Service · Contractor of Record
Contractor of Record in Vietnam.
Engage independent freelancers in Vietnam through a local company that contracts, pays and documents them correctly.
Updated 22 October 2026 · Written and checked by Nhân Kiệt's payroll and employment-law team (labour leasing licence 029/LĐTBXH-GP, employing people in Vietnam since 2009) · About 4 min read · General information, not legal or tax advice
Short answer
What is a Contractor of Record in Vietnam?
A Contractor of Record (CoR) in Vietnam is a local company that engages an independent freelancer on your behalf. Nhân Kiệt signs a written service contract with the freelancer, confirms each deliverable with you, pays the freelancer in Vietnamese dong, withholds 10% personal income tax on payments of ₫2,000,000 or more as Vietnamese rules require for individuals without a labour contract, issues the tax documents, and sends you one invoice. Before engaging anyone, we check the work is genuinely independent: under Article 13 of the Labour Code, paid work under your direction is employment whatever the contract says, and reclassification brings back-dated insurance of about 32% of pay. A genuine contractor has no labour contract, no compulsory social insurance and no paid leave. If you need to manage the person day to day, Employer of Record is the right service instead.
Key takeaways
- A Contractor of Record contracts and pays independent freelancers in Vietnam on your behalf.
- Nhân Kiệt withholds 10% income tax on payments of ₫2,000,000 or more and issues the tax documents.
- Genuine contractors have no labour contract, no compulsory social insurance and no paid leave.
- If you direct the person’s daily work, it is employment under Article 13 — use Employer of Record.
- You get one invoice, bilingual contracts and IP assignment to your company.
How it works
From brief to payment.
- You describe the work: scope, deliverables, timeline and fee.
- We check independence: outcome-based work, the freelancer’s own hours, tools and other clients.
- Nhân Kiệt signs a bilingual service contract with the freelancer, including confidentiality and assignment of the work to your company.
- The freelancer delivers; you approve each deliverable or milestone.
- We pay the freelancer in dong, withholding tax where required, and send you one invoice.
- At year end we issue tax withholding documents to each freelancer.
Compared
Contractor of Record, EOR or paying directly.
| Contractor of Record | Employer of Record | Paying a freelancer directly from abroad | |
|---|---|---|---|
| Contract | Service contract with Nhân Kiệt | Labour contract with Nhân Kiệt | Your own contract |
| Who directs the work | The freelancer, against agreed deliverables | You, day to day | Should be the freelancer |
| Income tax | 10% withheld on payments of ₫2,000,000 or more | Progressive rates via payroll | Freelancer declares their own tax |
| Social insurance | No | Yes, about 23.5% employer share | No |
| Documents and checks | Handled by Nhân Kiệt | Handled by Nhân Kiệt | Yours |
Worked example
A ₫20,000,000 milestone payment.
| Agreed fee for the milestone | ₫20,000,000 |
|---|---|
| Income tax withheld (10%) | ₫2,000,000 |
| Paid to the freelancer | ₫18,000,000 |
The withheld tax is declared and paid by Nhân Kiệt. A freelancer whose only income stays below the taxable level can give a written commitment so tax is not withheld, and settles any balance in their own annual finalisation.
Common mistakes
When a contractor setup goes wrong.
- Fixed hours and daily instructions — signs of employment, not contracting.
- A flat monthly fee with no deliverables, which looks like salary.
- No written assignment of the work, so the freelancer keeps the rights.
- No tax withheld by a Vietnamese payer on payments of ₫2,000,000 or more.
See contractor or employee in Vietnam for the full test.
Questions
Contractor of Record in Vietnam: frequently asked questions
What does a Contractor of Record do?
It contracts independent freelancers on your behalf, pays them, withholds tax where required, keeps the records and invoices you, so you do not need a Vietnamese entity.
How much tax is withheld from a freelancer in Vietnam?
10% personal income tax on each payment of ₫2,000,000 or more to an individual without a labour contract, unless the freelancer gives a valid commitment that their income is below the taxable level.
Do contractors get social insurance?
No. Compulsory social insurance applies to labour contracts, not to genuine service contracts with independent freelancers.
When should I use EOR instead?
When you set the person’s hours, give daily instructions or treat them as part of your team. That is employment under Article 13 of the Labour Code.
Who owns the freelancer’s work?
Your company, through the assignment clause in the service contract Nhân Kiệt signs with the freelancer.
Can a contractor later become an employee?
Yes. If the role becomes ongoing and directed, we move the person onto a labour contract through Employer of Record.
How much does Contractor of Record cost?
It is quoted to the number of freelancers and payment frequency. Ask for a quote with your expected volume.
Can foreign freelancers in Vietnam be engaged this way?
Contractor of Record suits Vietnamese individuals. Foreign nationals working in Vietnam generally need a work permit and are usually engaged through Employer of Record.
Hiring in Vietnam? We handle all of this as your employer.
Nhân Kiệt employs your team, runs payroll, insurance, tax and work permits. Fee: US$99–199 per employee a month, plus VAT.
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