Starting a business in
🇻🇳Vietnam
Checked November 4, 2026 · How we score
Corporate tax
20%
Top income tax
35%
Setup from
$2,500
all-in, first year
Time to form
6 weeks
visit usually needed
Taxes in Vietnam
| Corporate income tax | 20% 20% standard rate. Under the 2025 Corporate Income Tax Law, small enterprises with low turnover can pay a reduced 15% or 17% rate (thresholds around VND 3bn and VND 50bn; check the latest decree). Preferential rates of 10-17% and tax holidays apply to high-tech, software, manufacturing and encouraged sectors. A 15% top-up tax applies to large multinational groups from 2024. |
|---|---|
| Personal income tax (top) | 35% New Personal Income Tax Law (Law 109/2025) with five brackets of 5%, 15%, 25%, 30% and 35% for residents, effective from 1 July 2026 for employment income (business income from the 2026 tax year). Residents (183+ days in a year or a 12-month period) are taxed on worldwide income; non-residents pay 20% on Vietnam-source employment income. |
| Tax system | Worldwide income |
| Capital gains tax | 0.1%0.1% of the sale price on securities transfers by individuals, 2% on real estate transfer value, and 20% on net gains for non-resident corporates from capital transfers. |
| Dividend withholding (non-residents) | 5% |
| VAT / GST | 10% |
| Social security | Mandatory social, health and unemployment insurance apply to local employees and most foreign employees with work permits: employer about 21.5% and employee 10.5% of salary within caps. A temporary VAT cut to 8% on many goods and services has run through 2026. |
Forming a company in Vietnam
| Usual entity | Foreign-invested LLC or JSC (with Investment Registration Certificate) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $2,500–$7,000 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 6 weeks |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Hard |
Residency and visas
Vietnam has no digital nomad or investor residency visa; e-visas are valid for up to 90 days. Foreign investors and managers usually obtain a work permit and Temporary Residence Card (up to 2 years for investors who contribute capital, with longer terms for larger investments). Foreign-owned companies need a legal representative who lives in Vietnam.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Corporate tax incentives
Preferential 10% and 17% rates and multi-year tax holidays for high-tech, software, science and encouraged projects in specific zones.
International Financial Centres
Resolution 222/2025 creates financial centres in Ho Chi Minh City and Da Nang with incentives for financial firms, crypto asset pilots and certain tax breaks.
Small enterprise rates
Reduced 15% or 17% corporate rates for businesses with low annual revenue under the 2025 Corporate Income Tax Law.
Pros and cons
Why founders pick Vietnam
- Low labour and operating costs
- Strong manufacturing base and trade agreements
- Reduced corporate rates for small firms and encouraged sectors
- Growing tech and fintech scene
Watch out for
- Foreign-invested companies need an investment certificate and a local legal representative
- Heavy paperwork, notarised documents and Vietnamese-language filings
- Strict foreign exchange controls and capital account requirements
- Worldwide taxation of residents with rates up to 35%
Best for: Manufacturing and outsourcing operations in Southeast Asia · Software and engineering teams that want low-cost talent · Companies selling into Vietnam's growing consumer market
Vietnam: common questions
What is the corporate tax rate in Vietnam?
The standard corporate income tax rate is 20%. Small enterprises can pay reduced 15% or 17% rates under the 2025 law, and projects in high-tech, software and encouraged sectors can get 10-17% rates and tax holidays.
Can foreigners own 100% of a company in Vietnam?
Yes, in most sectors a foreign investor can own 100% of an LLC or JSC after obtaining an Investment Registration Certificate and an Enterprise Registration Certificate. Conditional sectors such as logistics, education and media have limits or extra licences.
What is the personal income tax rate in Vietnam?
Tax residents pay progressive rates of 5% to 35% on worldwide income under the new law effective from 1 July 2026 (five brackets). Non-residents pay a flat 20% on Vietnam-source employment income.
Does Vietnam have a digital nomad visa?
No. Vietnam offers e-visas valid for 90 days and various work and investor visas, but there is no digital nomad visa, and working remotely on a tourist visa is not formally permitted.
How much does it cost to set up a company in Vietnam?
Setting up a foreign-invested company through an agent typically costs about $2,500 to $7,000 in the first year, plus registered capital and office lease. Annual accounting, tax, audit and reporting generally cost $3,000 to $8,000.
Sources
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.