Vietnam

Last update: 2026-06-09
VN VND Vietnamese
Pros
Low corporate tax rates and numerous tax incentives for foreign direct investment in tech sectors.
High level of personal safety and low violent crime rates for expatriates and business owners.
Rapidly improving digital infrastructure and a young, tech-savvy workforce at competitive labor costs.
Cons
Pervasive corruption and lack of transparency in administrative procedures and local government dealings.
Strict state control over digital expression and limited political freedoms under a single-party system.
Complex bureaucratic hurdles and inconsistent enforcement of property rights and legal contracts.
Personal income
5 → 35%
progressive
Corporate
20%
flat
Capital gains
20%
flat
VAT (standard)
10%
standard rate
i 4.2 VERY LOW TAX
i 2.9 HOLDING
i 2.5 DIVIDEND PIPELINE
i 2 CRYPTO HAVEN
i 2 PRIVACY GRADE
i 2 EASY CITIZENSHIP
VERYLOW TAX 4.2/10 HOLDING 2.9/10 DIVIDENDPIPELINE 2.5/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 2/10 EASYCITIZENSHIP 2/10
01/08

Will Vietnam tax what you earn?

income tax tax residency territorial system

YES, A LOT. Personal income is taxed heavily in Vietnam (top marginal rate 35%), but the residency test is unusually permissive. The bill is steep; the trick is not to trip into resident status without meaning to.

Personal income taxi
5 → 35%
progressive · 5 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
Tax residence testi
183days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Vietnam tax what you own?

capital gains wealth tax inheritance dividends interest

YES, FAIRLY. Capital gains in Vietnam are taxed at 20% on disposal, with no annual wealth charge. But inheritance triggers a separate regime when assets transfer. Two trigger events on the same value: sale and succession.

Capital gainsi
20%
flat
Dividend taxi
5%
flat
Interest incomei
5%
flat
Wealth taxi
NONE
no annual wealth tax · no real-estate wealth tax · no net-worth assessment
Crypto · tax regimei
Regime
UNREGULATED
Fallback rate
35%
Cryptocurrency is not officially recognized as a legal asset or means of payment in Vietnam. The State Bank of Vietnam (SBV) prohibits its use as a payment method, but ownership and trading are not explicitly criminalized. In the absence of specific crypto tax laws, the General Department of Taxation (GDT) treats gains as taxable under general Personal Income Tax (PIT) rules for 'business income' or 'other income,' which follow a progressive scale up to 35%. A comprehensive legal framework for 'virtual assets' is currently being drafted by the Ministry of Finance and is expected in 2025.
Crypto-to-cryptoi
NEUTRAL
a swap is not a taxable realisation event
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
APPLIES
system · heir-based · 5 heir classes
HeirTop rateAllowance
Spouse EXEMPT
Children EXEMPT
Siblings EXEMPT
Other relatives 10% VND 10,000,000
Non-relatives 10% VND 10,000,000
03/08

Is it easy to run a company in Vietnam?

corporate tax criminal liability public registry VAT IP box

YES, BUT TAXED. Vietnam charges 20% corporate tax, partly offset by an IP-box regime at 20% for qualifying assets. The effective rate depends heavily on how much of your income is IP-derived: for software, licensing or royalty-heavy models, the maths can turn friendly.

Corporate taxi
20%
flat
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
NO CRIMINAL LIABILITY
Civil Matter / Law on Enterprises Art. 77
In Vietnam, while Article 77 of the Law on Enterprises 2020 strictly requires a sole owner to separate personal assets from company assets, the misuse of funds in a solvent company is treated as a civil or tax matter. The primary legal consequence is the 'piercing of the corporate veil' under Article 77.5, which makes the owner personally liable for all company debts. Although the Penal Code (Art. 353) criminalizes embezzlement in the private sector, it is generally not applicable to a 100% sole shareholder because the element of 'appropriating property of another' is absent when no other stakeholders or creditors are harmed.
Shareholders privacyi
PUBLIC PAYWALL
National Business Registration Portal
Directors privacyi
PUBLIC
National Business Registration Portal
Incorporation costi
Limited Liability Company (LLC)
Công ty trách nhiệm hữu hạn
Government Registration Fees (IRC, ERC, Seal, and Announcement) USD 190
Professional Legal and Incorporation Services USD 2,470
Digital Signature (USB Token) and E-Invoice Setup USD 114
Total USD 2,774
VAT standard ratei
10%
single rate · no reduced tiers
10%
Digital & telecom
10%
digital
04/08

Is Vietnam good for your holding company?

treaty network participation exemption withholding

NOT REALLY. Vietnam carries an extensive treaty network (50 agreements), which cuts inbound withholding on cross-border flows. The missing piece is a participation exemption: dividends received from subsidiaries face the full corporate schedule (20%) unless the treaty does all the work alone. Useful for operations, not for a pure holding vehicle.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
NONE
no dividend participation exemption regime
CFC rulesi
NONE
no controlled foreign corporation regime · foreign-source corporate income out of scope
WHT · dividendsi
0%
non-resident outbound
WHT · interest
5%
non-resident outbound
WHT · royalties
10%
non-resident outbound
Tax-haven WHT
no punitive rate on record
Treaties signedi
46
active
Treaties pending
4
in negotiation
Tax treaty networki
origin · VN 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with VN.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Vietnam?

exit tax territorial system dual citizenship

SOME. Vietnam taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
naturalisation requires renouncing existing citizenship
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Vietnam protect your privacy?

info exchange corporate registries

PARTLY. Vietnam has signed most of the standard exchange frameworks and operates a public corporate registry. Financial accounts are reported to your home tax authority, and your shareholdings are visible to anyone. Privacy is shallow on both axes.

Multilateral reporting frameworks 3/10 active · 2 pending
CRS
CARF
FATCA
2016
MLI
2023
BEPS
MAAC
2023
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Vietnam itself a liability?

blacklists FATF standing

SOMEWHAT. Vietnam is flagged by one or two national tax authorities and sits outside FATF membership. Selective friction: anti-abuse rules trigger on transactions in specific corridors, and counterparties tend to ask more questions.

Blacklist exposure Listed by 2 authorities
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Vietnam?

press freedom crypto CBDC EU

NO. Press freedom in Vietnam is restricted (RSF rank #173). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.

Press freedom · RSF indexi
173/180
score 19 · ↑ 1 rank year-on-year
Central bank digital currencyi
Program Status Cross-border Sources
Vietnam CBDC
State Bank of Vietnam
RESEARCH
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Vietnam. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.