Personal income tax rate for income from business

Legal Consulting Department of Lao Dong Newspaper answers:

Article 20 of the 2025 Personal Income Tax Law (effective from July 1, 2026) stipulates personal income tax on income from business as follows:

1. Personal income tax on income from business of non-resident individuals is determined by the revenue from business activities specified in Clause 2 of this Article multiplied (x) by the tax rate specified in Clause 3 of this Article.

2. Revenue is the entire amount of sales money, processing money, service supply money, including subsidies, surcharges, surpluses that the individual enjoys, regardless of whether money has been collected or not, including costs paid by the buyer of goods and services on behalf of non-resident individuals that are not reimbursed.

In case the contract agreement does not include personal income tax, the taxable revenue must be converted to the entire amount of money that non-resident individuals receive in any form from the provision of goods and services in Vietnam regardless of the location of business activities.

3. Tax rate:

a) Distribution and supply of goods: 1%;

b) Services, non-contracting construction of raw materials: 5%;

c) Production, transportation, services associated with goods, construction with raw material bidding: 2%;

d) Activities providing digital information content products and services on entertainment, electronic games, digital films, digital photos, digital music, advertising: 5%;

e) Other business activities: 2%.

Thus, from July 1, 2026, the personal income tax rate for income from business is calculated according to the above regulations.