Can a foreign individual working as a freelancer in Vietnam register for a tax identification number? In recent years, together with the development of the digital economy, remote working, and flexible service-delivery models, an increasing number of foreign individuals have chosen to work in Vietnam as freelancers or to provide independent services to Vietnamese organizations and individuals. One of the most frequently raised legal and tax questions in this context is whether a foreign individual working as a freelancer in Vietnam is eligible to register for a Tax Identification Number (“TIN”), and how their tax obligations are determined. The answer to this question should not be examined solely from the practical perspective of income generation, but rather within the framework of the current regulations on tax registration and tax administration. This article provides further clarification on these issues.
1. Subjects Eligible for Tax Registration
Pursuant to points d and e, Clause 2, Article 4 of Circular No. 86/2024/TT-BTC dated 23 December 2024, the scope of entities subject to tax registration is defined broadly, including entities that do not have legal person status in Vietnam.
Specifically, foreign organizations without legal entity status in Vietnam, and foreign individuals independently conducting business activities in Vietnam in compliance with Vietnamese law, who derive income in Vietnam or incur tax obligations in Vietnam, are subject to tax registration and are collectively referred to as foreign contractors and foreign subcontractors. The regulations also cover foreign suppliers without a permanent establishment in Vietnam, as well as non-resident foreign individuals engaging in e-commerce, digital platform-based business activities, or other services provided to organizations or individuals in Vietnam,namely cross-border service providers or entities without traditional commercial presence.
From this legislative approach, it can be seen that the core criterion lies not in the contractual label or the designation “freelancer”, but rather in whether the foreign individual engages in service-provision activities and generates income connected to Vietnam. Accordingly, where a foreign individual works as a freelancer in Vietnam, provides services to Vietnamese organizations or individuals, and earns income from such activities, not only are they eligible to register for tax purposes, but they are, in principle, required to do so in order to fulfill their tax obligations to the State.
2. Tax Declaration and Payment by Foreign Individuals Earning Income in Vietnam
A common point of confusion in practice concerns whether foreign individuals working as freelancers fall within the scope of foreign contractor tax. According to Article 1 of Circular No. 103/2014/TT-BTC, foreign individuals conducting business activities in Vietnam are subject to foreign contractor tax. For individuals conducting business activities, foreign contractor tax is not a separate tax category, but rather a tax administration mechanism comprising two components: Value-Added Tax (VAT) and Personal Income Tax (PIT), applicable to service-provision or business activities involving foreign elements.
A foreign individual who conducts business activities independently in Vietnam, in compliance with Vietnamese law, and who earns income or incurs tax obligations in Vietnam, will be issued a 10-digit tax identification number on a per-contract basis, provided they register directly with the tax authority to pay foreign contractor tax In cases where multiple foreign contractors subject to direct tax payment enter into the same contractor contract with a Vietnamese party and wish to declare and pay tax separately, each foreign contractor will be issued a separate 10-digit TIN.
For non-resident foreign individuals engaging in e-commerce, digital platform-based business activities, or other services provided to Vietnamese organizations or individuals (hereinafter referred to as foreign suppliers), a 10-digit (TIN)will be issued upon registration with the Vietnamese tax authority. The foreign supplier may use this TIN to directly declare and pay taxes, or provide the TIN to authorized Vietnamese organizations,individuals, commercial banks or intermediary payment service providers. This facilitates tax withholding, payment on their behalf, and declaration in the tax withholding schedule applicable to foreign suppliers in Vietnam.
Responsibilities of income-paying entities: Organizations or individuals responsible for withholding and paying tax on behalf of foreign contractors, foreign subcontractors, or foreign suppliers in accordance with regulations will be issued a 10-digit withholding tax identification number. This withholding TIN is used to declare and pay tax on behalf of such entities or individuals, including in cases involving business cooperation contracts where a separate TIN is required for the cooperation of contract. Where the taxpayer changes tax registration information, suspends or resumes business activities ahead of schedule, terminates the validity of a tax identification number, or reinstates a tax identification number in accordance with regulations, the tax authority shall update the corresponding information and status of the withholding TIN accordingly.
From a risk-management standpoint, a foreign individual working as a freelancer in Vietnam who proactively registers for a tax identification number and fulfills tax obligations should not view this merely as an “administrative procedure”, but rather as a step toward legitimizing the legal status of their service-provision activities. In the context of increasingly stringent tax administration over cross-border income, digital-platform-based business activities, and flexible labor models, such proactive compliance helps individuals mitigate risks of tax arrears and penalties, while establishing a clear legal basis for transactions arising in Vietnam.
Overall, Vietnamese tax law does not exclude foreign individuals working as freelancers; on the contrary, it clearly anticipates and regulates their legal position. The key issue is not whether such individuals can register for a tax identification number, but whether they properly recognize their obligations and choose an appropriate compliance approach. This is a critical consideration for both foreign individuals and enterprises engaging freelancers in Vietnam as part of their operations and tax risk management.
Time of writing: 23/12/2025
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You can refer for more information:
- Instructions for developing a Business Plan when applying for a Business License to provide cyber information security products and services (Part 2)
- Instructions for developing a Business Plan when applying for a Business License to provide cyber information security products and services (Part 1)
- Guidelines for Drafting the Personal Data Protection Plan in the Cross-Border Personal Data Transfer Impact Assessment Dossier (Part 2)
- Guidelines for Drafting the Personal Data Protection Plan in the Cross-Border Personal Data Transfer Impact Assessment Dossier (Part 1)
