Frequently Asked Questions

How is tax residency determined in Vietnam?

You are considered a tax resident if you:

• Stay in Vietnam for 183 days or more in a calendar year or any 12 consecutive months
• Have a registered permanent residence in Vietnam
• Have a rental contract in Vietnam with a term of 183 days or more in a tax year

How is non-employment income taxed for foreigners?

For tax residents, different types of non-employment income are taxed at various rates:

• Business Income: 0.5% to 5%
• Interest/Dividends: 5%
• Sale of Shares: 0.1%
• Sale of Real Estate: 2%
• Royalties/Franchising: 5%

For non-residents, only Vietnam-sourced income is taxable.

What tax deductions are available for foreigners?

Available deductions include:

• Personal Relief: VND 11 million/month
• Dependent Relief: VND 4.4 million/dependent/month
• Mandatory insurance contributions
• Charitable donations (subject to conditions)
• Tax-free benefits (relocation allowance, airfares, etc.)

How do Double Taxation Agreements (DTAs) work?

DTAs prevent double taxation on the same income by:

• Allowing tax credits for taxes paid abroad
• Determining which country has the right to tax specific types of income
• Providing relief mechanisms for foreign-sourced income

Can I claim my social insurance when leaving Vietnam?

Yes, you can claim a one-off payment if:

• Your employment contract is terminated
• Your work permit expires without renewal
• You reach retirement age without full contribution period
• You suffer from specific serious diseases

How is the one-off social insurance payment calculated?

The formula is:

For less than one year's contribution, a different calculation method applies based on months contributed.

What types of life insurance are available to foreigners?

• Term Life Insurance: Most affordable, fixed coverage period
• Whole Life Insurance: Lifetime coverage with cash value
• Endowment Policies: Combine protection with savings

Coverage options vary by provider and may include international coverage.

How much life insurance coverage should I get?

The recommended coverage is approximately 10 times your annual income. Consider factors like:

• Family financial needs
• Outstanding debts
• Future education expenses
• Long-term financial goals