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income tax

Dear all,

A simple question that seems can't be answered simply with a search. I suppose it's the same the world over. Any help would be welcome.

Can anyone give me a rough guideline to income tax in Vietnam? I have a full time聽 (40 hour) contract and the salary has been quoted to me in British pounds. I am a UK citizen. I will open an HSBC account.

I appreciate that there is always a scale, depending on the salary, but any guidance is very much appreciated.

I was quoted by my employer that it would be approximately 20%. However, during my research I saw that it could be up to 40%. A potential game changer.

Thank you!
Mitchell.
See also
If your research shows 40% due to the income earned depending on where you gained the information.

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For a quick indication: I found the Gross -> Net salary calculator in the Vietnamworks app quite handy.
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If you are non resident in Vietnam, tax rate 20%.
If you are resident in VN, the working contract under 3 months: tax rate : 10%, the contract over 3 monthsm the tax rate is depend on your income. It could be up to about 40%
Ball pak if you hit 拢3500 - 4000 per month, your rate would be 40%..
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1. General:
All foreigners source income in Viet Nam regardless your residency are liable to income tax.

2. Tax rate
Resident:
- Stay in Viet Nam at least 183 days, or 12 consecutive months since day 1 of arrival.
- Have a frequent place of residence
- Residency brackets and rates
Assessable income聽 聽 Tax rate
(million VND)
0-5聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 5%
5-10聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽10%
10-18聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽15%
18-32聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽20%
32-52聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽25%
52-80聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽30%
> 80 ~聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽35%
* Income is quoted in million Viet Nam dong - so you need to take into account exchange rate.

The calculation at this stage is pretty much the same as British system.
These income tax rates show the amount of tax payable in every dollar for each income tax bracket.

Non-resident:
- Flat tax rate at 20% applied for total income.

3. Deduction:
Theoretically, assessable income = Incomes - deductions.
It's tricky where most daily transactions, and even business transactions are cash.
Invoices are issued where inquiries in most cases.
(Most locals do not pay taxes but fees - who care about invoices? - LOL)
Therefore, you better talk to tax agents if your income are substantial which likely incur large tax bill.

I guess that's the reason why your research came up with different results.

Sorry for my terrible writing and format./.
1 member reacted to this post

Swee Loke wrote:

Ball pak if you hit 拢3500 - 4000 per month, your rate would be 40%..


Sorry, my comment more for highly paid top level citizens; and you are a Non聽 Resident ; N/A..

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Great! Thanks all for your guidance.
Mitchell
Great info. Thank you.
Thank you for useful information