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Withholding tax in Vietnam 2026
Non-residents pay 20% flat on Vietnam-source employment income with no deductions, while their investment income runs at the standard flat rates — 5% dividends, 0.1% securities, 2% real estate.
For residents, the notable withholding is 10% where a payment reaches VND 2 million and goes to a freelancer or short-term worker without a labour contract.
At a glance
- top rate
- 20% (non-resident salaries)
- entry band
- 0.1% on securities transfers
- tax year basis
- Withheld per payment or transaction
- filing deadline
- Payer remits by the 20th of the following month
- residency basis
- Vietnam-source payments
- regime flag
- Treaty exemption applications due 15 days before the contract starts
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 20% | Gross salary | Employment income sourced in Vietnam — flat, no deductions |
| 5% | Gross | Dividends and capital-investment income; royalties and franchise fees above VND 20 million per contract |
| 0.1% | Transfer price | Securities and digital assets |
| 2% | Transfer price | Real estate; contributed capital where gains cannot be shown (else 20% on the gain) |
| 10% | Excess over VND 20 million | Prizes, inheritances and gifts |
| 1% – 5% | Turnover | Business income by sector — 1% goods, 5% services and digital content, 2% production and other |
Withholding residents meet (2026)
| Rate | Base | Applies to |
|---|---|---|
| Progressive (5-35%) | Monthly salary | Employer withholding, finalized annually |
| 10% | Payments of VND 2 million+ | Freelancers and workers without a 3-month labour contract — creditable; waivable by written commitment for low earners with a tax code |
| 5% / 0.1% / 2% | Per transaction | Investment income, securities and property — withheld by the payer at the flat rates |
Thresholds & allowances
- Freelancer thresholdVND 2 million per payment
Below this, no 10% withholding applies
- Royalty thresholdVND 20 million per payment or contract
Only the excess is taxed at 5%
Residency
Residency trigger
Vietnam withholds at source on almost everything; the payer carries the duty to withhold, declare and remit per transaction or by the 20th of the following month.
Non-resident treatment
Treaty relief exists but is not automatic — the exemption application must reach the local tax office at least 15 days before the contract is performed.
Notes
- Employees of overseas head offices, embassies and international bodies can opt to self-declare monthly instead of employer withholding.
- Departing resident foreigners finalize their tax up to the month of departure, and employers must notify the tax authorities.
- The rental-income declaration is due by the 10th day of each rental period or by 31 January of the following year, at the taxpayer's choice.
- Written tax-office letters (issued within about 30 days, free) protect compliant taxpayers from penalties but are not binding law.
FAQ
What withholding applies to non-residents in Vietnam?
A flat 20% on salaries, 5% on dividends and royalties over VND 20 million, 0.1% on securities and 2% on property prices — mostly final.
Do freelancers face withholding in Vietnam?
Yes — 10% is withheld from payments of VND 2 million or more without a labour contract, creditable at year-end or waivable for low earners who sign a commitment.
Figures: tax year 2026, compiled from public sources. Not tax advice.