In this article
On the same salary, an expert can pay very different amounts of personal income tax (PIT/TNCN) depending on whether they are a resident or a non-resident. Getting tax residency for foreigners in Vietnam wrong means a whole year of incorrect withholding and a difficult finalization. This article provides a decision flow, examples of days present and common borderline cases. It is a step the accounting team at ACCA Consulting Vietnam always takes when onboarding an expat payroll.
1. The two tests for PIT residency of foreigners
Under Vietnam's PIT law, an individual is considered resident in Vietnam if they meet either one of the following conditions:
- Present in Vietnam for 183 days or more within a calendar year, or within 12 consecutive months from the first day of presence in Vietnam. Under current guidance, the day of arrival and the day of departure together count as one day.
- Has a regular place of residence in Vietnam: permanent residence registration, a temporary residence card, or a rented home with a lease term meeting the conditions set by regulation.
If neither condition is met, the individual is a non-resident. Note: the "regular place of residence" test has an additional exclusion where the individual can prove they are tax resident in another country. The PIT Law is also being amended, so you need to check the documents in force for each tax period.
2. Step-by-step decision flow
- 1Count days present
Use the entry and exit stamps in the passport, counting by calendar year and by 12 months from the first day.
- 2183 days reached?
If yes, the individual is resident. If not, go to step 3.
- 3Temporary or permanent residence card?
If yes, they are usually considered to have a regular place of residence; continue to step 5.
- 4Lease for a home to live in?
Check the lease term against current conditions; guesthouses, hotels and workplaces may also count.
- 5Proof of residence in another country?
If total days present are under 183 and there is a certificate of residence from another country, the individual may be non-resident.
- 6Record the conclusion
Keep the day count and documents in the payroll file and review every quarter.
Illustration. A and B reach 183 days and are therefore resident; for C and D the regular residence and 12-consecutive-month tests must also be considered.
View as table
| Expert A | 210 days |
| Expert B | 183 days |
| Expert C | 150 days |
| Expert D | 60 days |
3. Consequences: how do residents and non-residents differ?
| Criterion | Resident | Non-resident |
|---|---|---|
| Scope of income | Income arising in and outside Vietnam | Income arising in Vietnam |
| Calculation | Progressive tax schedule | Flat rate as prescribed |
| Family deductions | Yes: VND 15.5 million/month for the taxpayer; VND 6.2 million/month per dependant (from the 2026 tax period) | Not applicable |
| Compulsory insurance | Employee contributions are deductible | Under current regulations |
| Annual finalization | Finalization obligation as prescribed | Usually withheld on each payment |
An often-forgotten point: a resident must also declare employment income received abroad, for example the portion of salary paid directly by the group. This is analysed in expat salaries paid from abroad. Tax already paid abroad may be credited under the regulations and applicable tax treaties.
4. Common borderline cases
Arriving mid-year without 183 days in the calendar year
An expert arriving in September has only around 120 days in the first year. However, if they reach 183 days over 12 consecutive months from their first day of presence, or hold a temporary residence card, they may still be resident from the first period. How to determine the tax period in the first and last years is illustrated in expat PIT in the first and last years.
Experts who travel between several countries
A regional manager may spend only 2–3 months a year in Vietnam but rent a long-term apartment in Ho Chi Minh City. The regular residence test may make them resident despite few days present, unless they can prove residence in another country. Where residency conflicts between two countries, the tie-breaker rules in the tax treaty apply.
Short-term project experts
An engineer who comes for 4 months to install machinery, stays in a hotel and has no temporary residence card is most likely a non-resident. The company must still withhold tax on income arising in Vietnam, even if the salary is paid by the group.
- Copies of passport pages with entry and exit stamps.
- A day count by calendar year and by 12 consecutive months.
- Temporary residence card, residence confirmation, lease agreement.
- Certificate of residence issued by another country (if any).
- A residency determination record signed by the employee.
FAQ
Is residency status determined once or every year?
It is determined for each tax period. An expert can be resident one year and non-resident the next, so it should be reviewed annually — ideally every quarter.
Can non-residents claim dependant deductions?
No. Family deductions apply only to residents with employment or business income.
What if residency status was wrong when withholding at the start of the year?
Once the status is re-determined, the company recalculates the tax to be withheld and adjusts it at finalization. If too little tax was withheld, the shortfall must be paid together with late-payment interest of 0.03% per day.
Get tax residency right for every expat
Send your entry–exit records and contracts to ACCA Consulting Vietnam for a free preliminary check. ACCA Consulting VN provides accounting services in Ho Chi Minh City with remote support nationwide.
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