 60,000,000 | 5% |
| 60,000,000 - 120,000,000 | 10% |
| 120,000,000 - 216,000,000 | 15% |
| 216,000,000 - 384,000,000 | 20% |
| 384,000,000 - 624,000,000 | 25% |
| 624,000,000 - 960,000,000 | 30% |
| 960,000,000+ | 35% |
Capital Gains Tax
Capital Gains (shares): 0.1% of sale proceeds. Real Estate Transfer: 2% of sale proceeds. Bank Interest: Tax-exempt.
Property Tax
Real Estate Transfer Tax: 2% of sale proceeds. No annual property tax for individual owners.
VAT / Sales Tax
VAT Standard Rate: 10% (8% reduced rate through December 2026)
For US Expats
⚠️ **CRITICAL: There is NO effective US-Vietnam tax treaty.** A treaty was signed in 2015 but the US has NOT ratified it. **NO US-Vietnam Totalization Agreement** — You may need to contribute to both US Social Security AND Vietnam social insurance (double taxation). **Common Tax Mistakes for US Expats:** 1. Not tracking 183-day threshold—unexpectedly becoming tax resident 2. Ignoring Vietnamese tax on offshore-paid income for Vietnam-based work 3. Not filing US returns (required for all US citizens regardless of residency) 4. Missing FBAR deadline 5. Not optimizing FEIE vs FTC calculation 6. Missing departure tax finalization when leaving Vietnam
Foreign Earned Income Exclusion (FEIE)
**FEIE (Foreign Earned Income Exclusion):** - 2024: $126,500 - 2025: $130,000 - 2026: $132,900 **Qualification:** Must meet Bona Fide Residence Test (tax resident for entire year) OR Physical Presence Test (330+ days outside US in 12 months). **FEIE Limitations:** - Only excludes earned income (salary, wages, self-employment) - Does NOT exclude self-employment tax (still owe 15.3%) - Does NOT apply to passive income (dividends, interest, capital gains) **Alternative - Foreign Tax Credit (FTC):** May be preferable when income exceeds FEIE or you pay high Vietnamese taxes. Dollar-for-dollar credit for Vietnamese taxes paid. **FBAR Requirements:** FinCEN Form 114 required if foreign accounts exceed $10,000 total at any point during year. Deadline April 15 (auto-extension to Oct 15). **FATCA Requirements:** Form 8938 required if foreign financial assets exceed $200,000 (year-end) or $300,000 (at any point) for singles abroad.
Tax Treaty Benefits
NO effective US-Vietnam tax treaty exists. A treaty was signed in 2015 but the US has NOT ratified it. This means no treaty benefits are available for reducing withholding rates or resolving double taxation through official channels.
Filing Deadlines
**Vietnam Deadlines:** - Annual (employer filing): March 31 - Annual (individual filing): April 30 - Departure from Vietnam: Within 45 days **US Expat Deadlines:** - Standard: June 15 (automatic 2-month extension for expats) - Extended Deadline: October 15 - FBAR: April 15 (auto-extension to October 15)
Recommended Approach
**Vietnamese Taxes:** Local accountant or Big 4 firm ($100-800 depending on complexity) **US Taxes:** US-based expat tax specialists (Bright!Tax, Taxes for Expats, MyExpatTaxes) — $400-1,500 Track your 183-day threshold carefully. Use FEIE (up to $130,000 exclusion for 2025) as primary tool to avoid US double taxation. No US-Vietnam tax treaty means careful planning is essential.
Need Help with Your Taxes?
Use our tax calculator or find recommended expat tax preparers.