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Vietnam Investment Income Guide 2026

Vietnam imposes withholding taxes on investment income: 5% on stock dividends (cash dividends paid from after-tax profits are generally exempt for individual shareholders), 5% on bank deposit interest, and 5% on bond interest. Capital gains on securities and property are taxed separately. All amounts in VND.

Vietnam's taxation of investment income is governed under the Personal Income Tax Law (Luật Thuế TNCN) and the Corporate Income Tax Law. For related guidance, see our Capital Gains Guide → and Personal Income Tax Guide →.

Dividend Taxation

  • Stock dividends (cổ phiếu thưởng): When a company issues additional shares as dividends (stock dividends), the shareholder is subject to 5% withholding tax on the market value of the shares received. The issuing company withholds and remits the tax to the tax authority.
  • Cash dividends: Cash dividends paid from a company's after-tax retained profits are generally not subject to additional personal income tax for individual shareholders. The rationale is that the corporate profits have already been taxed at the entity level (20% CIT).
  • Foreign shareholders: Dividends paid to foreign corporate shareholders are exempt from withholding tax (0% CIT). Foreign individual shareholders may be subject to tax, though Vietnam's tax treaties may reduce or eliminate the withholding rate.

Interest Income Taxation

  • Bank deposit interest: Interest earned on bank savings accounts and term deposits is subject to 5% withholding tax. The bank withholds the tax at source and pays the net amount to the depositor. No annual declaration is required for this income.
  • Bond interest: Interest income from corporate bonds and government bonds is subject to 5% withholding tax. The issuer or paying agent withholds the tax at source.
  • Exempt interest: Interest on certain government bonds and treasury bills may be exempt from taxation if specifically provided under the issuance terms.
  • No separate annual return is required for interest income — the 5% WHT is a final tax for individual taxpayers.

Other Investment Income

  • Rental income: Income from renting property is taxed at 5% VAT + 5% personal income tax on gross rental revenue (effectively 10% combined for individuals). Alternatively, the taxpayer can opt for the standard progressive rates on net income (rarely used).
  • Royalties: Royalty income from intellectual property, patents, and copyrights is subject to 5% withholding tax on gross receipts.
  • Capital contributions: Returns on capital contributions to private companies (other than dividends) are taxed at the standard IIT progressive rates (5–35%) or may be subject to specific withholding rules depending on the arrangement.

Foreign Investment Income

  • Worldwide income: Tax residents of Vietnam are subject to tax on their worldwide investment income. Foreign dividends, interest, and other investment income must be declared on the annual IIT return.
  • Foreign tax credit: Tax paid overseas on foreign-source investment income may be credited against Vietnam tax payable on the same income. The credit is limited to the Vietnam tax attributable to that foreign income.
  • Non-residents: Non-residents are taxed only on Vietnam-sourced investment income at the applicable withholding rates (5% for interest and dividends).

Summary of Withholding Tax Rates

  • Stock dividends: 5% (on market value of shares)
  • Cash dividends: 0% (exempt as from after-tax profits)
  • Bank deposit interest: 5%
  • Corporate/government bond interest: 5%
  • Rental income (individual): 5% VAT + 5% PIT = 10% total
  • Royalties: 5%