Vietnam VAT Filing for Foreign Digital Service Providers: What You Need to Know About Corporate Income Tax

Modified on Sun, 5 Jul at 8:16 PM

When foreign providers of digital services file VAT returns in Vietnam, Corporate Income Tax (CIT) appears on the same quarterly return form — Form 02/NCCNN. This article explains what CIT is, why it appears alongside VAT, and what you need to do if you want it included in your filing.

Taxually manages your Vietnam VAT filings only. CIT is a separate tax that falls outside our scope. By default, your CIT figures will show as zero on the return we file. This article explains what that means and what your options are.

What is Corporate Income Tax in Vietnam?

CIT is a tax on income earned in Vietnam. For foreign companies without a permanent establishment in Vietnam that provide digital services to Vietnamese customers, CIT is calculated at a deemed rate of 5% of revenue received from Vietnamese customers.

It is called a “deemed” rate because Vietnam does not require foreign digital service providers to calculate actual profits. Instead, it applies a fixed percentage directly to your gross revenue from Vietnam — making it straightforward to calculate once you know your Vietnam revenue figure.

Relevant legislation

Circular No. 80/2021/TT-BTC of the Ministry of Finance, Chapter IX, effective 1 January 2022. Circular 80 requires overseas suppliers without a permanent establishment in Vietnam that conduct e-commerce or digital-based business with organisations and individuals in Vietnam to register, declare and pay both VAT and CIT on a quarterly basis at deemed rates on the revenues they receive.

The deemed CIT rate for services is set under Decree No. 218/2013/ND-CP of the Government, detailing the implementation of the Law on Enterprise Income Tax, which prescribes a 5% deemed rate on revenue for service income earned in Vietnam by foreign organisations without a permanent establishment.

For reference: Circular No. 80/2021/TT-BTC, Ministry of Finance, dated 29 September 2021; Decree No. 218/2013/ND-CP, Government of Vietnam, dated 26 December 2013.

Why VAT and CIT Appear on the Same Return

In Vietnam, foreign digital service providers file a single quarterly return — Form 02/NCCNN — that covers both VAT and CIT together. This is how the Vietnamese General Department of Taxation (GDT) has structured the filing process for overseas suppliers under Circular 80.

The form has separate columns for VAT and CIT. Both are calculated on the same taxable revenue figure — your gross revenue received from Vietnamese customers during the quarter, excluding VAT. The deemed VAT rate for digital services supplied by foreign providers is 10%, in effect since 1 July 2025 under the Law on Value-Added Tax No. 48/2024/QH15 (it was 5% for periods before that date).

How VAT and CIT Differ

	VAT	CIT
What it taxes	The supply of digital services to Vietnamese customers	Income earned from Vietnamese customers
Deemed rate	10% of revenue (since 1 July 2025)	5% of revenue
Tax type	Indirect tax on consumption	Income tax on your revenue
Filed on	Form 02/NCCNN (quarterly)	Form 02/NCCNN (quarterly)
Who handles it?	Taxually	You (or your tax adviser)

What Taxually Files on Your Behalf

CIT will show as zero on your return by default

Taxually prepares and files your Vietnam VAT return each quarter. Because CIT is outside our scope, the CIT section of your Form 02/NCCNN will show as zero unless you provide us with your CIT figures before your return is filed.

A zero CIT figure does not mean your CIT obligation has been met. If CIT applies to your business, you remain responsible for ensuring it is declared and paid correctly.

Double Taxation Agreements and CIT

Vietnam has signed Double Taxation Agreements (DTAs) with over 80 countries. If your company is resident in a country that has a DTA with Vietnam, you may be entitled to a full or partial CIT exemption on your Vietnam income. Treaty relief applies to the CIT portion only — it does not reduce your VAT.

Whether a DTA applies, and how to claim relief under it, depends on your specific circumstances and requires documentation such as a Certificate of Tax Residency from your home country. This is not something Taxually can determine or manage on your behalf.

We recommend speaking to a Vietnam-based tax adviser if you believe a DTA may apply to your business.

Key Takeaways

CIT and VAT are filed on the same quarterly return (Form 02/NCCNN) under Circular No. 80/2021/TT-BTC.
The deemed CIT rate is 5% of gross revenue from Vietnamese customers, under Decree No. 218/2013/ND-CP.
Taxually handles VAT only. By default, CIT will show as zero on your return.
If you want CIT included, contact Taxually before approving your return on CrossTax and provide us with the figures to include.
A DTA may reduce or eliminate your CIT liability — consult a local adviser to find out if this applies to you.

Disclaimer: This article is provided for general informational purposes only. It does not constitute tax, legal, or financial advice, and should not be relied upon as such. Tax laws and regulations are subject to change, and your specific circumstances may affect how they apply to your business. Taxually accepts no liability for any actions taken or not taken based on the information in this article. We strongly recommend that you seek independent advice from a qualified Vietnam-based tax professional before making any decisions relating to your CIT obligations.