This guide offers an in-depth overview of Vietnam’s essential taxation aspects for corporate and individual taxpayers. It includes the latest updates and key regulations for 2026.
Download the complete guide in PDF or read individual articles linked below to understand how taxes are applied in Vietnam, covering both foreign and non-resident taxpayers. Both formats also feature detailed tables illustrating various tax rates and their applications.
Vietnam’s tax regulations are comprehensive and frequently updated, reflecting the country’s growth. Staying compliant requires a thorough understanding of these regulations and the ability to adapt to new rules as they are introduced. For personalised assistance, Acclime’s team of tax experts is ready to help you navigate the complexities of Vietnam’s tax system.
- Corporate income tax
- Value added tax
- Foreign contractor withholding tax
- Special consumsion tax
- Double tax agreements
- Transfer pricing
- Personal income tax
- Minimum global tax
- 2026 compliance calendar
- Recent tax changes
Corporate income tax (CIT)
Vietnam’s corporate tax environment is structured to support both domestic and foreign enterprises. The standard corporate income tax (CIT) rate is 20%, with variations depending on the industry, particularly for sectors like oil and gas. Special tax incentives are available for businesses operating in encouraged sectors or locations, providing reduced rates or tax holidays. For more detailed information on CIT, including tax incentives and provisional tax, read our full article on corporate income tax in Vietnam.
Value-added tax (VAT)
VAT in Vietnam applies to most goods and services consumed domestically at varying rates. The VAT rates range from 0% for exported goods and services to the standard 10% rate for most goods and services. Businesses can choose between deduction and direct methods for calculating VAT liabilities. Learn more about VAT methods, rates, and exemptions in our comprehensive VAT guide.
Foreign contractor withholding tax (FCWT)
Foreign entities engaging in business activities in Vietnam are subject to Foreign Contractor Withholding Tax (FCWT). This tax applies to payments made to foreign contractors and can be calculated using various methods depending on the nature of the contract. Detailed guidance on FCWT, including applicable rates and compliance strategies, can be found in our FCWT article.
Special consumption tax (SCT)
Special consumption tax applies to specific goods and services considered non-essential or luxury items. The SCT rates vary depending on the product or service, with higher rates for items like tobacco, alcohol, and automobiles. To delve into the specifics of SCT, visit our dedicated SCT article.
Double tax agreements (DTAs)
Vietnam has signed double tax agreements with over 80 countries, providing relief from double taxation for income earned in multiple jurisdictions. These agreements are essential for foreign investors and businesses operating across borders. Understand how double tax agreements affect your tax obligations in our DTA overview.
Transfer pricing regulations
Vietnam’s transfer pricing regulations align closely with OECD guidelines, requiring related entities to document and justify their pricing methodologies. Compliance is essential to avoid penalties and ensure that transactions between related parties are conducted at arm’s length. Explore more about transfer pricing regulations in our transfer pricing article.
Personal income tax (PIT) regulations
Individuals residing in Vietnam are subject to personal income tax on their worldwide income, while non-residents are taxed only on income sourced within Vietnam. The PIT rates are progressive, ranging from 5% to 35%. Employers and employees must follow specific tax residency, deductions, and finalisation rules. Read our PIT guide for detailed insights into Vietnam PIT, including tax residency criteria and rates.
Global minimum tax
The National Assembly recently approved the Resolution on the Global Minimum Tax policy in Vietnam on 29 November 2023, which took effect on 1 January 2024. The policy aims to ensure that large multinational corporations pay a 15% effective tax rate on their profits in each jurisdiction where they operate.
The policy is implemented by the OECD’s Global Anti-Base Erosion (GloBE) or Pillar 2 rules, which consist of two main rules: the Qualified Domestic Minimum Top-up Tax (QDMTT) and the Income Inclusion Rule (IIR).
The QDMTT rule targets foreign inbound investment, meaning that Vietnamese subsidiaries of multinational corporations whose foreign ultimate parent entity has revenue of at least EUR 750 million will have to pay a top-up tax if their group’s effective tax rate in Vietnam is lower than 15%. The IIR rule targets Vietnam’s outbound investment, meaning that Vietnamese parent or intermediate companies that own (directly or indirectly) a low-taxed subsidiary abroad will have to pay tax on their share of that subsidiary’s top-up tax.
2026 compliance calendar
This compliance calendar is designed to help businesses in Vietnam navigate and plan their accounting, taxation, payroll, and statistical reporting obligations. Additionally, we provide detailed insights into the reporting and compliance requirements specifically for foreign investors in Vietnam, outlining all key obligations throughout the calendar year.
Download the compliance calendar for a thorough understanding of the reporting and compliance requirements essential for foreign investors operating in Vietnam.
Recent tax changes
Our tax team provides monthly insights into the latest tax regulations and changes in Vietnam, helping our clients’ businesses stay compliant and avoid potential risks. You can read them on our website or get them delivered straight to your inbox.
