Looking to hire in Vietnam

E-invoices are mandatory in Vietnam. For domestic expenses, a valid tax invoice must show the employer’s full legal name, address, and tax code, and these details must be issued by the supplier rather than added by hand. For international expenses, the destination country’s documentation rules apply, but non-cash payment proof is still required for high-value transactions. For any expense of VND 5,000,000 or more (including VAT), or multiple same-day invoices from one supplier totaling that amount, employees must provide non-cash payment proof such as a tax invoice, receipt, bank transfer receipt, card slip, or electronic wallet record; direct cash deposits into a seller’s bank account are not accepted.

Employees in Vietnam may claim reimbursement for annual medical check-up expenses and related costs, such as travel, up to a combined total of USD 90. A tax invoice issued to the employer must be attached, and the nature of the expense should be clearly described in the claim.

Phone, internet, and coworking costs can be reimbursed tax-free when properly documented. Employees must provide a tax invoice or receipt, and for higher-value expenses, non-cash payment proof is also required.

Laptops, office equipment, office supplies, software subscriptions, and postal charges are generally reimbursable on a non-taxable basis when supported by appropriate invoices or receipts. For larger purchases, non-cash payment proof is required in addition to the invoice.

Most business travel expenses in Vietnam, including transport, accommodation, and related costs, are non-taxable when backed by the required documentation. Mileage claims without receipts are treated differently and are classified as a taxable allowance.

Everyday meals, groceries, and business meals with clients or partners can be reimbursed on a non-taxable basis when supported by valid invoices or receipts and, where applicable, non-cash payment proof for higher amounts.

Training, courses, books, promotional items, gifts, and medical insurance can all be reimbursed as non-taxable when the claim includes a proper tax invoice or receipt and, for higher-value items, non-cash payment proof. Domestic invoices must carry the employer’s full details and relevant VAT information.

Insurance premiums for employees’ accident and health coverage are treated as non-taxable. By contrast, premiums for accident and health coverage for employees’ dependents are taxable.

Per diems for business travel are non-taxable only if the amount, eligibility conditions, and benefit levels are clearly set out in the employment agreement, a collective bargaining agreement, or the company’s financial or bonus regulations. Any amount paid above the prescribed fixed rate is taxable, and if no fixed per diem is specified in the contract or policies, the reimbursement may be treated as taxable. Employees can always opt to claim actual travel expenses with full documentation instead of or in addition to per diems.

Bonuses in Vietnam include both contractual and discretionary payments, such as incentives and commissions, and are taxed as regular income with applicable social security contributions. Vietnam uses progressive tax rates and withholds tax at source, so pay periods that include bonus payments may see higher withholding than usual.