Accounting & Tax, Labor & Insurance Knowledge, Lasted News

[Newsletter] Vietnam Tax Policy Updates November 2025 – VAT, PIT and Labor

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The November 2025 newsletter highlights key Vietnam tax policy updates that businesses need to closely monitor. The focus is on important VAT regulations related to export activities, VAT refund mechanisms, invoice usage during enforcement periods, and compliance requirements for export processing enterprises (EPEs). In addition, the update addresses notable Personal Income Tax (PIT) changes, particularly policies on employee meal allowances, as well as labor regulations governing salary payments for foreign employees transferring within an enterprise. These developments have significant implications for business compliance, operations, and tax planning in Vietnam.

1. VALUE ADDED TAX (VAT)

1.1. VAT amount has not been refunded because it exceeds 10% of the exported revenue shall be deducted in the next refund period.

Official dispatch No. 5094/CT-CS dated November 11, 2025 of the Tax Department on Notes on VAT refund policy for exported goods
Regulations related to VAT refunds for exported goods and services were previously stated in Article 2 of Circular 25/2018/TT-BTC (amending and supplementing Clause 4, Article 18 of Circular 219/2013/TT-BTC) and are now applied according to the provisions of Clause 1, Article 15 of VAT Law No. 48/2024/QH15, Clause 2, Article 29 of Decree 181/2025/ND-CP and Appendix II of Circular No. 69/2025/TT-BTC.
According to Vietnam tax policy updates, in case a business establishment exports goods and services in a month or quarter, if the input VAT amount that has not been fully deducted is 300 million VND or more, it will be entitled to a VAT refund on a monthly or quarterly basis. However, the maximum refunded input VAT amount of exported goods and services must not exceed 10% of the revenue of exported goods and services in the tax refund period.
For the input VAT amount of exported goods and services that has not been refunded because it exceeds 10% of the revenue of exported goods and services of the previous tax refund period, the enterprise is allowed to deduct it in the next tax period to determine the VAT amount to be refunded for exported goods and services of the next tax refund period.
1.2. Notes for VAT for export activities:

Official dispatch No. 5489/CT-CS dated November 25, 2025 of the Tax Department on value added tax policy.

According to the Tax Department’s note, the principle of input VAT deduction for goods and services used for production and trading of goods and services subject to VAT is to be fully deducted (Article 14 of the Law on VAT No. 48/2024/QH15, Clause 1, Article 23 of Decree No.181/2025/ND-CP, Clause 4, Article 24 of Decree No. 181/2025/ND-CP).

In case an enterprise has both export and domestic consumption activities, it is necessary to separately account for input VAT for export activities (Clause 1, Article 15 of VAT Law No.48/2024/QH15, Clause 2, Article 29 of Decree No. 181/2025/ND-CP). If it is not possible to account separately, the input VAT for exported goods will be determined according to the ratio of export revenue to total taxable revenue (Appendix II of Circular No. 69/2025/TT-BTC).

1.3. Regarding the use of invoices during the enforcement period

According to Official dispatch No. 5282/CT-CS dated November 18, 2025 of the Tax Department on the conditions for allowing invoice issuance during the period of enforcement, Tax Department has based on the provisions of Article 4, Article 13 of Decree 123/2020/ND-CP (amended in Clause 3, Clause 10, Article 1 of Decree 70/2025/ND-CP) and Article 34 of Decree 126/2020/ND-CP to respond as follows:

  • Under the latest Vietnam tax policy updates, in cases where an enterprise is subject to compulsory measures to stop using invoices but submits a written request to continue invoice usage and falls under situations where the tax authority issues invoices on a per-occurrence basis, the enterprise will be issued electronic invoices with codes from the tax authority for each occurrence. The enterprise bears full responsibility for the accuracy of all information stated on these electronic invoices. The issuance and declaration of related tax obligations for invoices issued per occurrence by the tax authority must be carried out in accordance with Clause 10, Article 1 of Decree No. 70/2025/ND-CP.
  • In case an enterprise is being forced to stop using invoices and has a written request to use invoices to have a source of payment for workers’ salaries and expenses to ensure continuous production and business, the tax authority will continue to allow the enterprise to use invoices each time they arise, on the condition that the enterprise must immediately pay at least 18% of the revenue on the used invoices to the state budget according to the provisions of Point d, Clause 4, Article 34 of Decree No. 126/2020/ND-CP mentioned above.

1.4. Regarding VAT declaration and payment of export processing enterprises (EPEs)

Official dispatch No. 3905/HYE-QLDN3 dated October 31, 2025 of Hung Yen Provincial Tax Department has provided the instructions regarding VAT declaration and payment of export processing enterprises (EPEs) as below:

  1. VAT payers:
  • The enterprise is not a VAT payer for production activities for export (export processing activities) and is not required to declare VAT for this activity.
  • Export processing enterprises must pay VAT if they carry out business activities other than export processing activities, for example:

-Purchase domestic goods for export (exercise export rights).

-Import goods for domestic sale (exercise import rights).

  1. Conditions for declaring and paying VAT (for business activities other than manufacturing activities):
  • Separate accounting: Export processing enterprises must separately account for transactions of buying and selling goods that are not part of export processing activities (for example, import-export activities).
  • Tax registration: The enterprise needs to register for tax with the domestic tax authority to declare and pay VAT separately for these other business activities.
  • Arrangement of separate areas: The arrangement of the storage area for goods serving processing activities must ensure separation from the storage area for goods serving other production and business activities.
  1. VAT declaration period:
  • Monthly declaration: According to the provisions of Point a, Clause 1, Article 8 of Decree No. 126/2020/ND-CP, the enterprise shall declare VAT monthly.
  • Quarterly declaration: If the enterprise meets the criteria specified in Point a, Clause 1, Article 9 of Decree No.126/2020/ND-CP (total revenue from sales of goods and provision of services of the previous year is 50 billion VND or less), the enterprise can choose to declare VAT quarterly.
  1. Using invoices:
  • If the enterprise declares VAT using the deduction method, use VAT invoices.
  • If the enterprise declares VAT using the direct method, use sales invoices.
  • When selling goods and providing services domestically and when selling goods and providing services between organizations and individuals in duty-free zones, exporting goods and providing services abroad, the invoice must clearly state “For organizations and individuals in duty-free zones”.

In short, under the latest Vietnam tax policy updates, export processing enterprises are only required to declare and pay VAT for business activities other than export processing activities (production of export goods). These enterprises must separately account for such activities and register for tax to declare and pay VAT in accordance with regulations. The VAT declaration period may be monthly or quarterly, depending on the revenue of the previous year.

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2. PERSONAL INCOME TAX (PIT)

2.1. The Personal income tax policy regarding the limit on spending money for lunch and mid-shift meals

As part of the Vietnam tax policy updates, Official Dispatch No. 5106/CT-CS dated November 12, 2025, issued by the Tax Department, provides guidance on personal income tax policy regarding the limits on lunch and mid-shift meal expenses used as a basis for determining personal income tax. In this dispatch, the Tax Department cites the following regulations and instructions for reference:

  • Article 103 of the Labor Code No. 45/2019/QH14 stipulates that “The regime of salary increase, promotion, allowances, subsidies and incentives for employees is agreed upon in the labor contract, collective labor agreement or regulations of the employer”.
  • Clause 1, Article 33, Clause 9, Article 34 of Decree No. 44/2025/ND-CP on salary and bonus regimes in state-owned enterprises stipulates: “This Decree takes effect from April 15, 2025 and the regimes in this Decree are implemented from January 1, 2025”. “The mid-shift meal regime or fixed-quantity meal regime for employees, Executive Board, Board Members, and Supervisors is implemented according to the agreement in the collective labor agreement or the internal rules and regulations of the enterprise according to the provisions of the Labor Code”.
  • Article 10 of Decree No. 248/2025/ND-CP on salary and bonus regimes in state-owned enterprises stipulates: “This Decree takes effect from September 15, 2025 and the regimes in this Decree are implemented from August 1, 2025. Decree No. 44/2025/ND-CP is abolished”.
  • Section g.5, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC stipulates: “In case the employer does not organize mid-shift meals or lunch but pays for the employee, it is not included in the taxable income of the individual if the level of expenditure is in accordance with the guidance of the Ministry of Labor – Invalids and Social Affairs. In case the level of expenditure is higher than the guidance of the Ministry of Labor – Invalids and Social Affairs, the excess expenditure must be included in the taxable income of the individual. The specific expenditure level applicable to state-owned enterprises… shall not exceed the guidance of the Ministry of Labor – Invalids and Social Affairs. For non-state-owned enterprises… the expenditure level shall be decided by the head of the unit in agreement with the chairman of the trade union but shall not exceed the level applicable to state-owned enterprises”.
  • In Vietnam tax policy updates: Official Dispatch No. 1387/CTL&BHXH-TLSXKD dated September 29, 2025 of the Ministry of Home Affairs, it is instructed: “According to the provisions of Article 103 of the Labor Code, incentive regimes for employees are agreed upon in the labor contract, collective labor agreement or regulations of the employer. The mid shift meal regime for employees, Executive Board, Council members, and Controllers in state-owned enterprises from January 1, 2025 to July 31, 2025 is implemented according to the provisions of Clause 9, Article 34 of Decree No. 44/2025/ND-CP on salary and bonus regimes in state-owned enterprises; from August 1, 2025, it is implemented according to the provisions of the Labor Code”.

According to Vietnam tax policy updates, the current allowance of VND 730,000 per month for mid-shift meals has been abolished. Instead, enterprises may determine a reasonable allowance level based on the agreements in the collective labor agreement or in the company’s internal rules and regulations. In the case where the Company incurs expenses for mid-shift meals for employees working at the company, if this allowance is specifically stipulated regarding eligibility conditions and allowance levels in the labor contract, the collective labor agreement, or the company’s internal rules and regulations, it shall not be included in taxable personal income (PIT). If the allowance exceeds the stipulated level, the excess amount will be included in taxable PIT income.

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3. LABOR 

3.1. Regarding Salary payment for foreign employees moving within the enterprise

Official dispatch No. 10861/BNV-CVL dated November 19, 2025 of the Ministry of Home Affairs on domestic salary payment for foreign employees moving within the enterprise.

The Ministry of Home Affairs notes that, in the case of “foreign workers being paid (in Vietnam)”, before the expected working date, the enterprise employing the foreign worker must request a work permit and sign a labor contract as prescribed (Clause 1, Article 13, Point d, Clause 1, Article 21 of the Labor Code No. 45/2019/QH14 and Point a, Clause 1, Article 2, Clause 4, Article 22 of Decree 219/2025/ND-CP), and must also participate in compulsory social insurance in Vietnam for this person as prescribed (Point a, Clause 2, Article 2 of the Law on Social Insurance No. 41/2024/QH15).

The case of “foreign employees being paid in Vietnam” (performing procedures to request a work permit) and the case of “foreign employees transferring within the enterprise” (performing procedures to request a certificate of not being subject to a work permit under Article 8 of Decree 219/2025/ND-CP) are two different cases according to the provisions of the Labor Code No. 45/2019/QH14 and guiding documents on foreign employees working in Vietnam.

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Financial Reporting and Tax Finalization Services 2025 in Vietnam

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Financial Reporting and Tax Finalization Services 2025 in Vietnam

Choose Vina TPT for consistent, professional accounting support

1. Overview of Financial Reporting & Tax Finalization in Vietnam 2025

In 2025, FDI enterprises and domestic enterprises in Vietnam must fully comply with financial reporting and tax settlement obligations as prescribed. The annual financial statements include the Balance Sheet, Income Statement, Cash Flow Statement and Notes to the Financial Statements, all of which must be prepared in accordance with Vietnamese Accounting Standards (VAS).

In parallel with preparing the Financial Statements, enterprises must make corporate income tax and personal income tax settlements within 90 days from the end of the fiscal year. The increase in the frequency of reviews and inspections by tax authorities requires enterprises to have accurate data, a synchronous accounting system and complete records to avoid the risk of being penalized.

2. Vina TPT’s Financial Statement Services

Vina TPT provides in-depth financial reporting services, helping businesses prepare accurate, transparent and fully VAS-compliant reports. Not only synthesizing data, we also provide a clear view of the financial situation and ensure readiness for audits or tax inspections.

Vina TPT’s financial reporting services include:

  • Preparing Balance Sheets, Income Statements, Cash Flow Statements and Financial Statement Notes
  • Reconciling general ledgers, detailed ledgers, accounting documents
  • Reviewing and adjusting prepaid expenses, fixed asset depreciation, provisions
  • Checking compliance with VAS and tax regulations
  • Detecting and handling data discrepancies before closing the books
  • Providing bilingual reports (Vietnamese, English, Japanese)

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3. Corporate Income Tax (CIT) Finalization Services

Vina TPT provides in-depth corporate income tax settlement services, helping businesses control data, comply with regulations and limit errors in the context of many important adjustments to tax policies and the Enterprise Law from October 1, 2025.

3.1 Review expenses and determine taxable profits

Vina TPT checks all expenses to determine which are deductible and which are not deductible in accordance with the Corporate Income Tax Law; reviews depreciation of fixed assets, interest expenses, provisions and expenses that are easily excluded during tax inspections. At the same time, the team compares data between financial statements and tax declarations to accurately calculate taxable profits, ensuring that there are no difficult-to-explain differences.

3.2 Prepare corporate income tax settlement declarations and in-depth risk assessment

The service includes full preparation of declarations, loss transfer appendices, tax incentives, cost analysis tables and explanation documents according to tax inspection standards. Vina TPT also analyzes risks by group such as costs without sufficient documents, incorrect revenue-expense periods, discrepancies in electronic invoice data, or lack of linked transaction records. From there, it proposes solutions to reduce the risk of collection and fines.

3.3 Tax optimization consulting and notes on new regulations from October 1, 2025

Vina TPT supports businesses in applying tax incentives to the right subjects, implementing valid loss transfers, and optimizing tax obligations based on legal mechanisms. In particular, changes effective from October 1, 2025 related to electronic records management, tightening cost control, and expanding explanation requirements make the settlement process more stringent; businesses need to carefully compare data, contracts, and documents to avoid risks when tax authorities inspect.

4. Personal Income Tax (PIT) Finalization for Employees & Foreigners

Personal income tax settlement is a major challenge for businesses with large staff numbers, diverse income structures or foreign employees. Vina TPT provides a complete PIT solution, helping businesses process quickly, correctly and fully comply with new regulations.

4.1 Review PIT data and prepare settlement documents

Vina TPT checks tax data of each employee monthly (income, exemptions, deductions, working days, taxes paid) to ensure consistent data before making settlement. At the same time, collect and check all documents: labor contracts, payroll, residence papers, entry/exit history of foreign experts… to help businesses have accurate data from the beginning of the year.

4.2 Preparation and submission of PIT settlement dossiers and tax refund support

Services include preparing PIT settlement declarations for businesses and individuals, correctly classifying residents and non-residents, applying double taxation agreements (DTA) if any, and submitting dossiers on time. Vina TPT also carries out tax refund procedures for employees and foreign experts, monitors the processing process and works with tax authorities to ensure that dossiers are processed quickly.

4.3 Representing and working with tax authorities and providing in-depth advice for foreign workers

Vina TPT represents businesses when requested by tax authorities, helping to reduce the workload for HR and accounting departments. At the same time, it provides in-depth advice on tax residency, applying DTA, handling business trips to multiple countries, income arising outside of Vietnam, or common international risks. This is especially important for businesses that employ many foreign experts and need to comply with cross-border tax standards.

SOLVE YOUR TAX CHALLENGES

Vina TPT’s Financial Statement Services

5. Common Pain Points & Why Businesses Need Professional Support

At the end of each year, many businesses face difficulties due to:

  • Incorrect data or inconsistent recording
  • Lack of documents or incomplete records
  • Internal accounting systems and reporting to parent companies are not synchronized
  • Late submission deadlines due to limited staff
  • Risks of fines and additional collection when tax authorities inspect
  • Lack of expertise in VAS and complex tax regulations

Professional services from Vina TPT help businesses avoid these risks and ensure the tax filing process runs smoothly.

6. Why Choose Vina TPT for Reporting & Tax Services

Values:

  • Vina TPT helps businesses maintain a transparent accounting system, accurate reporting and minimize tax risks in the context of increasingly strict inspections.

Professional capacity:

  • A team of accountants & tax experts with many years of experience in FDI enterprises
  • Deep understanding of VAS and financial reporting according to international standards
  • Bilingual support in Vietnamese – English – Japanese

Service commitment:

  • Clear process, fast processing time
  • Data security and absolute compliance with legal regulations
  • Optimal cost according to scale and workload

7. Comprehensive Service Package for FDI Enterprises

Vina TPT provides One-Stop Tax & Accounting Solution, including:

  • Annual Financial Report
  • Corporate Income Tax Finalization
  • Personal Income Tax Finalization
  • Accounting & Bookkeeping Services
  • Payroll, Labor Report
  • Support for Foreign Labor Compliance
  • Support for Working with Tax Authorities, Inspections & Audits

Consistency

  • All services are deployed synchronously according to one system, avoiding data discrepancies between departments and reducing risks during audits.

Long-term Benefits

  • A suitable solution for FDI enterprises that need stability, transparency and long-term support in a volatile legal environment.

Start with Vina TPT to complete financial reports and tax settlement 2025 quickly!

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Top Companies Providing the Best Outsourced Accounting Services in Ho Chi Minh City

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Top Companies Providing the Best Outsourced Accounting Services in hO CHI MINH CITY

Top Companies Providing the Best Outsourced Accounting Services in hO CHI MINH CITY

1. Why Businesses Look for The Best outsourced accounting services in Ho Chi Minh City

Ho Chi Minh City is the largest economic center in Vietnam, accounting for more than 23% of the country’s total GDP and attracting over 40% of new FDI projects annually (according to data from the Ministry of Planning and Investment). FDI enterprises and small and medium-sized enterprises in Ho Chi Minh City have to handle a dense volume of reports: monthly tax declarations, quarterly reports, annual financial reports according to VAS standards, along with obligations such as corporate income tax/personal income tax settlement and labor reports. The level of inspection and audit in Ho Chi Minh City is also higher than in many other provinces and cities, making the requirements for accuracy and compliance more stringent.

In that context, businesses seek accounting firms not only to “make reports”, but also to have a partner who has a deep understanding of Vietnamese Accounting Standards (VAS), and at the same time meets the need to prepare parallel reports for headquarters in Japan, Korea, the EU or the US. FDI enterprises often have to reconcile data between VAS and IFRS/J-GAAP/K-GAAP, so they need a team capable of handling exchange rate differences, classifying fixed assets, and recording prepaid expenses according to international standards. A suitable accounting firm helps enterprises reduce errors, limit tax penalty risks, optimize cash flow, and significantly reduce the administrative burden for internal departments.

GET EXPERT ACCOUNTING SUPPORT

2. Types of Accounting Firms Commonly Chosen in Ho Chi Minh City

The accounting services market in Ho Chi Minh City is diverse, serving more than 330,000 active businesses, from SMEs to large FDI corporations. Depending on the size, budget and complexity of the reports, businesses often choose between three main groups of providers, each with distinct advantages and disadvantages.

Criteria International Firms (Big 4 & Global) Mid-Tier Firms Boutique / Professional Firms
Ideal Clients Large FDI corporations, multinational groups, IFRS reporting, mandatory audits Mid-sized FDI companies, Vietnamese firms with complex transactions SMEs, FDI startups, businesses needing flexible and cost-effective services
Representative Firms Deloitte, PwC, EY, KPMG Grant Thornton, RSM Vietnam, A&C BDO Vietnam, boutique/non-Big firms (e.g., small approved audit firms)
Expertise Strong in IFRS/J-GAAP/K-GAAP, globally standardized processes Solid VAS + IFRS capability, strong in consolidated reporting and advisory Industry-focused, strong practical accounting capabilities
Response Speed Fast but structured; larger teams with layered review Fast, more flexible client communication, good customer care Fastest, direct work with senior team members, highly adaptable
FDI Handling Capability Excellent, best fit for large global or regional FDI operations (high cost) Very good for mid-sized FDI companies with structured operations Suitable for new or simple FDI setups
Key Strengths Global credibility, standardized reporting, highest reliability Good balance of cost, quality, service Flexible, cost-effective, highly personalized service
Notes on Representative Firms Deloitte – strong in large FDI audits 

PwC – comprehensive service line 

EY – long-established, strong advisory 

KPMG – wide presence (HN/HCMC/Da Nang)

 Grant Thornton – flexible, strong advisory 

RSM – strong in outsourcing & mid-FDI audit 

A&C – top non-Big option for VN firms + mid-FDI

 BDO Vietnam – part of BDO global network, ideal for SMEs 

Other boutique firms – suitable for startups, small FDI, custom service needs

 

3. Why Vina TPT Is a Trusted Choice for International Companies

Vina TPT has become a preferred partner for many FDI enterprises in Ho Chi Minh City by offering a practical balance between local compliance expertise and the reporting expectations of overseas headquarters. As foreign-invested companies navigate increasingly strict tax regulations, frequent monthly and quarterly reporting cycles, and complex cross-border coordination, they need an accounting provider that is both technically reliable and agile enough to support their day-to-day operations. Vina TPT fits this need exceptionally well, especially for Japanese, Korean, Singaporean, and European investors establishing or expanding their presence in Vietnam.

Vina TPT stands out thanks to:

  • Deep knowledge of VAS and international reporting standards
  • Bilingual support in English and Japanese for smooth communication
  • Flexible and comprehensive services covering bookkeeping, tax, payroll, and compliance
  • An optimized cost structure specifically designed for FDI companies

Choose Vina TPT for consistent, professional accounting support

4. Factors to Consider When Choosing an Accounting Firm in HCM

When selecting an accounting partner, businesses should evaluate:

  • FDI experience and understanding of foreign-invested business operations
  • Accuracy and timeliness of reports
  • Multilingual support and clear communication
  • Transparency of service scope and fees
  • Responsiveness and reliability

Choosing the best outsourced accounting services in HCM ensures accurate reporting, full compliance, and peace of mind for your business operations.

Contact Vina TPT today to receive a complete accounting solution, optimize costs and ensure compliance for your business in Ho Chi Minh City!

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Accounting & Tax, Lasted News

When to Switch Accounting Services in Vietnam: Key Indicators for Businesses

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Switch your accounting service, upgrade your operations

1. Key Indicators Bookkeeping Service Should Improve

Businesses should consider improving their accounting services when they notice the following signs:

  • Inaccurate or opaque reporting, making it difficult to assess the financial situation.
  • Delays in preparing monthly/quarterly/annual reports, affecting business decisions and legal compliance.
  • Service costs are too high compared to the quality and scope of service.
  • Lack of financial strategy consulting support, preventing businesses from optimizing cash flow or budget.
  • Expanding business but current services are not meeting the increased volume of books and reports.

These signs are signals to consider finding a more reliable accounting partner.

2. Assessing Your Business Requirements

To decide whether to switch to a new bookkeeping or accounting service, businesses need to conduct a comprehensive assessment of their current needs. A correct assessment will help you choose the right type of service, the right level of support and optimize costs.

2.1 Assess the volume of documents and the complexity of transactions

Businesses need to answer the following questions:

  • Is the number of input and output invoices increasing each month?
  • Are there complex transactions such as: import, export, transfer pricing, authorization, cross-border service contracts?
  • Do the transactions require cost allocation, depreciation, asset capitalization, and exchange rate difference handling?
  • If the volume of documents is increasing or the transactions are complicated, businesses need an accounting unit with in-depth expertise, instead of just simple bookkeeping.

2.2 Assessing Tax Compliance

Vietnam has many taxes with constantly updated regulations: VAT, CIT, PIT, FCT, electronic invoices…

Enterprises need to consider:

  • Are tax reports submitted on time?
  • Have you ever been fined for incorrect declaration or late submission?
  • Does the current unit warn the business of new regulations or tax risks?
  • Does it ensure complete documentation when the tax authority inspects?

If the answer to any question is “No”, the business should consider changing to a unit with stronger tax consulting capacity.

REVIEW YOUR CURRENT SYSTEM

2.3 Reporting frequency and transparency level

Each business has different reporting needs:

  • Internal management reports by month/quarter
  • Reports as required by the parent company (e.g., for Japanese, Korean, Singaporean businesses)
  • Reports analyzing costs, cash flow, and profits by segment

Businesses need to evaluate whether the current unit:

  • Does it provide reports on time and in the required format?
  • Does it explain the data clearly, or does it just send files without consulting?
  • Does it support customizing reports according to management needs?
  • If it does not meet these requirements, the business needs a more professional partner.

Reports matter, clarity matters even more

2.4 Ability to accompany the business when it expands

You need to consider:

  • Does the business plan to open branches, increase capital, or increase staff size in the coming year?
  • Can the current accounting unit meet the increased workload?
  • Do they have experience in handling FDI or large-scale enterprise records?

A small or unsystematic unit often has difficulty keeping up with the growth rate of the enterprise.

2.5 Evaluate the appropriate bookkeeping service model

When assessing the needs, you also need to determine the ideal model:

  • Fully outsource?
  • Specialized service?
  • A combination of internal + outsourced bookkeeping?

Part 3 below will have a comparison table to help you decide exactly which model is most suitable.

3. Comparing Bookkeeping and Accounting Options

Below is a comparison table of popular options: full outsourcing, hiring specialized services, and building an internal accounting team.

Evaluation Criteria Outsourced Bookkeeping / Full Accounting Outsourcing Specialized Accounting Services (Tax, Review, Financial Reporting) Internal Accounting Team
Operating cost Low, fixed monthly fee Medium, depends on the specialized service scope High, includes salary, social insurance, training, and management cost
Professional expertise High, especially with reputable firms such as Vina TPT Very high, suitable for complex financial and tax matters Varies by individual capability, risk of dependency
Tax advisory capability Good, with regular regulation updates Excellent, strong in tax planning and risk management Limited, as internal staff have less exposure to diverse industries
Staff stability Stable due to dedicated service teams Very stable Unstable, employees may resign and require rehiring and retraining
Best suited for SMEs, FDI companies, fast growing businesses Companies needing deep tax expertise, reviews, or complex reporting Large enterprises that require strong internal control
Speed of implementation Fast, can start immediately Depends on scope or project complexity Slow, requires recruitment and training
Data control Good when handover processes are well managed Very strong and detailed Good but depends heavily on internal personnel
Legal compliance risk Low due to expert handling Very low due to constant regulatory updates Higher if the internal team is not updated on tax regulations
Scalability Flexible based on business growth Flexible based on project needs Limited, scaling requires hiring additional staff
Best case to choose this option When businesses want cost savings and on time reports When advanced tax, audit support, or financial management expertise is required When the company is large and needs deep internal control

 

4. Key Benefits of Switching to a Reliable Bookkeeping Service Partner

When switching to a better service provider, businesses will receive:

  • Significant cost savings: No need to recruit, train, or maintain an internal accounting team.
  • Improve accuracy and transparency: Bookkeeping is standardized, consistent, and in compliance with regulations.
  • Ensure compliance with the law: Tax reporting and financial reporting are done on time and in compliance with regulations, avoiding the risk of being fined.
  • Optimize financial processes: A scientifically organized accounting system supports better decision making for the board of directors.

The Upside of Moving to a Reliable Accounting Service

5. Steps to Seamlessly Transition Bookkeeping Service

Transitioning to a new accounting unit will go smoothly if the business prepares properly. Here are simple but effective steps to reduce risks and avoid reporting disruptions:

Step 1: Assess the current state of bookkeeping services

Businesses need to review the quality of reports, progress of declaration submission, accuracy and coordination ability of the current accounting unit. From there, accurately determine the reason for the transition and specific requirements for the new unit.

Step 2: Prepare documents & data for handover

Including financial reports, books, tax declarations, labor contracts, software accounting data, and related documents. Arranging complete documents will help the new unit to receive quickly and not miss tax obligations.

Step 3: Make a detailed transition plan

Agree with the new accounting unit on the scope of work, start time, responsibilities of each party and method of receiving data. In this step, the business also determines the closing time to avoid duplication.

Step 4: Handover of books & check for completeness

All data is handed over according to the agreed list. The new unit will check for completeness, compare data and detect problems (if any) before official operation.

Step 5: Trial operation & adjustment

In the first 1-2 cycles (month or quarter), the new accounting unit will re-check the accounting, ensuring that tax reports and management reports are prepared correctly. If there are any discrepancies from the old unit, the two parties will immediately adjust to avoid tax risks.

Step 6: Officially switch to stable operation

After testing and comparison, the business can operate stably with the new accounting provider, ensuring a smooth, transparent process and in accordance with management requirements.

6. Why Vina TPT Is the Preferred Choice for Businesses

Vina TPT is considered the best bookkeeping services in Vietnam with many outstanding advantages:

Comprehensive and specialized services: From bookkeeping services, accounting services to complex tax consulting for FDI enterprises.

Ability to receive books at any time: Whether the enterprise transfers accounting services at the beginning, middle or end of the year, Vina TPT still ensures:

  • Review old data
  • Adjust errors
  • Complete unfinished records
  • Continue to record books for the next phase

All are done quickly – transparently – in compliance with the law.

Smooth transition process: Vina TPT has experience in handling interrupted records, incomplete books, or delayed tax reports.

Highly specialized team: Accounting – tax experts with many years of experience, knowledgeable about FDI enterprises and domestic enterprises.

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Updated Rules on VAT Deductibility for Delayed Payments

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Best Bookkeeping Services for Startups in Vietnam

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1. Common Accounting Challenges Faced by Startups

Bookkeeping services are essential because startups in Vietnam often face many difficulties in accounting and financial management. First is the limited human resources, as many new businesses only have a few employees or do not have a dedicated accounting department.

Second is the high cost of hiring full-time staff or hiring an unsuitable accounting service company. Startups often have to consider limited budgets, while maintaining an internal team is expensive in terms of salary, benefits and training.

Finally, many startups lack experience in financial management and tax compliance. Errors in VAT, CIT, PIT declarations or social insurance payments can lead to legal risks, tax arrears or administrative fines. This is why many startups choose outsourced accounting services to ensure accurate financial operations and compliance with Vietnamese law.

SOLVE YOUR ACCOUNTING CHALLENGES

2. Core Accounting Services for Startups

Startups need essential accounting services to operate effectively and remain compliant with the law. Key services include:

Bookkeeping:

    • Record all transactions, invoices, and documents according to Vietnamese accounting standards. Classify and organize financial data, making it easy to track cash flow.

Monthly & Year-End Reporting:

    • Prepare monthly/quarterly financial reports to evaluate business performance. 
    • Prepare year-end reports to meet audit and tax requirements.

Tax Compliance:

Businesses must ensure full and timely compliance with Vietnam’s tax regulations, including Value Added Tax (VAT), Corporate Income Tax (CIT), Personal Income Tax (PIT), and Foreign Contractor Tax (FCT). Key responsibilities include:

  • Preparing accurate tax reports in accordance with current tax laws.
  • Submitting monthly, quarterly, and annual tax declarations to avoid penalties or late-filing fines.
  • Maintaining clear, consistent accounting records to support all reported figures.
  • Providing explanations and supporting documentation to tax authorities when required, including clarifying discrepancies or responding to official notices.
  • Handling tax audits and inspections professionally to ensure consistency between records and declarations.

Ensuring compliance with all tax obligations not only minimizes legal risks but also builds long-term credibility with regulatory authorities.

Payroll & Insurance Management:

This service ensures accurate and compliant management of employee compensation and social insurance obligations. Key responsibilities include:

  • Preparing payroll and calculating Personal Income Tax (PIT) for all employees.
  • Paying social insurance, health insurance, and unemployment insurance contributions in accordance with Vietnamese law.
  • Registering new employees for social insurance and processing all related insurance documents. 
  • Submitting labor reports and mandatory filings to relevant authorities as required by labor regulations.
  • Ensuring compliance with labor laws and personal income tax obligations for all employees.

Effective payroll and insurance management helps businesses minimize legal risks, maintain employee satisfaction, and ensure smooth operations in accordance with Vietnamese regulations.

Financial Consulting:

  • Cash flow analysis, cost optimization and budget planning.
  • Support startups to make accurate and timely financial decisions.

These services help startups operate transparently financially, save time and focus on product and market development instead of struggling with complicated accounting.

Best-Bookeeping-Services-for-Startups-in-Vietnam-Vina-TPT

4. How Outsourced Bookkeeping Ensures Accuracy

Vina TPT’s outsourced accounting service helps startups standardize all books and financial reports in accordance with Vietnamese accounting standards. All transactions, invoices and documents are systematically recorded, classified and checked, helping to ensure that all financial data is accurate and transparent. This process not only minimizes human errors but also creates clear and complete records, serving monthly, quarterly and year-end reporting. Thanks to that, startups can grasp cash flow, manage costs and evaluate business performance in a timely manner, thereby making more accurate financial decisions.

Moreover, Vina TPT also ensures full compliance with legal regulations on tax and financial reporting. Each report is cross-checked, compared with original documents and accurately calculates taxes payable, limiting the risk of being overcharged or administratively fined. In addition, the service also provides transparent, easy-to-read reports, helping investors, banks or partners clearly understand the financial situation of startups. Thanks to that, businesses not only feel secure about accuracy but also save operating time, focus on product and market development, and build credibility with business partners.

5. Why Vina TPT Is the Go-To Accounting Firm for Startups

Vina TPT Accounting Service is an ideal partner for startups in Vietnam thanks to:

  • Comprehensive services: bookkeeping, monthly/quarterly/annual reports, tax declarations, payroll management, financial consulting.
  • High expertise for startups: understanding the specifics of limited budgets, simple but legal processes.
  • Transparent processes: clear reports, easy to check and manage cash flow.
  • Reduced operational load: startups do not have to worry about accounting staff or legal errors, focus on business development.
  • Language advantage : services are available in both Vietnamese, English & Japanese, facilitating communication for foreign founders and easing compliance with local regulations.

Vina TPT helps startups operate finances effectively, comply with the law and develop sustainably.

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Accounting & Tax, Lasted News

Vietnam Work Permit & Tax Compliance for Foreign Experts

Posted on by ASS
Vietnam Work Permit & Tax Compliance for Foreign Experts-Vina TPT

Vietnam Work Permit & Tax Compliance for Foreign Experts-Vina TPT

1. Key Compliance Requirements for Foreign Experts in Vietnam

When foreign experts work in Vietnam, they must fully meet three main groups of obligations: Vietnam Work permit legal documents, labor records, and tax and insurance obligations. Compliance is mandatory, and businesses are not allowed to let foreigners work without the appropriate license or visa.

1.1 Required legal documents

  • Work Permit or certificate of license exemption.
  • Vietnam work visa / TRC for the right purpose of work.
  • Labor contract signed after the work permit is approved.

1.2 Required labor records

  • Valid passport, degrees, professional certificates.
  • Confirmation of minimum experience according to job requirements.
  • Health certificate in the correct form.
  • Judicial record (if required by law).
  • All foreign documents must be consularized and notarized.

1.3 Tax and insurance obligations

  • Register for tax code and determine resident/non-resident status.
  • Deduct – declare – pay personal income tax according to Vietnam taxation regulations.
  • Participate in social insurance/health insurance if required.

1.4 Reporting and responsibilities of enterprises

  • Enterprises must explain the need to use foreign labor before applying for Work Permit.
  • Report foreign labor according to the deadline of the management agency.
  • Monitor visa, TRC, Work Permit expiration date to renew on time.

Failure to fully comply with regulations on work permits, work visas and Vietnam taxation can lead to serious consequences for both businesses and foreign experts. Businesses may be subject to high administrative fines, be suspended from employing foreign workers or be subject to increased inspections in subsequent periods. 

Workers are at risk of being denied or having their Work Permit/visa extended, forced to leave the country or restricted from returning to work in Vietnam. 

Therefore, full compliance and proactively updating regulations are of utmost importance for all businesses with foreign experts working in Vietnam.

Vietnam Work Permit & Tax Compliance for Foreign Experts-Vina TPT

2. Work Permit & Work Visa Requirements 

2.1 Conditions for granting Work Permit

  • Enterprises must have written approval of the need to use foreign labor before submitting the application.
  • Workers must meet the professional standards:
    • Qualifications relevant to the position
    • Working experience according to the number of years specified for each position
  • Have a health certificate according to the form recognized in Vietnam (valid for 12 months).
  • Have a clean criminal record, no criminal record, valid and legalized according to regulations.
  • The labor contract or work agreement must be appropriate to the position applying for a Work Permit.

2.2 Classification of work visas and duration

  • DN Visa: for people who come to work with a business for a short time (not a replacement for a Work Permit).
  • LD Visa / Labor Visa: for people who work long-term and is the basis for applying for a temporary residence card.
  • Temporary Residence Card (TRC): is issued based on a Work Permit and has a corresponding term, up to 2 years.
  • The Work Permit term is according to the contract but not more than 2 years, and can be extended if conditions are met.

2.3 Work Permit Renewal Process

  • Submit your application when your Work Permit is still valid, 5-45 days before the expiry date.
  • The renewal application includes:
    • Current Work Permit
    • Confirmation of continued employment of foreign workers
    • Renewed or renewed employment contract
    • Health certificate, criminal record (if update required)
  • The labor agency reviews the new issuance according to the same procedure.

2.4 Work Permit Exemptions

  • Working in Vietnam for a short period of time according to the number of days allowed by law.
  • Members of diplomatic missions and their dependents who qualify.
  • Experts and lecturers invited or confirmed by state agencies.
  • Volunteers working for non-profit organizations or NGOs.
  • Some special cases according to the current decree, but still have to submit an exemption notification to the labor agency.

2.5 Common mistakes that cause applications to be rejected

  • Lack of notarized documents or using the wrong form according to regulations.
  • Degrees or experience do not demonstrate appropriate expertise.
  • Health certificate or criminal record expired / not legalized.
  • Inconsistent information between passport – contract – application.
  • The enterprise has not been approved to use foreign labor.
  • Using the wrong type of visa during the working period, leading to the application being evaluated as invalid.

REQUEST WORK PERMIT ASSISTANCE

3. Employment Contracts & Payroll Compliance

Foreign experts working in Vietnam must fully comply with tax obligations, focusing on personal income tax (PIT) and determining residency status. Enterprises are responsible for withholding, declaring and paying taxes according to regulations, and ensuring that the labor contract, working time and residency records of experts are properly managed. Determining whether an expert is a resident or non-resident directly affects the tax calculation, tax rate and income range that must be declared.

Important tax obligations to comply with:

  • Register for a personal tax code (MST) as soon as you start working.
  • Determine residency status based on the number of days present in Vietnam (≥183 days are considered residency).
  • Declare and pay PIT monthly or quarterly depending on the enterprise.
  • Annual tax finalization for resident individuals, or upon termination of the contract.
  • Declaring global income for individuals residing in Vietnam, if there is income generated abroad.
  • Store full tax documents for inspection purposes: labor contracts, payroll, deduction documents.

In addition, foreign experts need to ensure that their visas, Work Permits and labor contracts are consistent with the actual working time, to avoid being considered “illegible work”, leading to tax arrears or penalties. When there are changes such as position transfers, salary increases, changes in country of residence or contract termination, businesses must promptly update their tax records to avoid compliance risks and ensure transparency according to Vietnamese regulations.

Vietnam Work Permit & Tax Compliance for Foreign Experts-Vina TPT

4. Personal Income Tax for Foreign Employees 

Foreign experts working in Vietnam must fully comply with personal income tax (PIT) obligations, including registering for a tax code, determining their residency status, and declaring and paying taxes on time. Residency status (resident or non-resident) directly affects the tax calculation, tax rate, and income range that must be declared. For resident individuals, global income arising from both Vietnam and abroad may be subject to declaration if it meets the prescribed conditions.

Main tax obligations to be performed

  • Register for a personal tax code as soon as you start working.
  • Determine residency status based on the number of days present in Vietnam (≥183 days/year).
  • Deduct, declare, and pay taxes monthly or quarterly through the enterprise.
  • Perform year-end tax settlement or upon termination of the labor contract.
  • Declare global income for resident individuals if they have income from abroad.
  • Keep complete documents to serve tax inspection when needed.

5. Annual Compliance Checklist for Foreign Experts Working in Vietnam

To avoid legal and tax risks, foreign experts and businesses need to comply with a set of annual inspection standards. This checklist helps ensure that Vietnam work Permits, visas, labor contracts, taxes and periodic reports are always updated on time, avoiding common errors such as incorrect visa types, expired documents, or inconsistent tax declarations. Annual Compliance Checklist including: 

  • Check the Vietnam work Permit validity and renew it on time.
  • Review visas / temporary residence cards (TRC) to ensure compliance with the length of stay.
  • Update labor contracts, salaries, and allowances according to reality.
  • Compare residence records with the number of days present in Vietnam.
  • Make personal income tax settlements on time.
  • Confirm compulsory social insurance obligations (if applicable).
  • Submit all foreign worker reports as required by the Department of Labor.
  • Review all documents: contracts, payroll, taxes, visa/Work Permit documents.

6. Vina TPT’s End-to-End Compliance Support for Foreign Experts

Vina TPT provides a comprehensive compliance support solution for foreign experts in Vietnam, including Work Permit, visa, tax and labor records management. The service is optimally designed for FDI enterprises, multinational corporations and experts working under long-term contracts. Thanks to standardized processes and a team of experts, Vina TPT helps businesses reduce legal risks, save time and ensure transparency when using foreign workers. Comprehensive support services include:

  • Vietnam work Permit consultation and submission, WP extension, WP exemption confirmation.
  • Visa processing, temporary residence card (TRC) for experts and relatives.
  • Salary optimization – personal income tax, residence status determination and tax declaration.
  • Labor contract management, foreign worker reporting.
  • Annual compliance review.
  • Representing businesses in meetings with tax and labor authorities.

To ensure foreign experts work legally in Vietnam, contact Vina TPT for full support on Work Permit, visa and tax.

BOOK A FREE CONSULTATION

Vietnam Work Permit & Tax Compliance for Foreign Experts-Vina TPT

Accounting & Tax, Labor & Insurance Knowledge, Lasted News

[Newsletter] Vietnam Tax Policy Updates October 2025- CIT, VAT, PIT and Social Insurance

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Newsletter-October-2025-Vina-TPT

Vietnam is implementing a series of new tax, accounting, insurance, and labour regulations effective from October 2025. Notable updates include reduced export duty rates, clarified rules for input VAT deduction, higher PIT family circumstance deductions, a shift to non-resident taxation for certain foreign individuals, new CIT rates and deductible expense rules, and stricter sanctions on late or unpaid insurance contributions. These updates will reshape compliance requirements and influence core business operations, particularly in finance, payroll, and reporting functions.

This article outlines the essential policy changes businesses need to prepare for to ensure smooth compliance and operational continuity.

1. VAT & IMPORT/EXPORT DUTIES 

1.a. Export duty on gold jewellery, fine art articles (from 8K) and other precious metal products reduced to 0%  

Decree No. 260/2025/NĐ-CP dated 10/10/2025 of the Government amends the export duty rates for certain commodity lines under groups 71.13, 71.14 and 71.15 in the Export Tariff Schedule issued together with Decree No. 26/2023/NĐ-CP dated 31/05/2023. 

The Decree reduces the export duty rate from 1% to 0% for the following items: 

  • Jewellery and parts thereof, of other precious metal, whether or not plated or clad with precious metal (HS codes 7113.19.10 and 7113.19.90); 
  • Articles of goldsmiths’ or silversmiths’ wares and parts thereof, of other precious metal, whether or not plated or clad with precious metal (HS code 7114.19.00); 
  • Other articles of gold or silver (HS code 7115.90.10). 

Products that are currently subject to the 0% export duty rate will continue to enjoy the existing 0% rate. 

1.b. Input VAT deduction when payment is made via third-party authorisation  

Official Letter No. 4850/DON-QLDN1 dated 15/10/2025 of Đồng Nai Provincial Tax Department provides guidance on the deduction of input VAT in cases where non-cash payment is made through authorisation to a third party. 

According to the regulations, for the enterprise to be eligible for input VAT deduction, it must fully satisfy the general conditions prescribed in Clause 2, Article 14 of Law No. 48/2024/QH15: 

  • Possession of a VAT invoice for the purchase of goods and services or VAT payment document. 
  • Availability of non-cash payment evidence. 
  • For exported goods and services, additional documents are required: contract, invoice, non-cash payment evidence, customs declaration, and other related documents. 

In addition, when making payment through authorisation to a third party, the enterprise must comply with the further conditions stipulated in Decree No. 181/2025/NĐ-CP: 

  • The authorisation for payment to the third party must be specifically stipulated in a written contract. 
  • The third party must be an organisation or individual lawfully operating. 

If the company fully satisfies all the above conditions and other relevant legal provisions, it will be entitled to deduct the input VAT. 

2. PERSONAL INCOME TAX (PIT)

2.a. Increase in family circumstance deductions effective from 01/01/2026  

On 17 October 2025, the Standing Committee of the National Assembly issued Resolution No. 110/2025/UBTVQH15 adjusting the family circumstance deductions for personal income tax. This Resolution takes effect from 01 January 2026 and applies to the 2026 tax period. 

  • The deduction for the taxpayer himself/herself is increased from VND 11 million to VND 15.5 million per month (VND 186 million per year) (Article 1, point a). This means the taxpayer may deduct this amount when calculating taxable income, thereby reducing the tax payable. 
  • The deduction for each dependant is increased from VND 4.4 million to VND 6.2 million per month (Article 1, point b). Accordingly, taxpayers with dependants will enjoy an additional deduction corresponding to the number of dependants, further easing the tax burden. 

2.b. Foreign individuals – switch to non-resident PIT (20%) before departure  

On 03 October 2025, the Tax Department issued Official Letter No. 4221/CT-CS providing guidance on PIT for foreign individuals working in Vietnam for less than 183 days and required to finalise their tax obligations before leaving the country. Specifically, where a foreign individual has previously been subject to resident PIT withholding and has self-declared PIT on overseas-paid income arising from work performed in Vietnam, but the actual number of days present in Vietnam is less than 183 days, such individual must re-determine their PIT obligations under the non-resident regime. 

  • PIT is calculated at 20% on total Vietnam-sourced income, irrespective of where the income is paid or received. 
  • Tax finalisation must be completed prior to departure from Vietnam.

3. CORPORATE INCOME TAX (CIT) 

3.a. Key new points of Corporate Income Tax Law No. 67/2025/QH15 (effective 01/10/2025)  

Official Letter No. 2244/QNG-NVDTPC dated 13 October 2025 of Quảng Ngãi Provincial Tax Department introduces the key new points of the Corporate Income Tax Law No. 67/2025/QH15 (effective from 01 October 2025). The main changes are as follows: 

  1. Expanded scope of taxpayers:  

Addition of foreign enterprises that do not have a permanent establishment in Vietnam (including those engaged in e-commerce and digital platforms). 

      2. Taxable income:  

Additional provision stipulating that taxable income arising in Vietnam for foreign enterprises is income derived from Vietnam, regardless of where the business activities are conducted. 

      3.New CIT rates based on revenue: 

  • Standard rate: 20% 
  • Enterprises with total annual revenue not exceeding VND 3 billion: 15% 
  • Enterprises with total annual revenue exceeding VND 3 billion but not exceeding VND 50 billion: 17% 
  • Oil and gas exploration and production activities: 25% – 50% depending on the project. 

      4.Determination of taxable income: 

  • Taxable income from business activities is the total income from all business activities. 
  • Loss carry-forward is allowed between activities, except for real estate transfer activities, investment projects, and participation rights in investment projects when the entity is enjoying tax incentives. 
  • Income from the transfer of mineral exploration, extraction, and processing projects must be accounted for separately and may not be offset against other activities. 

       5.Tax exemption and reduction: 

  • Public-service entities providing public services in socio-economically disadvantaged areas are entitled to a 50% reduction of CIT payable. 
  • Enterprises converted from household businesses are exempt from CIT for two consecutive years from the year taxable income first arises. 

       6.Science and technology development fund:  

Maximum contribution rate increased to 20%. 

       7.New tax calculation method:  

Application of CIT as a percentage of revenue for enterprises with annual revenue ≤ VND 3 billion when revenue can be determined but costs and income cannot be determined. 

      8.Additional deductible expenses: 

  • Expenses related to seconded personnel participating in management, administration, and control at credit institutions under special control or commercial banks subject to mandatory transfer. 
  • Certain expenses incurred for business and production purposes but not yet generating corresponding revenue in the period, as stipulated by the Government. 
  • Expenses for supporting the construction of public infrastructure that simultaneously serves business and production activities. 
  • Expenses related to greenhouse gas emission reduction, carbon neutrality, net-zero initiatives, and environmental pollution reduction linked to business and production activities. 
  • Certain contributions to funds established by decision of the Prime Minister or the Government.

 

3.b. Temporary CIT payment of 1% on progress payments received for housing projects  

Official Letter No. 5129/CT-CS dated 12 November 2025 of the Tax Department on tax policies: 

  • For housing investment projects intended for transfer/sale: If the investor collects advance payments according to progress, it must make provisional quarterly Corporate Income Tax (CIT) payments equal to 1% of the amounts collected, pursuant to Point b, Clause 6, Article 8 of Decree No. 126/2020/NĐ-CP. 
  • Regarding interest expense for enterprises with related-party transactions: Deductible interest expense is subject to the cap under Clause 3, Article 16 of Decree No. 132/2020/NĐ-CP and applies to all enterprises with related-party transactions, irrespective of whether they are domestic or foreign-invested enterprises. 

 

4. SOCIAL, HEALTH & UNEMPLOYMENT INSURANCE – TRADE UNION 

4.a. Three major changes to unemployment insurance effective from 01/01/2026 (Law on Employment 2025) 

On 16 June 2025, the National Assembly passed the Law on Employment 2025, which officially takes effect from 01 January 2026. Accordingly, unemployment insurance policies will undergo significant changes, with the following three key updates to unemployment insurance effective from 01/01/2026: 

(1) No entitlement to unemployment benefits upon eligibility for pension 

From 01/01/2026, under point a, clause 1, Article 39 of the Law on Employment 2025, employees who terminate employment or end their labour contract upon reaching eligibility for pension benefits will not be entitled to unemployment benefits. Thus, effective from 01/01/2026, unemployment benefits will not be payable to individuals who meet pension eligibility criteria, regardless of whether pension procedures have been initiated. 

(2) Faster receipt of unemployment benefits with reduced waiting period to 10 days 

From 2025, pursuant to clause 3, Article 39 of the Law on Employment 2025, the commencement date for unemployment benefits effective from 01/01/2026 will be the 11th working day following the submission of a complete application dossier for unemployment benefits. This represents a reduction of 5 days from the current regulation, under which benefits commence from the 16th day after dossier submission. 

(3) Maximum level of unemployment benefits 

Pursuant to clause 1, Article 39 of the Law on Employment 2025, the maximum monthly unemployment benefit for all employees shall not exceed 5 times the regional minimum wage at the time of contract termination. 

4.b. Penalties for late or evaded compulsory social/health/unemployment insurance contributions – effective 30/11/2025  

On 16 October 2025, the Government issued Decree No. 274/2025/NĐ-CP detailing certain provisions of the Social Insurance Law regarding late payment, evasion of compulsory social insurance and unemployment insurance contributions; complaints and denunciations related to social insurance. This Decree takes effect from 30 November 2025. 

  • Late payment interest rate: 0.03% per day calculated on the amount and number of days of late or evaded payment (Article 3, Clause 1, Point d; Article 7, Clause 2). 
  • Conversion period to evasion: An act of late payment shall be converted to an act of evasion after 60 days from the expiry of the latest payment deadline, provided that the Social Insurance Agency has issued a written reminder (Article 6, Clause 1, Point c). 
  • Evasion by understating salary: The act of registering a salary base for social insurance contributions lower than prescribed under the Social Insurance Law shall be deemed evasion (Article 6, Clause 1, Point b). 
  • Exemption from evasion classification (force majeure): Specific enumeration of 4 force majeure cases not to be considered as evasion (such as storms, floods, dangerous epidemics, emergency situations) as announced by competent authorities (Article 4).

 

5. ACCOUNTING REGIME 

5.a. Circular 99/2025/TT-BTC guiding the accounting regime for enterprises  

On 27 October 2025, the Ministry of Finance issued Circular No. 99/2025/TT-BTC regulating the accounting regime for enterprises, replacing Circular No. 200/2014/TT-BTC dated 22 December 2014. Circular No. 99/2025/TT-BTC takes effect from 01 January 2026 and applies to financial years beginning on or after 01 January 2026. Pursuant to the regulations, Circular No. 99/2025/TT-BTC simultaneously repeals and replaces the following documents: 

  • Circular No. 200/2014/TT-BTC guiding the accounting regime for enterprises; 
  • Circular No. 75/2015/TT-BTC (amending Article 128 of Circular 200); 
  • Circular No. 53/2016/TT-BTC (amending and supplementing certain provisions of Circular 200); 
  • Circular No. 195/2012/TT-BTC dated 15 November 2012 guiding accounting for main investors. 

However, certain provisions related to the accounting for the equitisation of State-owned enterprises under Circular 200 shall continue to apply until the Ministry of Finance issues a new replacement document. 

Below are some key differences between Circular No. 99/2025/TT-BTC and Circular No. 200/2014/TT-BTC regarding the accounting regime for enterprises: 

Method of converting financial statements prepared in foreign currency to Vietnamese Dong: 

  • Assets and liabilities shall be converted to Vietnamese Dong at the average transfer buying/selling exchange rate of the commercial bank where the enterprise regularly conducts transactions as at the end of the accounting period; 
  • Owner’s equity (owner’s contributed capital, capital surplus, other capital, convertible bond options) shall be converted to Vietnamese Dong at the actual transaction exchange rate on the date of capital contribution; 
  • Revaluation differences of assets shall be converted to Vietnamese Dong at the actual transaction exchange rate on the revaluation date; ….. 

Chart of accounts: Reduced to 71 level-1 accounts, abolishing 6 accounts, including 4 accounts related to non-business funding sources, capital construction investments, and 2 accounts (611 and 631). 

Addition of accounts: Renaming of accounts and addition of new accounts (e.g., Account 215 – Biological assets, etc.). Abolition of certain accounts: 621 – Purchase costs, 631 – Production costs, etc. 

Accounting forms and financial statement templates: Enterprises may also design additional or amend and supplement accounting forms and financial statement templates compared to those guided under this Circular to suit the characteristics of production and business activities and management requirements. Renaming of the “Balance Sheet” template to “Statement of Financial Position”. 

 

6. OTHER 

6.a. 2025 Labour Utilisation Report for Ho Chi Minh City – Must be submitted before 05 December 2025 

Official Letter No. 9002/SNV-VLATLĐ dated 13 November 2025 of the Ho Chi Minh City Department of Home Affairs on the implementation of Article 4 of Decree No. 145/2020/NĐ-CP regarding labour utilisation reporting. 

The Ho Chi Minh City Department of Home Affairs provides the following guidance on the submission of the 2025 labour utilisation report by establishments within the territory of Ho Chi Minh City: 

  1. Entities required to submit the report: 
  • Agencies, organisations, enterprises, cooperatives, households, and individuals that hire, employ, or utilise labour. 
  • Those with headquarters or places of operation within the territory of Ho Chi Minh City. 

      2. Content of the report: 

  • To be completed in accordance with Form No. 01/PLI in Appendix I issued together with Decree No. 145/2020/NĐ-CP. 

      3. Method of submission (select one of the two options): 

  • Submission via the National Public Service Portal: Perform the “Integrated procedure for registering adjustments to compulsory social insurance, health insurance, unemployment insurance contributions and labour utilisation reporting”: https://dichvucong.gov.vn/. 

      4. Submission deadline: To be completed before 05 December 2025. 

      5. Important notes: 

  • After the prescribed deadline, the Department of Home Affairs will not accept any reports. 
  • The Department of Home Affairs will compile the implementation status as a basis for confirming compliance with legal regulations upon request from relevant agencies. 
  • Failure to submit the report on time may result in administrative violations under Clause 2, Article 8 of Decree No. 12/2022/NĐ-CP. 

 

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Accounting & Tax, Lasted News

How to Handle Personal Income Tax Finalization 2025 for Foreign Employees in Vietnam

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How-to-Handle-Personal-Income-Tax-Finalization-2025-for-Foreign-Employees-in-Vietnam-Vina-TPT

How-to-Handle-Personal-Income-Tax-Finalization-2025-for-Foreign-Employees-in-Vietnam-Vina-TPT

1. 2025 Updates: What’s New in Vietnam’s Personal Income Tax for Foreigners

Tax finalization in 2025 will be affected by several important changes in personal income tax (PIT) regulations in Vietnam that foreigners and businesses need to pay attention to. Key updates include:

  • Increased Family and Dependent Deductions: The personal relief will rise from 11 million VND/month to 15.5 million VND/month, and the dependent relief from 4.4 million VND/month to 6.2 million VND/month. This change, effective for the 2026 tax period, helps reduce the PIT burden for many taxpayers.
  • Broader Deductible Expenses: The draft PIT law proposes new deductible expenses for healthcare, education, and training costs for taxpayers and their dependents, allowing further optimization of taxable income if supported by valid invoices.
  • Tax Withholding for E-commerce Income: Starting from April 1, 2025, e-commerce and digital platforms (including international platforms) are required to withhold and pay PIT on behalf of individual sellers. Non-resident individuals providing services via these platforms must register and comply with PIT obligations in Vietnam.

These changes directly affect tax filing deadlines, tax calculation, and the final tax amount to be paid. Foreign investors and expatriates should prepare accordingly to ensure compliance and optimize their tax liabilities.

Foreign personnel such as experts, managers or expats working in Vietnamese companies need to clearly understand the new regulations to ensure full and timely declaration. Timely understanding of policies helps reduce the risk of administrative fines and facilitates tax refund requests or tax processing for foreign income.

2. Who Needs to File Personal Income Tax Finalization in Vietnam

Subjects required to make PIT settlement include residents and non-residents in Vietnam. 

Residents are those who have a residence period of 183 days or more in a year, or have a permanent residence in Vietnam. These individuals must declare all income in and outside Vietnam.

For non-residents, the obligation to make PIT settlement only applies to income generated in Vietnam, including salaries, bonuses, and income from service contracts.

Read more about Vietnam’s personal income tax changes: https://vinatpt.com/https-vinatpt-com-personal-income-tax-in-vietnam/ 

In addition, foreign employees working for Vietnamese companies but also having income from abroad need to correctly identify the type of income subject to tax in Vietnam and prepare documents proving the source of income to avoid double taxation.

3. Step-by-Step: How to Handle Tax Finalization for Foreign Employees

The PIT settlement process should start with collecting all relevant documents, including:

  • Employment contracts
  • Payroll records
  • Invoices proving deductible expenses
  • Foreign income documents (if any)

To calculate Personal Income Tax (PIT) in Vietnam for 2025, it is essential to distinguish between resident and non-resident individuals, as the methods and applicable deductions differ significantly:

  • Resident Individuals: An individual is considered a resident of Vietnam if he/she stays in Vietnam for 183 days or more in either the calendar year or the period of 12 consecutive months from the date of arrival or has a permanent residence as prescribed.

    • Taxed on global income, including both Vietnam-sourced and foreign-sourced income.
    • Eligible for personal deduction: 11 million VND/month (≈132 million VND/year in 2025; will increase to 15.5 million VND/month from 2026).
    • Eligible for dependent deduction: 4.4 million VND/month per dependent (≈52.8 million VND/year in 2025; will increase to 6.2 million VND/month from 2026).
    • Other deductible items include mandatory insurance contributions, voluntary pension schemes, and certain charitable donations.
    • Taxable income is calculated by subtracting all eligible deductions from total income.
    • Progressive tax rates apply, ranging from 5% to 35%, depending on monthly taxable income.
  • Non-Resident Individuals: An individual is considered non-resident in Vietnam if he/she stays in Vietnam for less than 183 days in a year or does not have a permanent residence in Vietnam.

    • Taxed only on Vietnam-sourced income.
    • No personal or dependent deductions are allowed.
    • Taxable income is directly subject to flat tax rates, usually 20% on employment income; other Vietnam-sourced income may be taxed from 0.1% to 20% depending on the type.

Understanding this distinction ensures correct calculation of PIT, prevents overpayment or underpayment, and keeps taxpayers fully compliant with the 2025 regulations.

Finally, declaring and submitting PIT settlement documents can be done online via the e-tax system or through the enterprise. After submitting, it is necessary to check confirmation from the tax authority and store the documents for comparison or future audit purposes.

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AVOID PIT MISTAKES NOW

4. Common Mistakes in Expat PIT Finalization and How to Avoid Them

4.1 Under-declaring the Number of Days of Residence

  • Many foreign employees’ residence days in Vietnam are miscalculated.
  • Incorrect calculation affects resident status and tax payable.
  • Solution: Keep detailed records of arrival and departure dates for each employee.

4.2 Omitting Foreign Income

  • Some expatriates earn income from parent companies or projects abroad.
  • Failing to declare foreign income can result in additional tax collection during audits.
  • Solution: Confirm all income earned during the year and provide legal proof for each source.

4.3 Incorrect Application of Family or Legal Deductions

  • Family deductions and other legal deductions may be applied incorrectly if not updated.
  • Using outdated deduction limits can cause overpayment or non-compliance.
  • Solution: Update deductions according to the latest regulations of the General Department of Taxation and verify calculations before submission.

5. Tax Refunds and Double Taxation Agreements (DTA) in Vietnam

Foreign investors and employees can claim tax refunds if they have overpaid or been taxed twice on the same income. Vietnam has signed many double taxation agreements with countries such as Japan, Korea, Singapore, the US and Australia.

Applying for a DTA requires businesses and individuals to accurately determine their source of income, length of stay and the amount of tax paid abroad. This process includes preparing documents, submitting tax applications and contacting the tax authorities directly to confirm their rights.

How-to-Handle-Personal-Income-Tax-Finalization-2025-for-Foreign-Employees-in-Vietnam-Vina-TPT

6. How Vina TPT Tax Services Simplify PIT Finalization for Foreign Professionals

Vina TPT offers comprehensive Personal Income Tax (PIT) support for foreign employees in Vietnam, ensuring full compliance with local regulations while simplifying the process for businesses:

  • Record Review: Carefully examine labor contracts, payrolls, tax deduction documents, foreign income records, and related invoices to ensure all data is accurate and complete.
  • Tax Calculation: Compute taxable income, apply family and dependent deductions, and ensure proper application of Double Taxation Agreements (DTA) to avoid double taxation.
  • Declaration Preparation & Submission: Prepare PIT finalization dossiers and submit through the e-tax system or on behalf of the business, providing bilingual Vietnamese-English reports for easy monitoring.
  • Tax Refund Support: Assist with preparing and monitoring tax refund dossiers, liaising with tax authorities to secure timely and transparent refunds.
  • Ongoing Consultation: Represent the business in case of audits, additional document requests, or inquiries, helping to manage administrative requirements efficiently.

Ensure full compliance and maximize tax efficiency for your foreign employees – contact Vina TPT Tax Services today!

BOOK A FREE CONSULTATION

 

Accounting & Tax, Lasted News

Tax Consultant’s Guide: Month/Quarter – End Filings for Vietnam

Posted on by ASS
Tax-Consultants-Guide_-Month_Quarter-End-Filings-for-Vietnam-Vina-TPT

Tax-Consultants-Guide_-Month_Quarter-End-Filings-for-Vietnam-Vina-TPT

1. Mandatory Month/Quarter-End Tax Obligations in Vietnam

Tax consultant services are essential in Vietnam, where businesses must fulfill their tax obligations monthly or quarterly depending on their revenue and current regulations. Some mandatory obligations include:

  • Declaring VAT monthly or quarterly based on a revenue
  • Reporting on invoice usage (if still using paper invoices or in some special cases).
  • Temporarily paying corporate income tax (CIT) quarterly, based on actual business results.
  • Declaring PIT (Personal Income Tax) based on monthly or quarterly payroll.
  • Submit the FCT (Foreign Contractor Tax) declaration within 10 days from the date the tax obligation arises (i.e., the payment date to the foreign contractor).

The introduction helps businesses grasp the mandatory “to-do list” and avoid under-declaration, incorrect declaration or late declaration.

2. Month-End Filing Process Managed by Tax Consultants

Even though businesses have an in-house accounting team, many monthly tax filing errors still occur due to a lack of a standard process. To avoid errors and ensure compliance, tax consultants often guide businesses through each step systematically: from checking invoices, comparing data to preparing and submitting declarations on time. Below is the standard process that tax experts recommend businesses apply every month.

2.1 Collecting & Verifying Monthly Documents

Tax consultants will guide businesses to collect and check all important documents:

  • Input and output invoices of the month.
  • Contracts, receipts and payment vouchers, bank statements.
  • Timesheets, payroll, allowances for calculating personal income tax.
  • Non-cash payment records (conditions for VAT deduction).
  • Check the validity of invoices: tax code information, product description, tax rate, signing date.

2.2 Reconciliation of Accounting & Tax Data

Based on the guidance of tax experts, businesses conduct reconciliation:

  • Output VAT – input VAT to calculate the amount of tax payable or deductible.
  • Payroll and PIT to be deducted in the month.
  • Accounts receivable – payable.
  • Differences between actual documents and bookkeeping records.

2.3 Preparing Monthly Tax Returns

After the data has been reviewed, the tax consultant will guide the business to:

  • Prepare a monthly or quarterly VAT declaration (depending on the reporting period).
  • Prepare a PIT declaration deducted from monthly salary.
  • Check and match the data on the declaration with the accounting books.
  • Prepare an invoice report (if the business is subject to payment).

2.4 Internal Approval & Electronic Submission

Before submitting to the tax authority, the enterprise needs to:

  • The Director or finance department reviews and approves the declaration according to the tax consultant’s instructions.
  • Submit the electronic declaration on time.
  • Pay VAT/PIT incurred during the period.

2.5 Post-Filing Compliance Follow-up

After submitting the declaration, the tax consultant recommends that the business continue to:

  • Check the tax payment receipt to ensure the system accepts the declaration.
  • Archive the records for tax audits/audits.
  • Review errors from the previous period to adjust the declaration process for the next period.

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3. Key Requirements for Quarter-End Fillings

Quarter-end filings in Vietnam involve more than just summing up numbers—they require careful planning, compliance with Vietnam income tax regulations, and meticulous verification. Engaging a tax consultant in Vietnam ensures your business meets all obligations accurately and avoids penalties from the tax department.

3.1 Gather Complete Documentation

Before submitting quarterly tax filings, businesses must prepare all source documents for review:

  • Sales invoices and delivery notes
  • Purchase invoices and payment receipts
  • Bank statements and financial agreements
  • Payroll records, labor contracts, and insurance contributions
  • Inventory counts and fixed asset schedules

3.2. Accurate Revenue and Expense Reporting

  • Recognize revenue according to Vietnam income tax rules and accrual accounting.
  • Match expenses to the correct revenue period.
  • Exclude non-deductible expenses as per Vietnam tax regulations.
  • Ensure all accruals, prepayments, and adjustments are correctly recorded.

3.3 VAT, CIT, and PIT Compliance

  • Reconcile VAT collected and VAT input credits.
  • Calculate PIT for employees, including part-time or foreign staff.
  • Determine corporate income tax (CIT) provisional payments for the quarter.
  • Check alignment between accounting records and tax reports to prevent discrepancies.

3.4 Reconciliation of Key Accounts

  • Bank account balances vs. bank statements
  • Accounts receivable and payable vs. confirmations from partners
  • Inventory records vs. physical stock counts
  • Fixed assets and depreciation schedules
  • Loans, interest expenses, and other financial obligations

3.5. Internal Controls and Review

  • Approval of all journal entries, adjustments, and corrections
  • Double-check by accounting manager or controller to ensure accuracy
  • Maintain segregation of duties to reduce errors
  • Keep a full audit trail for submission and future inspection

Following these steps under guidance from a professional tax consultant in Vietnam helps businesses stay compliant with Vietnam income tax, reduces risk of penalties, and ensures all filings to the tax department are accurate and timely.

SCHEDULE A COMPLIANCE CHECK

4. Role of Tax Consultants in Ensuring Accurate and Compliant Filings

Tax consultants in Vietnam play a key role in helping businesses maintain accurate and compliant tax records during month-end and quarter-end filings. Their work goes beyond simply preparing documents; they guide companies step by step to ensure that all financial data is properly reconciled and verified.

During this process, tax consultants focus on:

  • Reviewing input and output VAT to ensure proper deduction and reporting.
  • Checking personal income tax (PIT) calculations and payroll deductions.
  • Reconciling corporate income tax (CIT), Foreign Contractor Tax (FCT) prepayments with actual revenue.
  • Examining supporting documents to prevent missing invoices or non-deductible expenses.

In addition, tax consultants provide strategic advice on implementing internal procedures, keeping the company updated with the latest Vietnam income tax regulations, and standardizing accounting and tax processes. This proactive guidance reduces the risk of errors, fines, and audits, while building a reliable system that ensures transparency and smooth month-end and quarter-end tax compliance.

5. Vina TPT’s Professional Tax Filing and Compliance Support

Vina TPT supports businesses to fully perform their monthly/quarterly tax obligations with standardized procedures:

  • Check and evaluate the validity of documents.
  • Compare accounting and tax data to ensure no discrepancies.
  • Support VAT, PIT declaration, invoice and CIT, FCT reporting according to regulations.
  • Monitor deadlines and make electronic declarations on time.
  • Representatives work with the tax department when explanations are needed.
  • Accompanying long-term tax compliance consulting for FDI & SME enterprises.

Contact Vina TPT today for detailed guidance and to ensure full compliance with tax obligations in Vietnam.

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