TARIFF

I. PROFIT REMITTANCE TAX

- From 01 January 2004, Enterprise has not been paid the profit remittance.

- Paying personal income tax from capital investment with tax rate 5% of the distributed profit before being remitted out of territory of Vietnam.

II. CORPORATE INCOME TAX

1. Common Corporate income tax

DESCRIPTION

REFERENCE

-    From 01 January 2014, the corporate income tax rate is 22%, except for cases which are applied incentive tax rate. From 01 January 2016, cases subject to the tax rate of 22% shall be applied the tax rate of 20%. 
-    Enterprises being established and operating under Vietnamese laws (including cooperatives, non-business units) for production and business of goods and services with the total annual revenue not exceeding 20 billion Vietnam dongs are entitled to the tax rate of 20%.  The total annual revenue specified in this Clause is the enterprise’s total revenue of sale of goods and services supply of the preceding year. 

-    Circular No.78/2014/TT-BTC, Article 11, Clause 1; Decree No.218, Article 10, Clause 1. 
-    Circular No.78/2014/TT-BTC, Article 11, Clause 2; Decree No. 218, Article 10, Clause 2. 

2. CIT incentives: Tax incentives

DESCRIPTION

REFERENCE

The preferential tax rate of 10% for fifteen (15) years is applicable to:

- Enterprises’ incomes earned from operations of the new investment projects in the fields, including: scientific research and technological development, application of high technology under the list of hi-tech invested and developed with priority as prescribed by the Hi-tech law; hi-tech incubation; hi-tech enterprise incubation; venture capital for hi-tech development in the list of hi-tech developed with priority as prescribed by hi-tech law; construction investment and business of hi-tech incubator, hi-tech enterprise incubator; production of software products; production of composite materials, light weight building materials and rare materials.

- Enterprises’ incomes from performing new investment projects in the field of environmental protection including: production of environmental pollution control equipment, monitoring and environmental analysis equipment.    

- Circular No. 78/2014/TT-BTC, Article 19, Clause 1, point b. Decree 218/ND-CP, Article 15, Clause 1, point b. 

-  Circular No. 78/2014/TT-BTC, Article 19, Clause 1, point c. Decree 218/ND-CP, Article 15, Clause 1, point c. 

The preferential tax rate of 10% during the enterprise’s operation is applicable to:

- Incomes from publication activities of Publishers under provisions of Publishing law. Publication activities include the fields of publication, printing and issuance of publications under provisions of Publishing law. 

-  Circular 78/2014/TT-BTC, Article 19, Clause 3, point b. Decree 218/ND-CP, Article 15, Clause 3, point 

The preferential tax rate of 20% for ten (10) years is applicable to:

- Enterprise’s income earned from operations of the new investment projects, including: production of high class steel; production of energy saving products; production of machinery and equipment for activities in agriculture, forestry, fishery and salt; production of irrigation and drainage equipment; production and refining of cattle, poultry and aquatic animal feed.   

- Circular 78/2014/TT-BTC, Article 19, Clause 4, point b. Decree 218/ND- CP, Article 15, Clause 4 

3. Incentives in tax exemption and reduction time:

DESCRIPTION

REFERENCE

- Tax exemption for 2 years and reduction of 50% of tax payable for the next 4 years for incomes from performing new investment projects in Industrial parks.

-  The above-mentioned time for tax exemption and reduction is calculated continuously from the first year of taxable income from the new investment projects entitled to tax incentives. In case the enterprise does not have the taxable income within 03 first years, calculated from the first year of income from new investment projects, the time for tax exemption and reduction is calculated from the 4th year of incomes incurred from new investment projects.

- Circular 78/2014/TT-BTC Article 20, Clause 3. Decree 218/ND-CP, Article 16, Clause 3

-  Circular 78/2014/TT-BTC, Article 20, Clause 4; Decree 218/ND-CP, Article 16, Clause 4 

III. EXPORT TAX AND IMPORT TAX

The Circular No. 164/2013/TT-BTC dated 15 November 2013 on promulgating the Preferential import and export tariff according to the list of taxable products has been valid since 01 January 2014.

Description 

Exemption 

Exemption 

Tax return

Tax return 

Reference 

 

In the period of project performance

5 years from the commencement date of production 

In the period of project performance

365 days from discovery of any mistake 

 

Goods imported to create fixed assets off investment project in domains entitled to import tax preferences are exempted from import tax, including: Equipment and machinery; Components, parts, knocked down parts, spare parts, fittings, molds and accessories accompanying machinery, and equipment; special-use means of transport included in technological lines which cannot be domestically manufactured yet; worker-transporting vehicles and waterway craft; Construction materials which cannot be domestically produced yet. 

X

 

 

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 12, Item 6

- Circular 128/2013/TT- BTC  

Raw materials, supplies and accessories which cannot be domestically manufactured yet and are imported for production activities of investment projects in domains in which investment is specially encouraged in Appendix 1 enclosed with the Decree No.87 or in geographical areas with extremely difficult socio-economic conditions (excluding projects to manufacture and assemble automobiles, motorcycles, air conditions, electric heaters, refrigerators, washing machine, electric fans, dish washers, disc players, audio systems, electric irons, water kettles, hair dryers, hand dryers and other articles under the Prime Minister’s decision) are exempted from import tax.   

 

X

 

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 12, Item 14 - Circular 128/2013/TT- BTC  

Raw materials and supplies imported to use directly for production of software products, which cannot be domestically manufactured yet. 

X

 

 

 

- Circular 128/2013/TT- BTC 

Import tax exemption for goods imported for direct use in scientific research and technological development, including: equipment, machinery, spare parts, supplies and means of transport which cannot be domestically manufactured yet; technologies which cannot be domestically produced yet; scientific documents, books, newspapers and journals and electronic scientific and technological information sources

X

 

 

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 12, Item 13 

Machinery, equipment and means of transport (excluding under 24-seats cars and cars designed  for passenger-cum-cargo transport equivalent to under 24-seats cars) temporarily imported for re- export by foreign contractors for the execution of ODA-funded projects in Vietnam are exempted from import tax upon their temporary import and export tax upon their re-export.

X

 

 

 

- Decree No.87/2010NĐ CP dated 13/06/2010 Article 12, Item 16

- Circular 128/2013/TT- BTC 

Goods imported for sale at duty-free shop.s under the Prime Minister’s Decision

X

 

 

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 12, Item 17

- Circular 128/2013/TT- BTC 

Imported goods which have been paid for import tax but still stored in border gate warehouses or yards under customs’ supervision are re-exported 

 

 

X

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 15, Item 1

- Circular 128/2013/TT- BTC

Exported or imported goods which have been paid for export and import taxes are not exported or imported. 

 

 

X

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 15, Item 2

- Circular 128/2013/TT- BTC

Goods which have been paid for export or import taxes are actually exported or imported in the smaller quantities. 

 

 

X

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 15, Item 3

- Circular 128/2013/TT- BTC

For imported goods for production of exported products or being exported to non-tariff zones, if import tax has been paid, duly amounts corresponding to their percentages in actually exported products shall be refunded, and they are not liable to export tax when they are exported and meet all conditions for determining that they are wholly processed from imported materials. 

 

 

X

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 15, Item 4

- Circular 128/2013/TT- BT

Goods which have been paid for imported tax are exported in the following cases: 

a) Imported goods for delivery or sales to foreign parties through Vietnam-based agents; 

b) Imported goods for sales to vehicles of foreign carriers operating on the international routes via Vietnam’s ports and Vietnam’s vehicles operating on the international routes under provisions of the Government

 

 

X

 

- Decree No.87/2010NĐ- CP dated 13/06/2010 Article 15, Item 5 

- Circular 128/2013/TT- BTC

Exported goods which must be re-imported to Vietnams will be considered for tax return of paid export tax and import tax exemption

 

 

X

 

-  Decree No.87/2010NĐ- CP dated 13/06/2010 Article 15, Item 7

- Circular 128/2013/TT- BTC

Imported goods which must be re-exported back to foreign owners or to a third nation will be considered for tax return of paid import tax corresponding to the actual re-exported goods and import tax exemption. 

 

 

 

X

-  Decree No.87/2010NĐ- CP dated 13/06/2010 Article 15, Item 8 - Circular 128/2013/TT- BT

For machinery, equipment, tools and means of transport of institutions or individuals which are permitted to be temporarily imported for re- export (excluding leased ones) for the execution of investment projects,  construction and installation of works for production activities and have been paid for import tax, import tax shall be  refunded upon re-export from Vietnam or export to non-tariff zones. To-be-refunded import tax shall be determined on the basis of the residual use value of such goods upon re-export calculated according to the duration in which such goods are used and stored in Vietnam. In case such goods are no longer usable, the paid tax amount shall not be refunded.

 

 

 

X

-  Decree No.87/2010NĐ- CP dated 13/06/2010 Article 15, Item 9

- Circular 128/2013/TT- BTC

For goods which are imported or exported through international postal or express services and have been paid for taxes by service providers on behalf of goods owners but cannot delivered to recipients and must be re-exported, reimported, or confiscated, destroyed under provisions of the laws, the paid tax amounts shall be refunded

 

 

 

X

 

IV. VALUE ADDED TAX (VAT)

Tax rate

Taxable Objects (goods, services…) 

Reference 

Non-taxable objects 

- Transfer of land use right. 

- Public post and telecommunications and universal internet services under the Government’s programs. 

- Publication, import and distribution of newspapers, journals, specialized bulletins, political books, textbooks, teaching materials, law books, scientific technical books and books printed in ethnic minority languages as well as propaganda postcards, pictures and posters including those in the form of audio or visual tapes, disc or electronic data and money printing. 

- Machinery, equipment, spare parts and supplies which cannot be domestically manufactured yet  and need to be imported for direct use in scientific research and technological development; Machinery, equipment, spare parts, special-use means of transport and supplies which cannot be domestically manufactured yet  and need to be imported for prospecting, exploring and developing oil and gas fields. 

-Raw materials imported for production and processing of goods for export under contracts signed with foreign parties; 

- Exported products which are unprocessed mined resources or minerals as stipulated by the Government. 

- Artificial products used for substitution of diseased people’s organs; crutches, wheelchairs and other tools used exclusively for the disabled

Law on amendment and supplement of some articles of the Law on VAT  Law in VAT 2008: 13/2008/QH12 dated 03/06/2008 Chapter I, Article 5

Tax rate 0%

Exported goods and services, international transportation and goods and services not liable to value-added tax specified in Article 5 of this Law upon export, excluding the following cases: Transfer of technologies and intellectual property rights to abroad; offshore reinsurance services; credit provision services; capital transfer and derivative financial services; Post and telecommunications services; and exported products which are unprocessed mined resources and minerals. 

- Law on amendment and supplement of some articles of the Law on VAT No. 31/2013/QH13 dated 19/06/2013 - Law in VAT 2008: 13/2008/QH12 dated 03/06/2008 Chapter II, Article 8, Item 1
Tax 

Tax rate 5% 

- Clean water for production and daily life. 

- Fertilizers; ores for fertilizers production; insecticides, pesticides and plant and animal growth stimulators. 

- Feeds for cattle, poultry and other domestic animals. 

- Services of digging, embanking and dredging canals, ditches, ponds and lakes for agricultural production; growing, tending, and preventing pests and insects for plants; preliminary processing and preservation of agricultural products. 

- Unprocessed cultivation, husbandry and fishery products, excluding products specified in item 1 Article 5 of the Law on VAT 2008; 

- Preliminarily processed rubber latex; Preliminarily processed turpentine; nets, main ropes and fibers for making fishing nets.   - Fresh and live food; unprocessed forestry products, excluding timber, bamboo shoots and products specified in item 1 Article 5 of the Law on VAT 2008;

- Sugar; by-products in sugar production; - Products made of jute, rush, bamboo, leaf, straw, coconut husks and shells and Eichhornia crassipes and other handicrafts made of agricultural raw materials; preliminarily processed cotton; paper for newspaper printing;  - Special use machinery and equipment for agricultural production, including ploughing machines, harrowing machines, rice-planting machines, seeding machines, rice plucking machines, reaping machines, combine harvesters, agricultural product harvesters, insecticide or pesticide pumps or sprayers.

- Medical equipment and instruments; medical cotton and bandage; preventive and curative medicines; pharmacy-chemistry products and pharmaceuticals used as raw materials for the production of curative and preventive medicines.

- Teaching and learning aids, including models, figures, boards, chalks, rulers, compasses and equipment/ tools exclusively used for teaching, research and scientific experiments. 

- Children toys; books of all kinds, excluding books specified in item 15, Article 5 of the Law on VAT 2008. 

- Scientific and technological services under the Law on Science and Technology.

- Law on amendment and supplement of some articles of the Law on VAT No. 31/2013/QH13 dated 19/06/2013 - Law in VAT 2008: 13/2008/QH12 dated 03/06/2008 Chapter II, Article 8, Item 

Tax rate 10% 

The remaining goods and services. 

Law on amendment and supplement of some articles of the Law on VAT No. 31/2013/QH13 dated 19/06/2013 Law in VAT 2008: 13/2008/QH12 dated 

V. PERSONAL INCOME TAX

1. Tax rate:

The rate of PIT for incomes from business activities, salaries, remunerations shall be imposed according to the Partially progressive tariff specified in Article 22 of Law on Personal income tax, in particular:

Tax grade 

Assessable income per year  (million VND) 

Assessable income per month  (million VND) 

Tax rate (%) 

1

Up to 60

Up to 5 

5

2

Between over 60 and 120 

Between over 5 and 10 

10

3

Between over 120 and 216 

Between over 10 and 18 

15

4

Between over 216 and 384 

Between over 18 and 32 

 20

5

Between over 384 and 624 

Between over 32 and 52 

25

6

Between over 624 and 960 

Between over 52 and 80 

30

7

Over 960 

Over 80 

35

2. Incomes subject to tax exemption: 

DESCRIPTION 

REFERENCE 

a) Incomes from interests on deposits at credit institutions, branches of foreign banks or interests from life insurance policies; incomes from interests on Government bonds.

b) Tax free incomes from international remittances are the amounts of money which individuals receive from their relatives being Vietnamese people residing abroad,  Vietnamese people working or studying abroad.
 The basis for identifying tax free incomes from international remittances is some document which may prove that those amounts are sent from abroad and payment notes issued by the money transferring organization (if any).

c) Incomes from the additional payments for working at night or working overtime in excess of wages according to the Labor Code. In particular: 

c.1) The tax free additional payments for working at night or working overtime is identified based on the actual total payment for working at night or overtime minus (-) the payment for an ordinary working day.

E.g. The wages of Mr. A on an ordinary working day is 40,000 VND/hour according to the Labor Code.

- In case of working overtime on an ordinary working day, he/she is paid 60,000 VND/hour, the tax free income is:  60,000 VND/hour – 40,000 VND/ hour = 20,000 VND/ hour

- In case of working overtime on an holiday, he/she is paid 80,000 VND/hour, the tax free income is: 80,000 VND/hour – 40,000 VND/ hour = 40,000 VND/ hour

c.2) Organizations or individuals who are income payers shall make a table specifying night/overtime working time and additional payments for working at nights and overtime. This table shall be kept at the income payer’s and presented by income payers on request of tax authorities. 

d)  Retirement pensions paid by the Social Insurance Fund according to the Law on

Social insurance; monthly pensions from the Voluntary pension fund.

Retirement pensions paid from abroad to individuals living and working in Vietnam are tax-free.

- Law on Personal Income tax, Article 5.

- Decree 65/2013/ND-CP, Article 5. 

- Circular 111/2013/TT-BTC, Article 3.

 

VI. REGISTRATION FEE

DESCRIPTION 

REFERENCE 

- Registration fee rate: The payable registration fee amount is determined as follows:

Payable registration fee amount (VND)   =  Registration fee calculation price (VND) X Registration fee rate (%) 

The land imposed by registration fee is total area of lot under the legitimate use right of organizations and individuals identified and provided by the Registration Office for land use right to tax authorities under “Transmittal note of cadastral information to identify financial obligations”. 

Registration fee calculation prices are prices issued by provincial People's Committee.

- Registration fee rate for land and house is 0.5%

- Decree 45/2011/ND-CP, Articles 5, 6, 7; Circular 124/2011/TT-BTC, Articles 5, 6, 7.