1. The issue: for the same salary, where is the expert taxed “lightest”?
Vietnam, Thailand and Singapore compete directly as regional postings for group experts. Comparing their PIT is not just about the top rate: the threshold at which the top bracket starts, personal allowances, and whether foreign income is taxed decide the real burden.
2. Vietnam: the top bracket starts earliest
From the 2026 tax year, Vietnamese residents use a 5-band progressive scale: 5% – 10% – 20% – 30% – 35%, with the 35% band applying to taxable income above VND 100 million/month — the lowest absolute threshold of the three countries, so a well-paid expert reaches the top band early. Family allowances: VND 15.5 million/month for the taxpayer and VND 6.2 million/month per dependent (Resolution 110/2025/UBTVQH15). Residents are taxed on worldwide income; non-residents pay 20% on Vietnam-source income.
3. Thailand: same top rate, far higher threshold
Thailand’s progressive scale also tops out at 35%, but the top band applies only to taxable income above THB 5 million/year (roughly VND 4 billion) — many times higher than Vietnam’s top-bracket threshold in converted terms. A basic personal allowance of THB 60,000/year applies, plus family allowances under Thai law. In practice, at the same expert salary, the effective rate in Thailand is usually lower than in Vietnam despite identical headline top rates.
4. Singapore: lowest top rate, territorial principle
Singapore taxes resident individuals progressively with a top rate of 24% on chargeable income above SGD 1 million (from Year of Assessment 2024) — clearly below the 35% of Vietnam and Thailand. Singapore taxes on a territorial basis: an individual’s foreign-sourced income is in principle not taxed in Singapore. This is why Singapore is consistently the lightest option for very-high-income experts, even though living and operating costs are higher.
5. Reading the comparison correctly
Three cautions: (1) the top rate is not the effective rate — compute on the actual salary after each country’s allowances; (2) beyond PIT there are social/compulsory insurance costs — in Vietnam, foreign staff with work permits are covered (except intra-group transferees); (3) double tax treaties between the posting country and the home country decide credits where the expert still owes tax elsewhere. Posting decisions should rest on total employment cost, not PIT alone.
6. Key takeaways
For the same expert package: Singapore is lightest at high incomes thanks to the 24% top rate and territorial basis; Thailand sits in the middle — a 35% top rate but a high threshold; Vietnam is heaviest of the three from upper-middle incomes upward because the 35% band starts at just over VND 100 million/month. Groups posting experts to Vietnam should budget tax on the 2026 scale and consider gross-up/tax equalization from the contract negotiation stage.
7. Frequently asked questions
1. Vietnam and Thailand both top out at 35% — is the burden the same?
No. Vietnam’s 35% band starts at taxable income above VND 100 million/month, while Thailand applies 35% only above THB 5 million/year (about VND 4 billion). At the same salary, a far larger slice is taxed at the top in Vietnam.
2. Is a Vietnam tax resident taxed on income arising in Singapore?
A Vietnamese tax resident is taxed on worldwide income, including Singapore-source income, with credit for foreign tax paid under the applicable rules and treaty. Conversely, a Singapore tax resident is in principle not taxed on foreign-sourced income.
3. Singapore is so much lighter — why do groups still post experts to Vietnam?
Posting decisions follow factory location, market and supply chain, not personal tax alone. The tax team’s job is to compute the true total cost (including grossed-up PIT and insurance) so packages are negotiated fairly across locations.
4. Which Vietnamese scale is used in this comparison?
The 5-band progressive scale of Law 109/2025/QH15 for resident individuals from the 2026 tax year, with family allowances under Resolution 110/2025/UBTVQH15 (VND 15.5 million/month for the taxpayer; VND 6.2 million/month per dependent).
This article has been quality-reviewed by the FLAW AI Legal Council
