As the 2023 Lunar New Year starts, businesses in Vietnam are getting ready to enter the 2022 tax season. This means that all businesses, whether local or foreign-owned, has to fulfill numerous obligations as part of their tax reporting and corporate compliance.
The last few years have seen Vietnam making significant efforts to improve its tax system, including upgrading the digital infrastructure and reducing the length of the procedure. However, paying taxes is still one of the biggest drawbacks of doing business in Vietnam, according to the World Bank’s Doing Business report. As a business owner, you have to maintain compliance with all the changing legal requirements to keep your company away from fines and penalties. The guide below will help you prepare for tax reports, submissions, and compliance deadlines to conclude your 2022 obligations.
Read more about our accounting services for foreign companies in Vietnam.
The Most Important Tax Deadlines in Vietnam in Summary
- VAT Finalization: Due 60 days from the end of the fiscal year
- PIT Finalization: Due the 31st of March of the following year
- CIT Finalization: Due the 31st of March of the following year
Overview of Vietnam’s Tax and Compliance Obligations
In Vietnam, all private companies are subject to four primary types of taxes. Even if the business does not generate revenue or conduct business activities, it still has to file and report these taxes.
- Corporate Income Tax (CIT)
- Value-Added Tax (VAT)
- Personal Income Tax (PIT)
- Business License Tax (Business License Fee)
Apart from these taxes, depending on your company’s operations, there are also other obligations to fulfill. These can include land lease fees, employment reports, and statistical reports.
Tax Filing and Compliance Deadlines in Vietnam for 2023
If you are a foreign company operating in Vietnam, getting to know the tax deadlines is essential for your firm’s smooth operations in the country. Below you’ll find our latest 2023 Vietnam tax deadline calendar, along with detailed breakdowns of the taxes.
In general, a company in Vietnam has to submit its tax report and tax payment monthly/quarterly and annually. Depending on the revenue of the company, a monthly report or quarterly report would be applied. Besides, an FDI company in Vietnam also has to submit an independent audit. This Vietnam tax compliance calendar was created to help you avoid any unwanted penalties and keep your operation smooth.
Types of Taxes on Foreign Companies in Vietnam
Corporate Income Tax (CIT)
The general CIT rate is 20% for foreign companies operating in Vietnam. However, some restricted industries are subject to higher CIT, while incentivized industries may receive tax holidays and reductions.
See our article on corporate tax and compliance obligations for more detailed information.
Personal Income Tax (PIT)
The PIT Rate is calculated based on your income (table below).
|Monthly PIT payable (Million VND)||Tax rate (%)||Calculated sum of PIT (Million VND)|
|0-5||5||0 + 5% Monthly PIT payable|
|5-10||10||0,25 + 10%* 5|
|10-18||15||0,75 + 15%* 10|
|18-32||20||1,95 + 10%* 18|
|32-52||25||4.75 + 25%* 32|
|52-80||30||9.75 + 30%* 52|
|80 and above||35||18,15 + 35%* 80|
Value-Added Tax (VAT)
As of 2023, Vietnam’s VAT rate is the standard 10% across most goods and services.
For VAT incurred in 2022, as a result of the government’s COVID-relief policies, the rate was reduced to 8%.
Monthly Tax Payment and Report
On the 20th of each month:
VAT declaration (Value-added tax) of the previous month
PIT declaration (Personal-income-tax) of the previous month
Tax payment: PIT and VAT of the previous month
Quarterly Tax Payment and Report
On the 30th of the starting month in each quarter:
Tax payment for CIT (corporate-income-tax) calculates net income of a corporation for the previous quarter
RELATED: VAT Refunds for Companies in Vietnam
Annual Tax Payment and Report
On the last day of March of each year:
- PIT finalization of the previous year (if any)
- CIT finalization of the previous year (mandatory)
- Tax payment: PIT and CIT finalization of the previous year (if any)
- Financial Statement of the previous year (mandatory)
- Audit report (for FDI company)
On January 30 each year
- Business License fee
For the full list of all annual, quarterly, and monthly deadlines download our tax calendar below
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