Q&A: 2025 Personal Income Tax Finalization in Vietnam

We discuss the personal income tax (PIT) finalization obligations of employers and employees in Vietnam for the 2025 tax year, including deadlines.

Taxpayers who are required to finalize their annual personal income tax (PIT) directly with the tax authorities in Vietnam should submit PIT returns before the end of April of the following year. With more efficient filing methods and heavy penalties for non-compliance, it’s vital for both employers and individuals to understand the requirements of PIT filing clearly and prepare in advance.

What is the purpose of annual personal income tax finalization?

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It is a common statutory obligation for individuals to accurately assess the taxpayers’ liabilities or entitlements. It is also done to schedule tax payments, tax refunds, or any other purposes as necessary.

All tax residents are required to summarize their assessable income earned between January 1 and December 31 and calculate the tax payable on such income. Once assessed, PIT must be reported and filed with the tax authorities, which completes the annual finalization.

Who is subject to annual personal income tax finalization in Vietnam?

Workers are not the only subjects obligated to finalize PIT in Vietnam, as employers will also share the responsibilities under prescribed conditions. According to Decree No. 126/2020/ND-CP and Official Letter No. 883/TCT-DNNCN, the subjects of the annual PIT declaration and finalization include:

• Entities paying salaries and wages to individuals who authorize them to finalize PIT on their behalf, regardless of whether tax deductions are made or not, except in cases where no income is paid.
• Individuals directly settling their tax obligations with the tax authority, including:
  • Individuals with additional tax payable, or with overpaid tax requesting a refund or offset against the next tax declaration period, except where the tax amount is VND 50,000 or less, or where the tax payable is lower than the provisional tax already paid and no refund or offset is requested;
  • Individuals residing in Vietnam for 183 days or more within a consecutive 12-month period calculated from the first day of arrival;
  • Foreign individuals who end their employment contracts in Vietnam before leaving Vietnam; and
  • Resident individuals with income from salaries or wages who are eligible for tax reduction due to natural disasters, fires, or other events that affect their ability to pay taxes.

When will individuals be permitted to authorize others to finalize their PIT?

Resident individuals earning a salary or wage may authorize the employer to conduct PIT finalization on their behalf under the following circumstances:

• Individuals working under labor contracts may authorize their employer to handle PIT finalization if they:
  • Have a salary or wage under a labor contract lasting at least three months with a single employer and are actually working there during the tax finalization, even if they didn’t work the full calendar year; and
  • Transfer from one organization to another due to merger, consolidation, division, separation, or change in enterprise type, or if both organizations are part of the same system.
• Individuals with additional occasional income, if they:
  • Earn a salary or wage under a labor contract of three months or longer with a single employer and are still working there at the time the income payer conducts tax finalization (including cases where they did not work for the full calendar year); and
  • Have additional occasional income from other sources during the year, provided that:
    • The average monthly occasional income does not exceed VND 10 million; and
    • The income has been subject to a 10 percent PIT withholding, and the individual does not request tax finalization for that income.

Who is not required to finalize PIT?

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Non-residents are not required to finalize their PIT in Vietnam.

PIT finalization is not required if the payable PIT amount is less than VND 50,000 (US$2.0) or the payable PIT amount is less than the provisional tax paid or tax withheld, but the taxpayers choose not to receive the refund.

In addition, PIT finalization is not required for individuals who have salary and wages from multiple sources that are less than VND 10 million (US$392.70) and subject to 10 percent PIT withholding.

Our advice is to request your employer to provide you with your monthly pay slips, which include your PIT withholding, to estimate your estimated tax payable using progressive tax rates. This will help you assess your taxable income. It is always safer to finalize your PIT rather than face steep fines by the tax authorities.

What is subject to annual PIT finalization and what is not?

Below are income categories subject to annual PIT finalization:

• Salary and wages;
• Bonus;
• Allowance in cash, such as housing allowance, meals, and travel allowances; and
• Benefits-in-kind, such as house rental paid by the employer to lessor, health insurance and consulting services fee.

Income sources, such as rental income from investment properties, dividends, royalties, and capital gains, as well as other types like lottery and inheritance, are not subject to annual PIT finalization; however, they are taxed separately using different tax forms with different deadlines.

Additionally, Vietnam provides tax exemptions for various income types related to real estate transactions, agricultural and maritime activities, finance and investment, employment benefits, social support, and innovation incentives.

What are the typical allowances and benefits subject to PIT and what is not?

In Vietnam, several allowances and benefits are subject to PIT. For instance, housing allowances, including rent and utilities, are taxable. However, the assessable amount for housing is capped at 15 percent of the employee’s assessable income. For example, if an employee earns an annual income of US$100,000, the taxable housing allowance is limited to US$15,000 per year.

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Other allowances subject to PIT include lunch allowances exceeding VND 730,000 (US$29). Payments for specific memberships, such as golf, healthcare, or spa services, may also be taxable for certain employees. Consulting and tax service benefits provided to employees are similarly subject to PIT.

Meanwhile, the following benefits and allowances are not subject to PIT:

How do you calculate taxable income for PIT?

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Taxable income for PIT purposes is the assessable income, which includes salary and wages, allowances, other benefits-in-kind, and performance bonuses.

However, a resident taxpayer is allowed to deduct VND 15.5 million (US$560) per month or VND 132 million (US$5,000) per year from their taxable income. The yearly amount can be fully deducted, regardless of whether the taxpayer had an income every month. The taxpayer can deduct VND 6.2 million (US$230) per dependent from their taxable income each month.

Other deductions include social insurance, health insurance, and retirement funds, and any donations to approved charities and humanitarian organizations.

Who can be registered as dependents?

Dependents that can be registered include the taxpayer’s children, which include biological children, adopted children, illegitimate children, and stepchildren. The children should be under 18 years old, or if they are 18 or older but have a disability or are currently enrolled in a university, have a monthly income within the past year of less than VND 1 million (US$39.28).

Other eligible dependents include spouses, parents, stepparents, nieces, and nephews; these are subject to certain conditions.

Can you describe the general procedures to finalize your annual PIT?

Taxpayers should review their total income earned during the year and do a self-assessment. They can then estimate their total PIT payable and compare with the payable PIT amount to the withheld PIT and provisional PIT paid during the year.

Taxpayers should also be prepared to provide clarifications or supporting documents if requested by the tax authorities.

What are the deadlines for filing?

The deadline for organizations and salaried employees is March 31 of every year. For individuals submitting directly to the tax authorities, it is typically April 30, so the last day of the fourth month of the calendar year. However, the deadline excludes public holidays and weekends, and as such, the deadline for 2024 PIT finalization is 2 May, 2025.

Where can you finalize your PIT?

Taxpayers with a single source of employment income from January to December can authorize their employer to finalize their PIT and submit it to the tax authorities on their behalf.

Individuals with income from multiple employers can choose one tax office to finalize their PIT or use their e-ID accounts to complete the process online. The chosen tax office is typically either the one where the employer contributing the most income is located or the one corresponding to the taxpayer’s place of residence.

Taxpayers also have the option to engage a specialized tax consultant or professional firm to handle and finalize their PIT obligations.

Why are tax refunds sometimes difficult for foreign employees?

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Foreign employees often receive higher salaries than their local counterparts, which results in higher tax liability and, consequently, increased scrutiny from tax authorities. To ensure accurate tax collection, authorities carefully review all documents to verify that the assessed PIT is correct, particularly for foreign employees.

Additionally, foreign employees may receive more benefits than local employees, have salary arrangements split between multiple countries, or encounter inappropriate salary structuring. These complexities can lead to discrepancies in tax assessments, prompting tax authorities to conduct thorough checks that may delay tax refund processing.

What are the tax compliance requirements for foreign employees leaving Vietnam?

Foreign employees whose employment contracts are expiring must finalize their PIT obligations before leaving Vietnam. They can either handle the process themselves or authorize their employer to do so on their behalf. The compliance deadline is within 45 days of departure.

It is important for departing taxpayers to fully comply with tax requirements, as this could facilitate future reentry into Vietnam or provide necessary confirmation of tax remittance for filing obligations in other countries.

READ MORE: Stuck in Vietnam? A Guide to Exit Delays Over Tax Obligations

US$1=VND 25,457.47

This article was originally published in April 2022. It was last updated March 13, 2026.

(With input from Vu Nguyen Hanh)

Managing tax in Vietnam is critical for FDI companies to stay compliant with local regulations, GST requirements, and global standards such as IFRS, navigate complex filings, and apply correct tax treatments. A well-structured tax process helps to avoid penalties and stay 100% compliant.

Luy Doan

Assistant Manager, Tax

Talk to an expert at vietnam@dezshira.com

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