Vietnam Personal Income Tax Guide (Thuế TNCN)

Vietnam's Personal Income Tax (Thuế Thu Nhập Cá Nhân) applies progressive rates from 5% to 35% across seven brackets. A family deduction of VND 11 million/month for the taxpayer and VND 4.4 million/month per dependent reduces taxable income. Charitable donations are also deductible. All amounts in VND.

Vietnam's Thuế Thu Nhập Cá Nhân (Personal Income Tax, IIT) is administered by the General Department of Taxation (Tổng cục Thuế). The system taxes worldwide income of tax residents on an annual basis. For related guidance, see our Corporate Tax Guide →, VAT Guide →, and Investment Income Guide →.

IIT Tax Brackets 2026

Vietnam uses a progressive seven-bracket system on net taxable income (total income minus deductions and allowances):

5% — on the first VND 5,000,000 of monthly taxable income (up to VND 60M annually)
10% — on VND 5,000,001 to VND 10,000,000
15% — on VND 10,000,001 to VND 18,000,000
20% — on VND 18,000,001 to VND 32,000,000
25% — on VND 32,000,001 to VND 52,000,000
30% — on VND 52,000,001 to VND 80,000,000
35% — on VND 80,000,001 and above

Tax is calculated on monthly income but filed annually. The annual tax liability is the sum of monthly calculations, with a final settlement each year.

Family Deduction (Giảm Trừ Gia Cảnh)

Taxpayer deduction: VND 11,000,000 per month (VND 132,000,000 per year). This is automatically applied to all resident individuals with employment income.
Dependent deduction: VND 4,400,000 per month per dependent (VND 52,800,000 per year).
Eligible dependents: Children under 18, children over 18 but in full-time education without income, spouse without income, parents over retirement age without income, and other relatives who meet dependency criteria.
Dependents must be registered with the tax authority through the employer or directly via the tax portal to claim the deduction.

Personal Relief and Charitable Deductions

Charitable donations: Donations to registered charitable organizations, disaster relief funds, and educational or medical institutions are deductible from taxable income. The deduction is limited to actual documented contributions with official receipts.
Insurance premiums: Voluntary pension insurance premiums are deductible up to VND 1,000,000 per month (VND 12,000,000 per year).
Tax-exempt income: Certain income types are exempt from IIT, including overtime pay at rates above standard wages, income from rice cultivation, and some allowances (e.g., meal, transport, telephone within limits set by law).

Filing Requirements

Residents: File annually on worldwide income. Employers typically withhold tax (pay-as-you-earn system) and file quarterly/monthly declarations. A final annual settlement must be filed by the 90th day of the following calendar year.
Non-residents: Flat rate of 20% on Vietnam-sourced employment income. No family deductions or personal relief available. Withholding at source applies.
Filing methods: Electronic filing via the General Department of Taxation portal (thuedientu.gdt.gov.vn), through employer withholding agents, or via tax agents. Paper filing is also accepted.
Foreign tax credits: Residents may claim a foreign tax credit for taxes paid overseas on foreign-source income, limited to the Vietnam tax payable on that income.

Tax Calculation Example

Monthly income: VND 30,000,000
Family deduction (self): -VND 11,000,000
Dependents (2): -VND 8,800,000
Taxable income: VND 10,200,000
Tax: (5% × VND 5M) + (10% × VND 5.2M) = VND 250,000 + VND 520,000 = VND 770,000/month