What types of taxes in Vietnam will be imposed on foreign enterprises?

Currently, foreign enterprises are massively investing in many projects in Vietnam. So, which types of taxes in Vietnam will be imposed on enterprises who need to rent factory? Kindly refer to the article below.

4 Types of taxes in Vietnam that foreign enterprises have to pay

1. Enterprise income tax

Enterprises who need to rent factory in Vietnam will be subject to enterprise income tax. This is a tax in Vietnam levied on income from production and business activities and other incomes of enterprises such as income from transfer of assets and property rights, etc.

How to calculate enterprise income tax

Enterprise income tax payable = [Taxable income - (Tax-exempt income + Loss carried forward from the previous year)] × Tax rate

Taxable income = Revenue - deductible expenses + Other income

From January 1, 2016, the tax rate for calculating enterprise income tax is 20%.

2. Value added tax.

Any enterprise that needs to rent factory must pay value added tax. This type of tax is levied on the added value of goods and services throughout the production, circulation and distribution. There are two methods for calculating taxes: the deduction method and the direct method.

The deduction method: 

Payable value-added tax = Input value-added tax - The output value-added tax is deductible

The direct method:

Value-added tax payable = Value-added of goods or services sold × Value-added tax rate

Value-added tax rate has three levels: 0%, 5% and 10%. Tax rates are applied depending on the group of goods and services. For exact tax rates, enterprises refer to Article 10 of the Law on Value-Added Tax.

3. Personal income tax of employees

Pursuant to Circular no. 111/2013 / TT-BTC and Circular no. 156/2013 / TT-BTC, organizations that directly employ employees and pay income to employees are responsible for declaring, deducting and paying personal income tax  on behalf of employees.

-Deduct 10% of personal income tax if the employee signs a labor contract under 03 months or does not sign a labor contract

-If the employee signs a labor contract for full 03 months or more, the deduction is based on the partially progressive tax table

-If the employee is a non-resident individual of Vietnam, the personal income tax deduction is 20%

4. License tax

License fee (License tax) is considered the most basic tax in Vietnam. The license tax is collected annually. This level is based on the registered capital or annual revenue of the enterprise.


Registered business capital

License fees by year


Over 10 billion

3.000.000 VND


From 5 – 10 billion

2.000.000 VND


From 2 – 5 billion

1.500.000 VND


Less than 2 billion

1.000.000 VND


In addition, depending on the specific business activities, enterprises that need to rent factory in Vietnam will have to pay tax corresponding to each type following the provisions of Vietnamese law. For example, other taxes are such as special consumption tax, natural resource tax, import-export tax, environmental protection tax, etc,.

You need to rent factory in Vietnam can also refer to Kizuna. This is a supplier of ready-built service factory for rent with high quality and reasonable price. Moreover, multilingual staffs will enthusiastically support enterprises. Enterprises will save a lot of time and avoid legal risks.


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