VN Tax: Types and Rates

VN tax (tax in Vietnam) is an important part of participating in the economic market in Vietnam. Mastering that knowledge will help you easily integrate with the economy as well as avoid unnecessary legal problems.

VN tax law

As the business landscape in Vietnam continues to evolve, understanding the country’s tax laws is crucial for any individual or company doing business in the country. Vietnam has a complex tax system that covers a range of taxes, including personal income tax, corporate income tax, and value-added tax. In this article, we will discuss the different types of taxes in Vietnam, their regulations, and how to comply with them. We will also provide important data and statistics that will help readers understand the tax landscape in Vietnam and how to navigate it effectively.

Types of taxes in Vietnam

Vietnam has a comprehensive tax system that includes different types of taxes. Some of the most significant ones include personal income tax, corporate income tax, and value-added tax.

VN tax: personal income tax

Personal income tax is a tax that individuals must pay on their income. In Vietnam, personal income tax rates range from 5% to 35%, depending on income level. The tax is based on a progressive tax system, meaning the more a person earns, the higher their tax rate. For the 2020 tax year, the tax exemption for personal income was VND 11 million (approximately $480 USD). As of 2021, individuals who earn less than VND 100 million (approximately $4,350 USD) per year are eligible for a 10% reduction in personal income tax.

To comply with personal income tax regulations, individuals must register with the local tax authority and file their tax returns annually. The tax year in Vietnam runs from January 1 to December 31. Failure to comply with personal income tax regulations can result in fines and penalties.

Corporate income tax in Vietnam

Corporate income tax is a tax that companies must pay on their profits. In Vietnam, the corporate income tax rate is 20% for most companies. However, companies that operate in certain industries or locations may be eligible for tax incentives, which can lower their tax rate.

To comply with corporate income tax regulations, companies must register with the local tax authority and file their tax returns annually. The tax year in Vietnam runs from January 1 to December 31. Failure to comply with corporate income tax regulations can result in fines and penalties.

Value-Added Tax (VAT) in Vietnam

Value-added tax is a tax that is applied to the value added at each stage of the production and distribution process. In Vietnam, the VAT rate is 10%, with some goods and services subject to a reduced rate of 5%. Companies that sell goods or provide services subject to VAT must register with the local tax authority and charge VAT on their sales. They must also file their VAT returns periodically.

To comply with VAT regulations, companies must keep detailed records of their sales and purchases, and ensure that they charge and remit the correct amount of VAT. Failure to comply with VAT regulations can result in fines and penalties.

Last words for VN tax

In conclusion, understanding the tax system in Vietnam is crucial for anyone doing business in the country. Vietnam has a complex tax system that covers a range of taxes, including personal income tax, corporate income tax, and value-added tax. To comply with tax regulations, individuals and companies must register with the local tax authority and file their tax returns annually. Failure to comply with tax regulations can result in fines and penalties.

To learn more about Vietnam tax laws and regulations, we encourage you to consult with a qualified tax professional. As a leading provider of tax services in Vietnam, we can help you navigate the country’s tax landscape and ensure compliance with all regulations. We wish you speedy success on your economic journey in the not-too-distant future.

You can read the article about office lease contracts here: Vietnam economy growth strongly despite difficulties

Or follow us on Facebook