This article offers a clear overview of Vietnam’s (VN) individual income tax framework for 2025. You’ll find a concise breakdown of who is taxed, how progressive rates are structured, and specific income brackets as dictated by Vietnam’s current regulations.
Current Structure of Individual Income Tax in Vietnam (2025)
Vietnam employs a progressive individual income tax system, meaning tax rates increase as your taxable income rises. Assessments in 2025 are based on total individual income, and no additional surtaxes or holding period requirements are presently in force.
Vietnam’s Individual Income Tax Brackets for 2025
For comprehensive readability, all figures are presented in Vietnamese Dong (VND, ₫). For convenience, USD equivalents are added (using an exchange rate of 1 USD = 25,000 VND).
| Taxable Annual Income (VND) | Taxable Annual Income (USD) | Rate (%) |
|---|---|---|
| ₫0 – ₫60,000,000 | $0 – $2,400 | 5% |
| ₫60,000,001 – ₫120,000,000 | $2,400 – $4,800 | 10% |
| ₫120,000,001 – ₫216,000,000 | $4,800 – $8,640 | 15% |
| ₫216,000,001 – ₫384,000,000 | $8,640 – $15,360 | 20% |
| ₫384,000,001 – ₫624,000,000 | $15,360 – $24,960 | 25% |
| ₫624,000,001 – ₫960,000,000 | $24,960 – $38,400 | 30% |
| Above ₫960,000,000 | Above $38,400 | 35% |
Tax rates apply progressively across brackets. For example, if annual taxable income is ₫130,000,000 ($5,200), the first ₫60 million ($2,400) is taxed at 5%, the income between ₫60 million and ₫120 million ($2,400–$4,800) at 10%, and the amount exceeding ₫120 million is taxed at 15%.
Key Features of Vietnam’s Tax System
- Currency: All tax liabilities are settled in Vietnamese Dong (VND).
- Assessment Basis: Tax is levied on total income earned by individuals.
- Progressivity: The more you earn, the higher your marginal tax rate within the set brackets.
- No Surtaxes: There are no additional surtaxes for high-income individuals in 2025.
- Holding Periods: No minimum holding periods or differentiated taxation for gains are currently enforced.
Pro Tips for Managing Individual Income Tax in Vietnam
- Document All Income Sources: Maintain thorough records, as authorities require substantiated income declarations for all global income sources if you are a tax resident.
- Leverage Allowable Deductions: Familiarize yourself with deductible expenses and family allowances to lower your taxable income within respective brackets.
- Monitor Exchange Rates: If you are compensated in foreign currency, be aware that VND conversion rates can impact your effective tax bracket and total liability.
- Plan Year-End Income: If your earnings approach the next tax bracket threshold, consider timing of receipts to minimize your marginal tax exposure.
- Consult Official Resources: For the most current updates, refer directly to the Ministry of Finance of Vietnam (mof.gov.vn).
Official Reference
For comprehensive legislative background and the latest forms, the official source is the General Department of Taxation of Vietnam.
To summarize, Vietnam’s 2025 individual income tax structure features a straightforward, progressive system, assessed against total annual income in VND. Most expats and business professionals will fall under these clear brackets, with rates ranging from 5% up to 35%. Key points to keep in mind: always cross-reference your income sources to the applicable brackets, leverage allowable deductions when possible, and monitor regulatory changes on official government platforms for the most up-to-date procedures and rates.