Vietnam » Taxes

Taxation in Vietnam is ambiguous because there is no aggregate income tax in Vietnam. The laws are being modified and changed every year. Each category of income which includes business income, regular income, and income through real estate transactions are taxed individually, at different tax rates. Given below is International Property Broker’s guide to Taxation system of Vietnam;

Income Tax

A 25% of tax is applicable on foreign nationals who are generating income from Vietnam and their residency period is less than 183 days in Vietnams in a year’s time. Foreign individuals, who are running businesses in Vietnam, are also taxed at the rate of 25% under the name of business income tax.

Withholding Tax

A withholding tax of 7% is levied on repatriation of profit less that 5 Million US Dollars.

Land and Housing Tax

In Vietnam land usage for the construction of an apartment, lease or for sale is free of all the taxes.

Capital Gains Tax

Capital sales tax is applicable on the sale and transfer of a house or the right to use a land for the construction purposes. The profit is the difference between the actual cost of the property and the selling price of the property. In Vietnam a foreign individual who is involved is selling or transferring a Vietnamese property is liable to pay capital gains tax at the flat rate of 25%.

Transfer Tax

On the transfer of property in Vietnam a 10% tax is applicable on the profit made through the transaction.