Annual tax finalization is not simply a roll-up of the monthly or quarterly VAT and PIT returns. For the 2026 accounting period (ending on 31 December 2026 for companies that use a calendar financial year), the company must close its VAS books, prepare the annual financial statements, and finalize Corporate Income Tax (CIT) and Personal Income Tax (PIT). The usual statutory deadline is 31 March 2027.

In practice, foreign-invested (FDI) companies face a real risk of reassessment and late-payment interest in the annual tax-finalization period. The pressure points are usually the gap between provisional CIT paid over the four quarters and the tax due on finalization, errors in employee PIT finalization authorizations, and missing related-party transaction appendices.

This article sets out the full tax finalization Vietnam obligations for 2026 and the file the company should start preparing now.

1. What “Tax Finalization” Means in Vietnam

In Vietnam’s tax-administration system, annual tax finalization has a different legal character and a different scope of review from monthly or quarterly returns. Periodic filing only records provisional figures for the period. Tax finalization is the process of consolidating and reconciling all revenue, expenses, taxable income, and tax already paid across the full 12 months of the financial year, so that the tax the company and its employees actually owe, or are entitled to have refunded or offset, is fixed exactly.

The company’s annual tax-finalization file rests on two core obligations:

• Corporate Income Tax (CIT) finalization: Determine total revenue, deductible expenses, upward and downward adjustments to taxable income, loss carry-forward, and the company’s official CIT for the year.
• Personal Income Tax (PIT) finalization: Determine total salary and wage income the company paid during the year to all employees (local staff and foreign specialists), declare tax already withheld, and finalize on behalf of individuals who have authorized the company to do so.
• Mandatory supporting documents: Annual financial statements prepared under VAS (independently audited for FDI companies) and the related-party transaction return set, if related-party relationships arose.

Under Article 44 of the Law on Tax Administration 2019, the annual tax-finalization file must be filed no later than the last day of the third month after the financial year ends.

2. Corporate Income Tax Finalization for 2026

CIT finalization for the 2026 tax year requires an exact match between the financial statements and the CIT finalization return (Form 03/TNDN), together with the loss-carry-forward and tax-incentive appendices, if any.

• Filing deadline: For companies whose financial year matches the calendar year (1 January 2026 to 31 December 2026), the deadline for the 2026 CIT finalization return and the annual financial statements is 31 March 2027. For companies whose financial year does not follow the calendar year, the deadline is 90 days from the end of that financial year.
• The 80% provisional-CIT rule: Under current rules, total provisional CIT paid over the four quarters of the tax year must not be less than 80% of the CIT due on the annual finalization return. If the four quarterly payments fall short of that 80% threshold, late-payment interest (0.03% per day) is charged on the shortfall from the day after the Quarter 4 payment deadline until the date the tax is actually paid.
• 2026 support-policy update: If provisional CIT is deferred under a 2026 Government support measure (such as Decree 245/2026/ND-CP), the deferral changes only the payment date of the quarterly provisional tax. It does not change the filing deadline for the 2026 CIT finalization return, which must still be filed by 31 March 2027.
• Event-based finalization: If a company is dissolved, bankrupt, divided, merged, converted in ownership, or ends a project in 2026, the CIT finalization file must be filed no later than the 45th day from the date of the decision that triggers the event. The company does not wait until the end of the financial year.

Explore Tax Advisory Services

3. PIT Finalization the Company Must File

When carrying out CIT and PIT finalization for 2026, the company acts as the income-paying organization. It must prepare the PIT finalization return (Form 05/QTT-TNCN) for all salary and wage income paid in 2026.

Key deadlines and legal points:

• Deadline for the company (income-paying organization): The deadline to file the 2026 PIT finalization return for individuals who have authorized the company to finalize on their behalf is 31 March 2027.
• Deadline for individuals who finalize directly: Individuals who must finalize directly with the tax office, those with income from more than one source, or foreign specialists whose contracts have ended, must file by the last day of the fourth month after the calendar year ends, which is 30 April 2027.
• PIT rules updated from 2026: The 2026 finalization period applies the amended Personal Income Tax Law 2025 and Decree 253/2026/ND-CP (effective from 1 July 2026). The company must split income, family deductions, and tax-exempt items arising before and after 1 July 2026 exactly as the General Department of Taxation’s transitional guidance requires, so that tax withheld from staff is calculated correctly. The company finalizes only for individuals who have signed a labor contract of three months or more and who have submitted a valid tax-finalization authorization in the prescribed form.

4. Related-Party Forms Filed with CIT Finalization

For FDI companies, and for domestic companies that had related-party transactions in 2026, the related-party transaction return set is a mandatory part of the file and must be filed together with the CIT finalization return.

The related-party file submitted with finalization includes:

• Appendix I: Information on related-party relationships and related-party transactions.
• Appendices II and III: The list of information and documents to be provided in the Local File and the Master File.
• Appendix IV: The Country-by-Country Report of the ultimate parent company (CbCR), if the company is in scope.

A company that bought or sold goods or services, borrowed, transferred technology, or paid a management fee to its parent or to other group companies must prepare and keep Transfer Pricing Documentation at its head office before finalization, ready to produce if the tax office inspects or audits.

5. Documents to Prepare Before the Deadline

For the tax finalization Vietnam period to run smoothly and avoid last-minute blocks, the accounting team must lock the full legal file before 31 March 2027. Do not wait until the filing week to start the reconciliation. The most common risk at this stage is not a missing return form. There is a shortage of original vouchers to explain and defend the figures already recorded in the books.

A legally complete annual tax-finalization file must cover these five core document groups:

• VAS books and financial statements: This is the foundation of the file. Accounting must close the general ledger for all revenue, expense, tax, and capital accounts, together with the 2026 trial balance. For FDI companies that must be audited, the independently audited annual financial statements are the only legal basis for reconciling the CIT finalization return. Any gap between the finalization figures and the audit report will be the first point the tax office questions in an inspection.
• Tax reconciliation and credit vouchers: This group covers the input and output invoice listings, VAT payment vouchers, the four quarterly provisional CIT payment vouchers, PIT withholding vouchers, and Foreign Contractor Tax (FCT) payment vouchers where payments were made abroad. A 100% match between the listings, the general ledger, and the periodic returns already filed during the year avoids complex supplementary filings before the year is closed.
• PIT finalization authorization and deduction file: This applies only when the company finalizes on behalf of employees. The file includes the dependent-registration form, the PIT finalization authorization, and copies of personal identification (citizen ID or passport). A missing authorization, or a dependent registration filed after the deadline, will cause the family deduction to be excluded from the annual finalization – even if the income was actually withheld.
• Tax-incentive file and loss-carry-forward schedule: This covers the legal documents confirming eligibility for CIT incentives, if any, and the schedule tracking losses carried from prior years into 2026 (Form 03-2A/TNDN). Without a valid loss-carry-forward schedule, prior-year losses will be disallowed as a deduction when CIT for this period is calculated.
• Related-party transaction file (transfer pricing): This covers Appendices I–IV filed with the CIT finalization return, plus the transfer-pricing documentation (Local File and Master File). Every figure in the appendices must match the books exactly for intercompany loans, management fees, royalties, and internal purchases and sales. Leaving this work until March often produces large errors, because data collection and price benchmarking take time.

Reviewing and standardizing all five groups before the deadline turns tax finalization from a high-pressure risk review into a fast, safe, and fully controlled periodic filing.

6. Common Finalization Mistakes in 2026

The 2026 finalization period often produces reassessments and late-payment interest not because the company forgot to file, but because of these four data gaps.

• Missing the 80% provisional CIT threshold: The company underestimates Quarter 4 revenue and expenses, so total provisional payments over the four quarters fall short of 80% of the CIT due on finalization. The tax system charges late-payment interest on the shortfall even if the annual return is filed on time. The way to limit this is to review Quarter 4 figures before locking the provisional payment, rather than scaling Quarter 3 revenue by an estimate.
• PIT finalization for the wrong authorized persons: The company accepts an authorization to finalize for an individual with income from two or more sources, or for a person who does not meet the conditions to authorize. When the tax office reconciles the file, that portion of the company finalization is rejected. The employee must still finalize personally, and the company must explain the authorizations it accepted.
• Missing related-party appendices: The company has loans, management fees, royalties, or purchases and sales with related parties, but does not file Appendices I–IV with the CIT finalization return. A missing appendix is a basis for the tax office to review interest expense and payments to related parties. Interest expense can be capped at 30% of EBITDA if the deduction conditions are not proven.
• A gap between the financial statements and the CIT return: Accounting profit before tax on the financial statements differs from taxable income on the finalization return, and the company has no reconciliation of the adjustments: non-deductible expenses, temporary differences, tax incentives, or loss carry-forward. This is the first point an inspection asks about, because the two sets of figures must lead to the same taxable result.

All four errors can be handled if provisional payments, PIT authorization eligibility, related-party appendices, and the profit-adjustment schedule are reconciled before 31 March 2027.

7. How Vina TPT Supports Annual Tax Finalization

Preparing the 2026 CIT and PIT finalization file requires deep knowledge of VAS accounting and Vietnam’s Law on Tax Administration. Vina TPT provides a full-package annual tax-finalization service so FDI companies can close the year with confidence:

• Data review and health check: Review the full 2026 books, flag non-deductible expense risks, and reconcile the 80% provisional CIT threshold before the filing deadline.
• CIT and PIT finalization file: VAS financial statements, the CIT finalization return, the PIT finalization return, and filing on the company’s behalf through the e-tax system.
• Related-party reporting (transfer pricing): Prepare Appendices I-IV and build a legally compliant transfer-pricing file (Local File and Master File).
• Representation before the tax office: Explain figure differences directly and defend reasonable expenses during tax inspections.

Are you ready for the 2026 tax finalization period? Contact Vina TPT so our CPAs and tax specialists with more than 10 years of experience can review and lock an accurate file before the deadline.

BOOK A FREE CONSULTATION

If you are already doing business in Vietnam and looking for tax advisory support, the harder question is often not whether to hire someone, but which services a tax consultant Vietnam actually offers. Some firms only handle monthly filings. Others also cover VAT refunds, tax health checks, inspection support, and transfer pricing. The scope is not the same, and the right package depends on where your company is in its operating cycle.

This article maps the tax advisory Vietnam services most commonly provided in the market: the routine accounting – tax work that keeps filings on time, the specialized work that protects cash flow and inspection risk, and the point at which an FDI company should bring in a professional partner. The goal is to give you a clear picture of tax compliance Vietnam support before you choose a consultant.

1. What Accounting & Tax Consultant Services Cover Each Month

For FDI companies, the role of a tax consultant Vietnam never stands alone as “someone who just files returns.” It must be tied to the internal accounting system. Periodic tax compliance Vietnam requires absolute accuracy from incoming source documents through to the data submitted on the Tax Authority’s system.

Below are the monthly and quarterly tasks that a professional tax advisory firm performs for FDI companies:

• Document recording and e-invoice review: Receive all incoming and outgoing invoices and bank documents; review the legality, validity, and reasonableness of e-invoices on the General Department of Taxation portal to prevent risks from invoices issued by absconding or inactive companies.
• Full identification of tax obligations arising in the period: Accurately assess the taxes the company must pay, including Value-Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT), Foreign Contractor Tax (FCT), and the business license fee.
• Preparation and on-time filing of tax returns: Build tax computation worksheets, prepare VAT and PIT returns on a monthly or quarterly basis, and file them through the e-tax portal before the statutory deadlines (the 20th of the following month or the last day of the first month of the following quarter), completely eliminating the risk of late-filing penalties.
• Review of VAT deduction conditions and non-cash payment rules: Strictly check input VAT deduction conditions, especially the mandatory bank-transfer requirement for invoices of VND 5 million or more, and verify valid bank payment evidence.
• Monitoring and balancing CIT provisional payments: Provisionally calculate actual quarterly profit to determine the CIT amount payable in advance, ensuring that the total provisional CIT paid over four quarters is not lower than 80% of the CIT payable on the annual finalization, thereby avoiding late-payment interest.
• Monitoring of Foreign Contractor Tax (FCT): Declare and pay FCT promptly whenever outbound payments arise to international suppliers (software royalties, consulting fees, commercial commissions, foreign loan interest, etc.), preventing reassessment risk from omitted transactions.
• Consolidated reporting for the Board of Directors and Headquarters: Prepare tax-obligation summaries and management reports in English and Vietnamese so that management in Vietnam and the overseas parent company can easily track cash flow and compliance status.

Vina TPT’s professional view: A full-package tax compliance service must deliver three core elements: clean accounting books + accurate tax returns + figures that reconcile between accounting and tax. If any one of these is missing, the tax position will be off even if the company still “files on time.”

2. When You Need Deeper Tax Consultant Support

Monthly filing work only keeps the company on the correct administrative rhythm. The actual operations of FDI companies regularly give rise to complex matters that require in-depth tax advisory Vietnam capability:

• VAT refund consulting and implementation: For FDI companies with new investment projects or export businesses, the amount of undeducted input VAT is often substantial. A tax consultant Vietnam will review the entire legal dossier, the validity of invoices, export contracts, and bank payment evidence, then file the application and explain it directly to the Tax Authority in order to recover the refund into the company’s account.
• Tax Health Check: A full review of the accounting books, tax returns, and supporting documents of prior financial years. This work helps the company proactively detect errors, non-deductible expenses, or potential violations before a tax inspection, fundraising, M&A, or share transfer takes place.
• Inspection dossier preparation and representation before the Tax Authority: When a tax inspection or audit decision is issued, the advisor helps collect documents and prepare detailed explanations of sensitive expense items (entertainment, expatriate costs, foreign-exchange differences, etc.) in order to protect reasonable expenses as far as possible and minimize reassessment risk.
• Related-party transaction management and Transfer Pricing (TP) documentation: Most FDI companies have transactions with the parent company or other related parties. The tax advisor is responsible for identifying the scope of related-party transactions, preparing the related-party transaction appendix attached to the CIT finalization return, and building the Transfer Pricing documentation set (Local File and Master File) in strict compliance with Decree 132/2020/NĐ-CP.

3. When Does an FDI Company Need a Tax Consultant?

An FDI company should proactively look for a professional tax advisory partner when it falls into one of the following situations:

• Newly established FDI company: It does not yet have a dedicated accounting and tax team that fully understands the Vietnamese legal system and needs to set up the initial books and compliance processes correctly.
• Need for a VAT refund: It wants to shorten the refund timeline and ensure that the input dossier meets the Tax Authority’s inspection standards so that cash can be released sooner.
• Related-party transactions: It needs advice on preparing Transfer Pricing documentation to the required standard in order to avoid the risk of the Tax Authority imposing prices and assessing additional CIT.
• Change in capital structure or business model: It needs advice on the tax obligations arising from a capital transfer, asset transfer, or corporate restructuring.
• Several years of operation without a proper tax finalization review: It is not certain that prior periods were fully compliant and needs a Tax Health Check to address risks proactively before an inspection decision is issued.

Explore Vina TPT’s Tax Consultant Support Services

4. What to Look for When Choosing a Tax Consultant in Vietnam

When selecting a tax compliance Vietnam partner, the Board of Directors should assess the following practical capability criteria:

• Hands-on experience with FDI clients: A deep understanding of the relationship between VAS and IFRS, a firm grasp of Vietnamese tax regulations, and familiarity with the reporting culture of multinational groups.
• Valid practicing certificates: Both the firm and its staff must hold the Certificate of Practice in Tax Procedure Services and the Accountant / Chief Accountant certificate as required by law.
• Multi-level quality control (QC): Accounting data and tax returns must pass through at least two to three review layers (Specialist → Team Leader → Chief Accountant / Tax Director) before official filing.
• Multilingual communication and reporting: The ability to advise and prepare management reports clearly in English and Vietnamese, enabling Headquarters to monitor compliance with ease.
• Transparent service contract: A clear scope among monthly filing work, in-depth advisory, inspection support, and Transfer Pricing documentation.
• Integrated payroll and accounting: Seamless connection between payroll processing and tax filing so that financial data remains consistent and no discrepancies arise at year-end finalization.

5. How Vina TPT Works as a Tax Consultant for FDI Companies

As a specialist advisory firm in finance, accounting, and tax for foreign-invested enterprises in Vietnam, Vina TPT delivers a two-layer tax advisory solution that helps companies optimize costs and control risk comprehensively.

The service areas Vina TPT implements for FDI companies include:

• Recurring work: Full-package filing of VAT, CIT, PIT, and FCT; review of the legality of incoming documents; bookkeeping under VAS; payroll administration; and provision of a Chief Accountant.
• Specialized work: Preparation of VAT refund dossiers; Tax Health Checks of prior-year books; preparation of inspection files and direct liaison during a tax inspection; and related-party transaction advisory and documentation.

Is your FDI company looking to review its current tax obligations in full, or do you need a reputable tax advisory partner for the long term? Contact Vina TPT today for a consultation on the most suitable service package – accurate, optimized, and free of unnecessary extra costs.

BOOK A FREE CONSULTATION

 

Vietnam Tax Updates August 2026: Key VAT, CIT, PIT, Foreign Contractor Tax, Tax Administration Changes

Vietnam’s tax landscape continues to evolve, with several important changes and clarifications taking effect or being introduced in August 2026. This month’s updates cover key developments in Value Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT), Foreign Contractor Tax (FCT), and tax administration.

Businesses and foreign-invested enterprises operating in Vietnam should pay close attention to these changes to stay compliant, avoid potential tax risks, and ensure timely adjustments to their tax and accounting practices.

New provisions regarding the tax period for newly established taxpayers and VAT refund applications for goods and services subject to the 5% VAT rate.

1. Tax calculation period for newly operating taxpayers

– According to Circular 89/2026/TT-BTC, updated and amended in Official Letter No. 5746/CT-CS dated August 10, 2026, newly established enterprises are allowed to default to quarterly VAT declarations. However, if the enterprise’s revenue in its first calendar year exceeds VND 50 billion (even if the enterprise has operated for less than 12 months in that financial year), it must mandatorily switch to monthly VAT declarations starting from the immediate next calendar year.

2. VAT Refund Dossier for Goods and Services subject to the 5% VAT rate

– New regulations govern the components of the input VAT refund application dossier for manufacturing goods and supplying services subject to the preferential 5% VAT rate. Accordingly, starting from the July 2026 tax period, taxpayers are required to declare the VAT refund claim directly on the VAT Return (Form No. 01/GTGT) and submit together with the Appendix on VAT Refund Claim Information (Form No. 01-8/GTGT) as the basis for the tax authority to review and process the refund request.

30% CIT Reduction for Tax Periods 2026 and 2027

According to the Resolution of the National Assembly on CIT reductions voted and approved on the afternoon of August 24, 2026, at the First Extraordinary Session of the 16th National Assembly

– A 30% reduction of CIT payable is granted to enterprises and organizations legally established under Vietnamese law with an annual total revenue of no more than VND 10 billion for the 2026 and 2027 tax periods. For enterprises currently enjoying other CIT incentives, the reduced tax amount will be calculated based on the actual CIT payable after deducting those existing tax incentives. For enterprises currently enjoying other CIT incentives, the reduced tax amount will be calculated based on the actual CIT payable after deducting those existing tax incentives. This Resolution takes effect from August 24, 2026, and applies directly to the tax periods of 2026 and 2027.

30% reduction of PIT payable for the tax periods of 2026 and 2027 for business individuals

Pursuant to Official Letter No. 7299/CTH-QLDN1 dated August 17, 2026 guiding the implementation of Decree No. 253/2026/NĐ-CP and the new PIT Law

30% reduction of PIT payable for the tax periods of 2026 and 2027 for business individuals

– Implementing a 30% reduction of PIT payable on income arising from production and business activities of resident individuals (including business households and individual businesses) with an annual revenue of no more than VND 10 billion.

Some Key Updates to Tax Administration Regulations

According to Circular 89/2026/TT-BTC updated in Official Letter 5746/CT-CS (August 10, 2026) and several new points in Circular 94/2026/TT-BTC

1. Shortening the time limit for tax payment extensions and late payment interest waivers

– The maximum time limit for tax authorities to assess and resolve dossiers requesting tax payment extensions, penalty waivers, or late payment interest waivers for enterprises is shortened from 10 working days to 07 working days.

2. Prioritizing tax refunds for highly compliant enterprises

According to the guidance in Circular No. 94/2026/TT-BTC on tax risk management, applying 3 risk levels: High risk, Medium risk, and Low risk

– High Risk: For taxpayers with high-risk tax refund dossiers, physical inspection at headquarters will be increased, with a mandatory “inspect first, refund later” approach applied to VAT, and post-refund audits conducted within 1 year.

– Medium Risk: For taxpayers with medium-risk tax refund dossiers: Within 03 years from the date of issuance of the refund decision, tax authorities will apply the “refund first, inspect later” method.

– Low Risk: For taxpayers with low-risk tax refund dossiers: Within 05 years from the date of issuance of the refund decision, tax authorities will apply the “refund first, inspect later” method.

3. General regulations on tax filing, calculation, and allocation

– Pending address changes: In case the tax filing deadline is due but the taxpayer has not completed procedures to change the headquarters address with the business registration authority or the tax office of the destination, the taxpayer must submit tax filing to the tax office of the departure location.

– Incorrect allocation: In case audits find that the taxpayer declared or allocated incorrectly, the directly managing tax authority will re-determine the amount to be allocated to the recipient provinces and handle administrative violations as prescribed (if any).

– No late payment interest on incorrect allocation: In case the taxpayer pays fully and on time but to the incorrect allocation area, the taxpayer will not have to pay late payment interest for the underpaid tax amount in the receiving allocation area. The directly managing tax authority will guide the taxpayer on performing a tax review or a refund-cum-offset procedure to adjust the revenue to the correct jurisdiction.

Amendment to the Tax Finalization Requirements upon Completion of a Foreign Contractor Agreement

Pursuant to Official Letter No. 5746/CT-CS dated August 10, 2026

VAT and CIT Tax Filing for Foreign Contractors and Foreign Subcontractors

– Amendments to the tax filing regulations for cases where Corporate Income Tax is calculated as a percentage of taxable revenue. Under the revised regulations, taxpayers are only required to submit a final tax declaration upon completion of a foreign contractor contract if there is a change (increase or decrease) in the amount of tax previously declared and paid.

– This completely abolishes the mandatory finalization obligation in all cases as previously required, and eliminates a series of accompanying documents such as Copies of the business registration certificate or professional practice license, a schedule of tax payment vouchers, the contract liquidation report, and appendices detailing the allocation of VAT payable by the foreign contractor to the localities entitled to receive the tax revenue.

Conclusion

The Vietnam Tax Updates August 2026 bring important changes and clarifications across VAT, CIT, PIT, Foreign Contractor Tax, and tax administration, including updates that may affect tax declarations, reporting obligations, and compliance procedures.

Businesses should review these changes carefully to understand how they may affect their tax compliance and reporting obligations, and make timely adjustments where necessary.

If you need assistance in interpreting these regulations or assessing their impact on your business, contact Vina TPT. Our accounting and tax professionals can provide practical guidance and support your business in maintaining compliance with Vietnam’s latest tax requirements.

BOOK A FREE CONSULTATION

Vietnam business accounting and tax landscape is undergoing sweeping structural reforms between 2025 and 2026. Foreign Direct Investment (FDI) enterprises must align with five critical regulatory shifts: Decree 70/2025/ND-CP (e-invoicing rules), Circular 99/2025/TT-BTC (new accounting framework replacing Circular 200), the 2024 Value Added Tax (VAT) Law (effective July 1, 2025), the 2025 Corporate Income Tax (CIT) Law No. 67/2025/QH15, and the 2025 Personal Income Tax (PIT) Law. 

This guide examines the business impacts of Vietnam’s 2025–2026 tax and accounting reforms on foreign-invested firms under Vietnamese Accounting Standards (VAS).  

• Key Overview: Recent Tax & Accounting Regulatory Reforms in Vietnam   
• 5 Major Ways Tax Reforms Directly Affect FDI Business Accounting Requirements   
• Comprehensive Business Accounting Services Tailored for FDI Enterprises 
• Frequently Asked Questions 

Key Overview: Recent Accounting and Tax Regulatory Reforms in Vietnam 

The General Department of Taxation (GDT) and the Ministry of Finance (MOF) in Vietnam are rapidly accelerating digital tax administration, big-data cross-reconciliation, and international compliance integration. The modern regulatory environment leaves zero margin for record-keeping delays or bookkeeping discrepancies. 

For foreign-invested enterprises operating across Ho Chi Minh City (TPHCM), Hanoi, and key industrial zones, tax and accounting compliance is no longer a passive administrative routine. Regulatory compliance directly influences cash flow timing, profit repatriation, transfer pricing audit exposure, and corporate reputation. Understanding the full scope of informational and navigational requirements across legislative mandates is essential for maintaining tax health and operational continuity in Vietnam. 

Timeline of Critical Accounting and Tax Changes (2025–2026) 

• 01/06/2025 — Decree 70/2025/ND-CP: Amends e-invoice regulations, enforcement mechanisms, data submission timing, and mandatory invoice contents. Introduces strict cut-offs for customs-linked transaction recording. 
• 01/07/2025 — Law on VAT 2024 (Law No. 48/2024/QH15): Officially comes into force, tightening input VAT deduction criteria, mandating non-cash payment verification, and restricting VAT refund eligibility for export-import and investment projects. 
• 01/10/2025 — Law on CIT 2025 (Law No. 67/2025/QH15): Takes effect for the 2025 tax year onwards, overhauling deductible expense conditions, related-party transaction controls, and foreign enterprise taxation rules. 
• 01/01/2026 — Circular 99/2025/TT-BTC: Enforces a modernized accounting system replacing the decades-old Circular 200/2014/TT-BTC framework, altering chart of accounts, foreign exchange treatments, and financial statement presentations. 
• 01/07/2026 — Law on Personal Income Tax 2025: Officially applies to individual income tax calculations, streamlining tax brackets and adjusting personal and dependent relief thresholds. 

5 Ways Accounting & Tax Reforms Impact FDI Business Accounting Requirements 

The convergence of these regulatory updates shifts tax compliance from periodic reporting to real-time verification. For FDI enterprises operating in Vietnam, structural mismatches between accounting entries, bank settlement records, customs declarations, and tax filings will automatically trigger tax authority risk alerts.

Decree 70/2025/ND-CP: Stricter E-Invoice and Transaction Recording Requirements

Decree 70/2025/ND-CP fundamentally alters the operational rules governing e-invoice generation, content accuracy, and timing. One of the most vital changes for export-oriented FDI companies is the strict requirement that e-invoices for exported goods must be issued no later than the next working day after customs clearance completion. 

Furthermore, Decree 70/2025 clarifies e-invoice requirements for cross-border digital services, software licenses, and complex intercompany transactions requiring multi-system data reconciliation. Accounting teams can no longer delay issuing invoices until month-end or quarter-end closing. Sales recognition, invoice logs, customs clearance timestamps, and tax declaration periods must be tightly aligned to avoid severe timing mismatch penalties. 

Expert Insight (Decree 70/2025): 

This is far more than an administrative “e-invoice compliance” task. For FDI enterprises engaged in import/export or cross-border intercompany service charges, an incorrect invoice issuance date directly disrupts revenue recognition timing under VAS/IFRS and invalidates 0% export VAT treatment during tax audits. 

Circular 99/2025/TT-BTC: New Accounting and Financial Reporting Requirements

Effective from January 1, 2026, Circular 99/2025/TT-BTC officially replaces the long-standing Circular 200 accounting regime. This represents the most comprehensive accounting overhaul in Vietnam over the past decade, introducing updated rules for accounting vouchers, the statutory chart of accounts, general ledger posting routines, foreign-exchange difference treatments, and year-end financial statement disclosures. 

Foreign-invested companies operating in Vietnam must systematically update their ERP systems (e.g., SAP, Oracle, Microsoft Dynamics) and local chart-of-accounts mapping. Simply rolling forward previous bookkeeping setups will result in non-compliant statutory financial statements, blocking profit remittance approvals from the State Bank of Vietnam (SBV) and tax authorities. 

Expert Insight (Circular 99/2025): 

Circular 99 is the cornerstone change for business accounting services. It directly dictates how transactions are recorded, books are closed, and statutory financial statements are compiled. FDI management must conduct an immediate ERP chart-of-accounts gap analysis prior to the 2026 fiscal year. 

EXPLORE ACCOUNTING SERVICES FOR FDI BUSINESS

2025 Personal Income Tax Law: Major Changes to Payroll Tax Calculations

Beginning in the 2026 tax assessment year, Vietnam’s Personal Income Tax system transitions from seven progressive tax brackets down to five streamlined tax brackets. Simultaneously, the personal deduction allowance increases to VND 15.5 million per month (VND 186 million annually), and the dependent allowance increases to VND 6.2 million per month per dependent. 

FDI employers employing expatriates, key foreign executives, and high-earning local personnel must reconfigure their HR payroll engine, employee tax profiles, dependent documentation archives, and monthly tax withholding logic. Given that expatriate compensation often involves gross-up packages, housing allowances, and school fee benefits, accurate PIT withholding calculations are vital to control corporate payroll costs. 

Expert Insight (2025 PIT Law): 

With foreign experts and senior management earning high income packages, the shift in progressive tax brackets directly recalibrates net compensation, tax gross-up expenses, and monthly corporate cash flow projections. Payroll accounting must be seamlessly integrated with corporate tax compliance. 

2025 Corporate Income Tax Law: Greater Focus on Taxable Income and Deductible Expenses

The 2025 Corporate Income Tax Law (No. 67/2025/QH15), effective October 1, 2025 and applicable to the 2025 tax year, establishes stringent conditions for deductible expenses, taxable income determination, tax incentive eligibility criteria, and foreign contractor income taxation. Foreign-invested businesses face heightened documentation standards for intercompany management fees, technical consulting services, trademark royalties, and interest deductions under transfer pricing rules (Decree 132/2020/ND-CP framework). 

Accounting teams must establish robust internal controls to substantiate economic substance, benefit tests, and direct transfer pricing documentation for all related-party transactions prior to year-end tax finalization. 

Expert Insight (2025 CIT Law): 

For FDI companies, CIT compliance extends far beyond multiplying accounting profit by 20%. The core challenge lies in proving that overseas parent company charges—such as regional management fees, IT allocations, and royalty fees—are fully deductible under Vietnamese tax rules with adequate supporting dossier proof. 

2025 Value Added Tax Law: Stricter Input VAT Deduction and Payment Controls

Enforced from July 1, 2025, the 2024 VAT Law drastically tightens input VAT deduction rules. Most notably, the statutory threshold for mandatory non-cash payment documentation is reduced from VND 20 million down to VND 5 million (VAT-inclusive) for any purchase transaction. Furthermore, transaction aggregation rules prevent split-invoicing tactics designed to bypass bank transfer requirements. 

Under these stricter rules, tax officers will automatically disallow input VAT deductions and corresponding CIT expense deductions if payment records fail to match the official corporate bank account of the issuing vendor. 

Expert Insight (2025 VAT Law): 

In daily accounting practice, accountants cannot merely verify whether an e-invoice is authentic on the GDT portal. They must perform a 3-way match: valid e-invoice + compliant non-cash payment proof + transaction contract/delivery note. Any flaw in payment evidence will trigger input VAT clawbacks and tax interest penalties. 

Vina TPT: Comprehensive Business Accounting Services Tailored for FDI Enterprises 

Vina TPT is a premier business consultancy and accounting firm operating in Ho Chi Minh City (TPHCM) and key economic hubs across Vietnam. We specialize in empowering Foreign Direct Investment (FDI) companies, foreign contractors, and multinational branches to navigate Vietnam’s complex regulatory environment with absolute financial clarity and 100% legal compliance.

Our tailored business accounting services bridge the critical gap between international financial management standards (IFRS/US GAAP) and mandatory Vietnamese statutory requirements (VAS, Circular 99/2025, GDT tax laws). 

Why Leading FDI Enterprises Choose Vina TPT: 

• Full-Scope VAS & IFRS-Compliant Bookkeeping: Accurate monthly bookkeeping and statutory financial reporting under Vietnamese Accounting Standards (VAS) and IFRS upon request, delivered with comprehensive monthly management reports and dedicated bilingual accounting professionals. 

• Periodic VAT Compliance & Filing: Complete preparation and timely filing of monthly or quarterly Value Added Tax (VAT) returns. 

• Payroll Processing & Social Insurance Management: End-to-end payroll administration, precise salary calculations, gross-up tax modeling, and seamless handling of mandatory Social Insurance (SI/HI/UI) compliance and employee profiles. 

• PIT Calculation & Periodic Tax Filing: Compliant Personal Income Tax (PIT) computation for both local and expatriate employees, dependent registrations, and preparation of periodic PIT declarations and annual tax finalizations. 

• FDI Investment & Statutory Reporting: Timely preparation and submission of mandatory periodic investment activity reports to foreign investment authorities (MPI/DOIT), ensuring strict regulatory compliance for FDI projects. 

• Back-Office & Document Administration: Comprehensive operational support including e-invoice issuance, systematic archiving of physical and digital accounting vouchers, and management of statutory business records. 
• Proactive Tax Advisory & Regulatory Updates: Continuous monitoring and real-time updates on new tax and accounting regulations, backed by proactive advisory support to resolve operational queries and shield your business from compliance risks. 

Frequently Asked Questions (FAQ)

Need Professional Accounting & Tax Support for Your FDI Business? 

Contact Vina TPT today for a free consultation and customized solution tailored to your compliance needs! 

BOOK A FREE CONSULTATION

 

1. From July 1, 2026, a series of important legal changes in the fields of accounting and tax officially take effect. The key focuses of this reform package include Decree 253/2026/ND-CP (guiding personal income tax), Circular 58/2026/TT-BTC (the new accounting regime), and the Tax Administration Law 2025 (Law on Tax Administration No. 108/2025/QH15).

For FDI enterprises, Accounting Departments, and Human Resources (HR) teams, these adjustments are not merely changes in administrative procedures. They directly impact payroll calculation processes, social insurance contributions, tax withholding, and the preparation of financial statements. Delays or inaccurate application of the new regulations can lead to declaration errors, administrative penalties, and strict inspections from the tax authorities.

This article summarizes the core new points together with practical notes to help businesses ensure tax compliance, proactively eliminate legal risks, and operate cash flow safely from the July 1, 2026 milestone.

5 Important Changes to Personal Income Tax under Decree 253/2026/ND-CP

Decree 253/2026/ND-CP introduces fundamental adjustments that directly affect personal income tax (PIT) obligations, which Accounting and Payroll departments must implement immediately:

1. Mid-shift / lunch meal allowance – tax-exempt up to VND 1.2 million per person per month

Pursuant to Point g, Clause 2, Article 8 of Decree 253/2026/ND-CP, from July 1, 2026, the tax exemption for mid-shift meal allowances is tightened under a fixed limit:

• Cash payment: The mid-shift or lunch meal allowance paid in cash by the enterprise to employees is exempt from PIT up to a maximum of VND 1.2 million per person per month. Any amount exceeding this limit must be included in taxable income subject to PIT.
• In-kind payment / meal vouchers: If the enterprise directly organizes a canteen, purchases industrial meal portions, or issues meal vouchers, the entire value of the meals is exempt from PIT, regardless of the form of payment.

Important note: The new regulation abolishes the previous principle that “whatever amount the enterprise stipulates in its internal regulations is exempt.” Accountants must review the company’s Financial Regulations and Labor Contracts to adjust payment norms to ensure compliance.

2. Increase in the 10% PIT withholding threshold to VND 5 million per payment

According to Clause 2, Article 50 of Decree 253/2026/ND-CP:

• Organizations paying income are required to withhold 10% personal income tax (PIT) only when the payment reaches VND 5 million or more per time for individuals who have not signed a labor contract or have signed a labor contract of less than 3 months (replacing the previous threshold of VND 2 million per payment).
• For payments below VND 5 million per time, the enterprise is not required to withhold the 10% tax, unless the individual specifically requests it.
• Individuals who estimate that their total income after family deductions has not yet reached the taxable threshold may still submit a Commitment Letter to the enterprise to temporarily avoid the 10% withholding.

3. Salary and bonus payments to former employees still require 10% withholding

Decree 253/2026/ND-CP clarifies the withholding obligation for payments arising after the termination of the employment relationship. When an enterprise pays salary, bonuses, commissions, or other support amounts of VND 5 million or more per payment to former employees, the enterprise is required to withhold personal income tax (PIT) at the rate of 10%. Omitting this obligation will result in the enterprise being subject to additional tax assessments and late-payment penalties during the annual tax finalization.

4. Stricter deadline for registering dependents – before 31 December

Pursuant to Clause 2, Article 48 of Decree 253/2026/ND-CP, registration for family circumstance deductions for dependents must be completed before 31 December of the tax year. If the registration dossier is submitted after this deadline, the employee will not be entitled to the family circumstance deduction for that tax year, directly affecting the individual’s tax finalization benefits.

5. 100% tax exemption on overtime and night-shift pay

According to Article 26 of Decree 253/2026/ND-CP:

• Enterprises are exempt from personal income tax (PIT) on the entire amount of overtime pay and night-shift pay, provided the conditions under the Labor Code are fully met (replacing the previous rule that only exempted the differential portion compared with normal working-day pay).
• Conditions for application: The enterprise must maintain complete supporting documentation (night-shift/overtime timesheets, payroll calculations, and overtime assignment documents).
• Effective date: Applicable from 1 January 2026 for resident individuals and from 1 July 2026 for non-resident individuals.

Circular 58/2026/TT-BTC: New Accounting Regime for Micro-Enterprises

In addition to tax regulations, the accounting and tax regime from July 1, 2026, marks an important change with the Ministry of Finance’s issuance of Circular 58/2026/TT-BTC (completely replacing Circular 132/2018/TT-BTC).

Circular 58/2026/TT-BTC provides detailed guidance on accounting documents, accounting books, and the preparation and presentation of financial statements for micro-enterprises, helping to simplify the accounting apparatus while still ensuring legal transparency.

Criteria for identifying a Micro-Enterprise (under Decree 80/2021/ND-CP):

• Agriculture – Forestry – Fishery, Industry & Construction sectors: Average number of employees participating in social insurance per year does not exceed 10 people AND total annual revenue does not exceed VND 3 billion (or total capital does not exceed VND 3 billion).
• Trade & Services sectors: Average number of employees participating in social insurance per year does not exceed 10 people AND total annual revenue does not exceed VND 10 billion (or total capital does not exceed VND 3 billion).

• Flexible choice of accounting regime:

Micro-enterprises have the right to choose to apply the Accounting Regime for Small and Medium-sized Enterprises (Circular 133/2016/TT-BTC) if it better suits their management needs. However, the chosen accounting regime must be applied consistently throughout an entire financial year; any change of regime may only be made at the beginning of the following accounting year.

• Financial Statement System for Micro-Enterprises:

Micro-enterprises that pay corporate income tax using the method based on taxable income must prepare annual financial statements in accordance with the guidance in Circular 58/2026/TT-BTC, including:

• Statement of Financial Position (Form B01 – DNSN).
• Income Statement (Form B02 – DNSN).

Key Points to Note under the Tax Administration Law 2025

The Tax Administration Law 2025 (Law on Tax Administration No. 108/2025/QH15, promulgated on 10 December 2025) takes effect from 1 July 2026. It introduces stricter sanctions to strengthen declaration discipline and enhance the transparency of electronic invoice data.

Shortening of the time limit for supplementary tax declaration dossiers to 5 years

One of the core changes that Accounting teams must particularly note under Clause 5, Article 12 of the Tax Administration Law 2025 is: The time limit allowing taxpayers to self-detect errors and submit supplementary declaration dossiers has been shortened from 10 years to 5 years, counted from the deadline for submitting the tax declaration dossier of the tax period containing the error.

Taxpayers may perform supplementary declarations within the 5-year period in the following cases:

1. The supplementary declaration is made before the tax authority or competent authority issues a Decision on tax inspection or examination at the taxpayer’s premises.
2. The supplementary tax declaration dossier does not fall within the scope and period of the inspection stated in the Inspection Decision.
3. The dossier is not related to a case in which the investigating authority has requested that the status quo be maintained to serve a criminal investigation.

Risk warning: Shortening the adjustment period to 5 years requires enterprises to strengthen annual internal audits of accounting books, rather than allowing errors to accumulate over a longer period as in the past.

Immediate Actions FDI Enterprises Need to Take for Compliance

To maintain absolute tax compliance and optimize operating costs under the new regulations effective from 1 July 2026, FDI enterprises should immediately implement the following actions:

• Review Salary & Benefit Policies: Adjust the mid-shift meal allowance (cap at VND 1.2 million per month if paid in cash) and the regulations on overtime and night-shift pay within the payroll software system.
• Update the 10% Tax Withholding Process: Configure the accounting system to apply the new 10% withholding threshold for payments of VND 5 million or more per time to casual workers and former employees.
• Accelerate Standardization of Dependents: Urge employees to complete supporting documents and submit family circumstance deduction registrations before 31 December.
• Check the Synchronization of Accounting & Tax Data: Review the consistency between sales software, the electronic invoice system, and VAT/CIT tax declarations.

• Update Enterprise Information: Review the head office address, lease agreements, and legal representative information on the enterprise registration portal to avoid being classified by the tax authorities as a “high-risk taxpayer.”

Conclusion

The legal changes in accounting and tax effective from 1 July 2026 present a challenge of rapid adaptation for Accounting and HR teams. Proactively reviewing accounting processes, updating new tax policies, and controlling electronic invoice data are the keys that help FDI enterprises operate safely, transparently, and sustainably in Vietnam.

The entire adjustment process must be carried out rigorously to maximize benefits for employees and protect the enterprise against tax inspections.

Follow the News & Insight & News section of Vina TPT for continuous updates on the latest in-depth analyses of Accounting and Tax policies in Vietnam.

BOOK A FREE CONSULTATION