Taxes
Vietnam — Tax: Tax Residency Rules
Under the Law on Personal Income Tax No. 109/2025/QH15, an individual is a Vietnam tax resident if they meet either test: (1) present in Vietnam for 183 days or more in a calendar year, or in 12 consecutive months counted from the first day of presence; or (2) have a regular place of residence in Vietnam, which includes a registered permanent residence or a rented house under a fixed-term lease. Anyone meeting neither test is a non-resident. Residents are taxed on worldwide income; non-residents only on income from Vietnam. Per PwC (reviewed September 2026), residents pay progressive rates from 5% to 35% on employment income and non-residents a flat 20%.
Why this matters
The 'leased residence' test catches long-stay expats who never hit 183 physical days but keep a serviced apartment or company-provided housing for most of the year — Vietnam can deem you tax resident on housing alone, not just day-count, unless you can produce a residency certificate from another country.
Key facts
- Test 1 — presence: 183 days or more in a calendar year, or in 12 consecutive months from the first day of presence in Vietnam.
- Test 2 — regular residence: a registered permanent residence, or a rented house under a fixed-term lease. Meeting either test is enough.
- Non-residents are those who meet neither test.
- Residents are taxed on worldwide income; non-residents only on Vietnam-source income.
- Employment-income rates per PwC (Sept 2026): residents 5%, 10%, 20%, 30% and 35% across five income bands (up to VND 120m to over VND 1,200m a year); non-residents a flat 20%.
Steps
- Track your day count from day one — Keep a personal log of every entry/exit stamp from arrival, since Vietnam counts both full and partial days of presence — this is the single most disputed factual issue in residency assessments.
- Review your housing arrangement — If your employer provides housing, or you sign a lease/hotel arrangement lasting most of the year, assume the leased-residence test may apply even if you travel frequently and stay under 183 physical days.
- Obtain a certificate of tax residency from home country if disputing — If you believe you should not be a Vietnam tax resident under the leased-housing test, obtain a tax residency certificate from your home country's tax authority to present to GDT.
- Register your status with your employer/tax code — Inform whoever administers your Vietnam payroll of your residency status early, since it changes the withholding rate from a flat 20% (non-resident) to progressive bands (resident) and affects which deductions apply.
- Re-assess annually — Residency is assessed per tax year (or the first 12-month period from arrival, then subsequent calendar years) — a status that applied last year does not automatically carry forward if your presence pattern changes.
Required documents
- Passport with entry/exit stamps (or immigration record printout from immigration.gov.vn)
- Lease agreement or hotel/corporate housing confirmation letters
- Temporary Residence Card or registered residence documentation
- Home-country tax residency certificate (if disputing Vietnam residency)
Common mistakes
- Assuming that staying under 183 days automatically avoids Vietnam tax residency — a regular residence, including a rented home under a fixed-term lease, can also make you a resident.
- Not keeping a day-count log and having to reconstruct travel history from passport stamps during a tax audit.