Job Discussion Forums

villon67 · Joined: 12 Dec 2009 Posts: 2

I am planning to work in Vietnam. A couple of days ago, MOD EDIT posted the following job ad:

"Middle School Social Studies
Salary: Entry level: US$24,000-US$33,140 (tax free), based on relevant experience and education level"

The information about taxes in several posts in this forum seems to contradict that school advertisement. Tax free salary in Vietnam? Any comments? By the way, ideas/info/opinion on this international school would be really welcomed.

Thanx a lot

Bold As Love · Joined: 27 Mar 2010 Posts: 39 Location: HCMC, Vietnam

I think that the most likely answer is that the school is indicating that the salary range shown is "after taxes". My understanding is that the personal income tax rate in VN for foreigners is 25%, but it is probably not quite that simple.

just noel · Joined: 17 Jul 2006 Posts: 168

villon67 · Joined: 12 Dec 2009 Posts: 2

Thank you for your help!

Oh My God · Joined: 31 Jan 2010 Posts: 273

just noel · Joined: 17 Jul 2006 Posts: 168

Oh My God · Joined: 31 Jan 2010 Posts: 273

Oh yeah, I almost forgot.

Some schools will write a contract in which they'll agree to pay your taxes for you. A word from the wise, request they give you a receipt every month of those taxes they've paid on your behalf.

Actually, you'll have to make in excess of about $6,000 USD per month to hit the progressive scale as a foreigner OR have a Permanent Resident Card. I'm not certain about this total but I know it's higher than any teacher would make!

CThomas · Joined: 21 Oct 2009 Posts: 380 Location: HCMC, Vietnam

More accurate info:

Liability to personal income tax � resident foreigners
Foreigners residing in Vietnam for an aggregate of 183 days or more within a consecutive 12-month period from the first date of arrival, or in subsequent calendar years, will be treated as tax residents
in Vietnam. These tax residents are subject to Vietnamese PIT on their worldwide taxable income, wherever it is paid, earned or charged, on a graduated tax rates basis. Further, where an individual is treated as a resident for a particular year, that individual is also generally regarded as a resident for the following year.
Resident foreigners are required to declare all their worldwide income, regardless of where the income is paid. Failure to declare and pay the correct tax may result in various penalties being imposed.

Liability to personal income tax � non resident foreigners
Foreigners who spend, in aggregate, less than 183 days (the arrival and departure days together count as one day) in a consecutive 12-month period following the first date of arrival, or in subsequent calendar years, are considered as non-tax residents in Vietnam. Non-residents are
subject to PIT at a flat tax rate of 25% on their Vietnam-sourced income in the tax year. However, this will need to be also considered in light of the provisions of any DTA that might apply.

From Price WaterHouse Cooper's Vietnam Tax booklet @ http://www.pwc.com/vn/en/publications/tax-booklet2008.jhtml

This is echoed @ http://www.vietnam-ustrade.org/index.php?f=news&do=detail&id=33&lang=english which also includes a table of Progressive rates. A lot of teachers easily hit the upper rates, so check it out.

Joe Dolce · Joined: 13 Jun 2006 Posts: 30

Some of the info above is out of date. here are the current figures based on yearly incomes in VND. There are further tax breaks for dependants if you have any.

Taxed income per year (VND) / Tax rate (%)

VND 0 - 60,000,000 5%
VND 60,000,000 - 120,000,000 10%
VND 120,000,000 - 216,000,000 15%
VND 216,000,000 - 384,000,000 20%
VND 384,000,000 - 624,000,000 25%
VND 624,000,000 - 960,000,000 30%
Above VND 960,000,000 35%

CThomas · Joined: 21 Oct 2009 Posts: 380 Location: HCMC, Vietnam

Hey Joe,

Where did you get that from? I'm not doubting you, but what's the source? People may bring this kind of information up in negotiations, discussions about policy, law, etc., with their employers, so an actual authoritative source is necessary.

Thanks much.

Bold As Love · Joined: 27 Mar 2010 Posts: 39 Location: HCMC, Vietnam

http://www.taxrates.cc/html/vietnam-tax-rates.html

CThomas · Joined: 21 Oct 2009 Posts: 380 Location: HCMC, Vietnam

Cool, thanks. That's of 2009 and is a lot different. That was after some massive tax reform?

Does anyone have a link to a .gov.vn website with this info?

CThomas · Joined: 21 Oct 2009 Posts: 380 Location: HCMC, Vietnam

Here it is

http://itpc.hochiminhcity.gov.vn/investors/how_to_invest/Tax/index_html/mldocument_view/?set_language=en

CThomas · Joined: 21 Oct 2009 Posts: 380 Location: HCMC, Vietnam

To be sure, that puts a lot f/t teachers at 20 or 25%/month. Your first 6 mos as a non-resident are not free but are taxed at 20% straight up.

If you have a good accounting team at your job, they might be able to squeeze out a few more %s when you get your tax # post WP; beyond that, look for deductions on your own.

Buen suerte, compadres.

londo · Joined: 27 Apr 2010 Posts: 107 Location: District 7

It's not 20-25% on all taxable income but a sliding scale as in most countries.

as an example, if you earn about $2000 a month for 10 months that would be about 400,000,000 VND.

On this you would pay a total of 55-60m VND tax

put it simply, 40m a month would see you paying about 6,000,000 VND tax (PIT) or around 15%

this is increased to a flat rate of 20% for non-residents
Anyone paying 25% has a problem unless they are trying to take VIS (social insurance) as well. NB VIS is voluntary.