TAX ADMINISTRATION

  • Decree No. 70/2025/ND-CP dated March 20, 2025 amending Decree No. 123/2020/ND-CP dated October 19, 2020 on invoices and documents:

Decree No. 70/2025/ND-CP issued by the Government (effective from June 1, 2025) amends Clauses 1 and 2, Article 9 of Decree No. 123/2020/ND-CP regarding the time of invoice issuance as follows:

For sale of goods (including the sale or transfer of public assets and national reserves), the time of invoice issuance is the time when ownership or right of use is transferred to the buyer, regardless of whether payment has been received.

For exported goods (including export processing), the time of issuance of electronic commercial invoices, VAT invoices, or sales invoices is determined by the seller, but no later than the next working day after the goods have cleared customs in accordance with customs regulations.

The time of issuing an invoice for service provision is the time when the service has been completed (including services provided to foreign organizations or individuals), regardless of whether payment has been received or not.

If payment is collected before or during the provision of services, the invoice must be issued at the time of payment (excluding deposits or advance payments to ensure performance of service contracts such as accounting, auditing, financial consulting, tax consulting, valuation, survey, technical design, project supervision, and investment project planning).

In addition, Decree 70/2025/ND-CP also amends Points a, e, l, m, n Clause 4, Article 9 of Decree 123/2020/ND-CP regarding specific cases of invoice timing, including:

Selling goods and providing services in large quantities, occurring frequently, requiring reconciliation of data between the selling enterprise and customers, partners (point a).

Exploration, extraction, and processing of crude oil (point b).

Lending activities, foreign exchange agency activities, and activities related to the provision of foreign exchange receipt and payment services by economic organizations of credit institutions (point l).

Passenger transportation business by taxi using a fare calculation software as prescribed by law (point m).

Medical examination and treatment activities using software for managing medical exams and treatment, as well as hospital fees management (point n).

  • General Department of Taxation guidance on administrative violations related to tax and invoices:

Maximum fine: The total fine in a sanction decision is the aggregate of specific fines for each violation and is not limited by the general maximum fine specified in Clause 1, Article 24 of the Law on Handling Administrative Violations 2012 (amended in 2020).

Regarding the application of aggravating circumstances:

Large-scale administrative violations: In the case where, during a single administrative sanction, the taxpayer commits multiple administrative violations related to invoices and is penalized for each specific violation, the aggravating circumstance of “large-scale administrative violation” shall not be applied. However, if the taxpayer commits a single administrative violation involving 10 or more invoices, the taxpayer shall be penalized for one violation and the aggravating circumstance of “large-scale administrative violation” shall be applied.

Repeated administrative violations: If the taxpayer commits multiple identical administrative violations and is penalized for each of them, then from the second violation onwards, it shall be considered an aggravating circumstance of “repeated administrative violation” as stipulated at Point b, Clause 1, Article 10 of the Law on Handling of Administrative Violations 2012 (amended and supplemented in 2020).

(Official Dispatch No. 216/TCT-PC dated January 15, 2025 issued by the General Department of Taxation)

  • The General Department of Taxation issued Decision No. 108/QD-TCT dated January 24, 2025 on the automated personal income tax refund process:

Accordingly, the process for generating and receiving personal income tax (PIT) finalization declarations on which individuals directly finalizing their tax request a refund can now be implemented automatically and applied nationwide by the Tax Authorities.

This new process replaces the provisions on handling PIT refund dossiers submitted by individuals who directly finalize their tax obligations as set out in the refund process attached to Decision No. 679/QD-TCT dated May 31, 2023, issued by the Director General of the General Department of Taxation.

 

CORPORATE INCOME TAX (CIT)

  • Update on Vietnam’s signing of the MCAA on the exchange of Country-by-Country Reports (CbCR):

According to the OECD’s update dated February 10, 2025, Vietnam signed the Multilateral Competent Authority Agreement (MCAA) on the automatic exchange of Country-by-Country Reports (CbCR) on January 3, 2025.

As of the latest OECD update, a total of 107 jurisdictions have become signatories to the MCAA CbCR. Currently, Vietnam has not committed to a specific roadmap for implementing the Automatic Exchange of Information (AEOI) mechanism under the MCAA.

This milestone is considered a significant step forward since Vietnam signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) on March 22, 2023. It demonstrates Vietnam’s commitment to international efforts to enhance tax administration cooperation and prevent tax evasion and other forms of non-compliance.

  • Application of CIT incentives for supporting industry products based on the issuance date of the incentive certificate:

The incentive certificate to produce prioritized supporting industry products serves as the basis for applying corporate income tax (CIT) incentives under supporting industry conditions. The determination of the effective date for CIT incentives for supporting industry products is based on the date the product is granted the incentive certificate by the Ministry of Industry and Trade.

In cases where a project generates income from the production of supporting industry products and meets the eligibility criteria for CIT incentives under the supporting industry category, it shall be entitled to incentives for the income generated from such project for the remaining incentive period, as certified by the Ministry of Industry and Trade.

(Official Dispatch No. 300/TCT-CS dated January 17, 2025 issued by the General Department of Taxation)

  • Retrospectively assessed Value-Added Tax (VAT) and import duties under a tax assessment decision are deductible or creditable:

In cases where a company is subject to retrospective tax collection under a tax assessment decision issued by the Customs Authority, and no penalties for tax fraud or evasion are imposed, the following applies:

For VAT: the entire amount is creditable if the conditions for input VAT deduction and refund are met in accordance with regulations.

For import duties: the amount is deductible as an expense when determining taxable corporate income, provided that all regulatory conditions are satisfied.

(Official Dispatch No. 496/CTLAN-TTHT dated February 10, 2025 issued by the Long An Tax Department)

 

VALUE ADDED TAX (VAT)

  • Exported goods designated for delivery to Vietnamese enterprises through bonded warehouses are not eligible for the 0% VAT rate:

On February 17, 2025, the Ministry of Finance issued Official Letter No. 1872/BTC-TCT to the People’s Committee of Dong Nai Province, providing an opinion on the case where a domestic enterprise sells goods to foreign traders with a presence in Vietnam, and the goods are designated for delivery to a third party, a Vietnamese enterprise, through a bonded warehouse.

Accordingly, this transaction does not meet the conditions for exported goods sold to organizations or individuals outside Vietnam and consumed outside Vietnam, or goods sold to organizations or individuals in bonded areas and consumed within bonded areas. Therefore, it is not eligible for the 0% VAT rate applicable to exported goods.

(Official Letter No. 1872/BTC-TCT dated February 17, 2025, issued by the Ministry of Finance)

  • Supplementary VAT Declaration:

According to regulations, the supplementary VAT declaration for the tax period of June 2023, made on August 10, 2023, will increase the VAT refundable for the tax period of June 2023. In this case, the taxpayer should report this increase in the line item [38] “Adjustment for increase in VAT refundable from prior periods” on the first VAT declaration form for the tax period of July 2023 (since it is still within the deadline for VAT declaration of the July 2023 tax period).

(Official Letter No. 471/TCT-KK dated February 5, 2025, issued by the General Department of Taxation)

 

PERSONAL INCOME TAX (PIT)

  • Decree No. 49/2025/ND-CP dated February 28, 2025, on the temporary suspension of exit due to unfulfilled tax obligations:

Accordingly, the threshold for outstanding tax debt and the duration of debt in cases of temporary suspension of exit are as follows:

Individuals conducting business or business household owners who are subject to enforcement of administrative decisions regarding tax management, with outstanding tax debts of 50 million VND or more, and whose tax debt has exceeded the payment deadline by more than 120 days, will be subject to temporary suspension of exit.

Individuals who are the legal representatives of enterprises, cooperatives, or cooperative unions, and are subject to enforcement of administrative decisions regarding tax management, with outstanding tax debts of 500 million VND or more, and whose tax debt has exceeded the payment deadline by more than 120 days.

Individual business owners, household business owners, and individuals who are the legal representatives of enterprises, cooperatives, or cooperative unions, who are no longer operating at the registered address, with outstanding tax debts that have exceeded the payment deadline, and who have not completed their tax obligations within 30 days from the date the tax authority notifies them of the intention to apply the measure of temporary exit suspension.

Vietnamese citizens leaving for settlement abroad, Vietnamese citizens living abroad, or foreigners, who have outstanding tax debts that have exceeded the payment deadline as per regulations and have not fulfilled their tax obligations.

2) Official Letter No. 828/TCT-KK – Guiding the Declaration of Personal Income Tax (PIT) Paid on Behalf of Individuals via HTKK 5.2.9:

Accordingly, based on the provisions of Clause 7, Article 17, and Clauses 1 and 2, Article 19 of the 2019 Tax Administration Law, the General Department of Taxation implements the procedure for enterprises, organizations, and individuals (hereinafter collectively referred to as income-paying organizations) when remitting Personal Income Tax (PIT) withheld from employees into the state budget on behalf of the taxpayers. They are required to provide information on the amount of PIT paid on behalf of each individual.

A detailed list of PIT paid for each individual can be submitted through the Tax Declaration Support Software (HTKK).

(Official Letter No. 828/TCT-KK dated February 25, 2025, issued by the General Department of Taxation)

 

OTHER CONTENT

  • Decision No. 460/QD-BCT 2025 dated February 21, 2025, on the application of anti-dumping duties:

The temporary anti-dumping duties are applied to certain hot-rolled steel products originating from the People’s Republic of China, classified under the following HS codes: 7208.25.00, 7208.26.00, 7208.27.19, 7208.27.99, 7208.36.00, 7208.37.00, 7208.38.00, 7208.39.20, 7208.39.40, 7208.39.90, 7208.51.00, 7208.52.00, 7208.53.00, 7208.54.90, 7208.90.90, 7211.14.15, 7211.14.16, 7211.14.19, 7211.19.13, 7211.19.19, 7211.90.12, 7211.90.19, 7225.30.90, 7225.40.90, 7225.99.90, 7226.91.10, and 7226.91.90 (case number: AD20).

No temporary anti-dumping duties are applied to certain hot-rolled steel products originating from the Republic of India, classified under the following HS codes: 7208.25.00, 7208.26.00, 7208.27.19, 7208.27.99, 7208.36.00, 7208.37.00, 7208.38.00, 7208.39.20, 7208.39.40, 7208.39.90, 7208.51.00, 7208.52.00, 7208.53.00, 7208.54.90, 7208.90.90, 7211.14.15, 7211.14.16, 7211.14.19, 7211.19.13, 7211.19.19, 7211.90.12, 7211.90.19, 7225.30.90, 7225.40.90, 7225.99.90, 7226.91.10, and 7226.91.90 in accordance with Clause 3, Article 78 of the 2017 Foreign Trade Management Law No. 05/2017/QH14.