Vietnam Corporate Tax & Accounting FAQ: CIT, VAT, PIT

Updated 2026-07-07

Running a company in Vietnam means staying on top of CIT, VAT, PIT and a calendar of deadlines — even before you've made a sale. These are the questions owners ask us most, from the 8% VAT cut and small-company CIT rates to e-invoicing and audited statements. You pay the taxes to the State; we keep the books and file on time so nothing slips.

Which taxes will my company in Vietnam actually have to deal with?

For most companies it comes down to a handful: corporate income tax (CIT, standard 20%) on your profit, value-added tax (VAT) on your sales, personal income tax (PIT) withheld from staff salaries, and — if you pay overseas suppliers for services — foreign contractor tax. The old annual business-licence fee (lệ phí môn bài) was abolished from 1 January 2026, so that one is gone. We map out exactly which apply to your business before quoting; you pay the government taxes to the State, and our fee is separate for keeping you compliant.

Do I still have to pay the annual business-licence fee (môn bài)?

No — as of 1 January 2026 the business-licence fee (lệ phí môn bài) was ended under Resolution 198/2025/QH15, so companies and household businesses no longer file or pay it. Before that it was VND 2–3 million a year for a company depending on charter capital, with a first-year exemption for newly formed entities. If you were budgeting for it, you can drop it — but do check with us for any prior-year amounts that were already due before the change.

Do I file VAT and PIT monthly or quarterly?

It depends on your size. In general, a company whose prior-year revenue was 50 billion VND or less files VAT quarterly; above that, monthly — and PIT withholding usually follows the same cycle. Monthly returns are due by the 20th of the following month; quarterly returns by the last day of the first month of the next quarter. Most small and newly formed companies fall into the quarterly group, which we confirm for your specific case.

Is my VAT rate 10% or the reduced 8% I keep hearing about?

The standard VAT rate is 10%. A temporary 2% cut brings many goods and services down to 8% — currently extended to 31 December 2026 under Resolution 204/2025/QH15 (guided by Decree 174/2025/ND-CP). Not everything qualifies: sectors like banking, securities, insurance, real estate and certain others stay at 10%. Which rate applies to your invoices depends on what you sell, so we set your e-invoices up correctly rather than guessing.

How is corporate income tax actually paid — is there a monthly CIT return?

This trips up almost every foreign owner: there is no monthly or quarterly CIT return. Instead you make a provisional CIT payment each quarter based on estimated profit (a payment, not a filing), and then file one annual finalization where the real profit is calculated and the tax settled — topping up or crediting the difference. In general the four quarterly payments together should cover at least 80% of the final tax, or late-payment interest applies; that shortfall trap is exactly what we watch for you.

When are the quarterly CIT payments and the annual finalization due?

In general, the quarterly provisional CIT is due by the 30th day of the first month of the following quarter — so no return, just the payment on time. The annual CIT finalization is due by the last day of the third month after your financial year ends, meaning 31 March for a calendar-year company. We calendar these for you and prepare the finalization well ahead so nothing is filed or paid late.

I heard smaller companies now pay less than 20% CIT — is that right?

Yes, in general. Under the new CIT Law 67/2025/QH15 (in force for the 2025 tax year onward), micro-enterprises with annual revenue up to 3 billion VND are taxed at 15%, and small enterprises with revenue from 3 to 50 billion VND at 17%; companies above 50 billion stay at the standard 20%. There are anti-avoidance limits — the lower rates don't apply if you're a subsidiary or affiliate of a group over the threshold. We check your eligibility against your actual revenue and structure rather than assuming it.

Are electronic invoices mandatory, and what do I need to set up?

Yes — Vietnam runs entirely on electronic invoices, and they must be issued through a registered provider and connected to the tax authority's system (Decree 123/2020, updated by Decree 70/2025). You can't simply write a paper invoice. We help you register with an e-invoice provider and issue invoices correctly so your output records are clean from day one — getting this right early prevents headaches when your file is reviewed.

How is personal income tax handled for my foreign employees?

It turns on the 183-day rule. Someone in Vietnam 183 days or more in a 12-month period (or holding a residence card) is a tax resident, taxed on worldwide employment income at progressive rates up to 35%; a non-resident is taxed at a flat 20% on Vietnam-source income only. The employer withholds PIT monthly and finalizes it — generally by 31 March. Residency for a cross-border employee can be genuinely finely balanced, so this is worth checking with us for each person.

When I pay an overseas company for services, do I owe tax in Vietnam?

Often yes — through foreign contractor tax (thuế nhà thầu, FCT). When your Vietnam company pays a foreign supplier with no entity here for services, software, royalties or similar, that income is Vietnam-sourced and the FCT — a combination of a CIT part and a VAT part — normally has to be withheld by you, the Vietnamese payer, and remitted. Because it effectively comes out of what you pay abroad, it's best priced into the contract before you sign; we work out the correct treatment for each contract type.

Does my company need audited financial statements?

If you're a foreign-invested (FDI) company, yes — in general, foreign-owned enterprises must have their annual financial statements audited by an independent auditing firm before filing, under Vietnam's Law on Independent Audit. The audited statements are typically due within 90 days of the financial year-end. We prepare your statutory statements to VAS and coordinate with the independent auditor so the audit runs smoothly rather than becoming a year-end scramble.

What happens if I file or pay a tax late?

Late filing carries administrative penalties, and late payment accrues interest (in general around 0.03% per day on the unpaid amount) under the tax-penalty rules in Decree 125/2020. Beyond the money, a pattern of late or missing returns can flag your file for review and complicate things like e-invoice use. The good news is these are entirely avoidable with the deadlines calendared — which is a core part of what a monthly retainer buys you.

My company hasn't started trading yet — do I still have to file anything?

Yes. From the day it's incorporated, a company has periodic filing obligations even with no revenue — you file 'nil' (zero) VAT and PIT returns and still handle the year-end finalization and financial statements. Skipping them because 'nothing happened' is a common and costly mistake. A dormant company is inexpensive to keep compliant, and we run those nil filings so your entity stays clean until it trades.

Can a small company just outsource accounting, or does it legally need an in-house accountant?

In general, a small or newly formed company can outsource the whole function to a licensed accounting-service firm rather than hiring in-house — a common, fully compliant choice for FDI and SMEs. Every company must maintain proper books and, as it grows, appoint a qualified chief accountant, but that role can often be met through a service provider in the early stages. We scope whether outsourcing fits your size, or whether your volume has reached the point where in-house support makes sense.

Are the government taxes included in your service fee?

No — they're always separate. The taxes themselves (CIT, VAT, PIT and any FCT) are paid by your company to the State according to what you owe; our fee is only for the professional work of keeping the books, filing on time, preparing the finalization and dealing with the tax authority. We set out both clearly up front so you can see exactly what goes to the State and what is our service — and you only pay us once you accept a fixed, no-obligation quote.