Inheritance Tax in Vietnam: Rates, Exemptions, and How to File

Vietnam doesn't have a standalone estate tax or inheritance tax. Instead, inherited assets are taxed within the Personal Income Tax (PIT) framework under the Personal Income Tax Law 2025 (Law No. 109/2025/QH15, effective July 1, 2026). This distinction matters because it changes who pays, when they pay, and what's exempt.

Here's what foreign heirs need to know about their Vietnamese tax obligations.

The Basic Rate and Threshold

Inherited assets that require registration — real estate, securities, capital contributions in private companies, vehicles, and digital assets — are taxed at a flat rate of 10% on any value exceeding the tax-free threshold of VND 20 million (approximately $800 USD) per receipt.

The formula:

Tax = (Asset Valuation − VND 20,000,000) × 10%

This means an inherited apartment valued at VND 2 billion would generate approximately VND 198 million in tax liability (roughly $7,900 USD).

What's Completely Exempt

Cash and Bank Deposits

Cash, savings deposits, and bank account balances are entirely exempt from personal income tax on inheritance, regardless of the heir's nationality or residency status. This is one of the most important and often misunderstood provisions — a foreigner inheriting a VND 500 million bank account in Vietnam owes zero inheritance tax on those funds.

Family Real Estate Transfers

Real estate inherited between immediate family members is completely exempt from PIT under Decree No. 253/2026. The qualifying relationships are:

• Spouses
• Parents and children (biological or adoptive)
• Parents-in-law and children-in-law
• Grandparents and grandchildren
• Biological siblings

To claim this exemption, heirs must present consularly legalized and notarized birth certificates, marriage certificates, or adoption documents proving the qualifying relationship. Without properly legalized documents, the exemption is denied and the full 10% applies.

What's Taxed at 10%

Assets subject to the 10% PIT on inheritance include:

• Real estate (when inherited by non-family members or when the family exemption can't be documented)
• Corporate shares and securities
• Capital contributions in unlisted limited liability companies
• Vehicles requiring registration
• Digital technology assets — formally recognized as property under the Law on Digital Technology Industry 2025, including crypto assets

The tax applies per receipt, meaning each heir calculates their liability individually based on their share of the estate.

Crypto and Digital Assets

Since January 1, 2026, digital assets and crypto assets are formally recognized as property under the Civil Code. Heirs have a legal right to inherit these assets, but:

• The 10% PIT applies to any value exceeding VND 20 million
• Onshore transfers of crypto assets trigger the tax
• If the deceased didn't leave private keys or access credentials, the assets may be practically irrecoverable despite the legal right to inherit them

How to File and Pay

The heir (or their authorized representative) must submit a PIT declaration to the local tax department where the asset is located. For real estate, this is the tax office in the district where the property sits. For securities, it's coordinated through the Department of Planning and Investment.

Key filing requirements:

• The executed notarial estate-division document
• Asset valuation (official appraisal for real estate)
• Proof of relationship (for family exemption claims)
• Tax clearance must be obtained before any title transfer can be registered

The land registration office and securities depositories are legally prohibited from updating ownership records until the heir presents both the notarized inheritance declaration and proof of tax payment.

Timing and Penalties

There is no specific filing deadline stated as "X days after death" for inheritance PIT. However, the tax obligation arises at the point of asset transfer, and no transfer can proceed without tax clearance. In practice, the tax is paid as part of the title transfer process.

Delaying tax payment delays the entire estate settlement — a particular concern for foreign heirs who face annual currency transfer limits and want to begin repatriating funds as quickly as possible.

The Vietnam Expat Death Guide includes a complete tax calculation worksheet, the full list of exempt vs. taxable asset categories, and step-by-step instructions for preparing the PIT declaration and obtaining tax clearance from the local tax department.

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