Vietnam - Other taxes and levies
Vietnam - Other taxes and levies
Taxation of international executives
Social security tax
Are there social security/social insurance taxes in Vietnam? If so, what are the rates for employers and employees?
In Vietnam, there are statutory schemes on social insurance, health insurance, and unemployment insurance.
Social insurance
| Employer | Employee | |
|---|---|---|
| Social Insurance | 17.5% | 8% |
| Health Insurance | 3% | 1.5% |
| Unemployment Insurance | 1% | 1% |
Gift, wealth, estate, and/or inheritance tax
Are there any gift, wealth, estate, and/or inheritance taxes in Vietnam?
Yes, please refer to the previous section.
Income being foreign currency remitted by overseas Vietnamese to individuals in Vietnam is not subject to income tax.
Real estate tax
Are there real estate taxes in Vietnam?
Yes. Personal income tax is imposed on also income from overseas transactions. Any tax paid in overseas countries/jurisdictions can be credited in Vietnam, but not exceeding Vietnamese tax liabilities
Sales/VAT tax
Are there sales and/or value-added taxes in Vietnam?
Standard VAT in Vietnam is 10 percent. Lower rates of 0 percent or 5 percent may be applied to some goods or services.
Unemployment tax
Are there unemployment taxes in Vietnam?
Yes. It is Unemployment Insurance, which is applicable to only Vietnamese national sign indefinite contracts or definite contracts with employers having 10 Vietnamese employees or more.
Each of the employees and the employers are required to contribute 1 percent of the salary/wages used for social security contribution i.e. capped at 20 times of the monthly statutory regional salary.
Other taxes
Are there additional taxes in Vietnam that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
Custom duty and special consumption tax may be imposed if the assignee brings various goods crossing the border of Vietnam. Goods subject to these taxes include laptops, perfumes, cigarettes, alcohol, electric wares, and so on at volume exceeding the limits.
Foreign Financial Assets
Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?
No. Vietnam is not an OECD member hence there is no requirement in Vietnam to sign a Common Reporting Standard form for example.
Disclaimer
All information contained in this publication is summarized by KPMG Tax and Advisory Limited, the Vietnamese member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Personal Income Tax Law of 2007 and subsequent amendments; the Decree 65/2013/ND-CP of 27 June 2013 and subsequent amendments; the Circular 111/2013/TT-BTC of 15 August 2013 and subsequent amendments; the Web site of the General Department of Taxation; the Vietnamese Social Security Law of 20 November 2014; the Vietnamese Health Insurance Law of 14 November 2008 and its subsequent amendments; the Vietnamese Labour Code of 18 June 2012; the Vietnamese Law on entry, exit, transit and residence of foreigners in Vietnam of 16 June 2014.
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