CORPORATE INCOME TAX (CIT)

1. Other income from received goods that do not require payment – not eligible for CIT incentives

In cases where a business is receiving incentives based on its location and receives goods (tools, equipment, raw materials, finished products, etc.) from an overseas supplier without having to pay for them, this is considered other income. This income is not from a project that is eligible for incentives, so it is not eligible for CIT incentives.

• Reference: Official Letter 2541/CT-CS – Tax Department, issued on July 18, 2025

PERSONAL INCOME TAX (PIT)

1. Mid-shift meal allowance

If the business organizes or purchases meals, this amount is not included in the taxable personal income.

If the business pays a cash allowance and it complies with company regulations, labor contracts, or collective bargaining agreements, it is not included in the taxable income. Any amount exceeding the stipulated limit is considered taxable income.

• Reference: Official Letter 915/BNI-QLDN1 – Bac Ninh Tax Department issued on July 22, 2025.

VALUE ADDED TAX (VAT)

1. VAT refund for exported goods and services

A business that has exported goods or services and has a non-deductible input VAT of VND 300 million or more is eligible for a monthly or quarterly VAT refund.

Input VAT for export activities must be separately accounted for. If separate accounting is not possible, the amount is determined based on the ratio of export revenue to total revenue.

According to the Law on Tax Administration, tax declaration dossiers are prepared for each type of tax and tax period. Declarations for the same tax type are filed together, except for investment projects eligible for a VAT refund, which must be filed separately for each project.

• Reference: Official Letter 2639/CT-CS – Tax Department, issued on July 23, 2025.

2. Import VAT during construction of an Export Processing Enterprise (EPE)

A contractor that meets the regulations for non-tariff zones is not subject to VAT when importing goods for the construction and installation of an EPE.

A contractor that does not meet the regulations for non-tariff zones must declare and pay VAT when importing goods for an EPE.

• Reference: Official Letter 15028/CHQ-NVTHQ – Customs Department, issued on June 24, 2025.

3. Transfer of certificates of deposit

If a business transfers a certificate of deposit to another business, this is considered other financial income. This activity is not subject to VAT declaration or payment, as stipulated in Clause 1, Article 5 of Circular 219/2013/TT-BTC.

• Reference: Official Letter 2751/CT-CS – Tax Department, issued on July 29, 2025.

4. Handling overpaid import-stage VAT

When a taxpayer has overpaid import VAT, the customs authority will issue a refund decision, coordinate with the State Treasury for the refund, and notify the managing tax authority to monitor the adjustment declaration and any other tax obligations.

The customs authority will also notify the taxpayer to declare the adjusted VAT amount that has been refunded with the managing tax authority.

• Reference: Official Letter 15428/CHQ-NVTHQ – Customs Department, issued on July 21, 2025.

IMPORT AND EXPORT DUTY

1. Release of imported goods

Goods that have been approved for release by the customs authority are permitted for import and circulation.

• Reference: Official Letter 13799/CHQ-GSQL – Customs Department, issued on July 11, 2025.

2. Decree 206/2025/NĐ-CP – Vietnam–Laos Special Preferential Import Duty

This decree specifies special preferential duty rates and the conditions for eligibility under the Vietnam–Laos Trade Agreement for the period from February 24, 2025, to February 24, 2030.

• Reference: Decree 206/2025/NĐ-CP – Government, issued on July 15, 2025.

3. Exemption code for temporary import/re-export circulating containers

When an EPE performs customs procedures for the export of circulating containers that are temporarily imported for a specific period to hold exported or imported goods, and are subject to tax exemption, the declarant must use code XN018 for the declaration.

• Reference: Official Letter 15429/CHQ-NVTHQ – Customs Department, issued on July 21, 2025.

4. Payment of customs fees

Payment per transaction or monthly: Taxpayers can pay fees as they arise. If multiple declarations are registered in a month, they can register for monthly payment, which must be done no later than the first 10 days of the following month.

Payment for a single declaration: The correct 11-digit declaration number should be entered on the payment slip, and the customs system will automatically deduct the fee for that declaration.

Payment for multiple declarations: The declaration number 9999999999 should be entered on the payment slip, and the system will automatically deduct the debt in the order the declarations were made, from earliest to latest.

• Reference: Official Letter 15953/CHQ-NVTHQ – Customs Department, issued on July 24, 2025.

5. Trade remedies

A final review is underway for the anti-dumping measures on H-shaped steel (HS 7216.33.11, 7216.33.19, 7216.33.90, 7228.70.10, 7228.70.90) originating from Malaysia, case code ER01.AD12.

Official anti-dumping duties are now applied to hot-rolled steel (various HS codes) from China, case code AD20. The investigation for similar products from India has been terminated.

The application of anti-dumping duties on monosodium glutamate (HS 2922.42.20) from Indonesia and China has been extended for an additional 5 years, case code ER01.AD09.

Anti-dumping duties on some polypropylene plastic products have been terminated and not extended (pursuant to Decision 1900/QĐ-BCT of July 20, 2020).

• Reference: Decision 1978/QĐ-BCT (July 8, 2025); Decision 1959/QĐ-BCT (July 4, 2025, effective July 6, 2025); Decision 1914/QĐ-BCT (July 2, 2025, effective July 23, 2025); Decision 2027/QĐ-BCT.

6. Amendments to the Import/Export Tariff, automotive industry incentives, and duty rate adjustments

The production volume of electric vehicles, FCVs, and hybrids can be aggregated with the minimum production volume for incentives on corresponding petrol cars.

Aggregation of production volume is permitted within businesses with more than 35% ownership.

For dossiers with a 0% tax rate in group 98.49, the requirement for a technical explanation and drawing certified by the Vietnam Register has been removed.

Duty rates for some items have been adjusted (PE; TMBP 7209.18.10 is 0% until August 31, 2025, and 7% from September 1, 2025).

The export tax roadmap for yellow phosphorus is 5%, increasing to 10% from January 1, 2026, and 15% from January 1, 2027.

• Reference: Decree 199/2025/NĐ-CP – Government, issued and effective on July 8, 2025.

7. Decentralization in import and export

Five tasks have been decentralized to provincial People’s Committees, including issuing Certificates of Origin (C/O), self-certifying origin, handling transit of banned/suspended goods, extending transit permits, and managing UAVs and other flying equipment.

Eighteen tasks have been delegated, such as CFS, temporary import/re-export, transshipment, temporary import/re-export codes, deposits, regulation, warehouse inspections, and tobacco licenses. Other delegated tasks include confirming honey quotas to Japan and issuing textile certificates to Mexico.

• Reference: Official Letter 4843/BCT-XNK – Ministry of Industry and Trade, issued on July 1, 2025.

8. Announcement and amendments to administrative procedures for import and export

One new administrative procedure has been issued: Issuing preferential C/O Form VI.

35 administrative procedures have been amended or supplemented, including the issuance of preferential C/O Forms D, E, AJ, AK, AI, etc.

Amendments and additions have been made to the import/export sector regarding the issuance of preferential C/O Form AANZ for goods exported to countries under the ASEAN–Australia–New Zealand Free Trade Agreement.

• Reference: Decision 1845/QĐ-BCT – Ministry of Industry and Trade, issued on June 27, 2025; Decision 2161/QĐ-BCT – Ministry of Industry and Trade, issued on August 22, 2025.

9. For Export Processing Enterprises (EPEs)

On-site delivery of goods: This applies to transactions between a domestic enterprise and an EPE, or between EPEs, as instructed by a foreign trader under a sale, processing, leasing, or borrowing contract.

Sales, leasing, or borrowing between a domestic enterprise and an EPE: This is defined as an import-export relationship. The procedures follow Chapter II of Circular 38/2015/TT-BTC (amended by Circular 39/2018/TT-BTC). The exporting enterprise must open an export declaration and the importing enterprise must open a corresponding import declaration. The exporting enterprise declares “#&XKTC” in the “Internal management number of the enterprise” field on the export declaration. The importing enterprise declares the corresponding export declaration number (first 11 characters) in the “Internal management number of the enterprise” field on the import declaration.

Transactions between two EPEs: If both choose to perform customs procedures, the instructions in section 2 apply.

Specialized inspection: This is carried out in accordance with regulations for transactions between separate customs zones.

• Reference: Official Letter 16946/CHQ-GSQL from the Customs Department.

SPECIAL CONSUMPTION TAX (SCT)

Law on Special Consumption Tax  66/2025/QH15

This law adds new items subject to the tax, such as helicopters, gliders, and soft drinks with a sugar content exceeding 5g/100mL according to National Standards (TCVN).

The tax rates for alcohol, beer, and tobacco will be increased on a roadmap until 2031.

Cases for tax refunds or deductions have been adjusted.

• Reference: Law 66/2025/QH15 – National Assembly, issued on June 14, 2025.

TAX MANAGEMENT

1. Adjustment of tax authority names & decentralization of authority under a two-level model

Name changes: “Regional Tax Department” becomes “Provincial/City Tax Department”. “District-level Tax Team” becomes “Grassroots Tax Department”.

Title changes: “Director of Regional Tax Department” becomes “Director of Provincial/City Tax Department”. “Leader of District-level Tax Team” becomes “Leader of Grassroots Tax Department”. The titles of Directors of the E-commerce Tax Department and Large Enterprise Tax Department remain unchanged.

Authority to write off debts: The Prime Minister has delegated the authority to write off debts of VND 15 billion or more to the Minister of Finance (according to Decree 122/2025/NĐ-CP).

Decentralization to commune level (Decree 125/2025/NĐ-CP): Commune-level People’s Committees are now given some powers previously held by district-level People’s Committees, including: establishing the communal Tax Advisory Council; enforcing tax decisions issued by the commune; and coordinating the issuance/revocation of business registration certificates and cooperatives that have had debts written off. They are also responsible for classifying land for agricultural land use tax and establishing a council to appraise assets for enforcement.

The composition of the communal Tax Advisory Council has been adjusted. “Grassroots Tax Department” and “Provincial/City Tax Department” will replace the old units according to Circular 40/2025/TT-BTC.

• Reference: Official Letter 2386/CT-CS – Tax Department, issued on July 10, 2025.

2. Address on invoices when administrative boundaries change

The taxpayer’s address, as specified on the valid Business Registration Certificate and the address updated by the tax authority according to the two-level administrative division, are both legally valid for use on invoices.

• Reference: Official Letter 2376/CT-NVT – Tax Department, issued on July 10, 2025.

3. Updating business registration addresses when administrative boundaries change

Immediate update is not mandatory: Businesses, business households, cooperatives, and cooperative unions can continue to use their existing Business Registration Certificates even if the address on the certificate does not match the new administrative address after a boundary change. The business registration authority will not require a change in procedures solely due to a change in administrative boundaries.

Update when needed or combined with other procedures: The new address information only needs to be updated when the business or business household has a need to do so. This can also be done simultaneously when registering for other changes, such as a change in legal representative, business line, or capital.

• Reference: Official Letter 10380/BTC-KTĐP – Ministry of Finance, issued on July 10, 2025 (referencing Official Letter 4370/BTC-DNTN of April 5, 2025).

4. Procedure for checking VAT invoices and refund declaration forms & goods (customs)

This decision announces one amended and supplemented administrative procedure in the customs sector under the management of the Ministry of Finance: the procedure for checking VAT invoices, tax refund declaration forms, and goods.

• Reference: Decision 2371/QĐ-BTC – Ministry of Finance, issued on July 4, 2025, effective July 1, 2025.

5. Using personal identification numbers (Citizen ID) in place of tax codes

For those without a tax code before July 1, 2025:

• Business households that are required to register for tax along with their business registration must perform the business registration procedure with the Business Registration Authority.
• Individuals and representatives of households (excluding the aforementioned business households) must complete tax registration procedures before starting business activities or incurring obligations to the state budget. The taxpayer must accurately declare three pieces of information: full name, date of birth, and personal identification number, ensuring they match the National Database on Population (CSDLQGDC).
• Business households, households, and individuals can use their personal identification number in place of a tax code from the date they are issued a business registration certificate by the Business Registration Authority, or when the Tax Authority notifies them that their information matches the CSDLQGDC via their registered email or phone number.

For those with a tax code before July 1, 2025:

• If the information matches the CSDLQGDC, the tax code issued before July 1, 2025, will be converted to a personal identification number by the Tax Authority, and no administrative procedures will be required from the taxpayer for this conversion. Business households, households, and individuals can use their personal identification number in place of their tax code from July 1, 2025, including for adjusting and supplementing tax obligations that arose under the old tax code.
• If the information does not match, the tax code will be set to status 10 “awaiting personal identification number update”. Business households, households, and individuals must perform the procedure to change tax registration information as stipulated in Clauses 1 and 4 of Article 25 of Circular 86/2024/TT-BTC to ensure the information is correct and matches the CSDLQGDC.

For individuals with more than one tax code:

• Individuals must update their personal identification number for all tax codes so the tax authority can consolidate the data.
• The tax code that matches the CSDLQGDC will be automatically converted to the personal identification number, with no administrative procedures required.
• Old tax codes and tax obligations can be looked up via a Level 2 VNeID account. After integration, invoices and documents created with the old tax code are still valid and do not need to be adjusted to the personal identification number.

For business households/individuals with business locations:

• From July 1, 2025, a separate tax code will not be issued for business locations. Only the personal identification number of the representative will be used for declaration and tax payment.
• The tax code of the previous business location will be automatically converted to the personal identification number, with no administrative procedures required.
• Tax obligations for each old tax code can be looked up via a Level 2 VNeID account.

How to check if information matches the CSDLQGDC:

• Check on the General Department of Taxation website, Electronic Tax system, iCanhan/eTaxMobile app, or contact the managing tax authority.
• Taxpayers should pay attention to notices from the tax authority to make timely updates.

Recording personal identification numbers in tax dossiers:

• After replacing the tax code with the personal identification number, the personal identification number should be recorded in the “tax code” field on declarations, payment vouchers, invoices, deduction dossiers, and other related documents.
• Reference: Official Letter 2163/CT-QLTT – Tax Department, issued on June 30, 2025.

6. Electronic transactions in the customs tax sector (from August 7, 2025)

Starting August 7, 2025, customs will implement electronic transaction procedures for tax matters related to imported, exported, and transited goods, as well as vehicles entering, exiting, and transiting. This includes electronic tax collection and payment to the state budget, and electronic tax payment guarantees for imported and exported goods.

Principles of electronic transactions: Taxpayers must have internet access, an email address, and a digital signature (registered with customs). Individuals with a tax code but without a digital signature are not required to have one if they use the electronic payment services of a bank or an intermediary organization.

Methods of electronic tax payment: Payments can be made via the customs electronic payment portal or customs-supported software/tools. Payments can also be made through the electronic payment services of banks or intermediary organizations.

Creating state budget payment vouchers: Vouchers can be created on the customs electronic payment portal or customs-supported software/tools. They can also be created on the electronic payment application of a bank or intermediary organization.

• Reference: Official Letter 988/HQKV18-NV – Customs Department Area XVIII, issued on July 29, 2025.

7. Regulations on the customs hotline

A new decision has replaced Decision 3899/QĐ-TCHQ on the management and use of the General Department of Customs’ hotline.

The new regulations govern the management and use of the 19009299 hotline and its branch lines, including receiving and processing information and reports through these channels.

• Reference: Decision 1111/QĐ-CHQ – Customs Department, effective on August 1, 2025.

8. Directives to resolve issues when implementing the two-level local government model

Dissemination of tax policies: This will involve coordination with tax authorities and local media , providing direct guidance to taxpayers , displaying QR codes to access the electronic tax system , and coordinating with the Ministry of Finance to organize training for both taxpayers and tax officials.

Review and maintenance of administrative procedures: The Public Administration Service Center is instructed to coordinate with the tax authority to review the list of procedures, ensuring that the system for receiving and returning administrative procedure results operates smoothly, continuously, and without interruption.

• Reference: Official Telegram 05/CĐ-BTC – Ministry of Finance, issued on July 25, 2025.

OTHER CONTENT

1. Reduction of trade union fees

For public service units receiving 100% of their salary from the state budget: Trade union fees are 0.5% of the salary used for compulsory social insurance contributions.

For state-owned enterprises & joint-stock companies where the state holds a controlling stake: Trade union fees are 0.5% of the actual net salary (after deducting social insurance, health insurance, unemployment insurance, and PIT), capped at 10% of the base salary.

For non-state enterprises, non-public service units, cooperative unions, foreign/international organizations in Vietnam, representative offices of foreign investors, and union members working abroad: Trade union fees are 0.5% of the salary used for compulsory social insurance contributions, capped at 10% of the base salary.

• Reference: Decision 61/QĐ-TLĐ – Vietnam General Confederation of Labour, effective on July 1, 2025.

2. Receipts for fees and charges after administrative unit mergers

Electronic receipts can continue to be used if the unit implemented them before the merger.

If electronic receipts were not used, self-printed receipts can be used until July 15, 2025, without needing to notify the tax authority of their issuance.

Content requirements for receipts: The receipts must clearly state the name of the new administrative unit after the merger, as per Decree 123/2020/NĐ-CP (amended by Decree 70/2025/NĐ-CP) and Circular 32/2025/TT-BTC. A tax code and digital certificate are not required. Either the old receipt mẫu (with only the new unit name adjusted) or mẫu số 06 of Circular 32/2025/TT-BTC can be used.

If a new tax code and digital certificate are issued, the unit must register to use receipts in accordance with the provisions of Decree 123/2020/NĐ-CP and Circular 32/2025/TT-BTC.

Provincial and communal People’s Committees are responsible for managing, using, and reporting on the status of receipts as per regulations.

• Reference: Official Letter 9494/BTC-CT – Ministry of Finance.