CORPORATE INCOME TAX (CIT)

  1. Regulations on Provision for Investment Losses

In cases where a company does not have sufficient grounds, at the time of preparing its annual financial statements, to determine that its investment in a subsidiary has decreased in value compared to the original investment cost, the company is not allowed to record a provision for investment losses in accordance with Circular No. 48/2019/TT-BTC dated August 8, 2019 of the Ministry of Finance. Furthermore, any financial expenses arising from the reduction of investment capital in a subsidiary due to the subsidiary’s decrease in charter capital shall not be deductible for CIT purposes.

  • Reference: Official Letter No. 3196/CT-CS – Tax Department, issued on August 16, 2025.
  1. Taxpayers subject to Global Minimum Tax

Taxpayers liable to pay the supplementary corporate income tax under the global anti-base erosion (GloBE) rules are constituent entities of a multinational enterprise (MNE) group whose ultimate parent entity has annual consolidated revenue of at least EUR 750 million in at least 2 of the 4 fiscal years immediately preceding the fiscal year in which the tax obligation arises.

For newly established groups with less than 4 years of operation, if they meet the revenue threshold in at least 2 years, their constituent entities are also subject to the tax.

Decree also specifies several cases that are not subject to the supplementary tax.

  • Reference: Decree No. 236/2025/ND-CP – Government, issued on August 29, 2025.
  1. Income from the transfer of leased land-use rights

Determination of income

  • Enterprises transferring leased land-use rights (in cases where the land rent is paid in a lump sum for the entire lease term) → the income derived from such activities is considered real estate transfer income.
  • Income from real estate transfer activities must be separately determined and is not eligible for CIT incentives (e.g., exemptions or reductions based on preferential sectors or locations).

Determination of taxable value

  • If the transfer price of land-use rights stated in the transfer contract is lower than the land price prescribed in the land price table issued by the Provincial/City People’s Committee at the time of signing the contract → the taxable value must be based on the land price in the official land price table.
  • This regulation aims to prevent underreporting of contract values below market prices to reduce payable CIT.
  • Reference: Official Letter No. 3332/CT-CS – Tax Department, issued on August 21, 2025.

PERSONAL INCOME TAX

  1. Official Letter No. 2821/CT-CS of the Tax Department regarding dependent registration

When an individual registers dependents for family circumstance-based deductions, the tax authority will issue a tax identification number (TIN) for the dependent (if not already assigned). At the same time, the tax system will record the dependency relationship to calculate the deduction at the income-paying organization where the taxpayer submits their information.

The taxpayer is only required to register and submit supporting documents for each dependent once throughout the deduction period. However, since there is currently no mechanism for data sharing among income-paying organizations, when changing employers, the taxpayer must re-register their dependents to continue enjoying the deduction at the new entity.

In the context of the Ministry of Finance drafting the new Personal Income Tax Law and the Tax Administration Law (replacement versions), the tax authority will develop a centralized electronic database allowing storage and retrieval of family circumstance-based deduction information by tax identification number or personal identification number, while also incorporating public feedback to improve related tax policies and administration.

  • Reference: Official Letter No. 2821/CT-CS – Tax Department, issued on July 30, 2025.
  1. Official Letter No. 2994/CT-CS of the Tax Department regarding PIT policies for taxpayers with critical illnesses

Content: Guidance on PIT incentives for individuals suffering from critical illnesses, including:

  • Medical support provided by employers is excluded from taxable PIT income.
  • Reduction of the PIT payable.
  • Family circumstance-based deductions: VND 132 million per year for the taxpayer and VND 4.4 million per month per dependent.
  • Reference: Official Letter No. 2994/CT-CS – Tax Department, issued on July 30, 2025.

VALUE-ADDED TAX (VAT)

  1. VAT rate applicable to auditing, accounting, and consulting services provided to organizations in non-tariff zones

There are two official letters for reference:

Hanoi Tax Department confirmed that in the case where ATC Audit and Valuation Co., Ltd. provides auditing, accounting, and consulting services to organizations in non-tariff zones but the services are not consumed within the non-tariff zones and do not directly serve export production activities, the 0% VAT rate is not applicable.

  • Reference: Official Letter No. 10530/HAN-QLDN4 – Hanoi Tax Department, issued on August 16, 2025.

The Department of Tax Policy Management and Supervision confirmed that in the case where EY Vietnam Consulting JSC provides auditing, accounting, consulting, and related services directly to organizations in non-tariff zones, which are consumed within such zones, serving export production activities, not serving any other non-export activities, and not falling under Clause 4, Article 17 of Decree No. 181/2025/ND-CP, the 0% VAT rate is applicable.

  • Reference: Official Letter No. 1292/CST-GTGT – Department of Tax Policy Management and Supervision, issued on July 24, 2025.
  1. Deferred payment and VAT deduction

For goods and services purchased on deferred payment or installment terms with a value of VND 5 million or more, if by the contractual payment date the enterprise does not have non-cash payment documents, it must declare and adjust to reduce deductible input VAT. This adjustment is made in the tax period in which the payment obligation arises under the contract or contract appendix.

If, by the due date, the company has no non-cash payment documents and has already declared the reduction of deductible input VAT, but subsequently (i.e., after the agreed deferred payment period in the contract) obtains non-cash payment documents, it is still not allowed to re-deduct the input VAT.

  • Reference: Official Letter No. 434/VLO-QLDN2 – Vinh Long Tax Department, issued on August 21, 2025.

 IMPORT AND EXPORT TAX

  1. Customs procedures for exported software

Customs procedures: Software itself does not require customs procedures as it has no HS code. However, the physical medium containing the software (e.g., CDs) is considered export goods and is subject to customs procedures.

Customs value: The customs value is the value of the physical medium only, excluding the value of the software, provided these values are separately stated on the invoice.

Customs declaration: Detailed guidance is provided on declaring export invoices, depending on whether the declarant can separate the value of the software and the medium on the commercial invoice.

  • Reference: Official Letter No. 20361/CHQ-NVTHQ – Customs Department, issued on August 16, 2025.

TAX ADMINISTRATION

  1. Official Letter No. 2915/CT-CS – Tax policy

Vietnamese residing abroad, foreigners prior to exit, or Vietnamese emigrating for settlement who have overdue outstanding tax liabilities will be subject to temporary exit suspension. This regulation sets no threshold regarding the amount or duration of debt to ensure full tax recovery, as such taxpayers may not return to Vietnam after departure.

The tax authority frequently applies measures such as phone calls, text messages, emails, or tax debt notices sent to registered contact information to remind and urge taxpayers. If debt records are inaccurate, taxpayers may respond for review and correction.

In cases of temporary exit suspension, the tax authority always reviews, reconciles, and accurately determines tax obligations before issuing an Exit Suspension Notice to the immigration authority.

  • Reference: Official Letter No. 2915/CT-CS – Tax Department, issued on August 4, 2025.
  1. Use of input invoices by household businesses

Household businesses paying tax under the declaration method must fully comply with accounting, invoicing, and documentation regulations.

Household businesses paying tax under the presumptive (lump-sum) method using retail invoices, or those operating in border markets, border-gate markets, or markets within border-gate economic zones, must retain all invoices, contracts, and supporting documentation proving the legality of goods and services. These documents must be presented upon request by competent authorities or when applying for invoice issuance for each transaction.

The tax authority recommends that household businesses retain input invoices and documents to substantiate the origin, source, and legal ownership of goods, while also ensuring compliance with applicable laws when inspected.

  • Reference: Official Letter No. 3153/CT-NVT – Tax Department, issued on August 13, 2025.
  1. Determination of deductible expenses and input VAT

Where the tax authority imposes additional import duties, the enterprise may include such duties as deductible expenses for CIT purposes. For input VAT on imported goods, if conditions for credit are met under regulations, the enterprise may deduct such VAT.

  • Reference: Official Letter No. 3138/CT-CS – Tax Department, issued on August 13, 2025.
  1. Internal transfer of goods between dependent units

If a branch and a business location are both dependent units of the same parent company, when the branch ceases operation and is converted into a business location, and this location receives goods and materials from the branch, such transfer is not treated as a purchase, sale, or liquidation. The branch is only required to issue an internal transfer order with supporting documents for the assets and is not required to issue invoices.

  • Reference: Official Letter No. 3145/CT-CS – Tax Department, issued on August 13, 2025.
  1. Tax obligations upon business merger

The merging enterprise must fulfill all tax obligations before the merger and complete the tax code termination procedure.

If the merging enterprise has not completed its tax obligations, both the merging and the acquiring enterprises share the responsibility.

The tax code of the merged enterprise will cease to be valid in economic transactions from the date the tax authority issues the termination notice.

  • Reference: Official Letter No. 3364/CT-CS – Tax Department, issued on August 22, 2025.

OTHER MATTERS

  1. Use of invoices under enforcement

Where a taxpayer is under enforcement measures suspending the use of invoices but submits a written request to continue using invoices for purposes such as paying employees’ salaries or covering essential operating expenses, the tax authority may allow invoice usage on a case-by-case basis. A condition is that the taxpayer must immediately pay at least 18% of the revenue stated on the invoice into the state budget in accordance with Point đ, Clause 4, Article 34 of Decree No. 126/2020/ND-CP, ensuring the order of settlement for taxes, late payment interest, and fines.

Tax declaration for real estate transfer activities shall comply with Clause 10, Article 1 of Decree No. 70/2025/ND-CP and Point b, Clause 1, Article 11 of Decree No. 126/2020/ND-CP.

  • Reference: Official Letter No. 3012/CT-CS – Tax Department, issued on August 7, 2025.
  1. Timing of invoice issuance for transportation services

For logistics services: If the company provides logistics services that meet the requirements under Decree No. 163/2017/ND-CP, invoices may be issued after data reconciliation but no later than the 7th day of the following month or within 7 days from the end of the agreed accounting period.

For non-logistics services: If such requirements are not met, invoices must be issued immediately upon completion of service provision.

  • Reference: Official Letter No. 4405/TCS3-QLDN2 – Regional Tax Sub-department III, issued on August 26, 2025.