Investment Income Types
For tax residents in Vietnam, investment income is taxable. Here's how different types are treated:
Overview
| Income Type | Tax Rate | Withholding |
|---|---|---|
| Dividends (Vietnam) | 5% | Yes |
| Interest (Vietnam bank) | 5% | Yes |
| Capital gains (securities) | 0.1% on sale price | Yes |
| Capital gains (other) | 20% | May apply |
| Foreign investment income | Progressive rates | Self-report |
Dividend Taxation
Vietnam Dividends
Dividends from Vietnamese companies are subject to:
Tax Rate: 5% withholding tax
Calculation:
Tax = Dividend Amount × 5%
Example
Scenario:
- You receive 100,000,000 VND in dividends
- Withholding tax: 100M × 5% = 5,000,000 VND
- Net received: 95,000,000 VND
No Further Tax
For non-residents, the 5% withholding is final. For residents, this is usually the final tax on dividends.
Foreign Dividends
If you're a tax resident and receive dividends from foreign companies:
- Taxable as worldwide income
- Declare in annual return
- May be able to claim foreign tax credit
- DTA may apply
Interest Income
Bank Deposit Interest
From Vietnamese Banks:
- Tax rate: 5% withholding
- Bank deducts automatically
- No further reporting needed
Example
Scenario:
- Bank deposit: 1,000,000,000 VND
- Interest rate: 6% per year
- Annual interest: 60,000,000 VND
- Tax withheld: 60M × 5% = 3,000,000 VND
- Net interest: 57,000,000 VND
Bond Interest
Interest from Vietnamese bonds:
- Similar 5% withholding
- Paid through paying agent
- Final tax for individuals
Foreign Interest
Interest from foreign banks/investments:
- Taxable for residents
- Must declare in annual return
- Foreign tax credit may apply
Exemptions
Some interest is exempt:
- Government bond interest (certain types)
- Educational savings accounts (limited)
Capital Gains
Securities (Stocks, Bonds)
Special Rate: 0.1% of transfer value (not gain)
This is a deemed tax that doesn't consider actual gain or loss.
Example
Scenario:
- Buy shares for: 100,000,000 VND
- Sell shares for: 120,000,000 VND
- Actual gain: 20,000,000 VND
Tax: 120M × 0.1% = 120,000 VND (not based on 20M gain)
Non-Securities Capital Gains
For other assets (real estate, business interests):
Tax Rate: 20% of actual gain
Calculation:
Tax = (Selling Price - Cost) × 20%
Real Estate
Special rules apply to real estate:
- 2% of transfer value (similar to securities)
- Or 25% of gain for certain properties
- Exemptions for primary residence
Securities Trading
Vietnamese Stock Market
For individuals trading on Vietnamese exchanges:
| Activity | Tax Treatment |
|---|---|
| Buying stocks | No tax |
| Selling stocks | 0.1% of sale value |
| Dividends | 5% withholding |
| Stock rights | No tax on allocation |
Example Trading Year
Activity:
- Total sales: 2,000,000,000 VND
- Total purchases: 1,500,000,000 VND
- Actual gain: 500,000,000 VND
- Dividends received: 50,000,000 VND
Tax:
- Securities transfer tax: 2B × 0.1% = 2,000,000 VND
- Dividend tax: 50M × 5% = 2,500,000 VND
- Total: 4,500,000 VND
Foreign Stocks
Trading on foreign exchanges:
- Taxable for residents
- Report gains in annual return
- Progressive rates may apply
- DTA may affect treatment
Reporting Requirements
Annual Declaration
For investment income, you may need to:
- Declare foreign investment income (if resident)
- Report capital gains (if not already taxed)
- Claim foreign tax credits (if eligible)
Required Documents
| Document | Purpose |
|---|---|
| Brokerage statements | Track transactions |
| Dividend statements | Verify income |
| Bank interest certificates | Confirm interest |
| Foreign tax receipts | Claim credits |
Form 02/CK-TNCN
Include investment income in your annual PIT finalization:
- Line for dividends
- Line for interest
- Line for capital gains
- Attach supporting documents
Deadlines
| Filing | Deadline |
|---|---|
| Annual finalization | March 31 |
| Departure | Before leaving |
Comparison Table
| Income Type | Vietnam Source | Foreign Source (Resident) |
|---|---|---|
| Dividends | 5% WH (final) | Progressive rates |
| Bank interest | 5% WH (final) | Progressive rates |
| Securities gains | 0.1% of sale (final) | Progressive rates |
| Other capital gains | 20% of gain | Progressive rates |
| Rental income | Varies | Progressive rates |
Planning Tips
- Track all transactions - Keep detailed records
- Understand withholding - Many items are final tax
- Check DTAs - May reduce foreign tax
- Time sales strategically - 0.1% rate ignores timing
- Use tax-advantaged accounts - If available in home country
Need Help?
Our team can:
- Calculate tax on your investment income
- Prepare your investment income declarations
- Claim foreign tax credits
- Optimize your investment tax position
ZALO: +84703027485
This article is based on PIT Law and Circular 111/2013/TT-BTC. For official regulations, please refer to [vbpl.vn](https://vbpl.vn).