Tax affecting foreigners doing business in Vietnam


These are the following taxes that may affect foreigners while conducting business in Vietnam:

-        Corporate Income Tax

-        Capital Transfer Tax

-        Value-Added Tax

-        Personal Income Tax


1. Corporate Income Tax (CIT)

CIT rates:



If the newly established enterprise is





The promulgation of the investment regime on July 1st, 2006 is a significant improvement of the legal environment in regards to investment activities and corporate governance in Vietnam. It consists of two important legislations: (1) A unified Enterprise Law to regulate corporations, and (2) a common Investment Law to regulates investment.


1.     Overview
Investors may only invest accordingly under these two legislations. Under the Investment Law, the sectors permitted for investment are: