CORPORATE INCOME TAX
In June 2025, no new official letters regarding Corporate Income Tax (CIT) were issued. However, enterprises should continue to take note of several important guidelines issued during April–May 2025, which remain in effect, specifically:
- Tax Guidance on Support Payments to Household Businesses
Enterprises making support payments (e.g., based on sales volume, promotions, or discounts) to household businesses or individuals subject to presumptive tax (thuế khoán) are required to declare and remit tax on behalf of these recipients in accordance with Decree No. 126/2020/NĐ-CP. Such support payments are deductible for CIT purposes if accompanied by valid invoices and supporting documents, as stipulated in Circular No. 96/2015/TT-BTC.
- Reference: Official Letter No. 244/CCTKV17-QLDN1 issued by the Regional Tax Sub-Department No. XVII on April 4, 2025.
- Refund of Proceeds from Share Sale as per Court Ruling
Refunded amounts received from the sale of shares under a court ruling are not deductible expenses for CIT purposes, as they are not associated with revenue generation.
- Reference: Official Letter No. 1322/CT-CS issued by the Tax Department on May 22, 2025.
- Guidance on Deductible Expenses for Corporate Income Tax Calculation
Accrued expenses related to production and business activities that have sufficient supporting invoices and documents before the annual tax finalization deadline (for fiscal year N) are deductible for CIT purposes. Upon contract completion, adjustments (increase/decrease) to the expenses shall be made based on actual incurred costs.
- Reference: Official Letter No. 684/CCTKV17-QLDN1 issued by the Regional Tax Sub-Department No. XVII on April 29, 2025.
- Welfare Payments Under VND 20 Million in Cash – Still Deductible If Conditions Are Met
Welfare expenses (e.g., birthdays, weddings, funerals, etc.) paid in cash and valued at VND 20 million or less per case are still deductible for CIT purposes if all the following conditions are satisfied:
- Valid invoices and supporting documents are available;
- The company’s name, address, and tax code are stated on the documents;
- The total annual welfare spending does not exceed one month’s average actual salary of the company.
- Reference: Official Letter No. 1253/CCTKV17-QLDN1 issued by the Regional Tax Sub-Department No. XVII on May 30, 2025.
PERSONAL INCOME TAX
- Adjustment of Dependent’s Tax Identification Number (TIN)
If the company registers an incorrect TIN for a dependent, it must file an amendment (reduction) using Form 20-ĐK-TH-TCT via the eTax system (https://thuedientu.gdt.gov.vn), and recalculate the personal income tax payable, if applicable.
- Reference: Official Letter No. 672/CCTKV.XV-QLDN5 issued by Regional Tax Sub-Department XV on May 5, 2025
- Adjustment of Taxable Income Threshold
Starting from January 1, 2026, the annual taxable income threshold for individuals with business activities subject to Personal Income Tax (PIT) will increase from VND 100 million to VND 200 million.
This policy aims to reduce the tax burden on micro and small business households and individuals.
- Reference: Law No. 56/2024/QH15 dated November 28, 2024, effective from January 1, 2025; Article 17 takes effect from January 1, 2026.
- Severance Allowance – Partial Exemption from Taxable Income
Severance allowances paid in accordance with the Labor Code and Law on Social Insurance are non-taxable for PIT purposes. However:
- Any amount exceeding the regulated level will be included in taxable income;
- If the company advances the payment before final settlement, PIT must be withheld on the full amount at the time of payment.
- Reference: Official Letter No. 12044/CCTKV01-QLDN5 issued by Regional Tax Sub-Department I on June 5, 2025.
- Determination of Transfer Price for Real Estate with Trees and Livestock for PIT Purposes
The tax authority may apply a deemed tax assessment if the land transfer contract involving trees or livestock fails to clearly state their value or states a value inconsistent with market reality.
- Reference: Official Letter No. 1829/CT-CS issued on June 18, 2025.
VALUE-ADDED TAX (VAT)
In June 2025, no new VAT regulations were issued. However, businesses should pay attention to the following key policies and guidelines released in May or earlier, which remain applicable in June:
- VAT Refund for Export Processing Activities
VAT paid on imported raw materials used for export processing (declarations E31, E62) is refundable if the conditions under Article 28 of Circular No. 80/2021/TT-BTC are met.
- Reference: Official Letter No. 1638/CCTKV06-QLDN1 issued by Regional Tax Sub-Department VI on April 21, 2025.
- VAT for Out-of-Province Construction Activities
Out-of-province construction contractors must pay VAT at 1% for temporary business presence as stipulated in Article 13 of Circular No. 80/2021/TT-BTC. If conditions under Decree No. 126/2020/NĐ-CP are met, submission of tax allocation forms is not required.
- Reference: Official Letter No. 1393/CCTKV18-QLDN2 issued by Regional Tax Sub-Department XVIII on April 29, 2025.
- VAT on Disposal of Collateral for Loan Recovery
If the collateralized asset was part of a registered secured transaction and the disposal is in accordance with laws on secured transactions, the sale is not subject to VAT, as per Clause 3, Article 1 of Circular No. 26/2015/TT-BTC. Other cases are subject to VAT.
- Reference: Official Letter No. 1160/CT-CS issued by the Tax Department on May 13, 2025.
- VAT on Revenue Sharing from Foreign Business Cooperation Contracts
Revenue sharing from business cooperation contracts with foreign companies and advertising partners abroad is subject to 10% VAT, as guided in Article 11 of Circular No. 219/2013/TT-BTC.
- Reference: Official Letter No. 253/CTHN-TTHT issued by the Hanoi Tax Department on January 3, 2025.
- Draft Regulation: Non-cash Payment Required for VAT Deduction on Purchases from VND 5 Million
According to the third draft Decree guiding the 2024 VAT Law (expected effective date: July 1, 2025), purchases of goods and services (including imports) valued at VND 5 million or more (VAT-inclusive) must be paid via non-cash methods to qualify for input VAT deduction.
This aims to tighten cost controls and prevent fraudulent use of fake or illegal invoices.
- Reference: Article 10 – Draft Decree guiding the implementation of the 2024 VAT Law.
- VAT Refund in Case of Amended Declarations
If a business files an amended VAT declaration that reduces the refundable tax amount, it must return the over-refunded tax amount and pay late payment interest, if applicable, in accordance with the current Law on Tax Administration.
- Reference: Official Letter No. 1456/CT-CS issued by the Tax Department on May 28, 2025.
- Key Amendments in the 2024 VAT Law (Effective from January 1, 2025)
The amended VAT Law introduces several important changes:
- Clarifies non-taxable transactions (e.g., lawful transfer of secured assets);
- Establishes new tax valuation rules for imported and promotional goods;
- Adjusts VAT rates for certain specific goods and services.
- Reference: Official Letter No. 536/CCTKV09-NVDTPC issued by Regional Tax Sub-Department IX on May 22, 2025.
- VAT on Damaged Goods/Materials Due to Natural Disasters or Fire
Although no new legal documents on VAT were issued in June 2025, businesses and taxpayers must pay close attention to prior guidelines, especially those issued in May and earlier, which are still in force and directly impact VAT declaration, deduction, and refund for June 2025 and Q2/2025.
- Reference: Official Letter No. 4072/CHQ-NVTHQ issued by the General Department of Customs on May 6, 2025.
OTHER UPDATES
- Revision of Export Tax Rate for Cement Clinker
Decree No. 108/2025/NĐ-CP revises the export tax rate on cement clinker from 5% to 10%, effective from January 1, 2027.
- Reference: Decree No. 108/2025/NĐ-CP dated May 19, 2025.
- Conversion of Foreign Currency Financial Statements into VND
Financial statements prepared in foreign currencies must be converted into Vietnamese Dong (VND) when publicly disclosed, in accordance with Clause 2, Article 107 of Circular No. 200/2014/TT-BTC.
- Reference: Official Letter No. 7902/CCTKV.XVI-QLDN2 issued by Regional Tax Sub-Department XVI on May 19, 2025.
- Policies Supporting Business Development and Startups
The Politburo has issued guidelines to: Abolish the business license fee; Provide a 3-year Corporate Income Tax (CIT) exemption for small and medium-sized enterprises (SMEs); Support R&D expenses with a 200% cost deduction; And introduce additional preferential policies..
- Reference: Resolution No. 68-NQ/TW issued by the Politburo on May 4, 2025.
- Điều kiện nhập khẩu máy móc, thiết bị đã qua sử dụng
Used machinery and equipment may be imported if:
- Their age does not exceed 10 years from the year of manufacture to the date of arrival at the port of entry;
- The dossier complies with Article 8 of Decision No. 18/2019/QĐ-TTg.
- Reference: Official Letter No. 5630/CHQ-GQSL issued by the General Department of Customs on May 20, 2025.
- Ineligibility for Tax Refund Due to Incomplete Customs Declarations
Enterprises are ineligible for import tax refunds if they fail to provide complete information in customs declarations, specifically contract number, name of the foreign partner, etc., as required under Point d, Clause 3 and Point c, Clause 5, Article 36 of Decree No. 134/2016/NĐ-CP.
- Reference: Official Letter No. 7160/CHQ-NVTHQ issued by the General Department of Customs on May 30, 2025.
INVOICE NOTES
- No more “cancellation of erroneous electronic invoices” from June 1, 2025
According to Decree No. 70/2025/ND-CP, from June 1, 2025, when detecting errors in electronic invoices, businesses will not be allowed to cancel them as before. Instead, they must be handled in two ways: issuing a replacement invoice or issuing an adjustment invoice. The new regulation aims to enhance traceability, limit fraud and avoid risks in invoice management.
- Reference: Decree No. 70/2025/ND-CP – effective from June 1, 2025.
- It is mandatory to write the buyer’s tax code or ID card on the electronic invoice.
From June 1, 2025, electronic invoices must fully state the tax code or CCCD number of the buyer (if there is no tax code). Some special cases such as retail at supermarkets, petrol stations, etc. may be exempted from recording.
Invoices lacking required information will be penalized according to the provisions of Decree No. 123/2020/ND-CP.
- Reference: Official dispatch No. 5624/NTL-QLDN2 – issued on May 9, 2025.
- Regulations on using gift vouchers
In case the enterprise buys vouchers from the seller to give to employees, when paying for the voucher, the seller only creates a receipt for payment.
When the employee uses the voucher to buy goods or services, the seller then creates a VAT invoice.
- Reference: CV No. 7629/CCTKV.XVI-QLDN2 – issued on May 14, 2025.
- Convert to apply electronic invoices generated from cash registers
Businesses that provide goods and services directly to consumers (such as retail, restaurants…) are:
- Switch to applying electronic invoices generated from cash registers according to Decree No. 70/2025/ND-CP or Continue using electronic invoices with or without codes registered before June 1, 2025
- Reference: Telegram No. 72/CD-CT – Tax Department, issued on June 1, 2025.
- Instructions for using e-commerce invoices for manufacturing enterprises
Export processing enterprises with activities of exporting goods and services abroad can use e-commerce invoices if they fully meet the conditions for connecting to transfer invoice data to the tax authority.
In case they do not meet the technical conditions, enterprises can switch to using electronic value-added invoices or electronic sales invoices, depending on the method of declaring VAT for export activities.
For activities of liquidating assets, scrap, packaging…, if not within the scope of export processing activities, it is necessary to contact the Customs authority or the Industrial Park Management Board for specific instructions.
- Reference: Official dispatch No. 9213/CCTKV.XVI-QLDN2 – Tax Department of Region XVI, issued on May 29, 2025.
- Introducing new content in Circular 31/2025/TT-BTC and Circular No. 32/2025/TT-BTC
The Tax Department disseminates new points related to the management of electronic stamps for alcohol and tobacco, as well as revised regulations on invoices and documents according to Circular No. 32/2025/TT-BTC.
Notable content includes:
– Adjust the process of issuing and using electronic stamps;
– Clarify the creation and transfer of electronic invoice data in specific cases;
– Additional guidance from Decree No. 70/2025/ND-CP and Decree No. 123/2020/ND-CP.
- Reference: Official dispatch No. 1591/CT-CS – Tax Department, issued on June 5, 2025.
7. Instructions for creating multi-trip freight invoices with schedules
Transport enterprises can prepare a detailed list with the invoice if they meet the conditions at Point a.3, Clause 7, Article 1 of Decree No. 70/2025/ND-CP on electronic invoices.
- Reference: Official dispatch No. 10500/CCTKV.XVI-QLDN1 – issued on June 11, 2025
TAX MANAGEMENT
In June 2025, the General Department of Taxation and relevant agencies will continue to promote digital transformation activities, expand the application of electronic invoices, and implement policies to support small and medium-sized enterprises and innovative startups in accordance with the direction of the National Assembly and the Government.
- Strengthen tax management for households and individuals doing business under the lump sum method
According to the direction in Official Dispatch No. 108/CT-TMĐT, the tax authority requires 100% of business households and individuals paying taxes under the lump-sum method to:
– Make electronic tax declaration and payment via the General Department of Taxation’s Information Portal: https://canhan.gdt.gov.vn,
– Install the EtaxMobile application, fully perform tax obligations by digital means,
– In case of business households in areas with particularly difficult socio-economic conditions, strive to achieve a minimum rate of 80%.
This is an important step in the roadmap to digitize tax management for the informal economic sector, increasing transparency and reducing budget losses.
- Reference: Official dispatch No. 108/CT-TMĐT of the Tax Department on strengthening tax management for business households, issued on March 11, 2025.
- Tax and fee support policies for startups and small and medium enterprises.
Pursuant to Resolution No. 198/2025/QH15 of the National Assembly and Resolution No. 68-NQ/TW of the Politburo, many tax incentive policies have been approved and will be implemented from 2025, including:
– Exemption from corporate income tax for 2 years, 50% reduction for the next 4 years for income from innovative start-up activities,
– Exemption from corporate income tax and personal income tax for income from transfer of shares and capital contributions at innovative start-up enterprises,
– Exemption from personal income tax for 2 years, 50% reduction for the next 4 years for income of experts and scientists working in start-up enterprises,
– Exemption from corporate income tax for 3 years for small and medium-sized enterprises from the time of being granted the first business registration certificate,
– Human resource training costs at small and medium enterprises are included in deductible expenses when determining corporate income tax.
The above policies aim to promote the startup environment and support small-scale enterprises to overcome difficulties in capital, operating costs, and competitiveness.
- Reference: Resolution No. 198/2025/QH15 – issued on May 17, 2025; Resolution No. 68-NQ/TW – issued on May 4, 2025.
- Issue a new Decree on administrative sanctions for violations in the field of tax and invoices
The Government issued Decree No. 174/2025/ND-CP dated June 30, 2025, replacing Decree No. 125/2020/ND-CP. Some notable new points:
– Increase the fine level: Fine up to 100 million VND for the act of issuing fake invoices or not issuing invoices at the right time.
– Add new acts: Not transmitting electronic invoice data on time, issuing invoices after stopping business, violating personal income tax deduction documents…
– Exempt from fines if taxpayers self-detect and correct violations before being inspected.
– Severely punish tax evasion, can be transferred to criminal proceedings under the Penal Code if sufficient factors are present.
- Reference: Decree No. 174/2025/ND-CP – issued on June 30, 2025 (Effective from August 15, 2025)
| No | Cashless payment method | Document/proof required |
| 1 | Regular payment (bank transfer) | Non-cash transfer documents as prescribed in Decree No. 52/2024/ND-CP (cash deposits into the seller’s account are not accepted) |
| 2 | Offset between the value of purchases and sales of goods, services, and borrowing of goods | The contract clearly stipulates the method of compensation + the minutes of change between the parties. |
| 3 | Offsetting debt through a third party that borrows/borrows money | Loan/borrowing contract + money transfer documents from lender to borrower |
| 4 | Payment by proxy or by designation through a third party | There must be a written contract clearly stating + the third party is a legal organization/individual |
| 5 | Payment by stocks, bonds | Pre-written sales contract |
| 6 | Remaining amount >= 5 million after offset | Non-cash transfer voucher for the remainder |
| 7 | Payment to a third party account at the State Treasury for enforcement | Decision of state agency + document of money transfer to Treasury account |
| 8 | Buy on installments from 5 million VND or more | Sales contract + invoice + payment voucher when due |
| 9 | Import value or invoice < 5 million VND or gifts, samples | No cashless payment voucher required |
| 10 | Employees pay on their behalf according to regulations, the company pays back without using cash. | Financial or internal regulations + payment vouchers for employees |
| 11 | Buy multiple times on the same day from 1 seller with total >= 5 million VND | Deductible only if there is proof of non-cash payment |
NEW POLICY
- New regulations on VAT rates applicable from July 1, 2025 to December 31, 2026
(Basis: Resolution No. 204/2025/QH15)
0% tax rate applies to:
– Export goods and services, including:
- Goods exported abroad or sold to duty-free zones.
- Services provided directly to foreign countries/duty-free zones and consumed there.
- International transportation, rental of means of transport for use outside of Vietnam, construction/installation abroad, digital products sold abroad, etc.
– 0% does not apply to:
- Technology transfer, intellectual property rights, reinsurance, credit, telecommunications, postal services, re-export of tobacco/alcohol/beer, gasoline sold to duty-free zones, cars sold to duty-free zones.
The tax rate of 5% applies to:
– Clean water, fertilizers, pesticides.
– Services for agricultural production.
– Unprocessed agricultural and aquatic products.
– Rubber latex, handicrafts from agricultural materials.
– Medical equipment, medicines.
– Teaching tools, learning equipment.
– Books, children’s toys, traditional art.
– Social housing, science and technology services.
The tax rate of 10% applies to:
– Telecommunications, finance, banking, securities, insurance.
– Real estate, metal products, mining (except coal).
– Goods/services subject to special consumption tax (except gasoline).
Tax rate 8%:
– Applicable to the remaining goods and services not in the 0%, 5% or 10% tax rate group.
– Including services from foreign suppliers via e-commerce.
Business households and individuals calculate VAT based on the following percentage of revenue: Reduce 20% of VAT rate when issuing invoices for goods and services with reduced tax according to the provisions of Decree No. 174/2025/ND-CP.
- Decree No. 181/2025/ND-CP – Detailed regulations on VAT Law 2024 (effective from July 1, 2025)
(Based on: Decree No. 181/2025/ND-CP)
Effective from July 1, 2025, the decree details the main contents:
– Taxpayers, including foreign suppliers.
– Non-taxable entities, taxable prices, time of tax determination, tax rates, tax calculation methods, VAT deductions and refunds.
Supplementing regulations on non-VAT for some special types of imported goods, such as:
– Gifts and presents within the tax-free limit.
– Duty-free baggage, diplomatic property, disaster/epidemic relief goods.
– Goods for border residents within the tax-free list.
– Imported national relics, antiques, and treasures.
Note: VAT is a tax calculated on the added value of goods and services from production to consumption (Article 2 of the 2024 VAT Law).