Withholding tax in Vietnam

For Corporate Income Tax in Vietnam, the following non-treaty rates will apply:

  • Dividends paid by a company in Vietnam to its corporate shareholder are not subject to tax, this includes dividends remitted overseas. However, a 5% withholding tax is imposed on dividends paid to individual.
  • Royalties and license fees paid to a non-resident are subject to a 10% withholding tax.
  • Interest paid (e.g. loan from foreign entities) to a non-resident is subject to a 5% withholding tax.
  • Payments for most services are subject to 5% withholding tax.
It is important to note that a further deduction at source, for Value-Added Tax, can be applied to some payments from overseas contractors. For instance, the supply of most of the services to an overseas contractor will be subject to a VAT rate of 5% which will be deducted at source by the Vietnamese party.  

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