Special Sales Tax

SST which is similar to excise tax applies on certain imported and domestically produced goods and certain provisions of services which are not encouraged for domestic consumption or those considered luxurious.

Under SST regulations, subjects of SST include:

i) Commodities: cigarettes, beer, spirits, automobiles, motor vehicles with cylinder capacity above  125cm3, aircraft and   yachts9, fuel, air conditioners up to 90,000 BTU, playing cards, votive paper; and

ii) Services: casinos, betting entertainment (i.e. horse and motor racing), discotheques, massage, karaoke, jackpot games, slot games10, golf clubs and lotteries

Taxable price

i) For domestically produced goods, the taxable price is the selling price exclusive of SST and VAT, and is determined as follows:

SST taxable price = Sales price excluding VAT / (1+SST rate)

ii) For imported goods: taxable price is the dutiable price (which is the CIF price) plus import duty

iii) Taxable price for certain goods (i.e. canned beer, etc.) or particular cases that are provided in SST regulations

SST rates vary from 10% to 70%11 as follows:

Goods/services Tax rates (%)
Cigars/cigarettes 65
Spirits/wine 20 – 6512

25 – 5013

Automobiles 10 – 60
Motor vehicles with cylinder capacity above 125cm3 20
Aircraft and yachts 30
Fuel 10
Air-conditioners (equal or less than 90,000BTU) 10
Playing cards 40
Votive paper 70
Discotheques 40
Massage salons, karaoke 30
Casinos, jackpot games, betting entertainment 30
Golf clubs 20
Lottery 15


Business license tax

A FOE is required to pay business license taxes on an annual basis (at the beginning of the calendar year) at the following rates:

Level of business license tax Registered capital (VND billion) Business license tax Payable per year (VND)
Level 1 Over 10 3,000,000
Level 2 From 5 to 10 2,000,000
Level 3 From 2  to 5 1,500,000
Level 4 Below 2 1,000,000


Environment Protection Tax

The Law on environment protection tax took effect from 1st January 2012. The environment protection tax is an indirect tax which is applicable upon the production and importation of certain goods including petroleum products. The tax is calculated as an absolute amount on the quantity of the goods.

Natural Resources Tax

Natural resources tax is payable by industries exploiting Vietnam’s natural resources such as petroleum, minerals, forest products, seafood and natural water. The tax rates vary depending on the natural resource being exploited and are applied to the production output at a specified taxable value per unit.