Personal Income Tax Rates for Foreign Employees in Vietnam
Nationality doesn't determine a foreign employee's PIT rate — tax-residency status does. A resident's employment income is taxed on a progressive schedule from 5% to 35% after deductions; a non-resident's Vietnam-sourced employment income is taxed at a flat 20%.
Residency Status Decides the Rate
Whether you're taxed on a progressive schedule or a flat rate turns entirely on your Vietnam tax-residency status, not your passport. A resident isn't automatically taxed more overall — the deductions applied before the progressive rates can offset that, particularly at lower income levels.
Progressive Rates for Tax Residents
A Vietnam tax resident's employment income is taxed on a 5-bracket progressive schedule, applied after deductions.
| Monthly assessable income | PIT rate |
|---|---|
| Up to VND 10 million | 5% |
| Over VND 10–30 million | 10% |
| Over VND 30–60 million | 20% |
| Over VND 60–100 million | 30% |
| Over VND 100 million | 35% |
Flat Rate for Non-Residents
A non-resident's employment income taxable in Vietnam is subject to a flat 20% rate instead of the resident progressive schedule — and only on income considered to arise in Vietnam, not worldwide income.
Legal basis: Law on Personal Income Tax No. 109/2025/QH15, effective 1 July 2026, as amended by Law No. 09/2026/QH16. This content was manually researched and reviewed by RedTab (last reviewed 12 August 2026) rather than sourced through RedTab's usual citation-verification process for its service pages — general regulatory information, not a legal or tax opinion for any specific individual. Content last verified 2026-08-12.
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