Vietnam

{"ftc_utility":"high","fbar_trigger_notes":"US expats working in Vietnam commonly maintain local VND bank accounts for payroll and daily expenses. Any account balance exceeding $10,000 at any point during the calendar year triggers FBAR (FinCEN 114) filing. Vietnamese banks do participate in CRS reporting, increasing IRS visibility into foreign accounts. A local account is effectively required for anyone receiving Vietnamese payroll.","ftc_utility_reason":"Vietnam taxes resident individuals on worldwide income at progressive rates up to 35%, which are generally equal to or higher than US marginal rates in many income ranges. Because Vietnam imposes substantial income tax on employment income, the Foreign Tax Credit is highly useful for reducing US tax liability on amounts exceeding the FEIE limit. Taxpayers earning above the FEIE ceiling ($126,500 for 2024) or using FTC instead of FEIE will find Vietnamese taxes largely offset US tax owed on Vietnamese-source income.","presence_day_count_notes":"Vietnam does not impose strict visa-based limits on US citizen stays in the same way that creates automatic day-count issues, but most US citizens enter on tourist e-visas (90 days) or business visas requiring periodic renewal. Long-stay arrangements typically require a work permit and temporary residence card. The 330-day physical presence test is achievable but requires managing visa continuity. Days in Vietnam count toward the 330-day total regardless of visa type.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.35,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Vietnamese tax residents is taxed at 20% flat rate under the PIT other-income schedule. Voluntary pension fund distributions from Vietnamese registered funds may receive different treatment. No treaty framework exists with the US to reduce this liability.","tax_rate":0.2,"locally_taxed":true},"social_security":{"notes":"No US-Vietnam totalization or income tax treaty exists. US Social Security benefits received by a Vietnam tax resident are in principle taxable as foreign-sourced income under Vietnamese PIT. The 20% flat rate on other income would apply. Practical enforcement is limited but the legal liability exists.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Vietnam does not recognize the Roth IRA structure. Distributions would likely be treated as other income subject to 20% PIT, though in practice enforcement and detection of foreign Roth distributions for individuals resident in Vietnam is inconsistent. No treaty protection exists.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Vietnam and the United States do not have an income tax treaty. US 401k and IRA distributions received by a Vietnam tax resident are treated as foreign-sourced income under the 'other income' schedule and subject to a 20% flat PIT rate. Vietnam taxes residents on worldwide income, so distributions from US retirement accounts are in scope. There is no treaty to prevent double taxation on these amounts.","tax_rate":0.2,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.2,"notes":"Securities transfers are taxed at 0.1% of gross transfer proceeds (flat, no deduction for cost basis) or 20% on net gains if the taxpayer can substantiate costs. Real property transfers are taxed at 2% of gross proceeds or 25% on net gains.","details":{"tax_type":"Capital Gains Tax","country_name":"Vietnam","country_iso_code":"VNM","source_references":["PwC Worldwide Tax Summaries - Vietnam Individual","Vietnam Law on Personal Income Tax (Law No. 04/2007/QH12 and amendments)","General Department of Taxation Vietnam"],"last_verified_date":"2026-06-03","general_description":"Vietnam does not have a standalone capital gains tax. Gains from securities and real property are subject to personal income tax under specific schedules. Securities: 0.1% on gross transfer proceeds or 20% on net gain. Real property: 2% on gross proceeds or 25% on net gain. The taxpayer may elect the method, but in practice the gross-proceeds method is most commonly applied because cost documentation is difficult to substantiate.","corporate_capital_gains":{"rate":0.2,"tax_treatment":"Corporate capital gains from securities and property transfers are included in taxable income and subject to the standard corporate income tax rate of 20%. A 0.1% withholding on gross securities transfer proceeds applies at transaction level and is creditable against CIT liability."},"individual_capital_gains":{"rate":0.2,"tax_treatment":"Individuals pay PIT on securities gains at 0.1% of gross proceeds (withheld at source) or 20% of net gain. Real property gains are taxed at 2% of gross proceeds or 25% of net gain. Most taxpayers use the gross-proceeds method. Non-residents pay 0.1% on securities proceeds and 2% on property proceeds as final withholding.","securities_net_gain_rate":0.2,"non_resident_property_rate":0.02,"real_property_net_gain_rate":0.25,"non_resident_securities_rate":0.001,"securities_gross_proceeds_rate":0.001,"real_property_gross_proceeds_rate":0.02}}}

{"notes":"Dividends received by resident individuals from Vietnamese companies are subject to a 5% PIT withholding rate (final tax). Dividends paid to non-resident individuals are subject to 5% withholding as a final tax. Dividends paid to non-resident companies are subject to 5% withholding tax under the Foreign Contractor Tax regime. Dividends from after-tax profits already subject to Vietnamese CIT are not taxed again at the corporate level when distributed within a corporate group.","rates":[{"rate":0.05,"type":"withholding","notes":"Standard rate for resident and non-resident individuals receiving dividends from Vietnamese entities. Final tax, no further PIT filing required on this income."},{"rate":0.05,"type":"withholding","notes":"Non-resident companies receiving dividends under Foreign Contractor Tax regime. Treaty relief may reduce this rate depending on applicable tax treaty."}]}