What are the tax brackets in Vietnam?

A progressive taxation system is practised by Vietnam for personal income tax, meaning individuals pay higher tax rates for higher incomes. The tax rates are designed to have higher-income individuals pay more taxes, while low-income individuals pay lower rates of taxation and are also subject to simplified taxation requirements. It is vital for companies to have information on these taxation rates.

Important points regarding tax brackets for Vietnam are:

• Progressive taxation: The personal income tax is divided into several bands where each is levied at higher rates of tax as incomes rise.
• Applied to various income categories: Income from employment, business income, as well as some categories of investment income, may come within the bracket system on the basis of its character.
• Compliance requirements: Accurate calculation, payroll reporting, and timely filing are essential to meet regulatory standards.

Due to differences in taxation requirements for residents and non-resident taxpayers, as well as business types, most companies engage Accounting Services in Vietnam to deal with taxation requirements.

One IBC provides a full suite of accounting solutions tailored to local regulations, helping businesses manage reporting, payroll classification, and tax filings with clarity and efficiency. This support ensures that companies remain compliant while focusing on core operations.