Basis for tax calculation for household and individual businesses in Vietnam

No.

Business lines

VAT rate

PIT rate

1.

Distribution, provision of goods

- Wholesaling, retailing of goods (except commission agents);

- Bonuses, sales compensation, promotions, commercial discounts, payment discounts, assistance in cash or not in cash for fixed tax payers;

1%

0,5%

- Distribution, provision of goods that are not subject to VAT or subject to 0% VAT as prescribed by VAT laws;

- Business cooperation with an organization in this sector where the organization has the responsibility to declare VAT on the entire revenue earned from the business cooperation;

- Bonuses, sales compensation, promotions, commercial discounts, payment discounts, assistance in cash or not in cash for fixed tax payers in association with purchase of goods and services that are not subject to VAT or subject to 0% VAT as prescribed by VAT laws;

- Compensation for breach of contract, other compensations.

-

0,5%

2.

Services and construction exclusive of building materials

- Lodging services including: provision of short-term lodging for tourists and other visitors; provision of long-term lodging other than apartments for students, workers and similar persons; provision of lodging together with food and beverage services or entertainment.

- Material handling and other ancillary transport services such as station, ticketing, parking services;

- Postal services, delivery of posts and postal packages;

- Brokerage, bidding and agent commission-related services;

- Legal counseling, financial counseling, accounting, audit, tax and customs brokerage services;

- Data processing, lease of information portals, information technology and telecommunications devices; advertising on digital information products and/or services;

- Office assistance service and other business assistance services;

- Sauna, massage, karaoke, discotheque, billiards, internet, gaming services;

- Tailoring, laundry; hairdressing;

- Other repair services including: repair of computers and domestic appliances;

- Fundamental construction supervision, design, counseling services;

- Other services subject to deduction of 10% VAT;

- Construction and installation exclusive of building materials (including installation of industrial equipment);

5%

2%

- Provision of services that are not subject to VAT or subject to 0% VAT as prescribed by VAT laws;

- Business cooperation with an organization in this sector where the organization has the responsibility to declare VAT on the entire revenue earned from the business cooperation;

- Compensation for breach of contract, other compensations;

-

2%

- Lease of property including:

+ Lease of housing, land, stores, factories, warehouses except lodging services;

+ Lease of vehicles, equipment without operators;

+ Lease of other property without associated services;

5%

5%

- Operation as lottery agents, insurance agents, MLM agents;

- Compensation for breach of contract, other compensations.

-

5%

3.

Production, transport, service associated with goods; construction inclusive of building materials

- Production, processing or goods;

- Extraction, processing of minerals;

- Cargo transport, passenger transport;

- Services associated with goods such as training, maintenance, technology transfer associated with sale of products

- Food and beverage services;

- Repair and maintenance of equipment, motor vehicles, motorbikes and other motored vehicles;

- Construction and installation inclusive of building materials (including installation of industrial equipment);

- Other activities subject to deduction of 10% VAT;

3%

1,5%

- Activities that are not subject to VAT or subject to 0% VAT as prescribed by VAT laws;

- Business cooperation with an organization in this sector where the organization has the responsibility to declare VAT on the entire revenue earned from the business cooperation.

-

1,5%

4.

Other business activities

- Manufacture of products subject to deduction of 5% VAT;

2%

1%

- Provision of services subject to deduction of 5% VAT;

- Activities other than those specified in 1, 2, 3 above;