Complete Freelancer Tax Guide for Vietnam (2025/2026)

Step 1: Tax Residency

Your tax obligations depend on whether you're classified as a tax resident or non-resident:

Most freelancers living in Vietnam for extended periods will be classified as tax residents. This means you need to declare all income — including from foreign clients — and pay PIT accordingly.

Step 2: Tax Registration

To file taxes in Vietnam, you need a Tax Code (Ma So Thue):

• Vietnamese nationals: Your tax code is linked to your ID card. Register at your local tax office.
• Foreigners: Apply through your employer (if employed) or directly at the General Department of Taxation (thuenhannuoc.gdt.gov.vn) with your passport and visa/residence card.
• Business household registration: Some freelancers register as a "household business" (Ho Kinh Doanh Ca Nhan) at the district-level People's Committee. This provides a legal business structure and simplifies tax compliance.

Business household (Ho Kinh Doanh): This is the most common structure for Vietnamese freelancers. You register at your district's People's Committee and get a business registration certificate. Tax is then calculated based on your declared revenue using either the direct method (progressive PIT) or the deemed method (a percentage of revenue).

Step 3: How PIT Is Calculated

Personal Deduction

Before any tax is calculated, you get a personal deduction of ₫11,000,000/month (₫132,000,000/year). This is your tax-free threshold. Additionally, you get ₫4,400,000/month (₫52,800,000/year) per dependent.

Mandatory insurance contributions (social, health, unemployment) are also deductible. For business household registrants, actual documented business expenses can be deducted — or you can use the deemed expense percentage based on your business type.

2025 Tax Brackets (7 brackets)

2026 Tax Brackets (5 brackets, from July 2026)

Under Law No. 109/2025/QH15, Vietnam is simplifying its PIT structure. The new brackets are:

What's changing: The 2026 reform consolidates 7 brackets into 5, effectively raising the threshold for the lowest bracket (from ₫5M to ₫10M/month at 5%) and increasing rates in the middle brackets. For many freelancers, this means slightly lower tax at moderate incomes but potentially higher tax at higher income levels. Our calculator compares both years so you can plan ahead.

Step 4: Deductible Expenses

On top of the personal deduction (₫132M/year), you can further reduce your taxable income through:

• Dependent deduction: ₫52,800,000/year per dependent (children, elderly parents, spouse without income)
• Mandatory insurance: Social insurance (8%), health insurance (1.5%), unemployment insurance (1%) — all deductible
• Business expenses: If registered as a household business, deduct actual documented expenses: equipment, internet, workspace, software, professional development
• Deemed expense method: For household businesses, use a percentage of revenue based on your business type instead of tracking actual expenses
• Charitable contributions: Donations to registered charities, disaster relief funds, and education funds (with proper documentation)

For unregistered freelancers: If you haven't registered as a household business, the personal deduction of ₫132M/year plus dependent deductions are your primary tax reduction tools. These alone shield ₫132M + ₫52.8M × dependents from taxation before any tax is calculated.

Keep your records. The General Department of Taxation requires documentation for all claimed deductions. Bank statements, receipts, and contracts are acceptable evidence.

Step 5: Tax-Free Threshold

Under current rules, if your annual revenue is below ₫100,000,000, you are exempt from PIT and VAT (for business households). This threshold is being increased under the 2026 law:

This is a significant increase — many small-scale freelancers who previously paid tax may become exempt under the 2026 rules. The exact threshold depends on your registered business type and location.

Step 6: Filing and Payment

Monthly vs quarterly: If your monthly PIT is under ₫100,000, no payment is required (but you still need to declare). You can choose monthly or quarterly filing depending on your income volume.

How to file: Use the eTax portal (thuedientu.gdt.gov.vn) for electronic filing. Many business households file through their district tax office instead.

Late filing penalties: Fines range from ₫500,000 to ₫25,000,000 depending on the delay. Interest of 0.03% per day is charged on unpaid tax.

Working for Foreign Clients from Vietnam

• Tax residents pay PIT on worldwide income. If you earn from US, European, or other international clients while living in Vietnam, that income is fully taxable.
• No withholding from foreign clients — you must self-declare and self-pay.
• Payment methods: Wise, Payoneer, PayPal, bank transfers — all traceable by the tax authority.
• VAT: If you're registered as a business household, you may also owe VAT (typically 5% or 10% depending on your service type). However, exports of services may be VAT-exempt.
• License tax: Business households pay an annual license tax (approximately ₫1,000,000/year for small businesses).

Visa Considerations

• E-visa (90 days): Vietnam offers 90-day e-visas for most nationalities. This does NOT permit work, including freelance.
• Temporary residence card (TRC): If you have a work permit or are married to a Vietnamese citizen, you can get a TRC valid for 1–5 years.
• Business visa: Requires a Vietnamese sponsor company. Some freelancers use this route through a local partner company.
• Note: Vietnam does not currently have a dedicated digital nomad visa, unlike Thailand's DTV.

Worked Examples

Example 1: Junior Freelancer (₫240,000,000/year = ₫20M/month, 2025)

Gross income: ₫240,000,000

Personal deduction: −₫132,000,000

Taxable income: ₫108,000,000

Tax: ₫60M × 5% + ₫48M × 10% = ₫3M + ₫4.8M = ₫7,800,000/year

Effective rate: 3.25%

Example 2: Mid-Level Freelancer (₫480,000,000/year = ₫40M/month, 2025)

Gross income: ₫480,000,000

Personal deduction: −₫132,000,000

Taxable income: ₫348,000,000

Tax: ₫60M × 5% + ₫60M × 10% + ₫96M × 15% + ₫132M × 20%

= ₫3M + ₫6M + ₫14.4M + ₫26.4M = ₫49,800,000/year

Effective rate: 10.38%

Example 3: Same income under 2026 rules

Taxable income: ₫348,000,000

2026 Tax: ₫120M × 5% + ₫228M × 15%

= ₫6M + ₫34.2M = ₫40,200,000/year

Effective rate: 8.38%

Savings under 2026: ₫9,600,000/year

Common Mistakes

• Not declaring foreign income. Tax residents must declare worldwide income. The tax authority is increasingly sophisticated at tracking foreign remittances.
• Not registering as a business household. Without proper registration, you can't issue invoices, open business accounts, or access simplified tax methods.
• Missing annual finalization. Even if monthly/quarterly taxes were paid, annual finalization by March 31 is required.
• Not planning for 2026 changes. The new tax brackets and increased exemption thresholds will affect your tax — plan now.
• Working without proper visa. Freelancing on a tourist e-visa is technically illegal. Consider business visa options.
• Not claiming dependent deductions. Each dependent reduces your taxable income by ₫52.8M/year — a significant saving.