Welcome to the vibrant and culturally rich country of Vietnam! If you're a digital nomad, expat, or location-independent worker looking to obtain tax residency here, you've made an exciting choice. This guide will walk you through the steps necessary to establish your tax residency in Vietnam, ensuring you stay compliant with local regulations.
Determine Eligibility
First, assess whether you qualify as a tax resident in Vietnam. Generally, you are considered a tax resident if you are physically present in Vietnam for 183 days or more within a calendar year, or if you have a permanent residence in Vietnam (either registered under your name or rented).
Gather Required Documentation
Collect all necessary documents, including your passport, visa, and evidence of your stay in Vietnam (such as rental agreements, utility bills, or hotel receipts). You may also need to provide tax identification numbers from other countries where you have been a resident.
Register with Local Authorities
Visit the local tax office to register as a taxpayer. You will need to complete the appropriate forms, which may include declaring your worldwide income. Ensure that all information provided is accurate and complete to avoid any legal complications.
Obtain a Tax Identification Number (TIN)
Apply for a Tax Identification Number (TIN) from the General Department of Taxation. This unique number is required for all tax-related matters in Vietnam. You can apply for a TIN at your local tax office or through the online portal if available.
File Annual Tax Returns
As a tax resident, you are required to file annual tax returns declaring your worldwide income. Ensure that you keep detailed records of all income earned, both within and outside of Vietnam. The tax year in Vietnam runs from January 1 to December 31, and tax returns must be filed by the 31st of March of the following year.
Pay Due Taxes
Calculate and pay any taxes owed based on your annual tax return. Vietnam has a progressive tax rate for personal income, so the amount of tax you owe will depend on your total income. Ensure that all payments are made by the deadline to avoid penalties.
Stay Compliant with Ongoing Obligations
Maintain compliance with Vietnamese tax laws by keeping up with any changes in regulations and ensuring timely filing and payment of taxes. Regularly review your tax situation to ensure that you continue to meet the requirements for tax residency.
Legal References
- Law on Tax Administration No. 38/2019/QH14
- Circular No. 111/2013/TT-BTC guiding the implementation of the Law on Personal Income Tax
- Decree No. 65/2013/ND-CP detailing a number of articles of the Law on Personal Income Tax
Useful Links
