Taxation Services
Vietnam is emerging as a prime destination for business expansion and market penetration in Asia, thanks to its strategic location, skilled labor force, and relatively low cost of living. Positioned at the heart of Southeast Asia, Vietnam offers an advantageous logistics hub for neighboring countries, making it a compelling choice for investors. The country’s rich culture and promising economic prospects further enhance its appeal. Despite the challenges posed by the global pandemic in the past, Vietnam is showing strong signs of recovery, attracting entrepreneurs and foreign nationals eager to tap into its booming market.
The Vietnamese government is committed to fostering economic growth by simplifying the process for businesses to establish operations in the country. While there are certain regulatory standards and processes to follow, they are designed to be straightforward and efficient. A key aspect of operating in Vietnam is understanding its taxation system, which, while comprehensive, is structured to support compliance. This article will take a better look into the essential details companies need to know about Vietnam’s tax laws to ensure successful and compliant business operations.
The Importance of Professional Taxation Services in Vietnam
Navigating a Complex Tax Environment
Vietnam’s business landscape is dynamic, and its tax regulations evolve regularly to keep pace with economic growth and international standards. The tax system includes Corporate Income Tax (CIT), Value Added Tax (VAT), and Withholding Tax (WHT), each governed by detailed rules and filing procedures. Frequent legislative updates and differing interpretations by local authorities can create uncertainty for companies. In this context, taxation services play a crucial role in helping businesses remain compliant, accurate, and efficient in their tax management.
Ensuring Compliance and Reducing Risk
Accurate tax calculation and timely submission are essential to avoid penalties, audits, or reputational damage. Taxation services ensure that all obligations are met according to Vietnamese regulations, allowing companies to maintain a clean compliance record. Beyond meeting deadlines, effective tax management supports transparency and helps build trust with stakeholders, investors, and regulatory bodies.
Optimizing Financial Planning and Efficiency
Proper tax planning provides businesses with better visibility over their financial position. By understanding tax liabilities in advance, companies can forecast expenses more accurately and allocate resources strategically. For foreign investors, expert tax support is especially important, as unfamiliarity with local practices or language barriers can easily lead to compliance challenges or overlooked incentives.
Leveraging Incentives for Strategic Growth
Vietnam offers numerous tax incentives for specific sectors, investment zones, and business activities. Taxation services help identify and apply these incentives correctly, enabling companies to reduce their tax burden legally while enhancing operational efficiency. Ultimately, effective tax management is not only about compliance, as it is a key factor in achieving long-term business success in Vietnam’s competitive market.
Primary Taxes for Foreign Companies Operating in Vietnam
Corporate Income Tax
In Vietnam, foreign companies are subject to Corporate Income Tax (CIT), which generally varies based on the nature of their business and location. The standard CIT rate is 20%, but certain enterprises may qualify for lower rates depending on their annual revenue or if they operate in incentivized sectors or regions. Specifically, businesses with annual revenue of VND 3 billion or less are eligible for a 15% CIT rate, while those earning between VND 3 billion and VND 50 billion qualify for a 17% rate. The CIT is paid quarterly on a provisional basis, with final tax filings required annually.
Value-Added Tax
Value-Added Tax (VAT) applies to all companies operating in Vietnam, including foreign enterprises. The standard VAT rate is 10%, but certain sectors may benefit from reduced rates ranging from 0% to 5%, depending on the goods or services provided. VAT is assessed monthly or quarterly, with companies required to file VAT returns and make payments on a monthly or quarterly basis.
Personal Income Tax
Personal Income Tax (PIT) in Vietnam is applicable to all companies that have employees, including those with foreign operations. The PIT rates on income from salaries, wages applied for residents are progressive, ranging from 5% to 35%, depending on the income level of individuals. This tax is calculated on a monthly basis, with companies needing to file returns and make payments , monthly, quarterly and yearly finalization.
Business License Tax
Business License Tax will be abolished from Jan 1, 2026.
Upsides of Outsourcing Your Tax Compliance
Ensure comprehensive compliance with your statutory and tax obligations by implementing consistent and efficient processes. By outsourcing, you can maintain a lean statutory accounting and tax team with minimal local presence while effectively managing potential compliance risks. This approach also enhances data quality and provides full visibility into your statutory accounting and tax operations, ensuring you remain fully compliant and informed at all times.
VAT Obligations for Foreign Digital Service Providers in Vietnam
Foreign digital service providers engaging in B2C sales in Vietnam are required to register, charge, and remit a 10% VAT. Effective July 1, 2025, foreign suppliers without a permanent establishment in Vietnam that conduct e-commerce business or digital platform-based business with organizations and individuals in Vietnam; organizations that are managing of foreign digital platforms that deduct and pay tax obligations on behalf of foreign suppliers; business organizations in Vietnam that apply the value-added tax calculation method of deducting tax on purchased services from foreign suppliers without a permanent establishment in Vietnam through e-commerce channels or digital platforms that deduct and pay tax obligations on behalf of foreign suppliers.
Premia TNC’s Holistic Support
Tax Planning and Compliance Support
Premia TNC offers comprehensive tax advisory services to help businesses in Vietnam achieve tax efficiency. We advise on tax-efficient business models, provide tailored tax planning strategies, and keep clients informed about the latest tax regulations. Our team assists in preparing necessary documentation, calculating tax liabilities, and submitting tax compliance reports on a monthly, quarterly, and annual basis. We also guide clients on tax incentives and exemptions to reduce tax liability in compliance with Vietnam’s regulations.
Specialized Tax Services
To address specific needs, Premia TNC provides expert assistance in various tax-related areas. We offer VAT refund services for exporters, foreign tourists, and Vietnamese citizens residing abroad, ensuring a smooth and straightforward process. Our tax review services act as a "health check" for businesses, identifying potential tax risks and optimizing tax positions for long-term sustainability. Additionally, our tax health check services help clients proactively identify and mitigate potential tax risks, foster a positive relationship with tax authorities, and ensure compliance.
Perks of Partnering with Premia TNC
Choosing Premia TNC for your tax, accounting, and auditing needs in Vietnam offers significant advantages over building an in-house team. With ever-evolving Vietnamese tax laws, Premia TNC’s experts stay constantly updated on the latest regulations, ensuring your business remains compliant and avoids costly penalties. Additionally, you gain immediate access to a dedicated team of professionals who are on call to provide timely and accurate advice as your business scales. Premia TNC ensures a seamless process through direct meetings to clarify your specific requirements, targets, and concerns. Our experienced accounting team takes on the responsibility of liaising with tax authorities on your behalf, allowing you to focus on core business activities. We provide tailored action plans and strategies to effectively manage both domestic and international tax matters, ensuring optimal tax outcomes. Furthermore, we keep you informed about the latest tax incentives and policies, offering clear guidance on compliance and helping you make informed decisions.
By outsourcing to Premia TNC, you free up valuable resources, allowing you to focus on other critical areas of your business, ultimately fostering growth and efficiency.
Frequently Asked Questions
All companies in Vietnam must comply with tax regulations, including registering financial invoices with the tax office and obtaining red invoices (VAT invoices). These invoices are crucial for marketing products and services and must be purchased under government supervision. Companies are also required to submit tax statements to the relevant tax offices.
Tax payments in Vietnam can be made online, as mandated by Circular No. 110/2015/TT-BTC. The Law on Tax Administration requires all businesses to conduct electronic tax procedures, including registration, filing, and payments.
The Ministry of Finance (MOF) handles tax rate adjustments and remittances, while the State Bank of Vietnam (SBV) regulates banking, foreign exchange, and bank licensing.
Key taxes include value-added tax (VAT), corporate income tax (CIT), personal income tax, and business license tax. CIT is only from 15% and is considered as lower than Asia’s average rate.
Late tax payments incur a penalty of 0.05% of the outstanding amount per day of delay.
Mistakes include using cash for payments over VND 5 million, which is prohibited, and failing to balance expenditures and revenues within the same period. Companies also often overlook transfer pricing documentation for international related-party transactions.
To navigate complex and evolving tax laws, businesses are advised to seek assistance from professional tax consulting and accounting firms. These experts help ensure compliance and reduce tax burdens.
Taxation services are vital in Vietnam due to the country’s complex and ever-evolving tax regulations. Businesses must comply with multiple tax types, such as Corporate Income Tax (CIT), Value Added Tax (VAT), and Withholding Tax (WHT), all of which are subject to frequent updates and varying local interpretations. Professional taxation services help companies stay compliant, avoid costly penalties, and maintain accurate tax records. They also provide expert guidance on managing obligations efficiently, ensuring that businesses can focus on growth while minimizing compliance risks.
Effective taxation services go beyond compliance by supporting strategic financial planning and optimization. Through careful tax planning, businesses gain better insight into their financial obligations and can identify available tax incentives offered by the Vietnamese government. This allows them to minimize their tax burden legally, improve cash flow, and enhance overall operational efficiency. For foreign investors, taxation services are especially valuable as they help navigate local regulations, language barriers, and complex filing procedures, ensuring that tax strategies align with both local laws and broader business objectives.