Living in Vietnam, working remotely for a company in Singapore/the US/the EU, salary paid into a foreign bank account: must you pay personal income tax (PIT) in Vietnam — and where? The core answer: Vietnamese residing in Vietnam are tax residents → subject to PIT on worldwide income, including salary paid by the foreign company, regardless of where or into which account it is paid (Article 2 of Law 109/2025/QH15 — cited per Consolidated Document 112/VBHN-VPQH, the consolidation after amending Law 09/2026/QH16). Because the foreign company has no presence in Vietnam to withhold tax, the individual must file directly with the Vietnamese tax authority — not abroad, and not by waiting for the company to withhold.
1. Tax residency and worldwide income (Article 2, VBHN 112)
A tax resident is someone who: is present in Vietnam for 183 days or more in a calendar year or 12 consecutive months, or has a regular residence in Vietnam (registered permanent residence or a leased home with a term). Residents are taxed on income arising inside and outside Vietnam. Conversely, non-residents (living abroad, working remotely for a foreign company) are taxed only on income arising in Vietnam — this boundary determines the entire tax obligation.
2. Structure (a): EMPLOYMENT — a labor contract with the foreign company
Tax rates: salary and wage income follows the 5-bracket progressive schedule (Article 9 of Law 109/2025): 5% (up to VND 120 million/year); 10% (above 120–360 million); 20% (above 360–720 million); 30% (above 720 million–1.2 billion); 35% (above 1.2 billion). The salary/wage rules for resident individuals apply from tax year 2026 (Article 29).
Direct filing: resident individuals earning salary paid from abroad must file directly with the tax authority — form 02/KK-TNCN (monthly/quarterly) per Appendix I of Circular 89/2026/TT-BTC (periods before 1/7/2026 use the Circular 80/2021 forms per the transitional Article 100); annual settlement on form 02/QTT-TNCN; no authorized settlement through the payer. Filings go to the tax authority where the individual resides — verify the filing place and deadlines directly in Decree 253/2026 and Circular 89/2026 before acting.
Timing of taxable income: when the organization/individual pays the income or when the taxpayer receives it (Article 8.3).
Available deductions:
- New family circumstance deductions (from tax year 2026; Resolution 110/2025/UBTVQH15; also Article 10 of Law 109/2025): for the taxpayer VND 15.5 million/month (VND 186 million/year); per dependent VND 6.2 million/month. Do not use the old figures of 11 million/4.4 million;
- Charitable/humanitarian contributions (with valid receipts);
- Foreign tax credit for tax already paid abroad (capped at the tax payable under Vietnamese law) at settlement, with supporting documents — applied in practice under tax authority guidance (e.g., Official Letter 8052/CT-TTHT);
- Double taxation agreements: where a DTA exists between Vietnam and the paying country, the employment-income rules of each specific treaty apply — treaties differ, so this article states only the principle, not country-specific conclusions.
3. Structure (b): SERVICE / FREELANCER — a service contract, not a labor contract
Those working under service contracts may be determined by the tax authority to be individual businesses providing services → taxed under the new framework of Law 09/2026/QH16 (24/4/2026): the fixed VND 500 million threshold is abolished; the Government sets the PIT/VAT-exempt revenue level (Articles 1, 2; effective 1/1/2026). Individual businesses above the threshold face rates of 15% (revenue up to VND 3 billion), 17% (above 3–50 billion), 20% (above 50 billion) on taxable income (revenue − costs), or may opt for the percentage-on-revenue method (services: 2%; goods distribution: 0.5%).
⚠️ The employment-vs-service boundary is an interpretive zone with deemed-taxation risk. This article presents both options and recommends: review the actual substance of the contract (who manages, who bears risk, regularity), and consult a professional before choosing a filing approach — we do not decide for the reader which category their contract falls into.
4. Legal framework and effectiveness
- PIT Law 109/2025/QH15 (amended by Law 09/2026/QH16; cited per VBHN 112/VBHN-VPQH of 20/5/2026): effective 1/7/2026; the salary/business rules for resident individuals apply from tax year 2026 (Article 29);
- Decree 253/2026/ND-CP guiding Law 109/2025 (replacing Decree 65/2013): issued 30/6/2026, effective 1/7/2026; Article 69;
- Circular 89/2026/TT-BTC: form 02/KK-TNCN (Appendix I); Article 100 (transitional rules).
5. Common risks and advice
- “Salary paid into a foreign account, so no Vietnam filing needed”: wrong. Residents are taxed on worldwide income regardless of where it is paid or received;
- Not filing because “the company will withhold”: a foreign company with no Vietnam presence cannot withhold — direct filing is the individual’s duty;
- Using a service contract to “avoid” progressive rates: the authority may re-characterize the substance and deem the tax — the risk outweighs the benefit;
- Losing foreign tax payment documents: forfeits the foreign tax credit at settlement — keep documents from day one;
- Using old deduction figures: from tax year 2026 the new levels are 15.5 million/6.2 million — check Article 10 of Law 109/2025 (VBHN 112).
6. Frequently asked questions
I work remotely for a US company, salary paid into a US account. Do I owe PIT in Vietnam?
Yes, if you are a Vietnamese tax resident (present in Vietnam 183+ days/year or with a regular residence). Worldwide income is taxable regardless of where it is paid.
Where do I file, and will the company withhold for me?
A foreign company with no Vietnam presence cannot withhold; you must file directly with the Vietnamese tax authority (form 02/KK-TNCN; annual settlement 02/QTT-TNCN) — no authorized settlement.
I’ve already paid tax abroad. What then?
Credit the foreign tax paid (capped at the Vietnamese tax payable) at settlement, provided you have supporting documents.
What if I signed a service contract instead of a labor contract?
You may be treated as an individual business → taxed under Law 09/2026/QH16 (15%/17%/20% on taxable income or 2% on service revenue). The boundary carries deemed-taxation risk — review the contract’s substance and consult a professional.
Sources
- PIT Law 109/2025/QH15 — amended by Law 09/2026/QH16 (24/4/2026); cited per VBHN 112/VBHN-VPQH (20/5/2026): Article 2 (tax residency; worldwide income), Article 8 (salaries, wages), Article 9 (5-bracket schedule), Article 10 (family deductions), Article 29 (application from tax year 2026); effective 1/7/2026;
- Decree 253/2026/ND-CP — guiding Law 109/2025 (replacing Decree 65/2013): effective 1/7/2026; Article 69;
- Circular 89/2026/TT-BTC: form 02/KK-TNCN (Appendix I); Article 100 (transitional rules);
- Resolution 110/2025/UBTVQH15: family deduction levels from 1/1/2026 (VND 15.5 million/month; VND 6.2 million/month per dependent).
For reference only; not legal advice. This content was drafted by AI and will be quality-checked by the AI Legal Council of FLAT Law Firm before publication review; it is not legal advice from a human lawyer. Regulations may change; please check the current legal texts before relying on this information.
Working remotely for a foreign company and need to determine your PIT obligations correctly? Contact FLAT Law Firm for advice.