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Vietnam

Taxes

Want to setup a company in Vietnam? This will tell you about the specific tax laws and rates for a LLC - (Wholly Foreign Owned) which is the most common company type in Vietnam.

Vietnam resident entities are liable to corporate tax on their worldwide income. The headline estimated rate for income remitted, from our research, and this is not personal tax advice, is 20%. Vietnam may not have exemptions to transfer in foreign earned profits. Taxes are reasonable in Vietnam as the income corporate tax rate is 20%. This ranks Vietnam as 70th overall in terms of corp. taxation rate internationally. Vietnam may have higher tax rates on income from operations of oil, gas or natural resources. Certain companies involved in certain activities in economically disadvantage areas may have reduced rates of 17%, 15% or full exemption.

The value added tax (VAT) rate is 10.00%, that ranks Vietnam as 46th overall in terms of VAT taxation rate internationally. In terms of other taxation, an employer will contribute 22% to the equivalent of a social security fund and an employee will contribute 10.5%. The overall complexity of the tax system is high. This is measured by average time to comply with a country's labor tax requirements is as it is 335hours. Contributing to this is the number of yearly labor tax payments, which is 1 in VN.

Thin cap restrictions aren't in effect. Thin capitalisation refers to any sort of laws on a business and the debt-to-asset ratios. Dividends between resident companies are not taxable. Dividends received from foreign entities may be taxable, but a tax credit for foreign tax paid up to Vietnam tax rate may be available. A dividend is a payment of earnings of the business, determined by the board of directors, to a class of its shareholders. Dividends can be either cash payments, shares of stock, or other property. Capital Gains are usually subject to Corporate Income Tax. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

There is no withholding tax on dividend payments to non-resident entities. However, a 5% withholding tax may apply if dividends are paid to foreign-individuals. Interest and royalties paid to non-resident entities are subject to a withholding tax rate of 5% and 10%, respectively.
There is no known tax on wealth in Vietnam. There are inheritance and real property taxes. We are aware of popular and well known research and development tax incentives in Vietnam.

The above is not tax or legal advice for your particular circumstances. We are able to refer you to an expert in Vietnam who can properly advise you. Ready to get started? Click the free consultation button above or press incorporate now if you are in a hurry.

Country details

Vietnam
VND
Hanoi
Asia
Vietnamese, English, French (Standard), zh, km
89,571,130

Tax treaties

Country Type Date Signed
India DTC  1994-09-07
Qatar DTC  2009-05-08
Canada DTC  1997-11-14
Sweden DTC  1994-03-24
Denmark DTC  1995-05-31
Seychelles DTC  2005-10-04
Malaysia DTC  1995-09-07
Poland DTC  1994-08-31
Hungary DTC  1994-08-26
Italy DTC  1996-11-26
Ireland DTC  2008-03-10
Australia DTC  1992-04-13
Saudi Arabia DTC  2010-04-10
United Arab Emirates DTC  2009-02-16
Czech Republic DTC  1997-05-23
Former Yugoslav Republic of Macedonia DTC  2014-10-15
Korea, Republic of DTC  1994-05-20
Hong Kong, China DTC  2008-12-16
New Zealand DTC  2013-08-05
Israel DTC  2009-04-08
Norway DTC  1995-06-01
Slovakia DTC  2008-10-27
Japan DTC  1995-10-24
Iceland DTC  2002-04-05
Finland DTC  2001-11-21
Luxembourg DTC  1996-03-04
United Kingdom DTC  1994-04-09
Morocco DTC  2008-11-24
Uruguay DTC  2014-12-09
Philippines DTC  2001-11-14
Pakistan DTC  2004-03-25
Tunisia DTC  2010-04-13
Switzerland DTC  1996-05-06
Indonesia DTC  1997-12-22
Brunei Darussalam DTC  2007-08-16
Russian Federation DTC  1993-05-27
San Marino DTC  2013-02-14
France DTC  1993-02-10
China DTC  1995-05-17
Turkey DTC  2014-07-08
Netherlands DTC  1995-01-24
Singapore DTC  1994-03-02
Belgium DTC  1996-02-28
Germany DTC  1995-11-16
Austria DTC  2008-06-02
Ukraine DTC  1996-04-08
Spain DTC  2005-07-03

Tax treaties Map

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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