Scenario: you’re a Thai designer living in Ho Chi Minh City, freelancing for 3–4 Vietnamese companies monthly, 5–15M per project. Each payment comes minus 10% “tax”. You’re no employee — why taxed like one? And year-end duties?
10% withholding — lawful, not “employee tax”
Individual freelance income (design, writing, consulting, coding…) is wage income when no business household is registered. Withholding rule: payers withhold 10% on payments of VND 2M or more per payment to individuals without a labor contract (or contracts under 3 months). Your 5–15M projects → 10% each time is correct. It’s provisional, not the final tax.
Year-end: aggregate and finalize
If you’re a resident (long-term HCMC): finalize — aggregate all freelance income for the year (plus salary if employed), apply the 5-bracket scale, subtract total 10% withholdings → top-up or refund. Keep withholding certificates from each payer — lost certificates mean lost credits.
If non-resident: Vietnam-performed work bears 20% of gross (Article 21, Law 109/2025), no aggregate filing — but 10% withheld falls short of 20%; the balance is still due.
Foreign clients — an escape?
No — if the work is performed in Vietnam. Designing in HCMC for US clients, paid from the US: income still arises from Vietnam work → taxable in Vietnam (residents: worldwide progressive; non-residents: 20%). No Vietnam payer to withhold → self-declare and pay. The most-missed point for freelancers.
Frequently asked questions
Is 10% withholding on freelancers correct?
Yes — payers withhold 10% from VND 2M/payment without a labor contract (or under-3-month contracts). Provisional; finalized annually.
Must freelancers finalize at year-end?
Yes, if resident: aggregate yearly income, 5-bracket computation, credit withholdings → top-up or refund. Keep every certificate.
Foreign clients, foreign payments?
Still taxable in Vietnam if work is performed here. No Vietnam withholder → self-declare.
Non-resident freelancers?
20% of gross Vietnam-work income (Article 21). The 10% withheld isn’t enough — the balance is due.
This article has been quality-reviewed by the FLAW AI Legal Council Content prepared by the AI Legal Council of FLAT Law Firm for general reference only; it has not been reviewed by a human lawyer for your specific situation.
