income tax

mitchellvassie · 2021-10-25T00:36:57+02:00

Explore income tax guidelines in Vietnam for UK citizens working full-time. Understand rates, bank accounts, and what to expect in taxation.

mitchellvassie Active member

Member since 30 September 2021

mitchellvassieActive member24 October 2021 22:36:57

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.

Guest2023 Guest

Guest2023Guest25 October 2021 00:53:04

If your research shows 40% due to the income earned depending on where you gained the information.

RCP79 Active member

Member since 17 May 2021

RCP79Active member25 October 2021 02:18:00

For a quick indication: I found the Gross -> Net salary calculator in the Vietnamworks app quite handy.

galaxyvinh01 New member

Member since 23 September 2021

galaxyvinh01New member01 November 2021 15:42:22

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%

Swee Loke Contributor

Member since 21 March 2021

Swee LokeContributor02 November 2021 04:13:23

115

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

haiphinguyen Member

Member since 21 July 2018

haiphinguyenMember02 November 2021 20:42:59

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./.