Personal income tax for foreigners in Vietnam: resident or non-resident, and what do you pay?

Personal income tax for foreigners in Vietnam turns on one question: is the individual a tax resident or a non-resident? A resident, whatever their nationality, pays tax on employment income at progressive rates of 5% to 35% after personal and dependant allowances, and is taxed on income arising inside and outside Vietnam. A non-resident pays a flat 20% on salary received for work performed in Vietnam, with no allowances (Articles 2, 8, 9 and 21 of the Law on Personal Income Tax 109/2025/QH15). The number of days only decides which of the two applies; it does not decide whether tax is due. Under domestic law, pay for work done in Vietnam is taxable from the first working day, although a double tax treaty may exempt or reduce it (see the treaty section below).

This guide on expat tax in Vietnam is for expatriate employees and for the HR and finance teams of the companies that pay them. The Law on Personal Income Tax 109/2025/QH15 (amended by Law 09/2026/QH16) and Decree 253/2026/ND-CP guiding it, together with the tax administration rules in Decree 252/2026/ND-CP, took effect on 1 July 2026; the rules on employment income of residents apply from the 2026 tax period (Article 29 of the Law; Article 69(1)(a) of Decree 253), so the old seven-band schedule and the previous allowances of VND 11 million and VND 4.4 million a month ceased to apply to that income (Article 29(3)). Individual pay packages should be checked by a tax adviser or a lawyer.

In this guide, "income subject to tax" means the amounts that fall within the tax base under Article 8 of Decree 253; "assessable income" means income subject to tax less deductions, the figure the rates apply to.

Personal income tax for foreigners in Vietnam: how many days make a tax resident?#

Tax residency in Vietnam is met by either of two tests (Article 2(2) of the Law; Article 4 of Decree 253):

1. Presence of 183 days or more in a calendar year, or in the 12 consecutive months from the first day of presence. The day of arrival and the day of departure each count as one day; if entry and exit fall on the same day it counts as one. The count follows the immigration records on the passport, travel document or related documents (Article 4(1) of Decree 253). This is the 183 days rule in Vietnam, but it is only one of two tests.
2. A regular place of residence: the permanent address on a permanent residence card, or the temporary address declared when applying for a temporary residence card; or a home leased for residence under the housing law, with total lease terms of 183 days or more in the tax year, counting several leases together. A leased home includes a hotel, guest house or workplace, whether the individual or the employer pays the rent (Article 4(2)).

Two points that are often missed:

• A temporary residence card or a long lease can make a person a resident even if present for fewer than 183 days. An individual with a regular place of residence who is present for fewer than 183 days is still a Vietnamese tax resident unless he or she proves tax residence in another country with a certificate of residence; where that country does not issue one, a copy of the passport is used (Article 4(3)). This is the wording of Article 4(2) and (3) itself, not an inference; how the tax authority checks the declared temporary address in practice should be confirmed.
• Arriving part-way through a year. If the individual is present for fewer than 183 days in the calendar year but for 183 days or more in the first 12 consecutive months, the first tax period is those 12 months. From the second year the calendar year applies if the individual is a resident in that year, and the tax of overlapping months is credited: first-year tax divided by 12, multiplied by the number of overlapping months (Article 66(1)(a) of Decree 253).

Illustration. An executive enters Vietnam on 1 October 2026 and stays. In 2026 he is present for 92 days, but by 30 September 2027 he has completed 12 consecutive months, so his first tax period runs from 1 October 2026 to 30 September 2027. If he finalises directly with the tax office, the deadline is the last day of the 4th month after the last day of the month in which the 12 months are completed, which is 31 January 2028 (Article 10(5)(c) of Decree 252/2026/ND-CP; finalisation period under Article 9(2)(dd)(2)). If the company finalises on his behalf, Article 10(5)(a) sets the last day of the 3rd month after the end of the finalisation period. The first-year finalisation period is the 12 consecutive months ending on 30 September 2027 (Article 9(2)(dd)(2)), so the deadline is 31 December 2027. The separate paragraph in Article 10(5)(c) covers only an individual who finalises directly, so for a company finalising on his behalf this is an application of point (a); the text gives no example of its own.

Personal income tax for foreigners in Vietnam who are residents: rates, allowances and an example#

For a foreign resident, tax is assessable income multiplied by the rate in the progressive schedule, wherever the income is paid (Article 8(1) of the Law; Article 46(1) of Decree 253). The schedule in Article 9 of Law 109:

Band	Assessable income per year (VND million)	Assessable income per month (VND million)	Rate
1	Up to 120	Up to 10	5%
2	Over 120 to 360	Over 10 to 30	10%
3	Over 360 to 720	Over 30 to 60	20%
4	Over 720 to 1,200	Over 60 to 100	30%
5	Over 1,200	Over 100	35%

Assessable income is employment income subject to tax for the period, less (Article 8(2) of the Law; Article 46(2) of Decree 253):

• Compulsory insurance. A resident paid abroad who has paid compulsory insurance under foreign law may also deduct it with proof of payment. Contributions to supplementary pension, voluntary pension and life insurance are deductible up to VND 3 million a month for all of them together. Social insurance for foreign employees is covered in our guide to social insurance for foreign employees.
• Personal allowance: VND 15.5 million a month (VND 186 million a year) for the taxpayer and VND 6.2 million a month for each dependant (Article 10(1) of the Law). A foreign resident gets the personal allowance from January each year, or from the month of arrival if present in Vietnam for the first time, until the month the employment contract ends and he or she leaves Vietnam (Article 48(1)(c) of Decree 253). Dependants must be registered with supporting documents before 31 December of the tax year and have average monthly income of no more than VND 3 million (Article 48(2)(a) of Decree 253; Article 3 of Circular 87/2026/TT-BTC). A foreign resident without the usual documents uses legal documents issued by the competent authority proving the relationship (Article 4(7) of Circular 87); the text does not say whether legalisation or translation is required.
• Other deductions: donations to licensed charitable and study-promotion bodies; medical costs in domestic facilities within the health-insurance list, up to VND 23 million a year in total; education costs in domestic institutions, up to VND 24 million a year in total, all with invoices in the name of the taxpayer or a dependant (Article 49 of Decree 253). The expense must not be paid from other sources, including amounts paid on the taxpayer's behalf by an organisation or individual (Article 49(3)(c)); school fees already paid by the company and left out of income subject to tax under Article 8(4)(g) therefore cannot be deducted again as education expense (Article 49(4)).

Illustration. Assumptions: a foreign technical director is a tax resident paid VND 100 million a month; no deductible insurance, no other income subject to tax, and no dependants unless stated.

• A. Salary only. Assessable income 100 − 15.5 = 84.5 million. Tax = 10×5% + 20×10% + 30×20% + 24.5×30% = 0.5 + 2 + 6 + 7.35 = VND 15.85 million a month.
• B. As A, with 1 dependant. Assessable income 100 − 15.5 − 6.2 = 78.3 million. Tax = 0.5 + 2 + 6 + 18.3×30% (5.49) = VND 13.99 million a month.
• C. As A, plus VND 30 million a month rent paid by the company. Rent counted at most 15% × 100 = 15 million, so assessable income is 100 + 15 − 15.5 = 99.5 million. Tax = 0.5 + 2 + 6 + 39.5×30% (11.85) = VND 20.35 million a month.

In case C, of the VND 30 million rent only VND 15 million (within the 15% cap) is added to income subject to tax; the part above the cap is not (Article 8(2)(h)). It assumes the company pays the landlord directly; our reading is that the 15% is measured on income subject to tax at the company before rent.

Personal income tax for non-resident foreigners in Vietnam: 20% and how income is allocated#

The non-resident tax rate in Vietnam is a flat 20%: tax equals total salary received for work performed in Vietnam multiplied by 20%, wherever the pay is made (Article 21 of the Law; Article 64(1) of Decree 253). There are no personal allowances or insurance deductions, because Articles 10 and 11 of Law 109 apply only to residents. Income subject to tax is defined as for residents (Article 64(2)), and tax is computed per occurrence of income (Article 66(2)).

If a non-resident works partly in Vietnam and partly abroad and the Vietnamese part cannot be separated, it is allocated as follows (Article 64(3)):

• Foreigner not present in Vietnam: (working days for work in Vietnam ÷ total working days in the year under the Labour Code) × global employment income before tax + other income subject to tax before tax arising in Vietnam.
• Foreigner present in Vietnam: (days present in Vietnam ÷ 365) × global employment income before tax + other income subject to tax before tax arising in Vietnam.

Illustration. Assumptions: a regional director, non-resident, global pay of VND 1.2 billion a year before tax, present in Vietnam for 90 days, Vietnamese income cannot be separated, no other benefits. Vietnam-source income = 90 ÷ 365 × 1,200 million ≈ VND 295.89 million. Tax = 20% × 295.89 ≈ VND 59.18 million.

Expat tax in Vietnam: which parts of the pay package are taxable?#

Employment income subject to tax covers salary, amounts of a salary nature, remuneration, benefits in cash or in kind, allowances and subsidies (Article 3(2) of the Law; Article 8 of Decree 253). The items most often seen in an expatriate package (basis is Decree 253 unless stated):

Added to income subject to tax:

• Salary and bonuses in cash or in kind, including bonuses in securities (Article 8(1) and (2)(i)). ESOP shares have a separate rule, see below.
• Rent, electricity, water and related services paid by the company: taxable at the amount actually paid but capped at 15% of the employee's total income subject to tax at the company (before these items); the excess is not added. Housing built by the company for an employee working at the unit is not taxable, including utilities and related services (Article 8(2)(h)).
• Meal allowance: the amount above VND 1.2 million per person per month is taxable (from 1 July 2026); meals served or meal vouchers issued are not (Article 8(2)(g); Article 69(1)(b)).
• Fees for tax advice or filing in the individual's name, and a domestic helper or driver hired for the individual (Article 8(2)(k)).
• Supplementary and voluntary pension paid by the company; the deduction is capped at VND 3 million a month, shared with life insurance (Article 8(2)(e); Article 46(2)(a)).

Not taxable, exempt, or not counted when received:

• An annual home-leave air ticket between Vietnam and the employee's country of nationality or of family residence, paid for a foreign employee (Article 8(4)(e)).
• School fees, nursery to high school, for the child of a foreign employee studying in Vietnam, paid by the company; non-compulsory health and accident cover without a savings element; job-related training (Article 8(4)(g), (h) and (i)).
• A one-off relocation allowance for a foreigner coming to reside in Vietnam, at the level stated in the posting decision, policy or employment contract (Article 8(3)(l)).
• Night-shift and overtime pay within legal limits: exempt, with a time record (Article 26; Article 4(8) of the Law).
• Life insurance and other non-compulsory insurance with a savings element, bought by the company: not counted as salary when the company buys it; a domestic insurer withholds 10% on the accumulated premium at maturity (for life insurance premiums from 1 January 2026, only on the part above VND 3 million a month); this guide does not go further (Article 50(3)(b)).

Foreign-currency income is converted at the buying rate of the commercial bank where the individual or payer holds the account, or, if the payer has no account in Vietnam, at the rate published by the State Bank (Article 17(1)).

Net salary arrangements. The base for conversion is net income received plus items paid on the employee's behalf, less deductions; where the employer applies a "notional tax" or "notional housing" policy, those items are left out (Article 46(4) of Decree 253). Net income received is defined as salary and wages excluding tax, and items paid on the employee's behalf are the other benefits the employer pays for the employee (Article 46(4)). Our reading is therefore that tax the company bears for the expat is handled through the conversion to taxable income, not added as a separate item paid on the employee's behalf. Decree 253 carries no conversion table (its annex is only a list of business lines), and we have not matched guidance that sets a conversion table for the new tax schedule. The gross-up must be calculated by an accountant from the actual contract.

Share awards. Bonus shares or shares bought at a discount under an ESOP are not counted as employment income when received. On transfer, the individual pays personal income tax on the salary element and, at the same time, tax on the securities transfer (Article 54 of Decree 253); the securities company or custodian bank where the account is held withholds 10% on the income subject to tax from the bonus or ESOP shares, and the individual adds that income to the annual salary finalisation (Article 50(3)(a)). The text we reviewed has no separate rule for restricted stock units or stock options granted by a foreign parent, so this guide takes no position on them.

Special exemptions. Foreign experts working on non-refundable ODA programmes or on projects financed by foreign non-governmental organisations are exempt on salary if they meet the conditions of Article 38 of Decree 253 (Article 4(20) of the Law); experts supporting innovative start-ups are exempt under Article 37(2). Law 109 also exempts for five years the salary of high-quality digital technology industry personnel and of high-technology personnel in the cases listed in Article 5(2) and (3); the text we reviewed does not exclude foreigners, and this guide does not go into the conditions.

When must a company withhold personal income tax for foreigners in Vietnam, and how does it file?#

Monthly withholding. For personal income tax for foreigners in Vietnam, the payer withholds on monthly assessable income using the progressive schedule (Article 50(1) of Decree 253). For a foreigner coming to work in Vietnam, the payer, including a Vietnamese party reimbursing salary cost to a foreign party, looks at the period of work in Vietnam stated in the contract or posting document: withholding follows the progressive schedule if work in Vietnam is 183 days or more in the tax year, and Article 64 (20%, the non-resident tax rate in Vietnam) if fewer than 183 days (Article 50(3)(c); Article 67(1)). For a 12-month contract starting mid-year, our reading is that "tax year" may mean the 12 consecutive months in Article 66(1)(a); the text gives no example. A resident without a contract, or with a labour contract under 3 months, paid VND 5 million or more per payment, is withheld at 10% (Article 50(2)).

Paid from abroad. Where a parent company abroad that is not registered for tax in Vietnam pays salary directly to a person working in Vietnam, the individual declares and pays personally (Article 67(5) of Decree 253). Residents paid by organisations abroad, and non-residents paid for work in Vietnam by foreign organisations not registered for tax in Vietnam, file quarterly on form 02/KK-TNCN (Article 22(1)(c)(1.2) and (1.3) of Circular 89/2026/TT-BTC; Appendix I).

Quarterly filing. The company declares tax withheld each quarter on form 05/KK-TNCN (Article 22(1)(a)(1) of Circular 89), due on the last day of the first month of the following quarter (Article 10(3) of Decree 252/2026/ND-CP). Tax paid late bears late-payment interest of 0.03% a day (Article 16(2)(a) of the Law on Tax Administration 108/2025/QH15).

Tax code. An individual's tax code is the personal identification number issued under the identity law; in other cases the tax office issues a code (Article 11(1) and (3) of the Law on Tax Administration). We have not found a rule that says how a foreigner without a personal identification number obtains a tax code. A person registering directly has 10 working days from the date the tax obligation arises; a company paying income registers on behalf of an individual without a code by the last day of the filing deadline for the first period in which it pays, and registers dependants by 31 December (Article 6(3)(a)(4) and (dd) of Decree 252). When a passport is replaced, the foreigner must notify the tax change within 20 working days from the date on the passport (Article 6(3)(e)(2)).

Finalisation of personal income tax for foreigners in Vietnam: who files, deadlines and leaving mid-year#

Who files, and authorisation. For personal income tax for foreigners in Vietnam, the paying company and residents with employment income finalise annually, except individuals whose tax payable is less than tax paid and who do not seek a refund or offset (Article 51(1)(a) of Decree 253). Separately, additional income elsewhere averaging no more than VND 15 million a month in the year that has been withheld at 10% under Article 50(2) need not be finalised; only that income is left out, not the individual (Article 51(1)(b)). A person with a single source of salary under a labour contract of 3 months or more at one organisation, who is actually still working there at the time of finalisation, may authorise the company to finalise on his or her behalf (Article 51(2)); he or she must finalise personally when claiming relief for disaster or illness or asking for the deductions in Article 49 to be applied (Article 51(3)). The authorisation uses form 08/UQ-QTT-TNCN; the company files 05/QTT-TNCN and an individual who finalises personally files 02/QTT-TNCN (Article 22(1)(a.4), (b) and (c.4) and Appendix I item 7.1 of Circular 89/2026/TT-BTC). For the employer side of the 2026 return, see personal income tax finalization in Vietnam.

Deadlines. The finalisation period is the calendar year; the first year can be 12 consecutive months, whose deadline is in the illustration above (Article 9(2)(dd)(2) of Decree 252). Under Article 10(5) of Decree 252:

• A company finalising on behalf of employees: the last day of the 3rd month after the finalisation period (2026: 31 March 2027).
• An individual with salary finalising directly with the tax office: the last day of the 4th month after the end of the calendar year (2026: 30 April 2027).
• A foreign resident whose employment contract in Vietnam ends: before leaving Vietnam, but no later than 45 days after the contract ends.

Leaving before year-end. A foreign resident whose contract in Vietnam has ended must finalise with the tax office before leaving, or authorise another organisation or individual to finalise, and remains responsible for tax due (Article 50(3)(c) of Decree 253). Our reading: the right to authorise the employer in Article 51(2) requires the employee to be "actually working" at the company at the time of finalisation, so a departed expat should normally authorise someone else or finalise before departure. Finalising before leaving is also the moment to claim a refund if tax was overpaid.

Unfinished tax can hold up the trip: a foreigner with overdue tax debt who has not completed the obligation falls within the cases in which an exit suspension may be imposed, with no minimum amount; the measure follows a notice from the tax authority (Article 28(1)(d) and (3) of Decree 252; Article 17(5)(c) of the Law on Tax Administration).

Income from abroad and tax treaties#

A resident is taxed on income arising inside and outside Vietnam (Article 6(2)(a) of Decree 253). Where Vietnam has a double tax treaty with the other country, personal income tax already paid abroad is credited against the Vietnamese tax under the treaty (Article 6(3)). That is the direction for a Vietnamese resident.

The opposite direction is a resident of the treaty partner working in Vietnam: a treaty may exempt or reduce the tax that domestic law imposes on salary. Tax residency in Vietnam under domestic law and residence under a treaty are different tests. Each treaty has its own article on employment income and its own day-count conditions, so the treaty between Vietnam and the individual's country must be read; this guide does not list treaties. The 183 days rule in Vietnam does not make a shorter stay tax-free: under domestic law the 20% rate applies from the first day, and relief needs the treaty's conditions and dossier.

The dossier under Article 76 of Circular 89/2026/TT-BTC is filed by an individual who is a resident of a foreign country, or by the Vietnamese party that signs the contract or pays the income, together with the first tax return. For salary it includes: the request on form 01/HTQT (point a); a certificate of residence issued by the tax authority of the country of residence, consularly legalised, showing the individual as a resident in the tax year, or the certificate for the preceding year if the one for the requested year is not yet available (point b); the employment contract with an employer abroad, if any (point c); the employment contract in Vietnam (point d); and a copy of the passport used for entry and exit (point dd), with an undertaking of responsibility for the copies. The certificate for the requested year must be supplied within 15 days before the contract or the tax year ends, whichever comes first (Article 76(3)).

2026: rules before and after 1 July 2026#

The changeover affects personal income tax for foreigners in Vietnam differently for residents and non-residents.

• Employment income of residents: Law 109 (five bands, allowances of VND 15.5 million and VND 6.2 million) applies to the whole 2026 tax period, including the months before 1 July 2026 (Article 29(2) and (3) of the Law; Article 69(1)(a) of Decree 253). A company that filed and paid for January to June 2026 under the old rules does not refile; it adjusts in the 2026 finalisation (Article 70(2) of Decree 253).
• Income of non-residents: Law 109 applies from 1 July 2026 (Article 29(1) of the Law); income paid before that date follows the old law, which this guide does not cover.
• 2025 finalisation follows the old law; we did not review it. Returns for tax periods before 1 July 2026 use the old forms (Article 100 of Circular 89/2026/TT-BTC).

See also the immigration side in work permit exemption in Vietnam, tax when an individual sells shares in a Vietnamese company in capital transfer tax in Vietnam, and the paying company's own tax in how to calculate corporate income tax in Vietnam. LexData's work permit service covers the permit side; the calculation and payment of tax are for the company, its accountants or a tax agent.