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Navigating Tax and
Accounting in Vietnam
Navigating tax and accounting policy can be a confusing process even for the most prepared
business professional. It is therefore recommended that businesses take a careful look at all relevant
regulations and engage a professional where appropriate to ensure proper compliance with all laws.
In Vietnam, most businesses and investors will find themselves subject to some form of tax. Once
registered, all companies, whether or not they are operational or profit centers, must file tax declarations.
Companies and individuals are subject to a range of taxes in Vietnam - these include corporate
income tax (CIT), value-added tax (VAT), and personal income tax (PIT). Complicating matters are
the range of double taxation agreements (DTA) to which Vietnam subscribes. Careful application of
the tax regulations and the relevant DTA can greatly improve the taxpayer’s outcome.
All taxes in Vietnam are imposed at the national level, i.e. there are no local, state or provincial taxes.
Enterprises should pay tax in localities where they are headquartered or have duly registered branches.
Most companies and foreign investors in Vietnam are subject to the following major taxes:
a. Business license tax
b. Corporate income tax
c. Value-added tax
d. Special consumption tax
e. Foreign contractor tax
f. Customs duties
g. Personal income tax
Additionally, there are a number of important tax incentives that can create a further favorable
tax environment to operate in. It should be noted that many of the tax incentives and DTA can be
confusing and it can be difficult to discernwhether or not a company qualifies. Therefore it is strongly
suggested that you engage professional advice before moving ahead with any specific tax plan.
Hoang Thu Huyen Country Manager Vietnam Dezan Shira & Associates