Vietnam tax guide for US expats
For the 2025 tax year filed in 2026, taxation in Vietnam depends first on residence. A 183-day test can make you a resident, while US citizens generally still file Form 1040. Vietnam also changed PIT rates, relief amounts, and filing rules for 2026 income.
US citizens abroad remain subject to US rules on worldwide income. The IRS rules for US citizens and resident aliens abroad confirm that living overseas does not by itself end a citizen's federal filing obligations.
Long-term plans can affect local and US reporting. Our guide to retiring in Vietnam covers residency and long-term living issues that can affect the records you keep.
Property creates a different set of questions. See our guide to buying property in Vietnam for ownership rules and related issues to review alongside tax.
At a glance, a 2025 Vietnam return filed in 2026 still uses the 2025 PIT brackets and relief amounts.
| Item | Key rule |
|---|---|
| Vietnam residence | Usually 183 days or a qualifying permanent-home test |
| 2025 resident wages | 7 progressive bands, 5%–35% |
| 2026 resident wages | 5 progressive bands, 5%–35% |
| Nonresident wages | 20% on Vietnam employment income |
| 2025 personal relief | VND 11 million/month |
| 2026 personal relief | VND 15.5 million/month |
| US return | Form 1040 may still be required |
| Foreign accounts | FBAR if aggregate accounts exceed $10,000 |
The following 4 tax categories cover the main issues US expats should identify first:
- Personal income tax on wages, business income, investments, transfers, and other taxable income.
- Compulsory social and health insurance for covered foreign employees.
- Transaction taxes, VAT, registration charges, and corporate taxes when relevant.
- Separate US reporting, including Form 1040, Form 1116, FBAR, and Form 8938.
Tax residency in Vietnam
Vietnam treats an individual as resident if one of 2 main tests is met: at least 183 days of presence, or a qualifying permanent residence or rented home in Vietnam. Residents and nonresidents face different income-tax rules.
Residency turns on the 183-day test or a qualifying home connection, rather than citizenship.
| Rule | Threshold | Practical example |
|---|---|---|
| Calendar-year presence | 183 days or more | 190 days in Vietnam during 2025 meets the presence test |
| First 12 months | 183 days or more in 12 consecutive months from first arrival | A September arrival can require a rolling 12-month count |
| Permanent residence | Registered permanent residence in Vietnam | A qualifying registered home can establish residence |
| Rented home | Home rented in Vietnam under a qualifying lease | A qualifying rented residence can satisfy the residence rule |
The following 4 yes/no checks help screen your residence position:
- Did you spend at least 183 days in Vietnam during the calendar year?
- In your first year, did you reach 183 days during the 12 months from first arrival?
- Do you have registered permanent residence in Vietnam?
- Do you have a rented home that meets the statutory residence rule?
The US travel advisory for Vietnam addresses travel and security rather than Vietnamese tax residence.
Keep passport movements, immigration records, and lease documents. These records can support the facts used to determine your day count and residence.
Personal income tax rates 2026 in Vietnam
For a 2025 return filed in 2026, use the 7-band 2025 wage scale. For 2026 income, resident wages use 5%, 10%, 20%, 30%, and 35% bands, while nonresident Vietnam employment income is generally taxed at 20%.
The Vietnam income tax rate runs from 5% to 35% for 2026 resident wages, while 2025 finalization still uses the older 7-band scale.
The income tax in Vietnam for resident employment is progressive. Nonresident employment income attributable to work performed in Vietnam is generally taxed at 20%.
For 2026 income, the tax rate in Vietnam differs between resident wages, resident business income, and nonresident wages.
| Income category | 2026 method | Main rate |
|---|---|---|
| Resident employment | 5 progressive bands | 5%–35% |
| Resident business/freelance | Net-income or permitted revenue method | 15% / 17% / 20% on net income by applicable revenue band |
| Nonresident employment | Vietnam employment income | 20% |
Vietnam also changed its 2026 business rules. Decree 141/2026 raised the annual revenue threshold for business individuals to VND 1 billion for the affected rules.
Resolution 43/2026 then cut the 2026 and 2027 business PIT payable by 30% for qualifying resident business individuals with annual revenue not above VND 10 billion.
For a 2025 resident wage return filed in 2026, the income tax rate in Vietnam is determined by the 7-band table below.
| Monthly taxable income for 2025 | Rate |
|---|---|
| Up to VND 5 million | 5% |
| Over VND 5–10 million | 10% |
| Over VND 10–18 million | 15% |
| Over VND 18–32 million | 20% |
| Over VND 32–52 million | 25% |
| Over VND 52–80 million | 30% |
| Over VND 80 million | 35% |
This 7-band schedule applies only to 2025 income. Wages earned from January 1, 2026 onward use the 5-band schedule below.
For 2026 resident wages, the income tax rate for Vietnam uses 5 wider bands.
| Monthly taxable income for 2026 | Rate |
|---|---|
| Up to VND 10 million | 5% |
| Over VND 10–30 million | 10% |
| Over VND 30–60 million | 20% |
| Over VND 60–100 million | 30% |
| Over VND 100 million | 35% |
Based on our client scenario at TFX: A resident employee has VND 35 million of monthly taxable income in 2026. PIT is VND 500,000 + VND 2 million + VND 1 million across the first 3 bands, totaling VND 3.5 million.
A resident freelancer issues a VND 30 million invoice. Treatment depends on annual business revenue and the applicable business-income method, so the invoice should not automatically be pushed through the wage brackets.
US federal brackets are separate. The IRS federal income tax brackets apply to the US return and should not be used to calculate Vietnamese PIT.
Tax deductions and personal relief
A 2025 Vietnam finalization uses personal relief of VND 11 million per month and dependent relief of VND 4.4 million. The 2026 amounts rise to VND 15.5 million and VND 6.2 million, respectively.
The following 4 deduction groups are the main items to review for resident wage income:
- Personal family relief for the taxpayer.
- Dependent relief for each qualifying registered dependent.
- Qualifying compulsory insurance and permitted insurance or retirement contributions.
- Qualifying charitable and other statutory deductions.
For a 2025 finalization, the VND 11 million and VND 4.4 million monthly relief amounts apply; the higher figures start with the 2026 tax period.
| Deduction | Who qualifies | 2025 amount or limit | Typical support |
|---|---|---|---|
| Personal relief | Resident wage taxpayer | VND 11 million/month | Payroll and tax records |
| Dependent relief | Resident with qualifying dependent | VND 4.4 million/month/dependent | Dependent records |
| Compulsory insurance | Covered employee | Actual qualifying contribution | Payroll statement |
| Other statutory deductions | Taxpayer meeting specific conditions | Depends on category | Required receipts or evidence |
Based on our client scenario at TFX: A resident has VND 25 million of monthly 2025 income and one registered dependent. Personal and dependent relief reduce the amount before other deductions by VND 15.4 million.
The 2026 law also expands deductible categories to qualifying healthcare and education expenses, subject to implementing conditions and documentation.
US tax treatment remains separate. IRS guidance on interest and dividends applies even when Vietnamese deductions reduce the local taxable base.
Which income is taxable in Vietnam?
Vietnam residents generally pay PIT on taxable Vietnam and foreign income, while nonresidents generally pay on Vietnam-source income. The current law covers wages, business income, investments, transfers, royalties, prizes, and certain gifts or inheritances.
The following 6 categories cover income types most relevant to expats:
- Salary, bonuses, and taxable employment benefits.
- Freelance, professional, e-commerce, and other business income.
- Rental and other qualifying real-estate business income.
- Taxable capital investment returns.
- Capital, securities, and real-estate transfers.
- Royalties, franchising, prizes, and taxable gifts or inheritances.
The local tax base depends on residence, source, and income category, so not every receipt is treated as employment income.
| Item | Usually in the Vietnam tax base? | Key point |
|---|---|---|
| Resident salary | Yes | Progressive wage rules apply |
| Nonresident Vietnam salary | Yes | 20% generally applies |
| Freelance receipts | Yes when business rules apply | Business method can apply |
| Capital transfers | Usually | Separate transfer rules apply |
| Statutorily exempt income | No | Must meet the exemption |
| Expense reimbursement | Depends | Documentation and benefit rules matter |
The second use of income tax in Vietnam appears here because employment and self-employment are not interchangeable.
A US expat operating independently can fall under Vietnam's business-tax rules instead of the employee payroll regime.
IRS taxable-income rules still apply on the US side. A Vietnam classification does not automatically control where the receipt appears on Form 1040. Non-US citizens with US-source income may need a different US return.
Non-taxable income and benefits for expats
Vietnam excludes specific income or benefits only when statutory conditions are met. For 2025 and 2026, expats should document the legal basis before excluding school fees, relocation costs, qualifying travel, housing, or reimbursements from taxable employment income.
The following 4 benefit checks should be completed before payroll excludes an item:
- Qualifying school fees under the employee-benefit rules.
- Qualifying one-time relocation costs tied to an assignment.
- Qualifying home-leave travel under the applicable rule.
- Employer-paid housing, which is subject to a taxable-benefit calculation.
Employer-paid housing is not automatically tax-free; the current calculation applies a 15% cap to the taxable housing benefit under the relevant rules.
| Benefit | Treatment to verify |
|---|---|
| Qualifying school fees | Exclusion can apply when statutory conditions are met |
| Qualifying relocation | Exclusion can apply when statutory conditions are met |
| Qualifying home-leave travel | Exclusion can apply when statutory conditions are met |
| Employer housing | Taxable benefit subject to the statutory cap |
| Ordinary cash allowance | Taxable unless a specific exclusion applies |
Based on our client scenario at TFX: An employer pays housing directly for a resident employee. Payroll should apply the housing-benefit rule and 15% cap rather than classify the entire payment as tax-free.
US treatment can differ. IRS employee-reimbursement rules are separate from Vietnam's employee-benefit rules.
Compulsory social insurance and expat payroll
A foreign employee generally enters compulsory social insurance with a definite-term Vietnam employment contract of at least 12 months. Exceptions include qualifying intra-company transferees and workers already at retirement age when the contract is signed.
The phrase social insurance for expats in Vietnam is more accurate than treating every foreign employee alike.
Covered foreign employees pay 8% into compulsory social insurance. Employers generally contribute another 17% to the sickness, maternity, retirement, and survivor funds.
Health insurance is generally 4.5% of the relevant salary base, split 3% to the employer and 1.5% to the employee.
A normal occupational-accident contribution can add 0.5% for the employer, subject to the applicable rules.
A typical covered foreign employee has 8% social insurance and 1.5% health insurance deducted before the final payroll amount.
Gross pay → employee insurance deductions → PIT withholding → net pay
The payroll example shows deduction order rather than a complete payslip calculation.
| Gross pay | Employee SI | Employee health | PIT | Net pay |
|---|---|---|---|---|
| VND 60 million | 8% of contribution base | 1.5% of contribution base | After permitted deductions | Gross less deductions and PIT |
Vietnam has no US Social Security totalization agreement in force as of September 2026. The SSA's current agreement list contains 30 countries and does not include Vietnam.
PIT registration and tax code requirements
A foreign individual with a Vietnamese tax obligation generally needs a Vietnamese tax identification record, commonly called a Vietnam tax code. Registration timing and responsibility depend on whether the individual registers directly or an income payer acts for them.
The following 4 steps cover the typical employee-registration process:
- Prepare your current passport and identification details.
- Provide required employment and income-payer information.
- Supply authorization when the employer registers on your behalf.
- Keep the issued tax code and verify your personal details against the tax record.
Circular 90/2026/TT-BTC took effect on July 1, 2026, and replaced the previous registration framework. Registration and amendments should use the current 2026 procedure rather than an obsolete form or portal process.
If an employer or agent registers you, obtain the final tax code details. Check the name, passport information, and other identifiers before annual finalization.
How to file and pay taxes in Vietnam
Vietnam PIT filing depends on income type and who holds the filing duty. From the April 2026 tax period, wage PIT declarations moved from monthly to quarterly filing, while annual finalization remains a separate requirement.
The following 5 steps cover the core filing process:
- Confirm tax residence, tax code, and income classification.
- Reconcile payroll withholding, income, deductions, and supporting records.
- File periodic declarations through the responsible payer or taxpayer channel.
- Complete annual finalization when required.
- Pay any balance through an authorized payment channel by the applicable deadline.
For wage PIT from April 2026, periodic filing is quarterly; annual PIT finalization remains separate.
| Filing step | General deadline | Usually responsible |
|---|---|---|
| Quarterly wage PIT | Last day of first month after quarter | Income payer/taxpayer |
| Annual payer finalization | Last day of third month after year-end | Employer/income payer |
| Direct individual finalization | Last day of fourth month after year-end | Individual |
| Payment | Under applicable return/payment rule | Taxpayer or withholding payer |
For 2025 wage income, employer finalization was due March 31, 2026. The direct individual deadline fell after the April 30–May 1 holiday period, making May 4, 2026 the practical deadline under the next-working-day rule.
The following 5 documents help reconcile a Vietnam PIT finalization:
- Passport and tax-code information.
- Employment contract and payroll statements.
- PIT withholding records.
- Insurance and dependent-support records.
- Records for non-wage income, deductions, and tax payments.
Self-employed Americans require separate US analysis. IRS guidance for independent contractors and self-employed workers remains separate from Vietnam's business-tax regime.
Vietnam tax filing deadlines and compliance calendar
For 2026 compliance, wage PIT declarations are quarterly from the April 2026 period. Quarterly returns are normally due on the last day of the first month after each quarter, while annual payer and direct-individual finalization have separate deadlines.
The calendar separates ordinary filing deadlines from special 2026 payment extensions that apply only to eligible taxpayers.
| Deadline | Task | Responsible party | Main risk |
|---|---|---|---|
| March 31, 2026 | 2025 payer PIT finalization | Employer/payer | Late finalization |
| May 4, 2026 | 2025 direct individual PIT finalization | Individual filer | Late filing/payment |
| July 31, 2026 | Q2 2026 wage PIT filing | Payer/taxpayer | Late filing/payment |
| November 2, 2026 | Certain Decree 245 extension requests/payments | Eligible taxpayer | Loss of extended timing |
| Q3 2026 | Quarterly wage PIT filing | Payer/taxpayer | Late filing/payment |
| 2027 | Finalize 2026 PIT | Payer/individual | Annual reconciliation |
Decree 245/2026 extends certain 2026 payments for qualifying businesses and sectors. PIT payment extensions for eligible business individuals can reach 5 months.
The extension does not remove the return-filing obligation. Eligible taxpayers continue filing the relevant returns while payment is deferred.
As of September 10, 2026, the following 4 actions belong on the current-month checklist:
- Confirm that Q2 2026 wage PIT was filed under the quarterly system.
- Reconcile July and August payroll using the 2026 5-band scale.
- Check the VND 15.5 million monthly personal relief.
- Test whether a Decree 245 payment extension applies to the business.
Other taxes on individuals in Vietnam
Vietnam can impose tax on transactions even when an individual owes no wage PIT. In 2026, separate rules cover real-estate transfers, capital and securities transfers, royalties, franchising, prizes, and taxable inheritances or gifts.
A taxable transaction can create PIT even when the taxpayer has no employment income that month.
| Person | Common trigger | General treatment |
|---|---|---|
| Property seller | Real-estate transfer | Separate transfer tax can apply |
| Securities seller | Securities transfer | Transaction-based PIT can apply |
| Investor | Capital transfer | Separate gain or gross-value rules |
| Recipient | Taxable inheritance/gift | Category-specific threshold/rate |
| Asset registrant | Registration event | Registration charges can apply |
Based on our client scenario at TFX: An expat with no Vietnamese salary sells taxable Vietnamese real estate. The transaction can still produce Vietnamese PIT even though the seller has no wage income.
Vietnam corporate taxation
Vietnam's standard corporate income tax rate is 20% in 2026. Qualifying enterprises can instead face 15% or 17% rates based on revenue, while separate incentives depend on the company's activity, investment, location, or project.
For 2026, the standard CIT rate is 20%, with 15% and 17% rates available to qualifying smaller enterprises.
| Item | Current rule |
|---|---|
| Standard CIT | 20% |
| Smaller enterprise | 15% where qualifying revenue does not exceed VND 3 billion |
| Mid-small enterprise | 17% where qualifying revenue is over VND 3 billion and up to VND 50 billion |
| 2026–2027 relief | 30% reduction in CIT payable for qualifying entities with revenue up to VND 10 billion |
| Annual finalization | Last day of the third month after the year/fiscal year-end |
Resolution 43/2026 gives qualifying Vietnamese entities with annual revenue not above VND 10 billion a 30% reduction of 2026 and 2027 CIT payable.
A US expat freelancer does not become a Vietnamese corporation merely by working independently.
A US owner of a Vietnamese company can also have separate US international reporting obligations depending on ownership and entity classification.
Withholding tax
Vietnam uses payer-remittance rules for wages and cross-border payments. Under the foreign-contractor regime, a service payment to a foreign enterprise can carry a 5% CIT component, with the precise treatment depending on the contract and activity.
The withholding method depends on whether the recipient is an employee, an individual contractor, or a foreign enterprise.
| Payment | Who withholds/remits | General method |
|---|---|---|
| Salary | Employer/income payer | Payroll PIT withholding |
| Individual contractor | Payer or individual | Applicable business/PIT method |
| Foreign enterprise service | Vietnamese payer or contractor | Foreign-contractor CIT/VAT |
| Individual royalty | Payer | Category-specific PIT |
| Investment income | Payer | Category-specific PIT |
Based on our client scenario at TFX: A Vietnamese customer pays VND 100 million for a service subject to a 5% foreign-contractor CIT component. The CIT component is VND 5 million. Any VAT component is calculated separately.
There is no in-force US–Vietnam income tax treaty that provides a reduced treaty withholding rate. Domestic rules control unless another legal provision applies.
Other taxes on corporations
A Vietnam business can face taxes beyond CIT, including VAT, special consumption tax, customs duties, natural-resource tax, and transaction charges. Eligible supplies normally taxed at 10% receive an 8% VAT rate through December 31, 2026.
The following 5 corporate-level taxes or charges are the main watch points:
- VAT, including the temporary 8% rate for eligible supplies.
- Special consumption tax for specified goods and services.
- Import and export duties on covered goods.
- Natural-resource tax for covered extraction.
- Registration or transaction charges where applicable.
The temporary 8% VAT rate runs through December 31, 2026, but excludes specified categories.
| Tax | Trigger | Who pays/remits |
|---|---|---|
| VAT | Taxable supply/import | Business/importer |
| CIT | Taxable corporate profit | Company |
| Special consumption tax | Covered goods/services | Relevant business |
| Customs duty | Covered import/export | Importer/exporter |
| Natural-resource tax | Covered extraction | Resource operator |
Watch-outs: Exclusions from the 8% VAT measure include specified telecommunications, finance, banking, securities, insurance, real estate, metals, mining, and excise-tax categories, except gasoline.
Anti-avoidance rules
Vietnam's transfer-pricing rules affect related-party prices, interest deductions, documentation, and artificial arrangements. The related-party net-interest limitation can cap deductions at 30% of EBITDA, subject to the rule's scope and exceptions.
Two examples show where an adjustment can arise.
A Vietnamese company paying an unsupported management fee to a related foreign company can face a deduction challenge.
A group using excessive related-party borrowing to shift profits can encounter the interest-deduction restriction.
The following 4 behaviors increase adjustment or audit risk:
- Related-party prices without arm's-length support.
- Large service or royalty charges without evidence.
- Interest above the applicable related-party limitation.
- Inconsistent descriptions across US and Vietnam reporting.
On the US side, review TFX's guide to IRS audit triggers when reconciling foreign entities and income. The consequences of not filing an expat return are separate from Vietnam enforcement.
US-Vietnam tax treaty and double taxation
No US-Vietnam income tax treaty is in force as of September 10, 2026. The countries signed a convention in 2015, but it has not entered into force, so it cannot currently supply treaty residence tie-breakers or reduced treaty withholding rates.
The signed 2015 convention does not currently provide US–Vietnam treaty residence, source, or withholding relief.
| Issue | Current position |
|---|---|
| Bilateral income-tax treaty in force | No |
| Treaty residence tie-breaker | Not available |
| Treaty withholding reductions | Not available |
| US double-tax relief | Foreign Tax Credit can apply |
| FEIE | Can apply separately under Section 911 |
The US Foreign Tax Credit can reduce US tax on qualifying foreign-source income when eligible Vietnamese income tax has been paid or accrued.
The Form 1116 limitation still applies. Foreign tax allocated to income excluded under the FEIE cannot generate a second credit for the same excluded income.
Based on our client scenario at TFX: A US citizen pays qualifying Vietnamese PIT on salary also reported on Form 1040. Form 1116 can produce a credit subject to the applicable income category and limitation.
The credit does not guarantee that the final US balance becomes $0. TFX provides a Foreign Tax Credit guide for Form 1116 mechanics.
If you are choosing between the credit and Form 2555, compare the Foreign Tax Credit and FEIE before filing.
US tax obligations for Americans in Vietnam
US citizens and resident aliens abroad generally remain subject to federal tax on worldwide income. For 2025 returns filed in 2026, the FEIE limit is $130,000, and qualifying taxpayers abroad received an automatic filing extension to June 15, 2026.
The following 5 US compliance checks cover common Vietnam-related filing obligations:
- Form 1040 – report worldwide income when a federal return is required.
- Form 1116 – claim eligible foreign tax credits.
- FBAR – file FinCEN Form 114 when the aggregate foreign-account threshold is exceeded.
- Form 8938 – report specified foreign financial assets above the applicable threshold.
- Form 2555 – claim the FEIE when Section 911 requirements are met.
For a single filer under age 65, the 2025 federal filing threshold is $15,750. The 2025 FEIE maximum is $130,000.
The 2025 FBAR is due April 15, 2026, with an automatic extension to October 15, 2026. FinCEN applies the test when aggregate foreign financial accounts exceed $10,000 at any time during the year.
Review our FinCEN Form 114 guide because the $10,000 threshold applies across accounts in aggregate.
For FATCA reporting, our Form 8938 guide covers the higher thresholds available to taxpayers who qualify as living abroad.
For unmarried or married-filing-separately taxpayers abroad, the Form 8938 thresholds are over $200,000 at year-end or $300,000 at any time.
For married taxpayers filing jointly abroad, they are over $400,000 at year-end or $600,000 at any time.
The 2025 federal return also introduces Schedule 1-A for 4 new deductions when eligible: qualified tips, qualified overtime, qualifying car-loan interest, and the enhanced senior deduction.
Based on our client scenario at TFX: A US citizen correctly files and pays Vietnamese PIT for 2025. That filing does not replace Form 1040, and Vietnamese accounts can still create an FBAR filing obligation.
Should you file late or catch up on prior years?
A US expat who missed Forms 1040, FBARs, or international forms should first identify the missing years. For qualifying non-willful offshore cases, Streamlined Foreign Offshore Procedures generally use 3 years of tax returns and 6 years of FBARs.
The following 3 signs point to a catch-up review:
- You lived in Vietnam for several years without filing required US returns.
- You filed Form 1040 but omitted foreign income, accounts, or forms.
- You filed a return containing an error that can require Form 1040-X.
The filing path depends on whether a prior return was missing, incorrect, or potentially eligible for an IRS streamlined procedure.
| Situation | Path to review |
|---|---|
| Current-year return only | Standard filing |
| Prior return filed incorrectly | Amendment, commonly Form 1040-X |
| Non-willful offshore filings missed | Test Streamlined Foreign Offshore eligibility |
| Willful or high-risk facts | Obtain individualized legal/tax advice first |
The flow is: identify missing filings → determine whether returns were filed → test streamlined eligibility when appropriate → prepare the standard, amended, or streamlined submission.
TFX's guide to filing multiple years of back taxes explains how to inventory missed US filings.
The domestic streamlined procedure guide applies to eligible US-resident situations.
Expats abroad should instead test the IRS Streamlined Foreign Offshore non-residency requirements.
A late expat tax filing should not automatically be placed into Streamlined procedures. The IRS requires non-willful conduct plus the other program eligibility requirements.
Need help with US tax filing from Vietnam?
Professional help is most useful when your Vietnam facts create more than 1 US filing layer, such as Form 1116 plus FBAR or Form 8938. TFX prepares US returns and US international forms but does not replace a Vietnamese adviser for local filings.
The following 3 groups are the strongest fit for US expat filing help:
- New Vietnam residents coordinating Form 1040 with foreign income and tax.
- Taxpayers with Vietnamese bank, brokerage, or other foreign financial assets.
- People behind on US returns, FBARs, or international information reporting.
Our guide on when to hire an expat tax professional explains where paid US filing help can add value.
If you are behind, see our guide to getting help with back taxes before organizing a US catch-up filing.
Service summary: TFX prepares US expat federal returns, Form 1116, Form 2555, FBAR, Form 8938, and applicable international US forms based on the taxpayer's facts.
FAQ
A resident can face Vietnamese PIT on taxable worldwide income, while a nonresident is generally taxed on Vietnam-source income.
Separate rules can affect investments, transfers, business activity, social insurance, and taxable transactions.
Yes. US citizens and resident aliens abroad generally remain subject to US federal filing rules.
Our US expat tax guide covers the main filing obligations and international forms.
No. Vietnam's 2025 wage finalization uses the older 7-band schedule and VND 11 million monthly personal relief.
The 5-band scale and VND 15.5 million monthly relief apply beginning with the 2026 tax period.
Not automatically. Qualifying Vietnamese income tax can support a Foreign Tax Credit, commonly through Form 1116, but the credit is limited.
Our Foreign Tax Credit guide explains the calculation.
No. A convention was signed July 7, 2015, but there is no bilateral income tax treaty in force as of September 10, 2026.
Taxpayers should not claim treaty residence tie-breakers or treaty-reduced withholding based on the signed convention.
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