Applicable Tax Rates for Different Types of Foreign-Invested Enterprises in Vietnam

25/03/2025, 15:16

The tax rates for each type of enterprise for foreign investors in Vietnam depend on the types of taxes the business is required to pay, including:

1. Main Types of Taxes

  • Corporate Income Tax (CIT): Applied to profits after deducting eligible expenses.

  • Value-Added Tax (VAT): Applied to goods and services sold.

  • Personal Income Tax (PIT): If the business employs personnel in Vietnam.

  • Foreign Contractor Tax (FCT): If the business engages in transactions with foreign contractors.

2. Tax Rates for Different Business Types

Business Type CIT VAT PIT FCT (if applicable)
Single-Member LLC 20% (can be reduced with incentives) 0%, 5%, 8%, 10% depending on the sector 5%-35% depending on salary 5% - 15% depending on contract type
Multi-Member LLC 20% 0%, 5%, 8%, 10% 5%-35% 5% - 15%
Joint-Stock Company 20% (incentives if investing in priority sectors) 0%, 5%, 8%, 10% 5%-35% 5% - 15%
Joint Venture 20% (can be reduced if investing in incentivized sectors) 0%, 5%, 8%, 10% 5%-35% 5% - 15%
Representative Office Not subject to CIT (as it does not engage in business activities) Not subject to VAT 5%-35% for Vietnamese employees 5% - 15% if contracting foreign partners

3. Tax Incentives for Foreign Investors

Foreign investors can benefit from tax incentives when investing in priority industries or locations:

CIT Incentives

  • 10% for 15 years if investing in high technology, R&D, education, or healthcare.

  • 4 years of tax exemption and a 50% reduction for the next 9 years if investing in special economic zones.

VAT Incentives

  • Exports: 0% VAT rate.

  • Certain special services: 5% VAT or tax exemption.

PIT Incentives

  • Foreign employees working in Vietnam may be eligible for tax exemptions in specific cases.

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