Tax residency
The new law treats an individual as resident when at least one of the statutory conditions is met. The most straightforward is physical presence in Vietnam for 183 days or more in a calendar year or in 12 consecutive months starting from the first day of presence. A separate route relates to permanent residence under the law. Therefore, 'I have a tourist e-Visa, so I am a tax non-resident' is not a reliable conclusion.
Resident vs non-resident
| Status | General principle |
|---|---|
| Tax resident | Taxable income covered by law from sources in Vietnam and abroad |
| Non-resident | Taxable income arising in Vietnam, regardless of where it is paid |
New resident employment-income brackets
| Monthly taxable income | Rate |
|---|---|
| Up to 10 million VND | 5% |
| Over 10 to 30 million VND | 10% |
| Over 30 to 60 million VND | 20% |
| Over 60 to 100 million VND | 30% |
| Over 100 million VND | 35% |
This is a progressive schedule: each rate applies to the relevant portion of taxable income rather than the highest rate applying to the entire salary. Taxable income is not the same as gross salary because deductions, exemptions, and tax-base rules apply.
Non-resident salary income
For a non-resident individual, tax on salary and remuneration for work in Vietnam is calculated at 20% of the relevant income under the statutory rules. Business, investment, capital, rental, and other income types have their own rules; do not apply the 20% employment rate to every category of income.
Remote work
If you live in Vietnam and are paid by a foreign company, the location of the bank account alone does not determine the tax outcome. Residence status, income source, and applicable double-tax treaties can all matter. For a long stay, this is a scenario worth reviewing with a qualified tax adviser.
What to track
- Every entry and exit date.
- Total days of physical presence.
- Any permanent or long-term accommodation relevant to the statutory residence test.
- The source and type of each income stream.
- Whether an employer has withheld tax.
- Whether an applicable double-taxation agreement exists.
Questions and answers
Do I become a Vietnamese tax resident after 183 days?
183 days or more is one of the explicit tests. The law also contains a permanent-residence criterion.
What is the PIT rate for a resident employee?
Resident employment taxable income uses a five-band progressive schedule from 5% to 35%.
What is the salary tax rate for a non-resident?
Employment income from work in Vietnam is generally taxed at 20% under the non-resident rules.
If I am paid from abroad, does that mean there is no Vietnamese tax?
No. For a Vietnamese tax resident, foreign income can be relevant under the law, and double-tax agreements may also affect the result.