Expats in Vietnam will be primarily affected by Personal Income Tax (PIT), but are also subject to VAT (Value Added Tax, or sales tax) and import taxes. Goods brought into Vietnam within 30 days of your arrival are not subject to import taxes. Most mercantile transactions in Vietnam are cash-based, and slip under the radar of the VAT system. Exceptions are purchases made in shopping malls, and hotel or tourism expenses. Though a shop owner may sometimes charge tax on a sale, there’s no way of knowing if that 10% ever makes it to the government coffers!
Income tax for residents varies from 5 – 35%, depending on income; for non-residents it’s a flat-rate of 25%. Most employers withhold tax from their employees’ monthly paychecks. (See the section on Income Tax for more information)
