Vietnam Enacts New Tax Withholding Rules for Digital Platforms Effective July 2025

• Vietnam issued Decree No. 117/2025/ND-CP on digital platform tax obligations.
• Platforms must withhold and remit VAT and personal income tax for business users.
• Applies to platforms processing payments for domestic supplies.
• Tax is withheld once a transaction is confirmed and payment is accepted.
• VAT rates: one percent for goods, five percent for services, three percent for goods transportation.
• Personal income tax rates: 0.5 percent for goods, two percent for services, 1.5 percent for goods transportation.
• Non-resident tax rates: one percent for goods, five percent for services, two percent for goods transportation.
• If supply nature is unclear, tax is withheld at the highest rate.
• Platforms must declare withheld tax monthly, minus refunds.
• Business users must declare and pay other applicable taxes.
• Business users must provide accurate tax and identification information.
• Users with tax deducted by platforms do not need to declare or pay VAT and personal income tax again.
• Decree effective from July 1, 2025.

Source: vitallaw.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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