How much is the fine for street vending on sidewalks in Vietnam in 2025? Do street vendors have to pay personal income tax in Vietnam?
How much is the fine for street vending on sidewalks in Vietnam in 2025?
Based on Article 12 of Decree 168/2024/ND-CP stipulates as follows:
Penalties and Point Deduction on Driving Licenses for Other Road Traffic Rule Violations; Using the Roadway and Sidewalks for Other Purposes
...
- A fine ranging from VND 200,000 to VND 250,000 shall be imposed on individuals committing any of the following violations:
...
e) Engaging in street vending or selling small goods on roadways or sidewalks on streets where vending is prohibited; except for violations prescribed in Clause 7 and Clause 9 of this Article;
...
- A fine ranging from VND 2,000,000 to VND 3,000,000 for individuals, and from VND 4,000,000 to VND 6,000,000 for organizations conducting unauthorized use of roadways and sidewalks for activities such as: holding markets; providing food and drink services; displaying and selling goods; repairing vehicles, machinery, and equipment; washing vehicles; placing, hanging signs, and advertisements.
...
Thus, individuals may face a fine ranging from VND 200,000 to VND 250,000 for street vending on sidewalks in areas where vending is prohibited.
Note: Unauthorized use of roadways and sidewalks for activities like holding markets; providing food and drink services; displaying and selling goods, repairing vehicles, machinery, and equipment; washing vehicles; placing, and hanging signs and advertisements may be fined from VND 2,000,000 to VND 3,000,000.
How much is the fine for street vending on sidewalks in Vietnam in 2025? Do street vendors have to pay personal income tax in Vietnam? (Image from the Internet)
Do street vendors have to pay personal income tax in Vietnam?
Based on Article 2 of Decree 65/2013/ND-CP regarding personal income taxpayers stipulated as follows:
Taxpayer
- Personal income taxpayers include resident and non-resident individuals who have taxable incomes as specified in Article 3 of the Personal Income Tax Law and Article 3 of this Decree. The scope for determining the taxable income for taxpayers is as follows:
a) For resident individuals, taxable income is the income arising both in and outside of Vietnam, regardless of the place of income payment;
b) For non-resident individuals, taxable income is the income arising in Vietnam, regardless of the place of income payment.
- A resident individual is one who satisfies one of the following conditions:
a) Being present in Vietnam for 183 days or more within a calendar year or 12 consecutive months from the first day of presence in Vietnam;
An individual present in Vietnam as defined in this point is the physical presence of such individual in the territory of Vietnam.
b) Having a regular place of residence in Vietnam in one of the following cases:
- Having a registered permanent residence according to the law on residence;
- Renting a house to live in Vietnam according to the law on housing, with a lease term of 183 days or more in the tax year.
In cases where an individual has a regular residence in Vietnam as defined in this point but is actually present in Vietnam for less than 183 days in the tax year and cannot prove residency in any other country, then that individual shall be deemed a resident in Vietnam.
- A non-resident individual is a person who does not meet the conditions specified in Clause 2 of this Article.
Furthermore, Article 4 of Circular 40/2021/TT-BTC prescribes principles for tax calculation as follows:
Principles for Tax Calculation
- The principles of tax calculation for business households, and business individuals are performed according to the current legal provisions on VAT, personal income tax, and related legal normative documents.
2. Business households, and business individuals with an annual revenue from production and business activities in a calendar year not exceeding VND 100 million shall not be required to pay VAT and shall not be required to pay personal income tax according to the law on VAT and personal income tax. Business households, and business individuals are responsible for accurate, honest, and full tax declaration and filing tax dossiers on time; they are responsible before the law for the accuracy, truthfulness, and completeness of tax dossiers as prescribed.
- For business households or business individuals operating in the form of a group of individuals or families, the revenue level of VND 100 million/year or less to determine that individuals are not required to pay VAT, not required to pay personal income tax is determined for one (01) representative of the group of individuals or families in the tax year.
Therefore, according to the aforementioned regulations, street vendors are subject to personal income tax if they have annual revenue from production and business activities equal to or exceeding VND 100 million.
What are the bases for personal income tax for street vendors in Vietnam?
According to the provisions of Article 10 of Circular 40/2021/TT-BTC, it specifies as follows:
Taxation Bases for Business Households, Business Individuals Are Taxable Revenue and the Tax Rate on Revenue.
- Taxable Revenue
The taxable revenue for VAT and personal income tax for business households, and business individuals is inclusive of tax (if applicable) of all sales, processing fees, commissions, service provision fees incurred in the tax period from production and business activities, including any bonuses, support for achieving sales targets, promotions, trade discounts, payment discounts, support in cash or non-cash; subsidies, surcharge, bonus fee, additional fees that can be retained according to the provisions; compensation for breach of contract, other compensation (only added to personal income tax taxable revenue); other revenue that business households, business individuals can retain, regardless of whether they have collected the money or not.
- Tax Rate on Revenue
a) The tax rate on revenue includes the VAT rate and personal income tax rate applied specifically to each sector and occupation as instructed in Appendix I issued with this Circular.
b) For business households or business individuals operating in multiple sectors, occupations, these individuals must declare and calculate tax according to the tax rate on revenue applied for each sector, occupation. If business households or business individuals cannot determine taxable revenue of each sector, occupation or determine it not in accordance with actual operations, the tax authority shall fix taxable revenue of each sector, occupation in accordance with legal provisions on tax management.
- Calculating the Tax Amount Payable
The VAT payable = Taxable VAT revenue x VAT rate
The personal income tax payable = Taxable personal income tax revenue x Personal income tax rate
In which:
- Taxable VAT revenue and taxable personal income tax revenue are as instructed in Clause 1 of this Article.
- VAT rate and personal income tax rate are as instructed in Appendix I issued with this Circular.
Therefore, the bases for personal income taxation of street vendors are the taxable personal income tax revenue and the tax rate on revenue.
