What taxes do expats pay in Vietnam?
From income tax to VAT, Vietnam's tax system has several layers. This guide breaks down what matters most for expats in 2026.
Tax System Overview
| Tax Component | Rate / Details |
|---|---|
| Tax System Type | Progressive |
| Top Personal Income Tax Rate | 20% |
| Effective Rate on €90,000 | 10.4% |
| Net Monthly on €90,000 Gross | €5,973 |
| VAT (Standard Rate) | 10.0% |
| Special Expat Regime | Yes — investment. Foreign Investor Tax Incentive: Reduced corporate tax rate |
Income Tax in Vietnam
Vietnam operates a progressive income tax system, meaning higher earners pay a higher percentage on their income above certain thresholds. The top marginal rate is 20%.
What Does This Mean in Practice?
On a gross annual salary of €90,000, you would pay an effective tax rate of approximately 10.4%, resulting in a net monthly income of approximately €5,973. This accounts for income tax and mandatory social contributions.
For context, the average monthly salary in Vietnam is approximately €440.
Considering Vietnam? Our decision engine scores your profile against real visa rules, salary data, and cost of living. Get Your Free Verdict →
VAT (Value Added Tax)
The standard VAT rate in Vietnam is 10.0%. VAT is included in consumer prices and applies to most goods and services. Reduced rates typically apply to:
- Basic food items and groceries
- Medical supplies and pharmaceuticals
- Books and educational materials
- Public transport (in some cases)
Special Tax Regimes for Expats
Yes — investment. Foreign Investor Tax Incentive: Reduced corporate tax rate
If eligible, these regimes can provide substantial savings during your initial years in Vietnam. Always verify current requirements with a qualified tax professional, as rules change frequently.
Tax Filing Requirements
As a tax resident of Vietnam, you are generally required to:
- Register with tax authorities upon establishing residence
- Obtain a tax identification number
- File an annual tax return (deadlines vary)
- Declare worldwide income if you are a tax resident
- Report foreign bank accounts if applicable
Double Taxation
Vietnam has double taxation agreements (DTAs) with numerous countries. These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same income. Before moving, check whether a DTA exists between Vietnam and your home country.
Tax Tips for Expats
- Hire a local tax adviser familiar with expat situations during your first year
- Keep records of all income, deductions, and tax payments from day one
- Understand residency rules: most countries consider you a tax resident after 183 days
- Check for exit tax: some countries impose tax on unrealised gains when you leave
- Social security contributions are often separate from income tax and can add 10-20% to your total burden
Frequently Asked Questions
What deductions can expats claim in Vietnam?
Common deductions in Vietnam include pension contributions, health insurance premiums, mortgage interest (in some cases), charitable donations, and work-related expenses. Moving costs may also be deductible in some jurisdictions. A local tax adviser can maximise your deductions.
Do I need to file a tax return in Vietnam?
In most cases, yes. If you are employed in Vietnam, your employer may withhold taxes, but you may still need to file an annual return, especially if you have additional income, deductions to claim, or foreign income. Filing deadlines vary — consult the local tax authority.
What happens to my pension contributions in Vietnam?
If you leave Vietnam, your pension rights depend on bilateral social security agreements. EU/EEA countries have portable pension rights. Outside the EU, check if an agreement exists with your home country. Private pension withdrawals may be taxable.
What social security contributions do expats pay in Vietnam?
Social security contributions in Vietnam are typically mandatory for employed residents and cover healthcare, pensions, and unemployment insurance. Combined employer-employee rates vary from 15-45% of gross salary depending on the country. These are separate from income tax.
What is the VAT rate in Vietnam?
The standard VAT (Value Added Tax) rate in Vietnam is 10.0%. This applies to most goods and services. Reduced rates may apply to essentials like food, books, and medicine. As an expat consumer, VAT is included in displayed prices.
Planning to move to Vietnam?
Get your personalised emigration verdict covering visa eligibility, cost of living, and career prospects across 200+ countries.
Get Your Free Verdict