Expatriate tax ebook - Vietnam

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
Capital gains are currently exempt from tax.  From 2009, capital gains from capital transfer or transfers of securities by residents will be subject to tax at 20% on net income or 0.1% on gross selling price.
Capital transfers by non residents will be subject to 0.1% on gross selling price.

Inheritance, estate & gift taxes
Up until 2008, no inheritance tax was applicable and the transfer of assets between family members generally is not subject to any tax.

There is no gift tax in Vietnam. However, gifts from abroad may be subject to VAT and import tax. From 2009, inheritance and gifts will be subject to tax at 10%.

Investment income
Income from interest, dividends and other investment income earned by individuals are temporarily exempt from personal income tax in Vietnam.

From 2009, dividends and other investment income will be taxed at 5%.

Local taxes
There are no local (provincial) taxes imposed on the income of individuals in Vietnam.

Real estate tax
Stamp duty/registration fees are payable for the registration of the ownership of land and building or other assets such as transport vehicles, shot guns and sport guns. The registration fee for land and building is set at 1% on the value of the real estate sold, and the fee is capped at approximately VND 500 million (or US$ 31,000) for each asset.

Expatriates are currently not allowed to buy residential property in Vietnam.

Social security taxes
Social and health insurance payments, which are compulsory in the expatriate's home country, are non taxable. However, supporting documentation should be submitted to the tax office in order to have the value of these insurance payments excluded from taxable income.

Stock options
Stock options are considered as a bonus given to employees by employers. On the date of the exercise, the income is the net difference between the stock market price and the option exercise price. Such income is taxable on the month of exercise and finalised in the relevant year, regardless of whether the income is transferred in Vietnam or not.

Wealth tax
There is no wealth tax in Vietnam.

Other specific taxes
There are no other specific taxes relevant to expatriates in Vietnam.

Information about Vietnam:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities