CORPORATE INCOME TAX (CIT)

  1. Tax Guide for Business Support Expenses.

Companies that pay support (sales, promotions, discounts) to business households and individuals paying lump-sum taxes must declare and pay taxes on their behalf according to Decree No. 126/2020/ND-CP. Support expenses are counted as deductible expenses if there are legal invoices and documents according to Circular No. 96/2015/TT-BTC.

(Official dispatch No. 244/CCTKV17-QLDN1 of the Tax Department of Region XVII, issued on April 4, 2025.)

  1. Share sales payments are not tax deductible.

The amount returned from the sale of shares according to the Court’s judgment is not included in deductible expenses when determining corporate income tax, because it does not correspond to revenue.

(Official Dispatch No. 1322/CT-CS of the Tax Department, issued on May 22, 2025.)

  1. Instructions for deductible expenses when calculating corporate income tax.

Prepaid expenses related to production and business with full invoices and documents before the tax settlement deadline of fiscal year N are included in deductible expenses. After the contract is terminated, the expenses are adjusted up/down based on actual expenses.

(Official dispatch No. 684/CCTKV17-QLDN1 of the Tax Department of Region XVII, issued on April 29, 2025.)

PERSONAL INCOME TAX (PIT)

  1. Adjust dependent tax code

If the company registers an incorrect dependent tax identification number, it must declare the change (reduction) using Form 20-ĐK-TH-TCT on the eTax system (https://thuedientu.gdt.gov.vn) and adjust the payable tax amount, if applicable.

(Official dispatch No. 672/CCTKV.XV-QLDN5 of the Tax Department of Region XV, issued on May 5, 2025.)

  1. Adjustment of taxable income threshold.

Adjusting the threshold of income from business subject to personal income tax: From VND 100 million/year to VND 200 million/year, effective from January 1, 2026 (according to Article 17 of the Law on Value Added Tax 2024).

(Law No. 56/2024/QH15 (effective January 1, 2025)).

VALUE ADDED TAX (VAT)

  1. VAT refund for export processing goods.

VAT paid when importing raw materials for export processing (according to declarations E31 and E62) is eligible for tax refund according to Article 2 of Circular No. 25/2018/TT-BTC, if meeting the conditions in Article 28 of Circular No. 80/2021/TT-BTC.

(Official dispatch No. 1638/CCTKV06-QLDN1 of Tax Department of Region VI, issued on April 21, 2025.)

  1. VAT on construction of temporary trips outside the province.

Construction contractors outside the province pay extra-provincial VAT at a rate of 1% according to Article 13 of Circular No. 80/2021/TT-BTC. If meeting the conditions in Decree

No. 126/2020/ND-CP, there is no need to submit a tax allocation table.

(Official dispatch No. 1393/CCTKV18-QLDN2 of Tax Department of Region XVIII, issued on April 29, 2025.)

  1. VAT on sale of assets to settle loan.

If the loan collateral sold is a secured transaction asset that has been registered with a competent authority in accordance with the provisions of law on registration of secured transactions and the handling of the loan collateral is carried out in accordance with the provisions of law on secured transactions, it is not subject to VAT according to the provisions of Clause 3, Article 1 of Circular No. 26/2015/TT-BTC. (Clause 3, Article 1 of Circular No. 26/2015/TT-BTC). Other cases subject to tax.

(Official dispatch No. 1160/CT-CS of the Tax Department, issued on May 13, 2025.)

  1. VAT on shared revenue.

Revenue shared from business cooperation contracts with foreign companies and the Company’s foreign advertising partners is subject to a VAT rate of 10% according to the guidance in Article 11 of Circular No. 219/2013/TT-BTC.

(Official dispatch No. 253/CTHN-TTHT of Hanoi Tax Department, issued on January 3, 2025.)

  1. Draft on non-cash payment for goods worth VND 5 million or more, applicable from July 1, 2025.

According to the draft Decree detailing the implementation of a number of articles of the Law on Value Added Tax 2024 (3rd draft) Download.

For the regulation that requires non-cash payment documents for purchased goods and services (including imported goods) from 5 million VND or more, including value added tax.

(Article 10 of the draft Decree details the conditions for input value-added tax deduction in accordance with the provisions of Clause 2, Article 14 of the Law on Value-Added Tax 2024.)

6.Tax refund: Additional declaration and handling of overpayment.

Business establishments that make additional declarations to reduce the amount of tax refunded must return the excess refund and late payment fees (if any) according to tax administration laws.

(Official dispatch No. 1456/CT-CS of the Tax Department, issued on May 28, 2025.)

7. Introducing some new points of the Law on Value Added Tax.

The new VAT Law regulates non-taxable objects, import tax calculation prices, promotional tax calculation prices, and tax rates for a number of goods and services.

(Official dispatch No. 536/CCTKV09-NVDTPC of Tax Department of Region IX, issued on May 22, 2025.)

     8. Tax policy for damaged raw materials.

Regarding tax policy for raw materials damaged by fire: The law on value added tax does not provide for a reduction in value added tax in cases where goods are damaged due to objective reasons.

Raw materials damaged by fire or storm are not entitled to VAT reduction. When selling off, VAT must be declared according to current law.

(Official dispatch No. 4072/CHQ-NVTHQ of the Customs Department, issued on May 6, 2025.)

OTHER CONTENT

  1. Customs procedures for importing used machinery and equipment.

Used machinery and equipment not more than 10 years old from the year of manufacture to the time of import are eligible for import according to Decision No. 18/2019/QD-TTg.

(Official Dispatch No. 5630/CHQ-GQSL of the Customs Department, issued on May 20, 2025.)

  1. Amendment of export tax rate of cement clanhke.

Decree No. 108/2025/ND-CP amends the export tax rate of cement clinker: 5% (increased to 10% from January 1, 2027).

(Decree No. 108/2025/ND-CP, issued on May 19, 2025.)

  1. Convert foreign currency financial statements to Vietnamese Dong.

Financial statements in foreign currencies must be converted to VND when publicly disclosed, according to Clause 2, Article 107, Circular No. 200/2014/TT-BTC.

(Official dispatch No. 7902/CCTKV.XVI-QLDN2 of the Regional Tax Department XVI, issued on May 19, 2025.)

  1. Policy to support business development and startups.

The Politburo requested to abolish business license fees, exempt corporate income tax for 3 years for SMEs, support R&D costs (200% of costs), and other preferential policies.

(Resolution No. 68-NQ/TW of the Politburo, issued on May 4, 2025.)

INVOICE NOTES

  1. Regulations on mandatory content recorded on Electronic Invoices.

From June 1, 2025, electronic invoices must include the buyer’s tax code/citizen identification number, except in special cases (supermarkets, petrol). Incorrect invoices must be adjusted/replaced according to Decree No. 70/2025/ND-CP. Violations of missing content will be punished.

(Official dispatch No. 5624/NTL-QLDN2 of Nam Tu Liem District Tax Team, issued on May 9, 2025.)

  1. Regulations for cases where the Company purchases gift vouchers as gifts.

In case the Company buys vouchers from suppliers of goods and services to give to employees, when collecting money, the seller will create a receipt. When using to purchase goods and services, it is the time when the seller creates an invoice according to regulations.

(Official dispatch No. 7629/CCTKV.XVI-QLDN2 of the Regional Tax Department XVI, issued on May 14, 2025.)

  1. New notes on electronic documents and invoices from June 1, 2025.

Stop using old electronic personal income tax deduction certificates and switch to Decree

No. 70/2025/ND-CP.

Business households apply electronic invoices generated from cash registers since the tax authority accepts them.

In case an enterprise has activities of selling goods and providing services directly to consumers and has registered to use electronic invoices with codes or electronic invoices without codes of the tax authority to serve the above activities of selling goods and providing services directly to consumers before June 1, 2025, it can choose to switch to applying electronic invoices generated from cash registers according to the provisions of Decree No. 70/2025/ND-CP or continue to use electronic invoices registered for use with the tax authority.

(Official dispatch No. 72/CD-CT of the Tax Department, issued on June 1, 2025.)

  1. From June 1, 2025, there will be no more “cancellation of erroneous electronic invoices”

Incorrect electronic invoices should not be canceled but adjusted/replaced according to Decree No. 70/2025/ND-CP, with specific solutions such as notifying errors and issuing adjusted/replaced invoices.

(Decree No. 70/2025/ND-CP, issued on March 20, 2025, effective from June 1, 2025.)

TAX MANAGEMENT

  1. Promoting digital transformation in tax declaration and payment.

The Tax Department requests the Regional Tax Branch to step up propaganda and guidance on electronic tax declaration at https://canhan.gdt.gov.vn (especially for contracted households), install EtaxMobile, and pay taxes electronically. Specific targets: by June 30, 2025, 100% of business households and individuals paying taxes according to the contracted method will generate tax payable and have EtaxMobile accounts, except for areas with particularly difficult socio-economic conditions (striving to reach 80%).

Official dispatch No. 108/CT-TMĐT of the Tax Department on strengthening tax management for business households, issued on March 11, 2025.

  1. Regulations on tax, fee and charge support policies.

Resolution stipulates:

  • Exemption from corporate income tax (CIT) for 2 years, 50% reduction for the next 4 years for income from innovative startups.
  • Exemption from corporate income tax and personal income tax (PIT) for income from transferring shares and capital contributions to innovative start-up enterprises.
  • Exemption from personal income tax for 2 years, 50% reduction for the next 4 years for income from salaries and wages of experts and scientists at innovative startups.
  • 3-year corporate income tax exemption for small and medium enterprises from the date of issuance of the first Business Registration Certificate.
  • Human resource training costs for small and medium enterprises are included in deductible expenses when calculating corporate income tax.
  • Business households and business individuals do not apply lump-sum tax from January 1, 2026.

(Resolution No. 198/2025/QH15 of the National Assembly, issued on May 17, 2025

Resolution No. 68-NQ/TW of the Politburo on private economic development, issued on May 4, 2025)

  1. Support for small and medium enterprises.

The Ministry of Finance is required to review and amend relevant laws (Law on Corporate Income Tax, Law on Fees and Charges, Law on Support for Small and Medium Enterprises, Law on Bidding) to exempt corporate income tax for 3 years for small and medium enterprises, abolish business license fees, simplify support procedures, and prioritize participation in public procurement.

(Resolution No. 138/NQ-CP of the Government, issued on May 16, 2025.)

  1. Support and promote the application of electronic invoices generated from cash registers.

The Tax Department of Region II supports businesses in applying electronic invoices generated from cash registers according to Decree 70/2025/ND-CP. Contact 028-37702288 (extension 6804) if you have any questions. Businesses must adjust their business lines if they are not subject to the application to avoid violating regulations.

(Official dispatch No. 1038/CCTKV02-QLDN4 of Tax Department of Region II, issued on April 29, 2025.)