Filing Expat Taxes in Vietnam
March 20, 2025 | Country Guides | 12 minute read
Expat Tax Blog. Tax Tips for US Americans abroad.
Updated March 18, 2025
All blogs are verified by Enrolled Agents and CPAs
Updated March 18, 2025
Living in Vietnam means savoring street food in Hanoi’s hidden alleys, cruising Ha Long Bay’s emerald waters, or feeling the pulse of Saigon’s night markets. But even in paradise, taxes follow. Expats must file US taxes while navigating Vietnam’s system—luckily, smart strategies help you stay compliant and keep more of your money.
Whether you’re working remotely, running a business, or just soaking up the culture, understanding your tax obligations keeps you stress-free and compliant. Our US-Vietnam Expat Tax Guide covers all the basics you should know.
Who Needs to File US Taxes Abroad?
US-Vietnam Expat Tax Agreements
Immigration & Tax Compliance Vietnam
US Tax Benefits for Expats in Vietnam
Get Expert Help with Your Expat Taxes
Life in Vietnam
As a US expat in Vietnam, there are plenty of exciting positives to enjoy. The cost of living is significantly lower than in the US, meaning you can stretch your budget further and live comfortably. The vibrant food culture offers a daily adventure, with fresh, flavorful dishes available everywhere, from street stalls to upscale restaurants. The warm, welcoming people make it easy to settle in, and the growing expat community means you’ll find plenty of opportunities to connect and share experiences. Plus, the stunning landscapes—from lush rice paddies to beautiful beaches—offer a great backdrop for both relaxation and adventure.
Healthcare
Healthcare is, of course, of top concern for expats. In global rankings, Vietnam’s healthcare system holds a position around 44th place. While public healthcare is affordable, it may be limited in terms of advanced medical technology and specialized treatments. For more complex medical needs, private healthcare facilities might be necessary. US expats often prefer to have private health insurance to minimize the wait and have access to a quality of service more similar to the US.
Culture & Language
US expats moving to Vietnam often experience a few aspects of culture shock, especially when adjusting to the country’s pace and lifestyle. The traffic, for instance, can be overwhelming, with bustling streets full of motorbikes and few traffic rules compared to the US. You might notice that the concept of time is more flexible in Vietnam, meaning meetings may start late or be less structured, which can be a challenge for those used to punctuality and a strict schedule. The language barrier is another hurdle, as Vietnamese is quite different from English, and while many people speak some English, communication can still be tricky.
If you’re ready for an adventure, read on for how to file your US-Vietnam expat taxes and stay on the right side of the IRS.
Who Needs to File US Taxes Abroad?
If you are a US expat or Green Card holder, you’ll need to file your US taxes in any year that your income meets or exceeds the following thresholds.
For 2024 (filing in 2025), the minimum income thresholds are:
| Filing Status | Income Threshold |
|---|---|
| Single | $14,600 |
| Married Filing Jointly | $29,200 |
| Married Filing Separately | $5 |
| Self-Employed | $400 |
The obligation to file also applies if you are an Accidental American; someone who has US citizenship without realizing it. Maybe you were born in the US or have a US parent but never lived in the country. If this is you, you’ll need to get up to date with your US tax filing. But don’t worry, we’ve got your back and will walk you through what you need to do.
Expat Filing for US Families
Selecting the right filing status can help you save money on your US taxes, and it’s not as complicated as it might seem. The first thing to consider is your marital status. If you’re married, you’ll need to decide whether to file jointly or separately from your spouse, and your spouse’s citizenship plays a big role.
If your spouse is a US citizen or Green Card holder, filing Married Filing Jointly is usually the best option. It offers a higher standard deduction and access to better tax credits. If your spouse is a non-US citizen and doesn’t have a Green Card, they won’t need to file a US tax return. In this case, Married Filing Separately is often the better choice to keep their financial details separate from the IRS.
Alternatively, if you support more than half of your household’s costs and care for a qualifying US dependent, you might be eligible for Head of Household status, which typically provides better tax benefits than filing separately.
US Tax Forms Expats in Vietnam Should Know
In addition to filing your Individual Income Tax Return (Form 1040), there are several other forms that Americans in Vietnam need to consider, such as the FEIE, FATCA, FTC, and FBAR. While there are additional forms to be aware of, these two key categories are essential.
Forms to help expats avoid double taxation:
- Foreign Earned Income Exclusion (Form 2555)
- Foreign Tax Credit (Form 1116)
Forms to report foreign assets:
- Foreign Account Tax Compliance Act (Form 8938)
- Foreign Bank Account Report (FinCEN form 114)
MyExpatTaxes software automatically ensures that all forms necessary for your tax situation are submitted to the IRS, so that’s one less thing to think about!
The Streamlined Procedure
If you weren’t aware of the need to file, or if you fell behind on your taxes, there is a solution to becoming tax compliant without facing penalties. The Streamlined Procedure is an IRS amnesty program that allows you to catch up by filing just three past tax returns and six FBARs. As long as you can certify that your failure to file was non-willful (for example, you were unaware of the need to file) and you file with the program before the IRS contacts you, you won’t face fines.
The good news is that MyExpatTaxes provides affordable and transparent pricing for the Streamlined Procedure. You can easily file your required tax returns and FBARs, with a Tax Professional guiding you through the process and signing off on your submission.
US Tax Deadlines
US expats automatically get a two-month extension. Need more time? File for an extension to October.
| Standard Filing Deadline | April 15th |
|---|---|
| Automatic Extension for Expats | June 16th |
| Deadline for Expats Filing an Extension (file by June 15th) | October 15th |
| FBAR Deadline for Expats | October 15th |
| Deadline for Expats if you Filed a Second Extension | December 15th |
Get your email reminders about upcoming deadlines!
US-Vietnam Expat Tax Agreements
Tax Treaty
Vietnam signed a Double Taxation Agreement with the United States in 2015; however, it has not been ratified and is not presently in effect. For now, there is no tax treaty, which can lead to concerns about double taxation for US expats and businesses. Fortunately; US taxpayers can still reduce their tax burden using the Foreign Tax Credit (FTC) and the Foreign Earned Income Exclusion (FEIE) – read on for more details.
Totalization Agreement
There is no totalization agreement between the US and Vietnam. This has several potential consequences on the social security taxes you owe, and coordination and amount of the benefits you receive.
- Double Social Security Taxation: Normally, a totalization agreement prevents double payments by allowing you to contribute to just one social security system – typically in your country of residence. Without it, US expats may need to contribute to both the US Social Security system and Vietnam’s social insurance program. This means if you are self-employed in Vietnam, expect to still pay US self-employment tax.
- No Social Security Benefits Coordination: Without a totalization agreement, workers may not be able to combine contributions from both countries to qualify for retirement benefits. Expats might lose benefits if they don’t meet Vietnam’s or the US’s minimum contribution period, or receive reduced pensions since contributions aren’t counted across both systems.
Immigration & Tax Compliance for US expats in Vietnam
Visas for US Expats
To visit Vietnam, you’ll need a to apply for a 90-day E-visa. Your passport should have six months’ validity remaining from your exit date, and one blank page for the entry stamp.
Other visas include the Business Visa (valid for up to 12 months), Student Visa (valid for up to 12 months), Working Visa (valid for up to 2 years), and the Investor Visa (valid for up to 5 years).
Determining Tax Residency
Vietnam determines tax liability based on residency. You’re considered a tax resident if you stay over 182 days in a year, rent a home for 183+ days, or hold a Temporary Resident Card without proving residency elsewhere. Residents pay taxes on worldwide income, while non-residents pay only on Vietnam-sourced income.
Income Tax Vietnam
Vietnam taxes residents on employment income on a sliding scale from 5% to 35%, with the top rate applying to income over 80 million VND monthly (as at 2025). Non-residents pay a flat 20% on Vietnam-sourced employment income.
Tax Deadlines Vietnam
If you are employed, your employer will file your return on your behalf by March 31. Individuals need to submit by April 30. If you’re self-employed, you’ll need to file quarterly. Additionally, if you’re an expat leaving Vietnam, you’ll need to file a final tax return to settle any outstanding taxes and reporting obligations.
As tax regulations and dates are subject to change, we recommend consulting a local tax expert for the latest information and guidance.
US Tax Benefits for Expats in Vietnam
As a US expat in Vietnam, there are a few key tax benefits that can help you reduce or even eliminate your tax liability.
Foreign Tax Credit
The Foreign Tax Credit (FTC) allows you to offset the US taxes you owe with the total amount of income taxes you’ve already paid to the Vietnamese government. This can help prevent double taxation, ensuring you’re not taxed twice on the same income. The FTC can be applied to all foreign income, not just earned wages; this includes rental income, interest and dividends, as long as you claim foreign taxes in the same bucket of income (meaning foreign income taxes paid on rental income can only offset US taxes on foreign passive income). It can also be carried back one year and forward ten years.
Foreign Earned Income Exclusion
The Foreign Earned Income Exclusion (FEIE) enables you to exclude up to $126,500 of your foreign-earned income from US taxation. To qualify, you need to meet either the bona fide residence test or the physical presence test. The FEIE can significantly lower your taxable income and, if your earned income is below the maximum exclusion $126,500, you could be completely exempt from US taxation.
Keep in mind, the exclusion applies only to earned income such as wages, salaries and self-employment income; not investment income, pensions, capital gains, or other non foreign earned income.
Foreign Housing Exclusion
If you qualify for the FEIE, you’re also eligible for the Foreign Housing Exclusion. This allows you to exclude certain housing costs, such as rent and utilities from your taxable income. Mortgage payments are not eligible. This exclusion is especially beneficial in high-cost cities like Hanoi or Ho Chi Minh City, where housing expenses can be significant. The exclusion is subject to certain limits based on the location and amount of your housing expenses.
Family benefits
The Child Tax Credit (CTC) provides financial relief to US expats who have qualifying children, regardless of whether they live in the US or abroad. For each eligible dependent under 17, you can can claim up to $2,000, with up to $1,700 available as a refundable credit—even if you owe no US taxes. However, you won’t qualify for the refundable portion if you claim the Foreign Earned Income Exclusion (FEIE).
See our Child Tax Credit Calculator to find out how much you could receive.
To maximize your savings, we can help you with these benefits and more through our MyExpatTaxes.com app.
Vietnam for the Self Employed
If you’re considering self-employment in Vietnam, you’re in good company—many expats have found success in running their own businesses or freelancing in this vibrant and dynamic country. As a US expat, there are a few considerations to take into account.
3 Things to Know about Self-Employment in Vietnam
- If you earn $400 or more per year from self-employment, you’ll need to file a US Tax Return.
- As there is no totalization agreement between the US and Vietnam, you may have to pay 15.3% of net profit in Self-Employment taxes to the US government. This will help you continue to contribute to your US Social Security benefits account.
- Social security taxes as a self-employed individual are not mandatory in Vietnam but you might choose to voluntarily contribute to receive health and social insurance benefits.
Investing in Vietnam
Vietnam’s fast-growing economy and affordable cost of living make it an attractive place to invest. Here are a few common options for US expats looking to grow their wealth while living abroad.
- Property: While major cities like Ho Chi Minh City and Hanoi have rising real estate prices, other areas remain affordable. Expats can buy property (but not the land it sits on), and restrictions apply, so researching local laws is essential.
- Retirement Accounts (IRAs/Roth IRAs): As a US expat, you can still contribute up to Default String annually to an IRA, provided you have enough taxable income and meet the Roth IRA income limits. This can help you save for the future while living abroad.
- US-Based Stocks & Bonds: Keeping your investments in a US-based portfolio is often the simplest strategy. Foreign mutual funds can come with high fees and complex tax rules, so many expats stick to US stocks and bonds for lower costs and easier tax reporting.
Already invested in Vietnam or other foreign mutual funds? No worries! MyExpatTaxes can guide you through reporting Passive Foreign Investment Companies (PFICs) using Form 8621.
Retiring in Vietnam
With its low cost of living, affordable real estate, and low crime, Vietnam can be an appealing place to spend your golden years. However, Vietnam doesn’t currently offer a retirement visa so options are limited to a Business or Investor Visa for longer term stays, or visiting for up to 3 months at a time with the Tourist Visa.
As a United States citizen, you can receive your Social Security payments in Vietnam as long as you are eligible for them. What’s more, under Vietnamese tax law, pensions paid by foreign sources are tax exempt.
Get Expert Help with Your US-Vietnam Expat Taxes
Phew, our US-Vietnam Expat Tax Guide has a lot to consider! Our Expat Tax Guide covers all the key topics in detail if you’d like to review at your leisure. If you’d like some help with understanding how all this tax info applies to you, our Help Center has guidance on everything you need to know for filing your US expat taxes.
Our affordable expat tax software solution can provide you with significant stress relief when filing taxes from abroad. Check out our pricing to find the right package for you, start filing for free, and only pay when you are convinced.
Written by Nathalie Goldstein, EA
Nathalie Goldstein, EA is a leading expert on US taxes for Americans living abroad and CEO and Co-Founder of MyExpatTaxes. She contributes to Forbes and has been featured in Forbes, CNBC and Yahoo Finance discussing US expat tax.
March 20, 2025 | Country Guides | 12 minute read
