Freelancer Tax Calculator 2026
Deemed tax for self-employed individuals — Tax-free threshold 500 million VND (Law 149/2025)
Tax amount withheld by clients when paying
Who is a self-employed individual?
Self-employed individuals include: freelancers (developers, designers, writers...), online sellers (Shopee, Lazada, TikTok Shop), ride-hailing drivers (Grab/Be), KOLs/YouTubers, and individual business households.
From 2026, the tax-free threshold is raised to 500 million VND/year (from 100 million previously). If total annual revenue exceeds this threshold, you must pay both VAT and PIT at deemed rates by industry.
How to calculate deemed tax
Example: Service freelancer, revenue 700 million/year:
- Check threshold: 700M > 500M → must pay tax
- VAT: 700,000,000 × 5% = 35,000,000
- PIT: 700,000,000 × 2% = 14,000,000
- Total tax: 35M + 14M = 49,000,000 (7% of revenue)
- Net income: 700M - 49M = 651,000,000
Frequently Asked Questions
Who must pay self-employment tax (freelancer)?
Self-employed individuals include freelancers, online sellers, ride-hailing drivers, KOLs, and individual business households with revenue from business activities.
What is the tax-free revenue threshold from 2026?
From 01/01/2026, the tax-free threshold is 500 million VND/year (Law 149/2025/QH15). If annual revenue ≤ 500 million, you pay neither VAT nor PIT. The old threshold (before 2026) was 100 million.
Is deemed tax calculated on the excess or total revenue?
When exceeding the 500 million threshold, both VAT and PIT are calculated on TOTAL revenue (not just the excess). This differs from rental property tax.
What are the deemed tax rates by industry?
Trading/sales: VAT 1% + PIT 0.5%. Services: VAT 5% + PIT 2%. Manufacturing/transport: VAT 3% + PIT 1.5%. Rental/agency: VAT 5% + PIT 2%.
What is the 10% withholding tax?
When a company pays a freelancer 2 million VND or more, they must withhold 10% PIT at source (unless you have Form 08/CK-TNCN). Withheld tax is credited against tax payable upon annual reconciliation.
How is tax calculated for Shopee/Lazada sellers?
From 2026, e-commerce platforms are responsible for withholding tax at source. If total revenue ≤ 500 million/year, you are tax-exempt. If exceeded, deemed rates apply by industry (trading: 1.5%, services: 7%).
Is this tool accurate?
This tool calculates based on Law 149/2025/QH15 and implementing guidelines. Results are for reference. For complex cases, please consult your tax authority or tax agent.