Vietnam Tax Rates 2026: Personal Income Tax, Corporate Tax, VAT and Foreign Contractor Tax
Updated: 3 September 2026This guide summarises the main Vietnam tax rates applicable in 2026, including the new personal income tax rules, corporate income tax, value added tax, foreign contractor tax, personal deductions, social insurance and selected capital-income rules.
Vietnam Resident Personal Income Tax Rates - 2026
For resident individuals, taxable employment income is subject to progressive personal income tax after allowable deductions. Under Law No. 109/2025/QH15, the progressive schedule applicable for the 2026 tax period has five bands:
| Annual taxable income (VND million) | Monthly taxable income (VND million) | Rate |
|---|---|---|
| Up to 120 | Up to 10 | 5% |
| Over 120 to 360 | Over 10 to 30 | 10% |
| Over 360 to 720 | Over 30 to 60 | 20% |
| Over 720 to 1,200 | Over 60 to 100 | 30% |
| Over 1,200 | Over 100 | 35% |
Personal and Dependant Deductions - 2026
From the 2026 tax period, the personal deduction is VND 15.5 million per month (VND 186 million per year) and the deduction for each qualifying dependant is VND 6.2 million per month. These amounts replace the previous VND 11 million and VND 4.4 million monthly levels.
Mandatory social insurance, health insurance and unemployment insurance contributions and other deductions allowed under the Personal Income Tax Law may also reduce taxable employment income.
Vietnam Non-Resident Personal Income Tax
Non-resident individuals are generally taxed only on Vietnam-source income. Employment income is generally subject to a flat 20% personal income tax rate. Other categories such as business income, securities transfers, real-estate transfers, royalties, franchising, prizes, inheritance and gifts are taxed under the specific rates and bases prescribed by the Personal Income Tax Law.
Corporate Income Tax Rates in Vietnam - 2026
The standard corporate income tax rate remains 20%. Under the current Corporate Income Tax Law and Decree No. 320/2025/ND-CP, reduced rates apply to qualifying enterprises based on annual revenue.
| Enterprise | Corporate income tax rate |
|---|---|
| General corporate taxpayers | 20% |
| Qualifying enterprises with annual revenue not exceeding VND 3 billion | 15% |
| Qualifying enterprises with annual revenue over VND 3 billion up to VND 50 billion | 17% |
| Oil, gas and specified rare/natural-resource activities | Special rates may apply under the law and project terms |
Vietnam also provides preferential corporate tax rates and tax holidays for qualifying investment projects, sectors and locations. Eligibility depends on the applicable Corporate Income Tax Law, implementing decree and project conditions.
Value Added Tax Rates in Vietnam - 2026
The statutory standard VAT rate is 10%. A 5% rate and a 0% rate apply to specified supplies under the VAT Law.
Under Resolution No. 204/2025/QH15 and Decree No. 174/2025/ND-CP, qualifying goods and services that would ordinarily be taxed at 10% are temporarily taxed at 8% from 1 July 2025 through 31 December 2026. Excluded categories include specified telecommunications, finance, banking, securities, insurance, real estate, metals, mining products and certain special-consumption-tax goods and services.
Foreign Contractor Tax in Vietnam - 2026
Foreign organisations and individuals earning Vietnam-source income without fully adopting the Vietnamese accounting and tax regime may be subject to the foreign contractor tax mechanism. Depending on the activity, tax is commonly calculated as deemed VAT and deemed corporate income tax percentages of taxable revenue.
| Typical activity | Deemed VAT | Deemed CIT |
|---|---|---|
| Distribution / supply of goods | Generally 1% or exempt depending on the transaction | 1% |
| Services | 5% | 5% |
| Restaurant, hotel or casino management services | 5% | 10% |
| Services associated with goods where contract values are not separated | 3% | 2% |
| Construction / installation | Rate depends on whether materials are supplied | Generally 2% |
| Loan interest | Not generally subject to deemed VAT | 5% |
| Royalties | Depends on the transaction | Generally 10% |
From 2026, taxpayers should also review Circular No. 20/2026/TT-BTC and the current VAT and Corporate Income Tax implementing rules when determining the foreign contractor revenue base and applicable percentages.
Capital Income, Securities and Real Estate
Vietnam does not operate one universal capital-gains tax rate for individuals. Different rules apply according to the type of income or asset. The current Personal Income Tax Law governs securities transfers, capital transfers, real-estate transfers, dividends, interest, royalties, franchising, inheritance and gifts.
Corporate gains are generally included in taxable corporate income and taxed under the corporate income-tax regime, subject to specific rules for asset and capital transfers.
Social Insurance and Payroll Contributions
Employees and employers remain subject to compulsory social insurance, health insurance and unemployment insurance contributions where applicable. The contribution base and ceilings are governed by the Social Insurance Law and related regulations and should be checked against the employee's contract status and applicable statutory salary limits.
Tax Filing and Payment
Vietnam operates monthly, quarterly and annual tax reporting depending on the tax type, taxpayer category and filing method. Annual corporate income tax and personal income tax finalisation normally follows the statutory deadlines measured from the end of the calendar or financial year. Specific extensions may apply under Government decrees.
For 2026, Decree No. 245/2026/ND-CP provides extensions for certain VAT, corporate income tax, personal income tax and land-rent payments for eligible taxpayers. Businesses should confirm whether they fall within the covered categories before applying an extended deadline.
Official Vietnam Tax Resources
- Government of Vietnam - Personal Income Tax Law No. 109/2025/QH15
- Government Portal - 2026 Progressive Personal Income Tax Schedule
- Ministry of Finance - 2026 Personal and Dependant Deductions
- Ministry of Finance - 2026 Corporate Income Tax Rates
- Government of Vietnam - Resolution No. 204/2025/QH15 on VAT Reduction
- Ministry of Finance - VAT Reduction to 8% Through 31 December 2026
- Ministry of Finance - Foreign Contractor Tax Overview
- Government of Vietnam - Decree No. 245/2026/ND-CP on 2026 Tax Payment Extensions
This page is a general tax-rate summary. The current Personal Income Tax Law, Corporate Income Tax Law, VAT Law, implementing decrees, Ministry of Finance circulars and applicable double-tax agreements should be reviewed for a specific taxpayer or transaction.
Historical Vietnam Tax Rates - Archive
Archive only: The older information below is retained for historical reference and should not be used as current 2026 tax law.
Historical seven-band resident PIT schedule
| Annual taxable income (VND million) | Historical rate |
|---|---|
| 0-60 | 5% |
| 60-120 | 10% |
| 120-216 | 15% |
| 216-384 | 20% |
| 384-624 | 25% |
| 624-960 | 30% |
| Over 960 | 35% |
The earlier page also recorded the former VND 9 million personal deduction, VND 3.6 million dependant deduction, 22% corporate rate applicable from 2014 before the later 20% standard rate, and historical foreign contractor tax rules. These figures are preserved only as archive material.