Law and compliance
Withholding Tax When You Pay KOCs in Vietnam (Rules From 1 July 2026)
If you pay a KOC, KOL or freelance creator in Vietnam, the question your finance team will ask is whether you have to withhold personal income tax before the money leaves your account. From 1 July 2026 the answer changed, because Decree 253/2026/ND-CP sets the withholding rule at a new threshold. This guide explains the rule as quoted from the legal text, shows a simple worked example, and lists what to put in creator contracts. It is a marketing operations guide, not tax advice, so confirm your own case with a licensed accountant.
Short answer
Do I have to withhold tax when I pay a KOC in Vietnam?
According to Clause 2 of Article 50 of Decree 253/2026/ND-CP (as quoted by Thuvienphapluat), if you pay remuneration to a resident individual who has no labour contract or one under three months, and the payment is 5 million VND or more each time, you must withhold 10% before paying. Below 5 million VND per payment you withhold 10% only if the individual asks. The 10% is provisional and is settled at annual tax finalisation.
- Rule source: Clause 2, Article 50, Decree 253/2026/ND-CP, effective 1 July 2026
- Applies to payments to resident individuals without a labour contract, or with one under 3 months
- 5 million VND or more per payment: withhold 10% of the pre-tax amount before paying
- Under 5 million VND per payment: withhold 10% when the individual requests it
- The 10% is a provisional amount, offset or refunded at annual finalisation
- Confirm edge cases (non-residents, companies, household businesses) with an accountant
1. What changed on 1 July 2026?
Decree 253/2026/ND-CP, issued on 30 June 2026, took effect on 1 July 2026 and contains the personal income tax withholding rules your finance team now follows. Clause 2 of Article 50 sets a 10% withholding rate for remuneration and similar payments to resident individuals without a long-term labour contract.
Previously the per-payment threshold under Circular 111/2013 was 2 million VND. The decree now states 5 million VND per payment. If your contract templates or payment sheets still carry the old figure, update them before the next campaign payment run.
2. Who is covered by the 10% rule?
The text quoted by Thuvienphapluat covers organisations and individuals that pay salary, wages, remuneration or other payments to a resident individual who either signs no contract or signs a labour contract of less than three months. A typical one-off KOC booking, a single review video or a livestream appearance paid to an individual creator fits that description.
It does not tell you how to treat every structure. A creator who is a non-resident, who is paid through a company, or who runs a registered business and issues you an invoice is in a different situation. Treat those as questions for your accountant instead of assuming the 10% rule applies or does not apply.
- Individual creator, no contract or a contract under 3 months: the Article 50 rule is the starting point
- Creator who invoices through a company or business: check the invoice and tax position with your accountant
- Non-resident creator: not covered by the text quoted here, ask your accountant
3. What does 5 million VND per payment actually mean?
The decree speaks of the amount paid each time. At or above 5 million VND in one payment, the payer must withhold 10% of the income before paying and pay the withheld tax to the state. Below 5 million VND in one payment, the payer withholds 10% only when the individual asks.
Read the wording carefully when you split fees. A fee agreed as one amount is one payment for planning purposes. Splitting a single job into smaller instalments only to stay under the line is risky, and you should not design payment schedules around that. Ask your accountant how instalments for one booking are treated before you write the schedule.
4. A worked example
Suppose a brand agrees a 6,000,000 VND fee with an individual KOC for one video, with no labour contract. The payment is above 5 million VND, so the payer withholds 10% of the pre-tax amount: 6,000,000 x 10% = 600,000 VND. The creator receives 5,400,000 VND and the payer remits 600,000 VND as withheld tax.
If the fee had been 4,000,000 VND, the rule is different. The payer withholds 10% (400,000 VND) only if the creator asks, otherwise the creator handles the tax position on their own. This example is arithmetic on the quoted rule, not advice about any particular creator.
5. Is the withheld 10% the final tax?
No. The Thuvienphapluat article stresses that the 10% is a provisional withholding, not the final tax. At annual finalisation the 10% already withheld is offset against the tax actually due, and an overpayment may be refunded.
This matters for creator relations. When a creator sees 10% missing from the payment, a short note that it is provisional and that the withholding record helps them at finalisation avoids a lot of messages.
6. The commitment option some tax offices describe
The same article cites Official Letter 6661/QNG-QLDN1 from the Quang Ngai tax office, which concerns payments to people whose labour contracts have ended. It says that if an individual's only income is subject to this withholding and the estimated taxable income after family deductions is below the tax threshold, the individual can submit a written commitment so the payer temporarily does not withhold.
That letter is guidance on a different payer-payee situation, so do not copy it into creator contracts as a rule. Ask your accountant whether a similar commitment is accepted for creator payments in your case, and keep any signed commitment on file.
7. What to write into the creator contract
Contract wording prevents most disputes. Our suggestions, which you should have your own advisers confirm, are below.
State whether the fee is before or after tax, say that the payer will withhold personal income tax where the law requires, and say that the amount paid will be the fee minus the withheld tax.
- Fee stated as a gross amount (before tax), with the net amount paid after any withholding
- A clause that the payer withholds and remits tax where required by law
- The creator confirms residency status and provides the personal details needed for the tax record
- How and when you give the creator a record of the tax withheld
- What happens if the creator submits a commitment or an invoice instead
8. How to record withholding in your payment ledger
Add a column for gross fee, tax withheld, net paid and the date the withheld tax was remitted. Attach the contract, the approval of the deliverable, the proof of transfer and the withholding record to the same booking row.
Keeping this beside the deposit and balance states makes the year-end conversation with finance short. It also means a creator who asks about a missing 10% gets an answer in minutes.
9. Common mistakes to avoid
Most problems come from treating tax as a clean-up task after the campaign. Avoid these patterns.
- Quoting creators a net figure without saying whether tax is included
- Using the old 2 million VND line in templates
- Paying first and trying to collect the creator's details afterwards
- Treating the 10% as the creator's final tax and telling them nothing more
- Assuming an agency or platform payment removes your own record-keeping
10. When to ask an accountant and when to ask DaisyLexi
Ask an accountant about residency, invoices, companies, foreign creators, value added tax and how your own books record these payments. Ask us about how the booking, the contract and the payment ledger fit together so the tax step happens at the right moment.
Rules and official guidance continue to be published after the decree took effect, so check the current text before you finalise a template.
FAQ
Frequently asked questions
What is the withholding rate for KOC payments in Vietnam from July 2026?
According to Clause 2 of Article 50 of Decree 253/2026/ND-CP, as quoted by Thuvienphapluat, the rate is 10% on income paid to a resident individual who has no labour contract or one under three months, when the payment is 5 million VND or more each time.
What if I pay a creator less than 5 million VND?
The quoted text says the payer withholds 10% for payments under 5 million VND per time only when the individual asks. Without a request, there is no mandatory withholding under that clause.
Is the 10% withheld my creator's final tax?
No. It is a provisional amount that is offset against the tax due when the individual finalises their annual tax, and any overpayment may be refunded.
Does this apply to creators who send an invoice?
The clause quoted here is about individuals without a labour contract or with one under three months. A creator who invoices through a business is a different case, so ask your accountant.
Do I need an accountant to follow this?
We recommend it. This guide explains the quoted rule for marketing teams, but residency, invoices and your own bookkeeping need a licensed professional who can see your documents.
