Personal Income Tax for Foreigners in Vietnam: Resident vs Non-Resident

Quick answer. Vietnam taxes foreigners based on residency status. If you spend 183 days or more in Vietnam in a 12-month window, or you have a permanent place of abode here, you are a tax resident and pay progressive 5 to 35 percent on worldwide income. If not, you are a non-resident and pay a flat 20 percent on Vietnam-sourced employment income only. Vietnam has more than 80 double tax agreements (DTAs) that may reduce or relieve double taxation.

Resident vs non-resident: the 183-day rule

Article 2 of the Personal Income Tax Law 2007 (04/2007/QH12, amended by 26/2012/QH13) and Article 1 of Circular 111/2013/TT-BTC set out two parallel tests. You are a tax resident in Vietnam if you meet either one.

Test 1: Physical presence. You are present in Vietnam for 183 days or more within a calendar year, or within 12 consecutive months counted from the first day of arrival. Day of arrival and day of departure both count as one day. Transit days at the airport without entry stamp do not count.

Test 2: Permanent place of abode. You have a registered permanent residence on your temporary residence card (TRC) or permanent residence card, or you rent a house in Vietnam under a lease of 183 days or more in the tax year. Hotel stays, guest houses, or short-term rentals can also qualify if the total leased duration in the year hits 183 days.

If you meet Test 2 but spend fewer than 183 days here and you can prove tax residency in another country with an official certificate of residence from that country's tax authority, you can rebut Vietnam residency. Without that proof, the General Department of Taxation will treat you as a Vietnam resident.

Decision tree: which status applies to you

Read this sequentially.

1. Did you spend 183 days or more in Vietnam in the calendar year, or 183 days in any rolling 12-month window from first arrival? If yes, you are a resident. Stop.
2. If no, do you have a TRC, permanent residence card, or a Vietnam lease of 183 days or more in the tax year? If no, you are a non-resident. Stop.
3. If yes to step 2, can you produce a tax residency certificate from another country covering the same period? If yes, you are a non-resident in Vietnam. If no, you are a resident.

The default tilts toward residency once you have a place of abode. Keep your foreign tax residency certificate ready if you want to be treated as a non-resident.

Tax base: worldwide vs Vietnam-sourced

Residents are taxed on worldwide income. That includes salary from a foreign employer paid into a foreign bank, dividends from overseas shares, rental income on a property abroad, and capital gains on offshore investments. The reporting obligation is on the individual.

Non-residents are taxed only on Vietnam-sourced income. Vietnam-source rules in Article 1 of Circular 111/2013 cover salary for work physically performed in Vietnam regardless of where it is paid, fees for services rendered in Vietnam, income from property located in Vietnam, and capital gains from Vietnam-incorporated entities.

A common trap: a non-resident on a short business trip who works remotely from a Hanoi hotel for two weeks. The two weeks of salary are Vietnam-sourced and taxable at 20 percent, even though paid by a foreign employer into a foreign account.

Progressive rates for residents

Resident employment income uses a seven-bracket progressive scale under Article 22 of the PIT Law as amended.

Bracket	Monthly taxable income (VND)	Rate
1	up to 5 million	5 percent
2	over 5 to 10 million	10 percent
3	over 10 to 18 million	15 percent
4	over 18 to 32 million	20 percent
5	over 32 to 52 million	25 percent
6	over 52 to 80 million	30 percent
7	over 80 million	35 percent

Taxable income equals gross employment income minus personal deduction (11 million VND per month per Resolution 954/2020/UBTVQH14), dependant deduction (4.4 million VND per dependant per month), mandatory social insurance contributions, and qualifying charitable donations.

Non-employment income for residents follows separate flat or schedular rates. Examples: capital investment income at 5 percent, capital transfer at 20 percent on net gain (or 0.1 percent on gross for listed securities), real estate transfer at 2 percent on gross, and royalties or franchise fees at 5 percent on income above 10 million VND per contract.

Flat 20 percent for non-residents

Non-residents pay a flat 20 percent on Vietnam-sourced employment income with no personal deduction and no dependant deduction. The employer or paying entity in Vietnam usually withholds at source.

Other non-resident schedular rates under Article 25 of Circular 111/2013:

Income type	Rate
Business income (goods)	1 percent on gross
Business income (services)	5 percent on gross
Business income (production, construction, transport)	2 percent on gross
Capital investment	5 percent
Capital transfer	0.1 percent on gross
Real estate transfer	2 percent on gross
Royalties, franchise	5 percent on excess over 10 million
Prize, inheritance, gift	10 percent

Double tax agreements: the 80-plus network

Vietnam has signed and brought into force more than 80 DTAs, including with the United States (2015, not yet ratified by US Senate as of 2026), United Kingdom, Japan, Korea, Australia, Singapore, Germany, France, Canada, China, and most EU and ASEAN members. The MoF publishes the official list at mof.gov.vn.

A DTA typically delivers three forms of relief.

Tie-breaker rules for dual residency. If both Vietnam and your home country claim you as a resident, the DTA applies a tie-breaker cascade: permanent home, centre of vital interests, habitual abode, nationality, and mutual agreement.

Reduced withholding. Dividends, interest, and royalties paid out of Vietnam to a treaty-country resident enjoy reduced rates, often 5 to 10 percent versus the domestic 5 percent (dividends are already exempt) or higher rates on royalties.

Short-stay exemption. Employment income for work in Vietnam can be exempt if you spend fewer than 183 days here in the tax year, the salary is paid by a non-resident employer, and the cost is not borne by a Vietnamese permanent establishment.

To claim DTA relief you file a Notification of Eligibility (Form 01/HTQT) with the tax authority within three years of when the tax obligation arose, accompanied by the foreign tax residency certificate and supporting documents.

Filing process: who, when, how

Who must file. Residents with annual income above the personal deduction threshold. Non-residents whose Vietnam tax was not fully withheld at source. Anyone with multiple income sources where final tax cannot be settled by withholding alone.

When. The annual finalisation deadline is the last day of the fourth month after the calendar year ends, so 30 April for individual self-finalisation. If you authorise your employer to finalise on your behalf and you only have one income source, the deadline shifts to 31 March for the employer.

How. Online via thuedientu.gdt.gov.vn using a digital signature, or paper at the district tax office covering your registered address. Foreign individuals without a Vietnamese tax ID register one using Form 05-DK-TCT at the local tax office on first arrival or first taxable event.

Pay tax via bank transfer to the state treasury account specified on the notice of assessment. Late payment interest is 0.03 percent per day under Article 59 of the Tax Administration Law 2019.

Five common scenarios for expats

Note: The scenarios below are illustrative only and use second-person voice for readability. They are not tax advice for any individual case; actual classification depends on full facts, treaty interpretation, and current guidance from the General Department of Taxation.

Scenario 1: Full-time local hire on Vietnam payroll. You sign with a Vietnamese company, get a work permit and TRC, spend most of the year here. Resident. Progressive 5 to 35 percent. Employer withholds monthly and finalises in April.

Scenario 2: Remote worker for a foreign company, living in Vietnam. You spend 200 days in Vietnam working remotely for a US company that pays you in USD to a US account. Resident. Worldwide income taxable. You self-declare the foreign salary and pay progressive rates. The US-Vietnam DTA (once ratified) or the foreign tax credit mechanism in Article 26 of Circular 111/2013 prevents double taxation, but you must claim it actively.

Scenario 3: Business trips, under 183 days. You fly in for total 90 days of project work, paid by your Singapore employer with no cost passed to Vietnam. Non-resident. Salary for those 90 days is Vietnam-sourced and would normally be taxed at 20 percent, but the Singapore-Vietnam DTA short-stay exemption likely eliminates Vietnam tax. File Form 01/HTQT to claim.

Scenario 4: Dual employment, split contracts. You have a contract with a Vietnam entity and a parallel contract with the same group's Hong Kong entity. Resident if 183 days are met. Both contracts must be reported. The Hong Kong-paid portion is foreign-sourced for a resident and still taxable in Vietnam. DTA may give credit for HK tax paid.

Scenario 5: Departing mid-year. You leave Vietnam permanently in August after three years here. You must file a departure finalisation within 45 days of departure under Article 44 of the Tax Administration Law 2019. Settle outstanding tax and obtain a tax clearance certificate before deregistering your TRC.

FAQ

Does the 183-day count reset each calendar year? No. The rule has two limbs: 183 days in the calendar year, or 183 days in any 12 consecutive months from your first day of arrival. For your first tax year in Vietnam, the rolling 12-month window applies.

Do I get personal deductions as a non-resident? No. The 11 million VND personal deduction and 4.4 million per dependant apply only to residents. Non-residents pay 20 percent flat on gross Vietnam-sourced employment income.

My employer withholds 20 percent. Am I non-resident automatically? Not necessarily. Many employers withhold 20 percent for foreign hires until residency is confirmed at year-end, then reconcile. You may be reclassified as a resident at finalisation and switch to progressive rates, which could mean a refund.

Are housing allowances and school fees taxable? Housing benefit in kind is taxable but capped at 15 percent of total taxable income excluding the housing element. School fees for dependant children paid by the employer can be tax-free with proper documentation per Article 2 of Circular 111/2013.

What about cryptocurrency income? Vietnam has not enacted a specific PIT treatment for crypto. The tax authority's current position treats gains as other income, but formal enforcement guidance has not been issued as of the publication date. Expect formal rules within the Digital Technology Industry Law framework.

Citations

Provision	Source	Coverage
Article 2, PIT Law 2007 (04/2007/QH12)	vbpl.vn	Definition of tax resident
Article 3, PIT Law 2007	vbpl.vn	Taxable income categories
Law 26/2012/QH13	vbpl.vn	PIT Law amendments
Decree 65/2013/ND-CP	vbpl.vn	PIT implementing decree
Article 1, Circular 111/2013/TT-BTC	vbpl.vn	Residency tests and Vietnam-source rules
Article 25-26, Circular 111/2013	vbpl.vn	Non-resident rates and foreign tax credit
Circular 92/2015/TT-BTC	vbpl.vn	Amendments to PIT administration
Resolution 954/2020/UBTVQH14	vbpl.vn	Personal and dependant deduction levels
Article 44, 59, Tax Administration Law 38/2019/QH14	vbpl.vn	Filing deadlines, late payment interest

Related Asklaw guides for expats:

• TRC renewal Vietnam
• Work permit Vietnam expats
• Setting up Vietnam bank account as foreigner
• Apostille and document legalisation for Vietnam

Asklaw Shortcut

Not sure whether you cross the 183-day line this year? Try the Asklaw Residency Check Shortcut. Enter your arrival dates, lease terms, and foreign tax certificate status. The tool returns your likely status under Article 2 of the PIT Law, the rate scale that applies, and a checklist for finalisation. Output is informational only and does not constitute tax advice; for filing decisions consult a licensed tax advisor or Vietnam-licensed lawyer.

Disclaimer: This article is general reference information drawn from publicly available Vietnamese legal sources (see citation table). It is edited by the Asklaw Editorial Team in compliance with Vietnam's AI Law 2026 (transparency obligations) and the Law on Lawyers 2006 (65/2006/QH11, as amended by Law 20/2012/QH13). It does not constitute legal advice for any specific case and does not create a lawyer-client relationship. For personalized advice, please consult a Vietnam-licensed lawyer. Personal data (if any) is processed under Vietnam's Personal Data Protection Law 2026.