UK–Vietnam tax treaty · TNR & FIG
The UK differentiator is temporary non-residence CGT and the remittance→FIG shift from 6 April 2025 — plus the Statutory Residence Test, not a single 183-day myth. Signed 1994-04-09; in force since 1994-12-15. MLI WH from 2024-01-01.
Visa → days → tax → labour
- TRC / stay sets how long you may remain.
- Days and habitual abode decide Vietnam tax residence (threshold 183 days).
- Working needs a permit or exemption — separate from tax.
- Relief between the states runs through the UK–Vietnam DTA (SI 1994/3216).
Treaty article caps on file
Primary SI 1994/3216. MLI synthesised text is published; article-by-article overrides are not re-celled here.
| Article / topic | On file |
|---|---|
| Dividends — ≥50% voting or ≥£7m invested | 7 % |
| Dividends — ≥25% and <50% | 10 % |
| Dividends — other | 15 % |
| Interest | 10 % |
| Royalties | 10 % |
| Construction PE | 183 days |
| Art 15 short-stay limb | 183 days |
| Art 18 pensions | Taxable only in the residence state |
| MLI withholding effect | From 2024-01-01 |
| MLI other taxes — Vietnam | From 2025-01-01 |
| Art 22 credit UK ← VN tax | Exists — dollar amounts refused |
| Art 22 credit VN ← UK tax | Exists — dollar amounts refused |
| Art 4 dual-resident tie-breaker | permanent home → centre of vital interests → habitual abode → nationality → mutual agreement |
Dual residence — why day counts disagree
- Vietnam: 183-day / habitual-abode machine (tax residency).
- United Kingdom: the Statutory Residence Test — not a single 183-day myth.
- Dual domestic residence → DTA Art 4: permanent home → centre of vital interests → habitual abode → nationality → mutual agreement.
- Refused: picking treaty residence without permanent-home and vital-interests facts.
UK-side traps
Domestic UK gates. They do not travel from the Australia page. We state the gate — not the bill.
1. Temporary non-residence CGT
Leave for Vietnam, sell assets, come back — certain gains can still arise in the UK year of return. Typical HS278 catch: sole UK residence in at least 4 years of the seven years before departure, and a non-sole period of at most 5 years. Gain maths refused.
2. Remittance basis → FIG
Remittance basis abolished from 2025-04-06. Qualifying new residents may claim the Foreign Income and Gains regime for up to 4 years, after 10 years of consecutive non-UK residence.
3. Residence is SRT
UK residence for income and CGT uses the Statutory Residence Test. Dual residence with Vietnam still goes through Art 4.
What stays refused
Dollar Art 22 credits, temporary non-residence CGT bills, State Pension portability detail, IHT domicile reform beyond the FIG pointer, and MLI article-by-article overrides.
All cells on this page
- UK–Vietnam double tax agreement exists and is in forceUK–Vietnam DTA 1994; SI 1994/3216; GOV.UK Vietnam tax treatiesyeschecked Aug 2026
- UK–Vietnam DTA entry into forceGOV.UK — DTA entered into force 15 December 19941994-12-15checked Aug 2026
- Dividend source cap — company ≥50% voting power or ≥£7m investedSI 1994/3216 Schedule Art 10(2)(a)7 %checked Aug 2026
- Dividend source cap — company ≥25% and <50% voting powerSI 1994/3216 Schedule Art 10(2)(b)10 %checked Aug 2026
- Dividend source cap — other casesSI 1994/3216 Schedule Art 10(2)(c); HMRC DT2025315 %checked Aug 2026
- Interest source capSI 1994/3216 Schedule Art 11(2)10 %checked Aug 2026
- Royalty source cap (subject to MFN note)SI 1994/3216 Schedule Art 12(2)10 %checked Aug 2026
- Construction PE thresholdSI 1994/3216 Schedule Art 5(3)183 dayschecked Aug 2026
- Dependent personal services short-stay limbSI 1994/3216 Schedule Art 15 — 183 days within any 12 months (one of conditions)183 dayschecked Aug 2026
- MLI synthesised text published for UK–Vietnam pairGOV.UK synthesised MLI + 1994 UK–Vietnam DTA — in force; WH effective 1 Jan 2024 UK/VNyeschecked Aug 2026
- UK domestic tax traps (TNR CGT / FIG / SRT) are modelled on this sitenguon/UK_SIDE_TRAPS.md — HS278 / TCGA s10A / FIG regime; gates only, no dollar billsyeschecked Aug 2026
- UK temporary non-residence CGT rule existsTCGA 1992 s 10A; HS278 Temporary non-residents and Capital Gains Tax (2026)yeschecked Aug 2026
- TNR prior sole-UK residence years (of 7) before departure yearHS278 2026 §2 — sole UK residence for at least 4 of the 7 tax years preceding year of departure4 yearschecked Aug 2026
- TNR maximum non-sole residence periodHS278 2026 §2 — non-sole UK residence periods must not exceed 5 years5 yearschecked Aug 2026
- UK remittance basis abolished fromGOV.UK — 4-year FIG regime replaced remittance basis on 6 April 20252025-04-06checked Aug 2026
- UK 4-year Foreign Income and Gains (FIG) regime existsGOV.UK Check if you can claim the 4-year foreign income and gains regime (published 6 Apr 2025)yeschecked Aug 2026
- FIG regime maximum claim yearsGOV.UK FIG guidance — maximum 4 consecutive years from start of UK tax residency4 yearschecked Aug 2026
- FIG prior consecutive non-UK residence years requiredGOV.UK FIG guidance — first 4 years as UK tax resident after ≥10 consecutive non-UK tax years10 yearschecked Aug 2026
- UK tax residence uses the Statutory Residence TestHS278 §1 / RDR3 — Statutory Residence Test determines UK residence for CGTyeschecked Aug 2026
- Art 4 individual dual-resident tie-breaker cascadeSI 1994/3216 Schedule Art 4(2)(a)–(d)permanent home → centre of vital interests → habitual abode → nationality → mutual agreementchecked Aug 2026
- Dual UK–VN domestic residents use DTA Art 4SI 1994/3216 Art 4(2) — dual domestic residence resolved by treaty cascade; UK domestic gate is SRTyeschecked Aug 2026
- Art 18 pensions/annuities taxable only in residence stateSI 1994/3216 Schedule Art 18(1) — pensions/annuities taxable only in residence state (subject to Art 19(2))yeschecked Aug 2026
- Art 22 credit: United Kingdom ← Vietnam taxSI 1994/3216 Schedule Art 22(1)(a) — UK allows credit for Vietnamese tax on VN-source profits/income/gains (subject to UK credit law)yeschecked Aug 2026
- Art 22 credit: Vietnam ← United Kingdom taxSI 1994/3216 Schedule Art 22(2) — Vietnam allows credit for UK tax on UK-source income of a VN resident (capped at VN tax on that income)yeschecked Aug 2026
- Art 22 foreign-tax credit dollar amounts deliberately not modelledArt 22 mechanism filed; machine refuses dollar foreign-tax credit mathsyeschecked Aug 2026
- Temporary non-residence CGT dollar amounts deliberately not modelledHS278 / TCGA s10A gate filed; gain bills refusedyeschecked Aug 2026
- UK–Vietnam DTA signedSI 1994/3216 Schedule — Done at Hanoi 9 April 1994; GOV.UK Vietnam tax treaties1994-04-09checked Aug 2026
- MLI withholding-tax effect fromGOV.UK synthesised MLI + 1994 UK–Vietnam DTA — WH effect in UK and Vietnam from 1 Jan 20242024-01-01checked Aug 2026
- MLI other-tax effect in Vietnam fromGOV.UK Vietnam tax treaties — MLI other taxes effective in Vietnam from 1 Jan 20252025-01-01checked Aug 2026
- MLI applies to the UK–Vietnam tax treatyGOV.UK — 1994 UK–Vietnam DTA modified by the Multilateral Instrument; synthesised text publishedyeschecked Aug 2026
Common questions
- Is there a UK–Vietnam tax treaty?
- Yes. SI 1994/3216 — signed 9 April 1994, in force 15 December 1994. The MLI modifies it; withholding effect from 1 January 2024.
- What is temporary non-residence CGT?
- UK rules (TCGA / HS278) can tax certain gains if you leave and return within a defined window after having been UK resident. Gain bills are refused; the gate is filed.
- What replaced the remittance basis?
- From 6 April 2025 the remittance basis is abolished for new claims; a four-year foreign income and gains (FIG) regime applies for qualifying arrivals after long non-UK residence. Check current HMRC guidance for eligibility.
- Is UK residence a single 183-day test?
- No. The UK uses the Statutory Residence Test — automatic overseas/UK tests and sufficient-ties tests. Day counts are not interchangeable with Vietnam’s machine.
Cells cite primary sources with check months. Method · Sources · Disclosure. Not personalised tax advice.
Also filed: Australia · Singapore · South Korea · China · Japan · Canada · United States.