Accounting & Tax, Finance & Accounting Knowledge, Lasted News, Tax Knowledge

Preparing Detailed Financial Statements for FDI Companies

Posted on 23/09/202527/03/2026 by ASS

Financial statements for FDI companies in Vietnam

1. Understanding the Importance of Accurate Financial Statements

For Foreign Direct Investment companies in Vietnam, financial statements are not only mandatory legal documents to comply with the law. They are also a tool to help clarify financial situations and build solid reputation with investors and management agencies. Financial statements, if done correctly and sufficiently, will help enterprises face and manage risks very well. At the same time, it also helps companies make more effective management, investment and business decisions. This is also one of the important factors determining sustainable development for enterprises, not just Foreign-capital companies in Vietnam.

2. Key Components of FDI Financial Statements

A standard set of financial statements of a company usually includes:

Balance sheet – showing assets, liabilities and equity.
Income statement – reflecting revenue, expenses and profits.
Cash flow statement – tracking cash flow and liquidity.
Notes to financial statements – explaining accounting policies and adjustments.

Each component plays an extremely important role, indispensable to create a complete financial report. If done correctly and sufficiently, this will be considered the most comprehensive picture of the financial situation of the enterprise.

3. Aligning Financial Reporting with International Standards

Because many Overseas-invested companies operate internationally and across borders, it can be seen that standardizing financial reports according to standards such as IFRS is very necessary and not an easy task for many enterprises. In Vietnam, the accounting system mainly follows Vietnamese Accounting Standards (VAS), however, enterprises may need to perform dual reporting to simultaneously meet domestic requirements and satisfy obligations to foreign parent companies. This will certainly help reports to always be transparent, consistent and support cross-border transactions more conveniently and easily.

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4. Common Challenges in Preparing Detailed Reports

Businesses always face many difficulties and challenges when making reports, specifically:

Difficulties in consolidating reports of many subsidiaries.
Errors in classifying expenses and revenues.
Errors in converting foreign currencies.
Pressure in submitting financial reports and tax obligations.
Limited human resources with knowledge of both VAS and IFRS.

If not handled promptly, these issues can lead to administrative fines, loss of reputation and impact on long-term financial strategies.

5. Practical Steps to Ensure Accuracy and Compliance

To ensure accurate and compliant financial reporting, Overseas-invested companies can apply:

5.1 Data Collection & Standardization

The first and most important thing is to collect accounting data from various sources: internal ERP systems, branches, subsidiaries or reports from departments (sales, purchasing, production, etc.). Enterprises need to compare, eliminate errors and ensure that all data is recorded on time and consistently. At the same time, all data must be standardized according to tax regulations and Vietnamese accounting standards (VAS), from document formats, account systems to transaction codes. This is the foundation to help avoid errors when preparing financial statements or when performing consolidation later.

5.2 Financial Statement Preparation

Once the data has been standardized, the next step is to prepare a complete set of financial report:

Balance Sheet: reflects all assets, liabilities and equity.
Income Statement: summarizes revenue, expenses and profits.
Cash Flow Statement: tracks cash inflows and outflows to assess liquidity.
Notes to the Accounts: explains accounting policies, calculation methods and important adjustments.

For Foreign Direct Investment companies, in addition to VAS, the enterprise also needs to prepare a reconciliation report to meet IFRS or US GAAP if required by the parent corporation. This requires in-depth data analysis and processing skills to ensure compatibility between the two accounting systems.

5.3 Compliance Review & Adjustments

Before finalizing the report, the enterprise needs to conduct a tax and legal compliance check:

Check with the Investment Certificate and the terms of capital contribution.
Ensure compliance with statutory audit requirements and current Vietnamese accounting laws.
Check and adjust items that may generate tax risks, such as transfer pricing, exchange rate differences, or deductible expenses.

This review helps the enterprise minimize the risk of being subject to additional collection or administrative fines, while strengthening its reputation with management agencies and investors.

5.4 Consolidation & Reporting

For multinational corporations, the final step is to prepare a consolidation package to send to the parent company or regional headquarters. This includes:

Group-level consolidation: consolidating data from multiple subsidiaries, branches, or investment projects in Vietnam.
Preparing bilingual reports (Vietnamese – English) to satisfy both domestic authorities and the needs of the parent corporation and international investors.

This process requires high accuracy to avoid errors during consolidation, while also complying with strict reporting deadlines for both Vietnam and the parent company.

To ensure that your financial statements fully comply with Vietnamese accounting standards (VAS) and IFRS, enterprises should cooperate with reputable accounting and auditing service providers such as full-service accounting from Vina TPT for inspection and consultation. Professional service providers in Vietnam often have a team of tax and accounting experts with over 10 years of experience, ready to support from the data preparation stage, compliance review to report consolidation, helping businesses minimize risks and save time.

6. How Vina TPT Bookkeeping Supports FDI Companies in Streamlining Financial Reporting

With a team of experienced experts in supporting Foreign Direct Investment Companies in Vietnam, Vina TPT has services such as Preparation Financial Statement – Consolidated Report, helping businesses build detailed, accurate and transparent financial statements. Vina TPT supports businesses with needs for:

Preparing financial report according to VAS and IFRS standards.
Consolidating reports, processing foreign currency items.
Checking compliance before tax settlement.
Applying digital solutions to optimize the process.

Vina TPT’s services are diverse, accurate and transparent, so customers can rest assured to use them. Thanks to that, enterprises can focus on growth, while still ensuring that the reporting system meets international standards.

Ready to simplify your financial reporting? Contact Vina TPT today and ensure your financial statements meet both VAS and IFRS.

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Accounting & Tax, Company Formation, Lasted News, Legal News

Avoiding Accounting Errors in FDI Companies: A Practical Guide for Vietnam

Posted on 12/09/202526/03/2026 by ASS

1. Why Accounting Errors Are Risky for FDI Companies

Foreign Direct Investment (FDI) enterprises operating in Vietnam face a unique regulatory and business environment. While global companies may already be familiar with International Financial Reporting Standards (IFRS), compliance with Vietnamese Accounting Standards (VAS) introduces an additional layer of complexity. Small errors in accounting can escalate into serious consequences, such as tax penalties, reputational damage, and even restrictions on business activities.

For example, the Vietnam Ministry of Finance (MOF) has emphasized in its guidelines that misreporting revenue or late submission of tax returns can lead to administrative fines and limit access to future incentives. This is why proper accounting practices are not just about bookkeeping but are vital to protecting long-term business success in Vietnam.

2. Misclassifying Expenses and Revenues

2.1 Common misclassifications

A frequent error in FDI operations is the misclassification of expenses and revenues. Under VAS, certain costs such as staff training, marketing, or research may need to be classified differently compared to IFRS. Multinational managers often apply their global practices directly, only to discover later that these classifications conflict with local rules.

2.2 Consequences

Such mistakes can distort profit and loss statements, affect taxable income, and trigger audits by the General Department of Taxation (GDT). Incorrect expense recognition may either inflate profit – leading to higher taxes – or reduce profit – attracting suspicion from regulators.

2.3 Correction approach

Correcting these errors requires both retrospective adjustment and updated policies for future transactions. Companies must train their internal teams on VAS guidelines and, where needed, consult an expert like Vina TPT Accounting Service to review compliance.

3. Inaccurate Foreign Currency Conversions

3.1 Complexity of multi-currency

Many FDI enterprises in Vietnam transact in multiple currencies, especially USD, EUR, and JPY. VAS requires specific rules for translating foreign currency into VND. Failure to apply the correct exchange rate – spot, average, or official – can lead to serious inconsistencies in financial reports.

3.2 Risks and penalties

A World Bank report highlights that emerging markets face elevated risk of misreporting due to currency volatility. In Vietnam, regulators may impose penalties for discrepancies that result from inaccurate conversion, particularly if these errors understate taxable income.

3.3 Best practice

Companies must ensure that exchange rates are updated from official sources and applied consistently. Automated accounting systems can help, but human oversight remains crucial. External reviews by service providers such as Vina TPT guarantee that conversion practices remain compliant with both VAS and investor expectations.

4. Delayed or Missing Compliance Reports

4.1 Regulatory reporting challenges

FDI businesses in Vietnam are required to submit various reports: annual financial statements, quarterly tax declarations, and occasional disclosures for foreign investment registration. Delays or missing reports are among the most visible accounting errors.

4.2 Impact on business

Non-compliance does not only result in fines; it can also block access to tax incentives and financial support programs designed for FDI companies. In some cases, failure to report on time has led to suspension of investment licenses.

4.3 How to address

Creating an internal compliance calendar, supported by technology, is critical. Backed by more than 20 years of experience supporting FDI companies, we know that adopting automated compliance tools helps businesses cut reporting errors by as much as 40%. Partnering with local experts ensures that reports are not only timely but also accurate and aligned with both Vietnamese and international standards.

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5. Weak Internal Controls and Data Inconsistencies

5.1 Gaps in internal control

FDI firms often rely on global accounting systems that may not be fully adapted to Vietnam’s regulatory requirements. Weak internal controls, such as lack of segregation of duties or inadequate audit trails, increase the likelihood of data inconsistencies.

5.2 Risks of weak systems

Without strong internal audits, discrepancies may go unnoticed until an external review or tax inspection. These lapses not only create compliance risks but also undermine investor trust. The OECD stresses the importance of robust internal audit functions in supporting sustainable FDI operations.

5.3 Solutions

Strengthening internal controls requires training, technology upgrades, and independent reviews. Regular internal audits, aligned with VAS, help ensure that accounting data remains reliable. This is an area where Vina TPT’s professional services add measurable value.

6. How Vina TPT Accounting Service Helps FDI Companies Correct and Prevent Errors

Vina TPT Accounting Service offers comprehensive solutions tailored for FDI enterprises in Vietnam. The firm goes beyond bookkeeping by providing proactive troubleshooting, corrections, and preventive strategies.

By integrating knowledge of VAS with international best practices, Vina TPT helps companies:

Identify and correct misclassified expenses and revenues.
Implement accurate foreign currency conversion processes.
Establish compliance calendars to avoid reporting delays.
Strengthen internal audit and control systems.

Clients benefit from a smoother relationship with regulators, improved investor confidence, and reduced financial risk. For more details, explore Vina TPT Accounting Service.

Explore Vina TPT’s professional accounting and compliance services to keep your FDI company on the right track in Vietnam.

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Lasted News, Accounting & Tax

International Accounting Standards for FDI Companies in Vietnam

Posted on 11/09/202506/10/2025 by ASS

1. Why International Financial Reporting Standards (IFRS) Matter for FDI in Vietnam

International accounting standards (IFRS) are essential for FDI companies in Vietnam, helping them navigate cross-border challenges, multiple currencies, and regulatory differences. By adopting international accounting standards, Foreign-capital enterprises in Vietnam can ensure financial transparency and gain stronger investor confidence.

For FDI enterprises in Vietnam, aligning with IFRS not only enhances global credibility but also ensures smoother cooperation with local regulators under Vietnamese Accounting Standards (VAS). Many multinational corporations entering Vietnam, from manufacturing to technology, have already integrated IFRS into their reporting structures to strengthen trust with stakeholders.

2. Challenges of Implementing International Accounting Standards in Vietnam

The International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), are designed to harmonize financial reporting worldwide. These international accounting standards are now considered the backbone of global accounting, shaping modern accounting norms across markets.

For Overseas-invested companies in Vietnam, IFRS is not just about compliance – it establishes a transparent reporting foundation that appeals to global investors while also meeting the requirements of the Ministry of Finance and Vietnamese tax authorities. According to the IFRS Foundation, more than 140 jurisdictions already require or permit IFRS, proving its growing global influence.

3. How IFRS Supports Global Accounting for FDI in Vietnam

Each IFRS requirement reflects how international accounting standards are applied in practice, ensuring that FDI Vietnam businesses maintain consistency with global reporting.

3.1 IFRS 3: Business Combinations

Mergers, acquisitions, and joint ventures are common in FDI. IFRS 3 provides guidelines on goodwill, fair value measurement, and disclosure, ensuring clarity in reporting cross-border investments.

3.2 IFRS 9: Financial Instruments

Many FDI companies in Vietnam use derivatives, foreign loans, or complex contracts. IFRS 9 ensures accurate classification and measurement, minimizing risks related to misreporting.

3.3 IFRS 16: Leases

FDI enterprises leasing factories or offices in Vietnam must record lease liabilities and right-of-use assets. This affects financial ratios and gives stakeholders a more realistic picture of obligations.

3.4 IAS 21: Effects of Foreign Exchange

Operating in Vietnam often means dealing with currency fluctuations. IAS 21 provides guidance on translating VND into the reporting currency while maintaining accuracy.

3.5 IFRS 15: Revenue Recognition

Revenue is a critical metric. IFRS 15’s five-step model ensures consistency in how FDI companies record sales, service contracts, or long-term projects in Vietnam.

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4. Challenges of Implementing IFRS in Vietnam

For many FDI Vietnam enterprises, aligning with global accounting norms is challenging due to limited resources and evolving regulations.

4.1 Diverse Regulatory Environments

Vietnam has introduced a roadmap to adopt IFRS by 2025, but many companies still balance both IFRS and VAS reporting. This dual system creates additional workload.

4.2 Resource Constraints

Smaller businesses may lack trained these standard experts. Recruiting and training staff to understand both VAS and IFRS is often costly.

4.3 Currency Volatility

Frequent changes in exchange rates complicate IAS 21 application, particularly for companies in manufacturing and export sectors.

4.4 Training and Technology Gaps

Keeping finance teams updated on evolving the standards requires ongoing investment in training and accounting technology.

These issues highlight why partnering with professional accounting services becomes essential.

5. The Role of Accounting Services in IFRS Compliance

Partnering with a trusted provider like Vina TPT accounting service company makes International Financial Reporting Standards adoption smoother and more reliable for foreign investors.

Expertise and Compliance: Specialists understand both IFRS and VAS, ensuring dual compliance.

Cost Efficiency: Outsourcing avoids the expense of building in-house teams.
Scalability: Services expand alongside your operations in Vietnam.
Technology Integration: Using advanced accounting software ensures efficiency and accuracy.

For example, Vina TPT assists businesses in preparing consolidated financial statements, handling audits, and ensuring compliance with both international and Vietnamese standards.

6. Steps to Adopt IFRS in Vietnam

These steps help Overseas-invested companies move from basic compliance to full integration with international accounting standards, aligning with global accounting practices.

Assess Current Practices: Conduct a gap analysis between existing VAS practices and IFRS requirements.
Engage Professional Support: Work with Vina TPT Accounting Service for tailored IFRS solutions.
Train Finance Teams: Continuous education ensures accounting staff stay updated with IFRS changes.
Implement Technology Solutions: Adopt cloud-based accounting systems compatible with IFRS for greater efficiency.
Monitor Compliance: Regular reviews and audits strengthen long-term transparency and accuracy.

7. The Future of IFRS Adoption in Vietnam

Vietnam’s Ministry of Finance has outlined a roadmap for International Financial Reporting Standards adoption, aiming for wider use among listed and large-scale enterprises by 2025. This transition will push more Foreign Direct Investment companies to align with international practices, making professional support even more crucial.

Additionally, new global trends – such as ESG reporting and digital accounting systems – are shaping the next generation of financial transparency. Companies that prepare early will have a competitive advantage in Vietnam’s market.

As IFRS framework becomes the benchmark for Foreign Direct Investment enterprises, choosing Vina TPT accounting service company ensures compliance with international accounting standards while supporting long-term growth.

Explore Vina TPT’s comprehensive accounting and IFRS solutions designed to support FDI companies operating in Vietnam.

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Accounting & Tax, Accounting News, Lasted News

Step-by-Step Accounting Procedures for FDI Enterprises in Vietnam

Posted on 09/09/202523/03/2026 by SEN

Accounting Procedures for FDI company in Vietnam

1/ Challenges of Accounting Procedures for FDI Vietnam

Foreign direct investment has become a cornerstone of Vietnam’s economic growth, attracting multinational corporations and small enterprises alike. However, the journey for FDI Vietnam operations is not without obstacles. One of the most pressing issues is compliance with accounting procedures that are both complex and highly regulated.

Unlike some jurisdictions where accounting systems are more flexible, Vietnamese accounting follows strict rules set by the Ministry of Finance. FDI companies frequently encounter barriers in understanding these procedures because the framework is rooted in local law, written in Vietnamese, and subject to regular amendments. The language barrier is significant, since all accounting documents and reports must be prepared in Vietnamese. This requirement often results in additional administrative costs and reliance on professional translation or advisory services.

Another common challenge is the fast-changing regulatory environment. Tax regulations, reporting requirements, and compliance obligations are updated frequently, sometimes annually. Without a reliable accounting guide, FDI companies may struggle to stay up to date, leading to errors and compliance risks. Moreover, differences in cultural and business practices can cause misunderstandings in financial communication between local partners and foreign headquarters.

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2/ What Are Accounting Procedures for FDI Operations?

When discussing accounting procedures in Vietnam, it is essential to understand that they go far beyond basic bookkeeping. For FDI enterprises, accounting procedures encompass the entire framework of recording, classifying, summarizing, and reporting financial transactions in line with Vietnamese accounting standards (VAS).

This includes maintaining accurate ledgers, preparing quarterly and annual financial statements, and fulfilling tax obligations such as value-added tax (VAT), corporate income tax (CIT), and personal income tax (PIT) for employees. Each of these tasks must follow regulations set by the Ministry of Finance and the General Department of Taxation. For example, financial statements must be prepared in Vietnamese dong (VND), regardless of whether the parent company reports in US dollars, euros, or another foreign currency.

In addition, all reports must be filed within strict deadlines. Late submission or inaccurate reporting can result in penalties or even suspension of business licenses. This is why FDI Vietnam businesses cannot treat accounting as a secondary matter. Instead, they must approach it as a core compliance function that directly impacts operational success and investor confidence.

3/ Key Differences Between Vietnamese Accounting (VAS) and International Standards (IFRS)

One of the most challenging aspects for FDI enterprises is reconciling Vietnamese accounting practices with international standards such as International Financial Reporting Standards (IFRS). The differences between the two systems are not merely technical but often affect how companies strategize their operations in Vietnam.

For instance, VAS is highly compliance-driven and closely tied to tax regulations, while IFRS prioritizes transparency and comparability for investors. This means that under VAS, companies may need to record expenses and revenues in ways that differ from international expectations. Furthermore, the language requirement poses additional complexity, as all accounting records must be maintained in Vietnamese, regardless of the company’s internal systems.

Currency is another significant difference. While multinational corporations often operate in USD or EUR, Vietnamese regulations require financial reporting in VND. This necessitates frequent foreign exchange translations, which may create discrepancies between local and global reports.

These differences are not insurmountable but require careful planning and professional support. Companies often rely on advisory services such as Vina TPT Accounting Service to ensure smooth reconciliation between VAS and IFRS. This allows them to satisfy both local authorities and international stakeholders.

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4/ Risks of Non-Compliance with Vietnamese Accounting Regulations

The consequences of failing to follow accounting procedures in Vietnam can be severe. Financial penalties are the most immediate risk, as the tax authorities impose fines for late submissions, missing documents, or incorrect financial statements. However, the risks extend beyond monetary loss.

Non-compliance can damage a company’s reputation, eroding trust with local partners, regulators, and even investors abroad. For multinational corporations, reputational harm in one jurisdiction can quickly spread across global markets. Moreover, persistent violations may lead to stricter audits, sanctions, or even suspension of licenses.

There is also the risk of operational delays. For example, companies that fail to comply with accounting regulations may face challenges when applying for tax refunds, investment incentives, or expansion licenses. This creates unnecessary bottlenecks in growth strategies. According to the Ministry of Finance of Vietnam, maintaining compliance with financial reporting standards is a prerequisite for building credibility in the local market.

5/ How an Accounting Guide Helps FDI Companies in Vietnam

An effective accounting guide acts as a roadmap for FDI Vietnam businesses. Rather than reacting to compliance issues after they arise, companies can proactively manage their obligations through structured guidance. A comprehensive guide explains in detail how to maintain ledgers, prepare financial statements, and align reporting with both VAS and international standards.

The benefits of using an accounting guide are significant. It reduces the likelihood of errors in tax filings, ensures timely submission of reports, and provides clarity on the differences between local and international standards. For new entrants into the Vietnamese market, an accounting guide can shorten the learning curve and prevent costly mistakes.

Beyond compliance, such guides also help companies design internal processes that optimize efficiency. For instance, knowing how to structure payroll systems according to Vietnamese tax laws can save both time and resources. Access to reliable information from trusted sources such as Google Scholar further reinforces decision-making and ensures that companies rely on accurate, up-to-date knowledge.

6/ Vina TPT Accounting Service – Professional Solutions for FDI Enterprises

At Vina TPT Accounting Service, we recognize the difficulties foreign investors encounter when dealing with Vietnamese accounting regulations. Our mission is to provide professional, reliable, and customized solutions that help FDI enterprises thrive in Vietnam.

We offer comprehensive bookkeeping services tailored to the needs of foreign companies, ensuring all transactions comply with VAS. Our tax compliance support minimizes the risks of penalties and audits, giving businesses peace of mind. We also provide consulting services on IFRS-VAS reconciliation, helping companies deliver consistent and transparent reports to both local authorities and international headquarters.

What sets Vina TPT Accounting Service apart is our commitment to clarity. We develop customized accounting guides for each client, simplifying complex regulations into practical, easy-to-follow steps. This empowers foreign enterprises to focus on what matters most: growing their business in one of Asia’s most dynamic economies.

If your enterprise is seeking a reliable partner to navigate accounting procedures in Vietnam, Vina TPT is here to help. Visit our official service page for more details or contact us directly for a consultation.

Let Vina TPT Accounting Service be your trusted partner in Vietnam. Reach out today to secure compliance and accelerate your business success.

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Accounting & Tax, Lasted News

Vietnam Foreign Contractor Tax: Ultimate Guide for 2025

Posted on 22/08/202511/03/2026 by SEN

Vietnam Foreign Contractor Tax (FCT), also known as Foreign Contractor Withholding Tax (FCWT), is a crucial withholding tax regime in Vietnam that applies to non-resident entities earning income from goods, services, or other activities sourced in the country. Governed primarily by Circular 103/2014/TT-BTC and updated through recent decrees like Decree 181/2025/ND-CP and Circular 69/2025/TT-BTC, FCT combines Value-Added Tax (VAT) and Corporate Income Tax (CIT) or Personal Income Tax (PIT) components to ensure foreign businesses comply with local tax obligations. This tax is particularly important for foreign contractors, suppliers, and digital service providers operating in Vietnam without a permanent establishment (PE), as non-compliance can lead to penalties, audits, and barriers to market entry.

For quick assessment: Is FCT applicable to your business?

1/ Checklist for Vietnam Foreign Contractor Tax Applicability:

Are you a non-resident entity providing goods/services in Vietnam? (Yes/No)

Does the transaction involve Vietnam-sourced income? (Yes/No)

No permanent establishment in Vietnam? (Yes/No)

If mostly “Yes,” FCT likely applies—consult a tax expert.

Component	Description	Basic Rates (2025)
VAT	Tax on added value in transactions	2-5% (with 2% reduction extended to Dec 2025)
CIT	Income tax on profits	0.1-10% depending on activity
PIT	For individuals	Up to 10% on gross income

This overview sets the context: We’ll dive deeper into who pays, how to calculate, and tips for 2025 compliance, ensuring a logical flow from basics to advanced scenarios.

2/ What is Vietnam Foreign Contractor Tax (FCT)?

Foreign Contractor Tax (FCT) is a withholding tax imposed on payments made to foreign entities (non-residents) for income derived from Vietnam, regardless of where the contract is signed or services performed. It’s not a separate tax but a hybrid mechanism combining VAT and CIT (or PIT for individuals), withheld by the Vietnamese payer to simplify collection from non-residents. Introduced under Circular 103/2014/TT-BTC, FCT ensures foreign contractors contribute to Vietnam’s tax base without needing full residency.

In 2025, updates via Circular 69/2025/TT-BTC emphasize stricter enforcement on e-commerce, aligning with global digital tax trends. Unlike standard withholding taxes (e.g., on dividends), FCT applies broadly to service-inclusive transactions, preventing tax evasion in cross-border deals.

Key Components of FCT:

VAT Portion: Covers value added, creditable for Vietnamese parties.

CIT/PIT Portion: Taxes deemed profits.

Hybrid Nature: Allows flexibility in calculation methods.

For example, a foreign software firm licensing tech to a Vietnamese company pays FCT on royalties, contrasting with pure export taxes which might be exempt. This definition builds a foundation, leading to who it affects next.

3/ Who is Subject to FCT?

FCT targets non-resident foreign entities and individuals earning Vietnam-sourced income without a PE. This includes overseas contractors, subcontractors, suppliers, and digital platforms, as per updates in Official Letter 2200/CT-CS and 2025 regulations.

Main Subjects:

Foreign organizations providing services/goods in Vietnam.

Non-resident individuals (e.g., consultants) without 183-day presence.

E-suppliers like online marketplaces under new 2025 rules.

Type of Subject	Conditions for Applicability	Examples
Organizations	No PE; Vietnam-sourced income	Foreign engineering firms, SaaS providers
Individuals	Non-residents earning fees	Expat freelancers, licensors
E-Suppliers	Digital services to VN users	Streaming platforms, ad networks

Checklist to Determine Liability:

Income from VN contract? (Yes → Likely liable)

Services performed in VN or goods with installation? (Yes → Liable)

Treaty relief available? (Check DTAs)

If unsure, register for clarification to avoid penalties.

This section flows from definition to identification, highlighting 2025 e-supplier expansions for comprehensive coverage.

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Transactions Subject to FCT

FCT applies to a wide range of cross-border transactions generating Vietnam-sourced income, including those with service elements. In 2025, this extends to digital distributions and royalties under tightened rules.

Categories of Transactions:

Goods sales bundled with services (e.g., equipment + installation).

Pure services (e.g., consulting, training).

Other income (e.g., interest, royalties, asset transfers).

Transaction Type	Description	Examples	B2B vs. B2C Comparison
Goods + Services	Sales with VN-linked support	Machinery import with setup	B2B: Higher scrutiny; B2C: Rare but taxable if services involved
Services	Performed for VN entities	IT consulting	B2B: Standard FCT; B2C: E-commerce focus in 2025
Other Income	Royalties, leases	Software licensing	Similar rates, but B2C digital often via platforms

Risks include misclassifying pure goods as taxable—contextual examples like SaaS vs. physical sales add depth, transitioning to exemptions.

Exemptions from FCT

Certain transactions escape FCT if they meet strict criteria, reducing burdens for pure trade.

Key Exemptions:

Pure goods supply without VN services.

Services wholly performed outside Vietnam.

Reinsurance, international transport (partial).

Exempt Scenario	Taxable Scenario	Reason
Goods delivered at border	Goods + VN installation	No service element
Offshore consulting	On-site training	Location of performance
DTA-covered royalties	Non-treaty interest	Treaty provisions

Always verify via DTAs; this hierarchy from common to specific ensures logical progression to calculations.

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4/ Vietnam Foreign Contractor Tax Calculation Methods

Foreign contractors can choose from three methods for FCT computation, each suiting different operational setups. Selection depends on eligibility and records, with 2025 updates favoring deduction for compliant firms.

Method	Conditions	Pros/Cons
Direct (Withholding)	No PE; simple records	Pros: Easy; Cons: Higher effective tax
Deduction (VAS)	PE or 183+ days; full accounting	Pros: Lower on net; Cons: Audit-heavy
Hybrid	Similar to Deduction; partial records	Pros: Flexible; Cons: Complex application

Overview: Start with eligibility check, then apply rates—detailed sub-sections follow for hierarchy.

4.1/ Direct Method (Withholding Method)

The simplest approach: Tax is withheld on gross revenue using deemed rates.

Steps:

Identify gross turnover.

Apply VAT (2-5%) + CIT (0.1-10%).

Vietnamese party withholds within 10 days post-payment.

Example: $100,000 service contract → VAT 5% ($5,000) + CIT 5% ($5,000) = $10,000 FCT.

Revenue Gross	Rate	Tax Due
$100,000	VAT 5% + CIT 5%	$10,000

Flow: From formula to deadlines, ensuring practical application.

4.2/ Deduction Method

Applicable Subjects:

Foreign contractors and foreign subcontractors are subject to tax when they meet all of the following conditions:

They have a permanent establishment in Vietnam or are identified as residents in Vietnam;
The duration of business operations in Vietnam under the contractor or subcontractor contract is 183 days or more, calculated from the effective date of the contract;
They comply with Vietnamese accounting regulations, register for tax, and are issued a tax identification number by the tax authority.

Methods of calculating VAT and Corporate Income Tax:

The declaration and determination of VAT and Corporate Income Tax are carried out according to the provisions of the VAT Law, the Corporate Income Tax Law, and related guiding documents.

4.3/ Hybrid Method

Applicable Subjects:

Foreign contractors and foreign subcontractors, upon meeting the conditions for applying the declaration method or the direct method, and simultaneously implementing accounting procedures as prescribed by law on accounting and guidance from the Ministry of Finance, must register with the tax authorities to declare and pay taxes. Accordingly, VAT is applied using the deduction method and corporate income tax is calculated as a percentage of taxable revenue.

VAT for foreign contractors:

The determination and calculation of VAT are carried out according to the VAT Law and related guiding documents.

CIT for foreign contractors:

CIT is calculated using the direct method as prescribed by current regulations.

5/ FCT Rates

Tax rates vary depending on the activity, with VAT at 2-5% (note that the 2% VAT reduction policy has been extended until the end of 2025 for certain industry groups) and corporate income tax from 1 -10%. Personal income tax (PIT) is governed by the law on PIT.

Activity	VAT Rate	CIT Rate	Examples
Construction	3%	2%	Building projects
Royalties	5%	10%	IP licensing
Services	5%	5%	Consulting

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6/ Declaration and Payment Procedures

Steps:

Declare quarterly via GDT portal.

Pay online within deadlines.

Text Flowchart: Registration → Declaration (quarterly) → Payment (10 days post) → Audit if needed.

7/ Frequently Asked Questions (FAQs)

What is the difference between FCT and standard withholding tax? FCT is broader, combining VAT/CIT for contractors, while standard applies to dividends/interest.
Is FCT applicable to e-commerce in 2025? Yes, with platforms withholding from July 1.
What if I have a PE? Switch to standard CIT; FCT may not apply.
Can I get a refund for overpaid FCT? Yes, via audit and claim within 5 years.
How to calculate FCT for hybrids? VAT on net, CIT on gross—consult for specifics.
Are there penalties for non-compliance? Up to 20% fines plus interest.

If you need expert assistance with Foreign Contractor Tax (FCT) in Vietnam.

VINA TPT Tax Consultancy specializes in providing optimal solutions for Foreign Contractor Tax (FCT) for foreign businesses and partners in Vietnam. We help you understand and comply with the latest 2025 regulations, ensuring:

With a team of experts boasting over 20 years of experience and deep expertise in international taxation, VINA TPT is committed to supporting your business, from registration and declaration to crafting tax strategies tailored to your business model.

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Finance & Accounting Knowledge, Accounting & Tax, Accounting News, Lasted News

Accounting Services in Vietnam for FDI Compliance.

Posted on 19/08/202521/01/2026 by SEN

What service do FDI company need to stay compliant in vietnam

As Vietnam’s economy thrives with a surge in foreign direct investment (FDI), the demand for accounting services in Vietnam has become critical for businesses to comply with local regulations and optimize operations. This comprehensive guide explores accounting solutions, from compliance to outsourcing, empowering you to make informed decisions. Discover how VINA TPT Company Limited, a leading provider, can support your business needs.

What Are Accounting Services in Vietnam?

Accounting services in Vietnam encompass professional solutions that help businesses manage finances, adhere to legal requirements, and produce accurate reports. Distinguished by local standards like Vietnamese Accounting Standards (VAS) and the transition to International Financial Reporting Standards (IFRS), these services are vital in an open economic landscape.

Daily bookkeeping, including bank transactions and asset management.

Preparation of financial statements compliant with VAS/IFRS, tailored for FDI companies.

Tax advisory and lawful cost optimization.

Audit support and financial due diligence.

The growth of the accounting sector in Vietnam is closely tied to the rise of foreign enterprises, necessitating specialized solutions. For instance, a Japanese company in Ho Chi Minh City might require bilingual accounting services to meet internal and legal demands.

Benefits of Outsourcing Accounting Services in Vietnam

Outsourcing accounting services in Vietnam offers tangible benefits, especially for small and medium enterprises (SMEs) and FDI companies. Compared to in-house management, this approach saves costs, time, and reduces legal risks.

Cost savings: Avoid investing in expensive staff and software, paying only for service packages as needed.

Access to local expertise: Teams with deep knowledge of Vietnamese tax laws minimize penalty risks.

Focus on core business: Free up resources to focus on strategic growth rather than bookkeeping.

Rapid regulatory updates: Providers like VINA TPT stay updated with the latest regulations.

For example, a U.S. company in Da Nang cut administrative costs by 30% by outsourcing to VINA TPT while ensuring timely VAT compliance. This highlights the practical value of outsourcing amid Vietnam’s growing international investment climate.

Key Types of Accounting Services Available in Vietnam

1/ Bookkeeping and Financial Reporting

Bookkeeping and financial reporting form the backbone of accounting services in Vietnam, ensuring transparent business operations.

Record daily transactions, reconcile bank accounts, and manage assets.

Prepare financial statements per VAS, with IFRS conversion support when required.

Utilize accounting software like MISA or Fast for enhanced efficiency.

A small business in Ho Chi Minh City improved report accuracy to 95% by adopting this process with expert assistance.

2/ Tax Compliance and Advisory

Tax compliance is mandatory, and accounting services in Vietnam help businesses optimize financial obligations.

Tax Type	Rate (%)	Filing Period
VAT	0, 5, 8, 10	Monthly/Quarterly
CIT	15-17-20	Annually
PIT	5-35	Quarterly

File and submit VAT, CIT, and PIT taxes on time.
Offer tax optimization, VAT refund assistance, and dispute resolution.
Provide expertise in transfer pricing and Global Minimum Tax (Pillar Two).

Download Vietnam Tax Handbook For Investor

3/ Payroll and HR Services

Payroll and human resource management are crucial, particularly for foreign workers in Vietnam.

Calculate salaries, contribute to social and health insurance.

Assist with work permits and visas for foreign employees.

Draft labor contracts and manage personnel records.

Outsourcing saves 20% of administrative time compared to in-house management, especially in Ho Chi Minh City and Da Nang.

4/ Chief Accountant Appointment

Under Vietnamese law, companies must appoint a chief accountant, a need this service addresses.

Ensure compliance with related legal requirements.

Reduce internal management burdens for small businesses.

Outsourcing this role with VINA TPT helps new companies avoid violations.

5/ Audit Assistance and Due Diligence

Audit support and financial due diligence are essential for large enterprises.

Prepare documents for annual audits.

Conduct financial due diligence for M&A, adhering to Vietnamese standards.
Assist in explanations to regulatory bodies.

How to Choose the Right Accounting Service Provider in Vietnam

How do you select the ideal accounting services in Vietnam provider? Consider these key factors.

Experience: Teams with over 10 years in the field.

Certifications: Chief accountant and tax advisory credentials from the Ministry of Finance.

Bilingual support: Essential for FDI companies.

Factor	In-house	Outsourced
Cost	High (salaries, software)	Low (package-based)
Expertise	Limited	High (specialists)

VINA TPT offers bilingual (Vietnamese/English/Japanese) services and international certifications, surpassing many competitors.

Top Accounting Firms and Providers in Vietnam

Leading accounting services in Vietnam providers include:

Company	Strength	Contact
Acclime	Comprehensive FDI support	www.acclime.com
TMF Group	Global services	www.tmf-group.com
VINA TPT	Holistic solutions, expert team	www.vinatpt.com

VINA TPT stands out with over 20 years of experience, offices in Ho Chi Minh City and Da Nang, and a team led by Mr. Lê Quốc Duy—a renowned consultant for Japanese and international firms, contributing to Mizuho Asia Report and Japanese journals.

Frequently Asked Questions (FAQs)

What are the main taxes for foreign companies in Vietnam? VAT, CIT, and PIT with specific rates per regulation.

How much do accounting services cost in Vietnam? Ranges from $85-800/month depending on the package; contact VINA TPT for a quote.

Is outsourcing compliant with Vietnamese law? Yes, when using reputable providers like VINA TPT.

What documents are needed for tax filings? Invoices, financial statements, and labor contracts.
How to process a VAT refund? Reach out to VINA TPT for step-by-step assistance.

EXPLORE OUR ACCOUNTING SERVICE

Finance & Accounting Knowledge, HR News

LATEST SOCIAL INSURANCE POLICY 2025 – 5 CHANGES TO NOTE

Posted on 12/08/202523/01/2026 by admin

Infographic showing key changes in social insurance policy 2025 and compliance tips for employers

Participation in Social Insurance from July 1, 2025, Will Not Allow One-Time Withdrawal under the social insurance policy 2025.

According to the 2025 social insurance policy, employees starting to participate in social insurance from July 1, 2025, will not be allowed to withdraw social insurance in one lump sum. except in the following cases:

Reaching retirement age but having less than 15 years of social insurance contributions.
Emigrating abroad for permanent residence.
Suffering from life-threatening diseases such as cancer, paralysis, decompensated cirrhosis, severe tuberculosis, or AIDS.
Employees who contributed to social insurance before July 1, 2025, and after 12 months are no longer subject to mandatory social insurance or voluntary social insurance, with less than 20 years of contributions.

This aims to limit one-time social insurance withdrawals, encouraging employees to maintain participation for long-term pension benefits.

Conditions for Receiving a Pension from July 1, 2025 as regulated by the social insurance policy 2025.

According to the latest social insurance policy, effective from July 1, 2025, the conditions for employees to receive a monthly pension have been adjusted as follows:

Minimum social insurance contribution period: Reduced from 20 years to 15 years.
Retirement age: Employees must reach the retirement age as stipulated in Clause 2, Article 169 of the Labor Code, specifically as follows: From 2025, under normal working conditions, the retirement age is 61 years and 3 months for male employees and 56 years and 8 months for female employees; thereafter, it increases by 3 months for males and 4 months for females each year.

This provision aims to enable those who join social insurance late or irregularly to accumulate at least 15 years of contributions to receive a monthly pension, instead of a one-time withdrawal.

Additionally, employees who reach retirement age and have contributed to social insurance for 15 years or more will receive a free health insurance card for healthcare throughout their pension period.

2025 Social Insurance Policy Supplements Pension Benefit Calculation Method in the latest social insurance policy 2025.

Based on Clause b, Paragraph 1, Article 66 of the 2024 Social Insurance Law (effective from July 1, 2025), a new method for calculating pension benefits has been added for male employees with a social insurance contribution period of 15 to under 20 years.

Accordingly, the monthly pension benefit from July 1, 2025, is stipulated as follows:

Male employees:

Contributing 20 years of social insurance entitles them to 45%.

– Thereafter, an additional 2% is added for each additional year.

– The maximum benefit rate is 75%.

– For male employees with a contribution period of 15 to under 20 years, they receive 40%, with an additional 1% for each additional year.

Female employees:

– Contributing 15 years of social insurance entitles them to 45%.

– Thereafter, an additional 2% is added for each additional year.

– The maximum benefit rate is 75%.

Case of early retirement due to reduced working capacity:

– A 2% reduction for each year of early retirement before the stipulated age.

– If the early retirement period is less than 6 months, there is no reduction in the pension benefit percentage; if it is from 6 months to under 12 months, a 1% reduction applies.

New Aspects in the Social Pension Scheme introduced by the social insurance policy 2025.

Addition of Social Pension Benefits for Those Without Pensions

Under the 2025 social insurance policy, the state will provide a monthly social pension to elderly individuals without a pension or those ineligible for social insurance benefits, provided they meet the following conditions:

(i) Aged 75 or older.

(ii) Not receiving a pension or monthly social insurance benefits, except as otherwise stipulated by the government.

(iii) Submitting a written request for social pension benefits.

Note: Vietnamese citizens aged 70 to under 75 from poor or near-poor households, meeting the conditions in clauses (ii) and (iii) above, are eligible for social pension benefits.

Reduction in the Age for Receiving Social Pension Benefits

The 2025 social insurance policy (2024 Social Insurance Law) stipulates a reduction in the age for receiving social pension benefits from 80 to 75 years for elderly individuals without pensions. Additionally, those aged 70 or older from poor or near-poor households will also be considered for this benefit.

2025 Social Insurance Policy Increases Benefits to Encourage Employees to Receive Pensions Instead of One-Time Withdrawals

To encourage employees to maintain participation in social insurance for pension benefits, the 2025 social insurance policy introduces additional benefits.

In cases where employees have ceased participating in social insurance, do not opt for a one-time withdrawal, and preserve their contribution period to continue participation, they have the opportunity to enjoy higher benefits such as:

Receiving higher benefits for various schemes calculated based on contribution time (sickness, work accidents, occupational diseases, etc.) upon continued participation;
Eligible for a pension under more favorable conditions;
During the pension period, the social insurance fund covers health insurance;
Eligible for a monthly allowance if not meeting pension conditions and not yet at the age for social pension benefits;
During the monthly allowance period, the state budget covers health insurance.

CONCLUSION

The changes in the 2025 social insurance policy have a significant impact on the rights of employees and businesses. Timely awareness and understanding of the new regulations will help you and your business proactively plan finances and ensure social security benefits.

If you need further information or support regarding social insurance issues, please CONTACT us for timely and accurate advice.

Contact VINA TPT for Support

📞 (+84) 984 980 069
📧infor@vinatpt.com
🌐 https://vinatpt.com
🏢 5th Floor, More Building, 83B Hoang Sa, Da Kao Ward, District 1, HCMC

Labor & Insurance Knowledge, Lasted News

Personal income tax: Comprehensive Guide for Residents and Expats

Posted on 07/08/202519/01/2026 by admin

PERSONAL INCOME TAX IN VIETNAM FOR EXPATS

Personal Income Tax in Vietnam, governed by the Law on Personal Income Tax No. 04/2007/QH12 and its amendments (latest in 2025), is a critical obligation for individuals earning income in Vietnam. Whether you’re a local resident, an expat, or a digital nomad, understanding PIT ensures compliance and optimizes your financial planning. This guide covers tax rates, deductions, filing procedures, and more to address your needs—whether you’re seeking rates (informational), filing steps (transactional), or official resources (navigational).

Why does PIT matter? With Vietnam’s economy growing and stricter tax enforcement in 2025, knowing your obligations prevents penalties and maximizes deductions. Ready to navigate Vietnam’s tax system?

1/ Determining Your Tax Residency Status

Your tax obligations hinge on your residency status. Under Vietnam’s tax law, you’re a tax resident if you meet one of these criteria:

Stay in Vietnam for 183 days or more in a calendar year or 12 consecutive months.

Hold a permanent residence card or have a leased property in Vietnam for 183+ days.

Otherwise, you’re a non-resident, taxed only on Vietnam-sourced income.

Special cases: Digital nomads or expats in Vietnam may unintentionally become tax residents if they overstay the 183-day threshold. To avoid this, maintain proof of residency elsewhere (e.g., tax certificates from another country).

Tax residency status

Comparison: Tax Residents vs. Non-Residents

Criteria	Tax Resident	Non-Resident
Taxable Income Scope	Global income	Vietnam-sourced income only
Tax Rates	Progressive (5%-35%)	Flat 20% (employment); 0.1%-20% (others)
Filing Obligations	Annual finalization, monthly/quarterly	Pay-at-source or annual declaration

This table highlights why residency status is critical for tax planning.

2/ Types of Taxable Income

Personal income tax applies to various income types, including:

Employment income: Salaries, wages, bonuses, allowances, and fringe benefits.

Non-employment income: Business profits, dividends, capital gains, real estate transfers, royalties, inheritances, gifts, and prizes (e.g., lottery winnings).

Foreign currency income: Converted to VND using the State Bank of Vietnam exchange rate at the transaction date.

Emerging categories: Income from digital services (e.g., content creation, online consulting) and remote work is increasingly scrutinized in 2025.

income streams

3/ Personal Income Tax Rates 2025

Vietnam uses progressive tax rates for residents and flat rates for non-residents:

Residents: Taxed from 5% (up to 5 million VND/month) to 35% (over 80 million VND/month).

Non-residents: 20% on employment income; other incomes (e.g., real estate, capital gains) range from 0.1%-20%.

Personal Income Tax Rate Tables

Monthly Taxable Income (VND)	Tax Rate	Tax Amount (VND)	Approx. USD
Up to 5 million	5%	0-250,000	$0-10
5-10 million	10%	250,000-750,000	$10-30
10-18 million	15%	750,000-1,650,000	$30-65
18-32 million	20%	1,650,000-3,650,000	$65-144
32-52 million	25%	3,650,000-6,650,000	$144-262
52-80 million	30%	6,650,000-11,250,000	$262-444
Over 80 million	35%	11,250,000+	$444+

Note: Non-residents pay a flat 20% on employment income, converted to ~$800/month for a $4,000 salary.

4/ Deductions and Allowances

Reduce your taxable income with these deductions:

Personal deduction: 11 million VND/month (~$434 USD).

Dependent deduction: 4.4 million VND/month per dependent (e.g., children under 18, disabled spouses, low-income parents). Register with a Tax Identification Number (TIN) and documents (birth certificates, income proofs).

Other deductions: Compulsory insurances (social, health, unemployment), charitable donations, voluntary pension contributions.

Checklist for claiming deductions:

Submit proof of income for dependents earning below the threshold.

Keep records of charitable donations (receipts, bank transfers).

See Our Full Range of Tax Solutions

5/ Tax-Exempt Income and Benefits

Certain incomes and benefits are exempt from PIT:

Exempt incomes: Bank interest, insurance compensations, retirement pensions, family property transfers, scholarships, certain agricultural incomes.

Non-taxable benefits:

One annual round-trip airfare for expats.

School fees for expat children (direct employer payments).

Mid-shift meals (capped at regional minimum wage).

Housing (up to 15% of total income), uniforms (up to 5 million VND/year if cash).

Example: An expat’s employer pays $2,000 for their child’s school fees directly—fully exempt from PIT.

6/ How to Calculate Your Personal Income Tax in Vietnam

Follow these steps to calculate your PIT:

Determine residency status: Resident or non-resident.

Calculate taxable income: Gross income minus exemptions.

Apply deductions: Personal, dependent, and insurance deductions.

Apply tax rates: Use progressive rates (residents) or flat rates (non-residents).

Example: A resident expat earns 50 million VND/month with two dependents:

Taxable income: 50.000.000 – 11.000.000 (personal) – 8.800.000 (dependents) = 30.200.000 VND.

Tax: (10.000.000 × 5%) + (8.000.000× 10%) + (12.200.000 × 15%) = 500.000 + 800.000+ 1.830.000 = 3.130.000 VND (~$123 USD).

Tool: Use the e-portal calculator https://luatvietnam.vn/tinh-thue-thu-nhap-ca-nhan.html for accuracy.

7/ Filing and Payment Procedures

Vietnam’s tax year runs from January 1 to December 31. Key procedures:

Withholding: Employers deduct PIT monthly/quarterly. Self-declare for multiple income sources.

Deadlines:

Monthly: 20th of the next month.

Quarterly: End of the first month post-quarter.

Annual finalization: March 31 (employers), April 30 (individuals).

Methods: File via GDT e-portal https://canhan.gdt.gov.vn/ICanhan, local tax offices, or authorized agents. Payments via bank transfer or State Treasury.

Leaving Vietnam: Finalize taxes 45 days before departure to avoid immigration issues.

Checklist for filing:

Obtain a Tax Identification Number (TIN).

Prepare income statements, deduction proofs.
Verify filing status on the GDT portal.

8/ Double Taxation Agreements (DTAs)

Vietnam has DTAs with over 80 countries (e.g., US, UK, Singapore) to prevent double taxation. Benefits include exemptions or credits for taxes paid abroad.

How to claim relief:

Notify tax authorities 15 days before payment.

Submit foreign tax payment proofs (e.g., tax certificates).

Example: A US expat pays 10% tax in Vietnam on dividends, then claims a credit in the US.

Are you leveraging DTAs to avoid double taxation?

9/ Special Considerations for Expats and Foreigners

Expats face unique PIT challenges:

US expats: Report global income to the IRS (via FBAR, FEIE, FTC) while complying with Vietnam’s residency rules.

Short-term assignments: “Economic employer” rules may apply, requiring payroll withholding.

Digital nomads: Risk being taxed as residents if staying 183+ days; global income becomes taxable.

2025 updates: The General Department of Taxation (GDT) uses AI to monitor digital transactions, enforcing taxes on crypto gains and online services.

Example: A digital nomad staying 200 days in Vietnam may owe PIT on worldwide income unless proving non-residency.

10/ Common Mistakes, Penalties, and Tips for Compliance

Common mistakes:

Underreporting benefits: Expats often overlook taxable benefits like housing allowances or cash-based uniform payments, leading to incorrect tax filings.
Missing dependent registration deadlines: Failing to register dependents (e.g., children, spouses) by the deadline (typically March 31) forfeits deductions of 4.4 million VND/month per dependent.
Ignoring Double Taxation Agreements (DTAs): Not claiming DTA benefits with over 80 countries (e.g., US, UK) results in unnecessary double taxation.

Penalties:

Late filing: A 0.05% daily interest penalty applies to overdue tax submissions, accumulating quickly.
Underpayment: Fines range from 10%-20% of the underpaid amount, with potential legal action for significant violations.

Tips for expats in Vietnam compliance:

Engage professional tax agents: Complex cases, such as multi-source incomes or DTA applications, benefit from expert guidance. Vina TPT, with over a decade of experience, offers tailored PIT solutions, including tax filing, deduction optimization, and multilingual reporting for expats and FDI businesses.
Track days in Vietnam: Monitor your stay to confirm tax residency status (183+ days triggers global income taxation). Use calendar apps or consult professionals to avoid unintended residency.
Reconcile income records annually: Cross-check payslips, contracts, and bank statements to ensure accurate declarations.
Leverage expert support: As an expat, I’ve relied on Vina TPT to navigate Vietnam’s PIT complexities. Their expertise in tax compliance, work permits, and payroll management saved me time and ensured no penalties, allowing me to focus on my work

Comparison: Vietnam’s PIT rates (5%-35%) are competitive with Thailand’s (0%-35%) but higher than Singapore’s flat 0%-22% for residents. Partnering with a service like Vina TPT ensures you optimize deductions and comply with local laws, avoiding costly errors.

10/ Simplifying Tax Procedures with Vina TPT’s PIT Services for Foreigners

Navigating Vietnam’s Personal Income Tax system can be complex, especially for foreigners unfamiliar with local regulations, language barriers, and intricate filing requirements. Vina TPT PIT Services offers a comprehensive PIT service tailored for expatriates and non-residents, streamlining every aspect of tax compliance. With over a decade of experience, Vina TPT provides:

End-to-end tax filing: From obtaining a Tax Identification Number (TIN) to submitting accurate declarations via the GDT e-portal, ensuring timely compliance with monthly, quarterly, and annual deadlines.
Deduction optimization: Expert guidance to maximize personal and dependent deductions, as well as leveraging Double Taxation Agreements (DTAs) with over 80 countries to minimize tax liabilities.
Multilingual support: Clear communication in English and other languages to assist expats with residency status determination, income reporting, and penalty avoidance.
Payroll and compliance solutions: For expats on short-term assignments or digital nomads, Vina TPT handles payroll withholding, work permits, and monitors the 183-day residency threshold to prevent unintended tax obligations.
AI-driven accuracy: Using advanced tools to track digital transactions (e.g., crypto gains, online services), ensuring compliance with 2025’s stricter tax enforcement.

Let’s Find the Best Tax Solution for You

11/ FAQ on Personal Income Tax in Vietnam

What is the threshold for PIT filing in Vietnam?

Residents with taxable income above 11 million VND/month or non-residents with any Vietnam-sourced income must file.

How do I register for a Tax Identification Number (TIN)?

Apply via the GDT e-portal or local tax offices with ID/passport and proof of residency.

Are overseas remittances taxable?

No, unless used for taxable activities (e.g., investments).

What happens if I overpay PIT?

Request a refund via the GDT portal with proof of overpayment.

Can I deduct home office expenses as a remote worker?

No, unless registered as a business expense with proper invoices.

Why choose Vina TPT?

Their expertise eliminates the stress of navigating Vietnam’s tax system, saving you time and preventing costly errors. Whether you’re a digital nomad, a corporate expat, or managing multiple income sources, Vina TPT ensures seamless compliance and financial peace of mind.

Book a Consultation with Our Expert

Labor & Insurance Knowledge, Accounting & Tax, HR News, Lasted News

Work Permit in Vietnam 2025 | Step-by-Step Guide & Requirements

Posted on 06/08/202525/02/2026 by admin

Work permit in Vietnam is a mandatory requirement for foreigners to legally work in the country. This article provides detailed information on the latest requirements, documents, and procedures for obtaining a work permit, while also covering exemption cases and relevant penalties.

1/ What is a Work Permit in Vietnam?

The work permit is an official legal document issued by a competent Vietnamese authority, allowing foreign nationals to work legally in Vietnam. It is a compulsory requirement for most foreigners employed in the country.

The work permit in Vietnam is issued by the Ministry of Home Affairs (MOHA) or Department of Home Affairs at the provincial or municipal level. The permit contains key details such as the employee’s full name, nationality, job position, and the validity period.

2/ Why do foreigners need a work permit in Vietnam?

Holding a work permit offers several benefits and is a legal requirement:

Compliance with Vietnamese law: This is a legal regulation. Working without a work permit is considered a violation of labor laws.

Avoiding legal risks: Both the employee and the employer can avoid legal risks, including administrative penalties or deportation.

Protection of legal rights: A work permit helps protect the foreign worker’s legal rights, including those related to salary, insurance, and other benefits.

The current legal documents governing work permits in Vietnam include:

Regulations on foreign workers working in Vietnam.: Regulations on foreign workers working in Vietnam.

Decree No. 70/2023/ND-CP: Amending and supplementing certain articles of Decree No. 152/2020/ND-CP.

3/ Eligible individuals and conditions for being granted a work permit in Vietnam

To be granted a work permit, foreigners must meet specific conditions.

Eligible individuals for a work permit:

The individuals eligible for a work permit in Vietnam are clearly defined in Article 2 of Decree No. 152/2020/ND-CP (as amended by Decree No. 70/2023/ND-CP). Specifically, these are foreigners entering Vietnam to work under the following forms:

Performing a labor contract:

The foreign national signs a direct labor contract with a company or organization in Vietnam.

They hold positions such as expert, technician, manager, or executive director.

Intra-corporate transferee

The foreign worker has been employed by the overseas parent company for at least 12 months.
They are transferred to work at a branch or representative office of the same group/company in Vietnam.

Executing contracts or agreements between Vietnamese enterprises and foreign organizations

These may involve fields such as economics, trade, finance, banking, insurance, science and technology, culture, sports, education, healthcare, etc.

Contract-based service provider

The foreigner comes to Vietnam to fulfill obligations under a service contract signed between a foreign entity and a Vietnamese one. They do not have a commercial presence in Vietnam.

Service sales representative

The foreigner visits Vietnam to negotiate or introduce services to Vietnamese businesses but does not directly deliver the services.

Foreign volunteer

They must have an assignment letter from a licensed non-governmental or international organization operating in Vietnam.

Person responsible for establishing a commercial presence

They represent a foreign organization in setting up a representative office in Vietnam.

Other cases

As defined by regulations or international agreements to which Vietnam is a signatory (e.g., WTO, CPTPP commitments).

General conditions for work permit Viet Nam:

Foreign workers must meet the following general conditions to be have work permit in Vietnam:

Possess full civil act capacity.

Be in good health suitable for the job. A valid health certificate is required.

Be a manager, executive director, expert, or technical worker.

Not have a criminal record or be under criminal prosecution.

Obtain a written approval for the job position using a foreign worker. This document must be issued by a competent authority.

Specific requirements for each category

Each category has specific requirements in terms of qualifications and experience:

Expert: Must hold a university degree or equivalent, and have at least 3 years of relevant work experience.

Technical worker: Must have received at least 1 year of specialized training and have at least 3 years of experience in the trained field.

Manager or executive director: Must have managerial experience. Supporting documents such as appointment decisions are required.

Intra-corporate transferees: Must be assigned by the foreign enterprise. An appointment decision and proof of experience with the parent company are required.

View more about service for Expats in Vietnam

4/ Application dossier for a new work permit in Vietnam

Preparing a complete and accurate dossier is crucial. Required documents include:

Application form for a work permit (Form No. 11/PLI). Mẫu số 11/PLI.

Health certificate valid for 12 months.

Criminal record certificate issued within the last 6 months.

Certificates, diplomas, or professional qualification documents.

Document confirming work experience or a previous work permit.

Two 4×6 cm photos with white background, taken within the last 6 months.

Approval letter for the need to employ foreign workers.

Certified copy of a valid passport.

Additional documents depending on the specific case (e.g., contract, assignment letter, etc.).

Foreign documents must be consular legalized and notarized translated.

5/ VIETNAM WORK PERMIT PROCESS

The process for obtaining a work permit includes the following steps:

Step 1: Submit the application for a work permit in Vietnam

Submission deadline: At least 15 days before the foreign worker is expected to start working in Vietnam.

Receiving authority:

Ministry of Home Affairs (for cases under its jurisdiction),

Or Department of Home Affairs, where the foreigner is expected to work.

Applicants:

Employer: Applies to foreign workers working under labor contracts, intra-corporate transfers, execution of agreements, service providers, service sellers, or other applicable cases.

Vietnamese or foreign entities operating in Vietnam: Applies when foreign workers are working under specific contracts or agreements.

Foreign worker: Applies to those entering Vietnam to offer services or to establish a commercial presence.

Step 2: Wait for the work permit issuance

Processing time: Within 5 working days from the date of receiving a complete and valid application.

Issuing authority: Ministry/ Department of Home Affairs where the foreigner will work.

Result: If the application is valid and eligible, the foreign worker will be granted a work permit using Form No. 12/PLI – Appendix I of the Decree. của Nghị định.

If not granted: The competent authority will issue a written response stating the reason for rejection.

Step 3: Sign and submit the labor contract (applies to certain cases)

Applicable to: Foreign workers working under labor contracts.

Requirement: After the foreign worker is issued a work permit, the employer and the worker must sign a written labor contract in accordance with Vietnamese labor law. This must be done before the worker’s official start date.

Employer’s obligation: The signed labor contract (original or certified copy) must be submitted to the authority that issued the work permit.

Produre for abtaining a work permit in vietnam — Procedure for abtaining a work permit in viet nam

6/ Work Permit Fee in Vietnam

The fee for obtaining a work permit is generally regulated by the Ministry of Finance. According to Circular No. 250/2016/TT-BTC, the fee for a new work permit is 400,000 VND per permit. However, this amount may vary slightly across provinces depending on local People’s Council regulations.

Work Permit Validity: : The maximum validity period of a work permit is 2 years.

7/ Exemptions from Work Permit Requirement

In certain cases, foreigners working in Vietnam are not required to obtain a work permit:

Being the owner or capital-contributing member of a company with contributed capital of at least VND 3 billion.

Being a member of the Board of Directors of a joint-stock company with contributed capital of at least VND 3 billion.

Entering Vietnam for work for less than 30 days and no more than 3 times per year.

Performing duties under international agreements to which Vietnam is a signatory.

Other cases as specified in Article 7 of Decree No. 152/2020/ND-CP (as amended by Decree No. 70/2023/ND-CP).

You can find more detailed information on exemption work permit on the official Government Portal or in this article.

8/ Penalty for without work permit in Viet Nam:

Violations of work permit regulations are strictly penalized.

In case of working without a permit (penalty for without work permit in Viet Nam)

Foreign worker: May be fined from VND 15,000,000 to VND 25,000,000 and may be subject to deportation.

Employing enterprise: May be fined from VND 30,000,000 to VND 75,000,000 depending on the number of violating workers.

Administrative penalties: Detailed in Decree No. 12/2022/ND-CP on administrative sanctions in labor and social insurance. More information can be found at the Ministry of Home Affairs website: https://moha.gov.vn/

Other sanctions: : In addition to fines, workers may be deported and employers may face suspension of business activities.

9/ Conclusion

Applying for a work permit in Vietnam is a crucial legal procedure. It requires careful preparation and strict compliance with the regulations. To ensure a smooth process, you should:

Prepare your application documents thoroughly and completely.

Seek professional assistance if you are not familiar with the procedures.

Comply with the law to avoid unnecessary legal risks.

Vina TPT proudly offers full-package consulting and support services for obtaining work permits in Vietnam for foreigners. We assist clients with document preparation, application submission, and process follow-up.

Our service saves you time and effort, ensuring the process is completed quickly and accurately.

Contact us for detailed consultation.

Book a free consultation