Accounting & Tax, Lasted News

Key Changes to Vietnam Personal Allowances in 2026: Family Deduction Explained

Posted on by ASS
Vietnam Personal Allowances 2026_ Family Deductions Explained-Vina TPT

Vietnam Personal Allowances 2026_ Family Deductions Explained-Vina TPT

1. Overview of Personal Income Tax Thresholds in Vietnam from 2026

The official policy to increase personal allowances to VND 15.5 million per month from 2026 represents a significant adjustment to Vietnam’s personal income tax system, aiming to ease the tax burden and better reflect current living costs. Under this policy, the personal allowance for taxpayers rises from VND 11 million to VND 15.5 million per month, while the allowance for each dependent increases to VND 6.2 million per month.

This change raises the taxable income threshold, providing meaningful support to middle-income earners, especially those with children or other dependents. Effective from the 2026 tax year, the new regulation not only helps reduce financial pressure on salaried individuals but also enables taxpayers to plan their personal finances more proactively in line with economic conditions and cost of living changes.

2. Family Deduction Levels Applicable from 2026

According to the Resolution, starting from the 2026 tax assessment period, personal income applied in personal allowance applied in personal income tax (PIT) calculation will be significantly increased. Specifically:

  • Personal allowance for the taxpayer will be raised to VND 15.5 million per month (equivalent to VND 186 million per year).

  • The dependent allowance will be set at VND 6.2 million per month for each eligible dependent.

Example 1: Individual With No Dependents

  • Monthly income: VND 18,000,000

  • Personal allowance: VND 15,500,000

After applying the personal allowance, only VND 2,500,000 remains subject to personal income tax. If mandatory insurance contributions are further deducted, this individual may not incur any PIT liability.

Example 2: Individual With One Eligible Dependent

  • Monthly income: VND 25,000,000

  • Personal allowance: VND 15,500,000

  • Dependent allowance (1 dependent): VND 6,200,000

Taxable income calculation: 25,000,000 − 15,500,000 − 6,200,000 = VND 3,300,000

This taxable income falls within the lowest PIT bracket under Vietnam’s progressive tax rate system. 

3. Who Qualifies as a Dependent for Family Deduction Purposes?

Pursuant to Point d, Clause 1, Article 9 of Circular No. 111/2013/TT-BTC, dependents eligible for family deductions when calculating personal income tax (PIT) include the following categories:

3.1. Children of the Taxpayer

  • Children under 18 years of age (calculated on a monthly basis).

  • Children aged 18 or older who are disabled and unable to work.

  • Children who are studying in Vietnam or overseas at universities, colleges, professional secondary schools, or vocational institutions, including children aged 18 or older who are still attending high school (including the period from June to September of Grade 12 while awaiting university entrance exam results), with no income or with an average monthly income not exceeding VND 1 million.

3.2. Spouse of the Taxpayer

  • Of working age: must be disabled, unable to work, and have no income or an average monthly income not exceeding VND 1 million.

  • Beyond working age: must have no income or an average monthly income not exceeding VND 1 million.

Specifically, according to Clause 1, Article 4 of Decree No. 135/2020/NĐ-CP, the statutory retirement age in 2025 is:

  • Male employees: 61 years and 3 months

  • Female employees: 56 years and 8 months

3.3. Parents and Parents-in-law

This category includes biological parents, parents-in-law, step-parents, and legally adopted parents:

  • Of working age: must be disabled, unable to work, and have no income or an average monthly income not exceeding VND 1 million.

  • Beyond working age: must have no income or an average monthly income not exceeding VND 1 million.

3.4. Other Individuals Directly Supported by the Taxpayer

  • Biological brothers and sisters.

  • Paternal and maternal grandparents.

  • Aunts, uncles (paternal or maternal).

  • Nieces and nephews (children of biological siblings).

  • Other individuals without means of support, as prescribed by law.

Note: Individuals under this category are only considered eligible dependents if they have no means of support, are directly supported by the taxpayer, and meet the statutory conditions regarding income level and working capacity in accordance with Point đ, Clause 1, Article 9 of Circular No. 111/2013/TT-BTC.

Vietnam Personal Allowances 2026_ Family Deductions Explained-Vina TPT

4. How to Determine Family Deduction When Calculating PIT from 2026

4.1. Step 1: Determine Total Taxable Income for the Period

Total income includes all salary, wages, and salary-like allowances arising during the relevant tax assessment period.

4.2. Step 2: Apply Deductions For The Taxpayer And Eligible Dependents

The personal allowance is deducted directly at VND 15.5 million per month. For each eligible and duly registered dependent, an additional VND 6.2 million per month may be deducted.

Total family deduction = Personal allowance + Dependent allowances.

Accordingly, from 2026, individuals without dependents will only incur personal income tax (PIT) when their income exceeds VND 15.5 million per month, while individuals with one eligible dependent will begin to pay PIT when their income exceeds VND 21.7 million per month. These guidelines enable employees to more easily estimate their taxable income and PIT liabilities, thereby proactively planning their personal finances once the new policy takes effect.

4.3. Illustrative Example

Mr. C is a salaried employee who has registered two eligible dependents.

Monthly income: VND 30,000,000

Personal allowance: VND 15,500,000 per month

Dependent allowances: VND 6,200,000 × 2 = VND 12,400,000 per month

Taxable income: 30,000,000 − 15,500,000 − 12,400,000 = VND 2,100,000 per month

Under the progressive PIT tariff, taxable income of VND 2.1 million per month falls within Bracket 1, subject to a 5% tax rate.

PIT payable: 2,100,000 × 5% = VND 105,000 per month

This example demonstrates that, under the new family deduction thresholds effective from 2026, taxpayers with multiple dependents benefit significantly, as their PIT liabilities are substantially reduced and their net take-home income is improved.

5. How Vina TPT Supports Foreigners with Personal Income Tax Finalization in Vietnam 

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 review labor contracts, payroll records, tax deduction documents, foreign-sourced income records, and related invoices to ensure all data is accurate and complete.
  • Tax Calculation: Calculate 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 them via 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 the event of tax audits, additional document requests, or inquiries, helping to manage administrative requirements efficiently.

Contact Vina TPT today for comprehensive consultation and end-to-end support on personal income tax matters in Vietnam.

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setting up company in Vietnam

Business Knowledge, Finance & Accounting Knowledge, Lasted News, Legal News

FDI Company Setup in Vietnam: Business License & Complete 2026 Guide

Posted on by ASS
setting up company in Vietnam

setting up company in Vietnam

Why Setting up Company in Vietnam is the Strategic Choice for 2026?

The year 2026 marks a pivotal turning point for foreign investors in Vietnam. With significant reforms in the Law on Investment and a roadmap to reduce conditional business lines, the process for setting up a company in Vietnam is becoming more transparent and streamlined than ever.

However, to operate legally in specialized sectors such as retail, distribution, or logistics, investors must follow a structured path from obtaining an IRC and ERC to securing a specific business license.

1. Why Foreign Investors Need a Clear Roadmap in 2026

Starting a business in Vietnam as a foreigner offers immense potential, but understanding the 2026 regulatory landscape is crucial to avoiding delays or rejected applications.

a. FDI Opportunities in 2026

Vietnam maintains its position as Southeast Asia’s “global factory” based on four key pillars:

  • Extensive FTA Network: Leverage tariff incentives from the CPTPP, EVFTA, and RCEP.
  • New Incentive Policies: Strong focus on high-tech projects, circular economy, and renewable energy.
  • Flexible Ownership Structures: 100% foreign ownership is permitted in most sectors, including manufacturing, IT, consulting, and trading.
  • Digitalized Procedures: Significant reduction in waiting times through the National Business Registration Portal.

b. When is a Business License (Trading License) Mandatory?

While many sectors are open, a Business License (Trading License or Retail Distribution License) is still mandatory for foreign investors in “conditional” sectors under WTO commitments and Vietnamese Law.

Even with eased regulations, a separate Business License is required after company formation for:

  • Retail Sales: Directly providing goods to end consumers.
  • Distribution & Import: Applied to restricted or specialized commodity groups.
  • Specialized Services: Logistics, education, healthcare, and F&B.
  • Important Note: By July 1, 2026, sectors like accounting and insurance brokerage will see further liberalization. However, for Retail & Distribution, investors must still seek approval from the Ministry/Department of Industry and Trade.

c. Distinguishing IRC vs. ERC vs. Business License

Understanding these three acronyms is vital for any foreigner setting up a company in Vietnam:

Permit Type Issuing Authority Primary Role
IRC (Investment Registration Certificate) Department of Planning and Investment (DPI) Approves the investment project (capital, objectives, location).
ERC (Enterprise Registration Certificate) Business Registration Office Creates the legal entity and issues the Tax ID.
Business License Relevant Ministry or Department Grants permission to operate in conditional sectors (Retail, etc.).

The Standard Sequence: IRC (Project Approval) → ERC (Company Formation) → Business License (For specific sectors).

2. 5-Step Process for Setting Up Company in Vietnam in 2026

The average timeline for completion ranges from 1 to 2 months, depending on the complexity of your business lines.

Step 1: Choose a Legal Structure & Check Ownership Limits

The most common choice is a Limited Liability Company (LLC) due to its flexibility and limited liability protection. Foreigners must verify if their specific sector requires a Joint Venture (JV) with a Vietnamese partner.

Step 2: Obtain the Investment Registration Certificate (IRC)

Investors submit the application to the DPI. Key documents include:

  • Detailed Investment Project Proposal.
  • Proof of Financial Capacity (Bank statements or audited reports).
  • Office Lease Agreement or Memorandum of Understanding (MOU).
  • Timeline: 15 – 35 working days.

Step 3: Obtain the Enterprise Registration Certificate (ERC)

Once the IRC is issued, the ERC application is typically processed within 3 – 7 working days. This step officially grants your business its legal status.

Step 4: Post-Registration Procedures (Operational Compliance)

Obtaining the ERC is only the beginning. Within 90 days, investors must fulfill these mandatory obligations:

  • Open a Direct Investment Capital Account (DICA): This is the most critical step. All capital contributions, profit repatriations, and share transfers must flow through this account.
  • Capital Contribution: Ensure the total committed capital is transferred into the DICA within 90 days of ERC issuance.
  • Online Investment Reporting: Businesses must report project progress quarterly and annually on the National Investment Information System. Missing these deadlines can lead to heavy administrative fines.
  • Initial Tax & Accounting Setup: Register digital signatures, set up e-invoice templates, and pay Business License Tax (License Fees). Appointing a Chief Accountant or an outsourced accounting representative is a legal requirement for signing financial statements.

Step 5: Specialized Business License (If applicable)

For retail and distribution entities, authorities will assess the application based on local planning and socio-economic impact. Note the Economic Needs Test (ENT) requirement if you plan to open a second retail outlet or more.

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3. Required Documents & Checklist

All foreign documents must be Consularly Legalized, translated into Vietnamese, and notarized.

  • Individual Investors: Notarized passport + Bank balance confirmation.
  • Corporate Investors: Parent company’s Certificate of Incorporation + Audited financial statements (last 2 years) + Resolution appointing the authorized representative.
  • Project Documents: Detailed Business Plan and proof of right to use the business location.

4. Vina TPT: Your Trusted Partner for FDI Success in Vietnam

Establishing a legal entity is just the start. To thrive in the Vietnamese market, businesses need a solid foundation in Accounting, Tax, and HR from day one.

Vina TPT is proud to be a strategic partner, helping foreign investors remove language barriers and navigate local legal complexities:

  • Expert Consulting: From initial setup to tax structure optimization. We keep you updated on the latest regulations, including Global Minimum Tax and 2026 tax incentives.
  • Payroll & HR Management: We handle labor contracts, Social Health & Unemployment Insurance (SHUI), and Personal Income Tax (PIT) finalization for both expats and locals, ensuring absolute confidentiality.
  • Lifecycle Partnership: With over 20 years of experience, Vina TPT provides an “All-in-one” ecosystem. You focus on growth; we handle the administration.
  • No Language Barrier: Our trilingual team (English – Japanese – Vietnamese) ensures transparent communication and seamless management reporting.

Optimize your resources and minimize legal risks with Vina TPT. Contact us today for a 1-on-1 specialized consultation for your 2026 project.

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setting up company in Vietnam

HR News, Labor & Insurance Knowledge, Lasted News

Vietnam to Implement Mandatory Electronic Employment Contracts from July 1, 2026

Posted on by SEN
Vietnam to Implement Mandatory Electronic Employment Contracts from July 1, 2026

vietnam-electronic-employment-contracts-vinatpt

1- Overview of Decree 337/2025/ND-CP (Electronic Employment Contracts)

Decree 337/2025/ND-CP, issued by the Government of Vietnam on December 24, 2025, marks an important milestone in the digitalization of labor relations. This Decree focuses on providing detailed regulations on electronic employment contracts, aiming to promote digital transformation in human resources and labor management.

Although the Decree takes effect on January 1, 2026, the specific regulations on the conclusion and implementation of electronic employment contracts will be fully applied from July 1, 2026, coinciding with the official operation of the National Electronic Employment Contract Platform.

The Decree consists of 5 chapters and 30 articles, developed based on the 2019 Labor Code and the 2023 Law on Electronic Transactions. Its main contents focus on the following aspects:

Definition and legal validity 

An electronic employment contract is defined as an employment contract concluded in the form of electronic data messages and has the same legal validity as a traditional paper-based employment contract. This ensures that electronic employment contracts are fully legally enforceable, provided that they comply with regulations on digital signatures, trusted timestamps, and data security
(Source: Decree 337/2025/ND-CP, Article 4).

Principles of application 

The parties involved must strictly comply with laws on labor, electronic transactions, cybersecurity, personal data protection, and electronic data storage. The Decree emphasizes voluntariness, equality, and protection of employees’ rights, while encouraging the use of electronic employment contracts to gradually replace traditional paper-based contracts, thereby reducing administrative burdens.

National platform 

Developed and managed by the Ministry of Home Affairs, the national platform will assign a unique identification code (ID) to each electronic employment contract, enabling state authorities to easily search, manage, and supervise employment relationships. This not only enhances transparency but also supports enterprises in periodic labor reporting
(Source: Government News Portal).

Scope of application 

The Decree applies to all enterprises, employers, and employees in Vietnam, including foreign employees working in Vietnam. It also clearly regulates the conversion of paper-based employment contracts into electronic form, requiring digital signatures to confirm the accuracy and authenticity.

2- How does this impact businesses? 

The issuance of Decree 337/2025/ND-CP will bring significant changes to businesses in Vietnam, especially in the context of accelerating digital transformation. Electronic employment contracts are not only a modernization tool but also offer substantial practical benefits, while also posing certain challenges that businesses must address. 

2.1 Key benefits for businesses 

  • Cost and time savings:
    Instead of printing, storing, and physically transferring documents, businesses can conclude electronic employment contracts remotely via digital platforms. For example, a multi-branch company can sign contracts with employees in different provinces without face-to-face meetings, potentially reducing administrative costs by up to 50%, according to HR experts.
  • Greater flexibility and management efficiency:
    With identification codes assigned on the national platform, businesses can easily search, update, and report employment data. This is particularly beneficial for large companies managing thousands of employment contracts. In addition, electronic employment contracts can be integrated with internal HR systems, helping to automate recruitment, payroll, and attendance processes. 
  • Enhanced transparency and legal compliance:
    Electronic contracts protected by digital signatures and trusted timestamps reduce the risk of forgery or document loss. Businesses can easily demonstrate compliance with the Labor Code during inspections by state authorities while protecting the rights and interests of both parties. 
  • Competitive advantage:
    Enterprises that adopt electronic employment contracts early are more attractive to young, tech-savvy talent and are better aligned with modern remote-working trends. 

2.2 Challenges and potential risks 

  • High technical requirements:
    Businesses must invest in digital signatures, security systems, and connectivity with the national platform. Without timely preparation, companies may face difficulties from July 1, 2026, leading to delays in signing new employment contracts. 
  • Data security risks:
    Electronic storage increases the risk of personal data breaches if cybersecurity measures are inadequate. Although the Decree requires compliance with the 2018 Cybersecurity Law, many small businesses may lack sufficient resources. 
  • Transition from existing contracts:
    Existing paper-based employment contracts need to be converted into electronic form in oder to be integrated into the national platform, requiring time and costs for digital signature authentication. 
  • Impact on employees:
    Some older employees or workers in remote areas may not be familiar with digital tools, requiring additional training and support from employers. 

Overall, Decree 337/2025/ND-CP promotes deeper integration of Vietnamese businesses into the digital economy but requires careful preparation to maximize benefits while minimizing risks. 

Decree-3372025ND-CP-Electronic-Employment-Contracts-VinaTPT

3 – What should businesses prepare for electronic employment contracts before 01 July 2026? 

To comply with Decree 337/2025/ND-CP and effectively implement electronic employment contracts, businesses should develop a detailed preparation plan as early as possible. The following practical steps are recommended: 

  • Build technical infrastructure:
    Register digital signatures for legal representatives and HR staff with licensed public certification authorities (CAs) such as Viettel CA or VNPT CA. Ensure that internal systems support secure digital signing and data storage, in compliance with ISO 27001 standards. 
  • Select an eContract service provider:
    Choose reputable providers licensed to authenticate electronic data messages, such as FPT, Viettel, or VNPT. Providers must meet 13 technical requirements stipulated in the Decree, including API connectivity with the national platform and robust data security measures. 
  • Prepare digital identification documents:
    Collect electronic citizen IDs, business registration certificates, and Level-2 electronic identification accounts for both individuals and enterprises. Employees should be encouraged to use biometric authentication (fingerprints or facial recognition) to enhance security. 
  • Training and internal process updates:
    Organize training sessions for HR teams on electronic employment contract workflows, including sending and receiving contracts, dispute handling, and reporting via the national platform. Update internal HR manuals to incorporate the new regulations. 

To support businesses in implementation, companies such as Vina TPT—a professional provider of HR, payroll, and labor compliance services in Vietnam—can serve as an ideal partner. With extensive experience in payroll outsourcing, Vina TPT helps enterprises integrate electronic employment contracts effectively and in compliance with regulations. 

Decree 337/2025/ND-CP is not only a legal requirement but also an opportunity for Vietnamese businesses to modernize HR management. Early preparation will help minimize risks and maximize the benefits of electronic employment contracts.

If you need advice tailored to your company’s specific situation, please contact Vina TPT for prompt and professional support. 

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Company Formation, Lasted News

Essential Step For Setting Up a Company in Vietnam| Trading Businesses

Posted on by SEN

setting-up-a-company-in-vietnam-trading-Vina-TPT-Legal

Are you looking for a solution for setting up a company in Vietnam and explore opportunities in one of Asia’s fastest-growing economies? Vietnam, with its strategic geographic location along the South China Sea and borders with China, Laos, and Cambodia, has become a top destination for foreign investors in the trading sector. However, full legal compliance is essential for sustainable success, governed by the Law on Investment 2020 (amended in 2025) and the Law on Enterprises 2020. This comprehensive guide details the essential steps to set up a trading company in Vietnam, from basic concepts to full operations, catering to both informational and transactional search intent. 

  • Key Benefits: Access to FTAs for tariff reductions, excellent logistics positioning, and policies allowing up to 100% foreign ownership in most trading activities. 
  • Challenges to Consider: Administrative procedures can take 1–6 months, and it’s crucial to stay updated on recent changes, such as the 2025 Investment Law amendments permitting company establishment before obtaining the Investment Registration Certificate (IRC). 

By following these steps carefully, you can successfully start a business in Vietnam as a foreigner. 

1/ What is a Trading Company in Vietnam? 

A trading company in Vietnam specializes in buying and selling goods, including import, export, wholesale/retail distribution, and related services, regulated by Decree 09/2018/ND-CP (with a replacement draft under discussion in 2025). Unlike manufacturing companies, which focused on production or service providers offering labor or consulting, trading companies serve as intermediaries in the supply chain, connecting producers with consumers. With Vietnam’s exports surging by 28% in 2025, this sector is booming—especially in electronics, textiles, and agricultural products. According to the Ministry of Industry and Trade, trading contributes 15–20% to GDP, with an average annual growth rate of 9–10% over the past decade, fueled by international integration. 

Key Activities: 

  • Importing goods from abroad for domestic distribution. 
  • Exporting Vietnamese products to global markets. 
  • Wholesale and retail distribution through traditional or online channels. 
  • Logistics, warehousing, and product promotion services. 

Comparison table with other business types: 

Type  Key Characteristics  Example 
Trading  Focuses on buying/selling, no production  Mobile phone importer, apparel distributor 
Manufacturing  Produces goods from raw materials  Textile factory, electronics component maker 
Services  Provides labor or advisory services  Software consulting, management consulting 

2/ Benefits and Challenges of Setting Up Company in Vietnam 

Setting up a trading company in Vietnam offers substantial advantages but also involves challenges. Here is a clear comparison: 

Benefits  Challenges  Illustrative Example 
Young market with 100 million consumers and high demand  Complex and potentially lengthy administrative procedures Textile exports grew by 20% due to young population 
Strategic location near China and major sea routes  A local partner is required hoặc Local partners are required Logistics advantages reduce transport costs by 15% 
FTAs reduce tariffs and open access to EU and US markets  Currency fluctuations and legal risks  EVFTA boosts agricultural exports by 25% 

The benefits clearly outweigh the challenges with proper planning. For example, foreign investors can leverage FTAs to expand markets but must comply with regulatory requirements such as the Economic Needs Test (ENT) for multiple retail outlets. 

3/ Legal Requirements and Foreign Ownership Rules 

Under the Law on Investment 2020 (amended 2025) and the Law on Enterprises 2020, Vietnam permits up to 100% foreign ownership in most trading sectors, except for restricted industries such as pharmaceuticals, oil and gas, and printing. The 2025 amendments (effective from 2026) simplify procedures by allowing company registration before IRC issuance and reducing conditional business lines from 243 to approximately 200. These changes have driven record FDI inflows in 2025. Compliance with Decree 09/2018/ND-CP (a replacement draft pending) remains required for foreign-invested trading operations. 

Key Requirements: 

  • Investment registration with the Department of Finance (DOF) 
  • Compliance with WTO market access commitments. 
  • ENT evaluation for retail operations involving multiple stores. 

Restricted Product Categories and Conditional Business Lines 

Certain products are restricted or required special conditions under the Investment Law and Decree 09/2018/ND-CP, such as explosives, printing materials, and pharmaceuticals. 

Summary table: 

Product Category  VSIC Code  Restrictions 
Explosives  2029  Import prohibited except for national defense purpose
Printing Materials  1811  Requires approval from Ministry of Information 
Pharmaceuticals  2100  Foreign ownership limited to 49% 

Verification checklist: 

  • Check the national portal for conditional business lines. 
  • Assess legal risks with a local lawyer. 
  • Monitor the draft replacement of Decree 09 for 2026 updates. 

setting-up-a-company-in-vietnam-trading-Vina-TPT-Tax-Consultant

4/ Choosing the Right Business Structure 

Selecting the right business structure for your trading company depends on its scale and ownership. Under the Law on Enterprises 2020, the two most common forms are the Limited Liability Company (LLC) and the Joint Stock Company (JSC), with the LLC being ideal for smaller businesses due to its simpler procedures. 

  • LLC Pros & Cons: Flexible, liability limited to contributed capital; drawback: harder to raise large capital. 
  • JSC Pros & Cons: Easier to list on stock exchanges; drawback: more complex structure, requires at least 3 shareholders. 

Comparison table: 

Structure  Number of Members  Legal Liability 
LLC  1–50  Limited to contributed capital 
JSC  Minimum 3  Limited to share capital 

For foreign investors with limited capital, an LLC is the best choice for a fast start. 

LLC vs. JSC: Which is Best for Trading? 

Detailed comparison: 

LLC  JSC  Best for Trading 
Simple procedures, flexible capital  More complex, easier expansion  High for small businesses, local distribution 
No board of directors required  Requires diverse shareholders  Lower if needing large capital for exports 

LLC is generally more suitable for trading due to its flexibility. For example, a foreign agricultural trading company often opts for an LLC to quickly begin import operations. 

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5/ Capital Requirements and Financial Planning 

Vietnam imposes no fixed minimum capital for trading companies, but charter capital must be “reasonable” to demonstrate operational capability. A typical recommendation is USD 10,000–50,000, depending on the business plan. Total investment capital includes charter capital and other expenses, with full contribution required within 90 days of registration. 

Financial preparation checklist: 

  • Estimated setup costs: USD 3,000–10,000 for procedures and office. 
  • Reserve for VND/USD exchange rate risks. 
  • Budget for taxes and employee salaries. 

Estimated capital table: 

Recommended Capital  Purpose 
USD 10,000  Basic operations, small-scale distribution 
USD 50,000  Expansion of import/export activities 

6/ Essential Steps to Setting Up a Company in Vietnam as a Foreign Investor 

Setting up a foreign-invested company in Vietnam requires following a clear, structured process to ensure full legal compliance and smooth operations. This step-by-step guide is tailored for foreign-owned trading or commercial entities. 

Step 1: Prepare Your Investment Documentation 

Gather all necessary paperwork for your investment project. This includes defining your business model (e.g., Limited Liability Company – LLC, joint venture, or representative office), choosing the right structure, and outlining main activities. Verify that your industry allows foreign ownership under Vietnamese law. 

Step 2: Submit Application for the Investment Registration Certificate (IRC) 

The IRC is the foundational approval for foreign-invested enterprises. It authorizes your project and details the charter capital, scale, location, and business scope. Without an IRC, you cannot proceed to company registration. 

Required documents: 

  • Application form and a detailed project proposal (objectives, scale, capital, location, and timeline). 
  • Proof of financial capability (bank statements, audited financials, or credit agreements). 
  • Legal documents: notarized passport (individuals) or business registration certificate (organizations), both legalized. 
  • Proof of location (lease agreement or land use rights). 
  • Power of attorney (if using a third-party service). 

Foreign documents require consular legalization and official Vietnamese translation. Partnering with a professional company setup service such as Vina TPT is recommended to avoid delays. 

Step 3: Obtain the Enterprise Registration Certificate (ERC) 

After the IRC issuance, register the company to receive the ERC, which establishes its legal identity in Vietnam. 

Step 4: Open a Corporate Bank Account and Inject Charter Capital 

Open a dedicated capital account at a licensed Vietnamese bank. Contribute the full charter capital within 90 days of ERC issuance to avoid penalties and ensure the credibility for future permits. 

Step 5: Complete Tax Registration and Post-Licensing Formalities 

Register for a tax ID, VAT, and fulfill obligations such as social insurance and labor compliance if hiring staff. 

Step 6: Secure Industry-Specific Licenses (If Applicable) 

Sectors like trading, retail, F&B, education, or e-commerce may require additional permits. 

By following these steps and staying updated on regulations, foreign investors can successfully set up company in Vietnam.

setting-up-a-company-in-vietnam-trading-Vina-TPT

7/ Taxation, Compliance, and Ongoing Operations 

Foreign-invested trading enterprises (FDIs) in Vietnam must strictly comply with tax, labor, and periodic reporting obligations to avoid penalties and maintain legal standing. 

A – Taxes: 

  • Corporate Income Tax (CIT): 20% (15–17% incentives for SMEs from late 2025 if revenue < VND 50 billion); quarterly provisional payments (at least 80% of annual obligation); due by the 30th of the first month of the following quarter; annual declaration within 90 days after the fiscal year-end. 
  • Value Added Tax (VAT): 8–10% (reduced to 8% until 2026); monthly declaration (revenue > VND 50 billion/year) or quarterly declaration; due by the 20th of the following month or the end of the first month of the next quarter; retain invoices for deductions. 
  • Personal Income Tax (PIT): 5–35% (residents) or 20% (non-residents); withholding and declaration monthly/quarterly, aligned with VAT; annual employee declaration. 
  • Other fees (environmental protection, resource tax, land use): Usually annually or on an event basis, with changes required to be reported within 30 days.

B – Laws and Other Compliance: 

  • Labor Law 2019 (amended): Work permits for foreigners; quarterly labor reports; standard contracts; monthly social insurance contributions (pension, health, unemployment insurance). 
  • Intellectual Property: Registration and monitoring (annual review recommended). 
  • Financial Reporting: Annual audited financial statements for FDI, submitted with final CIT. 
  • Transfer Pricing: Local/master file prepared annually, submitted within 90 days after the fiscal year-end if thresholds are met. 

Compliance Checklist: 

Requirement  Details  Frequency  Deadline  Penalties if Violated 
VAT Declaration & Payment  Input/output, deductions (Form 01/GTGT or 04/GTGT)  Monthly (>50B VND) or quarterly  20th of next month or end of first month of next quarter  0.03%/day interest, disallowed deductions, audits 
PIT Withholding & Declaration  Employee withholding (Form 05/KK-TNCN)  Monthly/quarterly  20th or end of the first month of next quarter; annual within 90 days  Daily fines, criminal liability 
Provisional CIT Payment  Estimated profit-based  Quarterly  30th of the first month of next quarter  Interest if below 80% the annual obligation 
Social Insurance  Contributions and reporting  Monthly  Aligned with PIT monthly/quarterly  Late fees, hiring restrictions 
Labor Usage Report  Employee numbers and changes  Quarterly  End of the quarter  Administrative fines, suspension 
FCT Declaration  Payments to foreign contractors  Monthly or per payment  20th of the next month or 10 days after payment  Employer liability, heavy fines 
Transfer Pricing  Local/master file  Annually  90 days the after fiscal year-end  Audits, tax adjustments 
Audited Financial Statements  VAS-compliant with independent audit  Annually  With final CIT (90 days)  Mandatory audits, penalties for errors 

FDI companies should engage professional accounting services and monitor updates such as Decree 132/2025/ND-CP on CIT, ensuring electronic filing with digital signatures. 

8/ Frequently Asked Questions (FAQs) 

  • Can foreigners own 100% of a trading company in Vietnam? 

Yes, foreign investors can own up to 100% in most sectors, including import-export and distribution. Exceptions apply to restricted sectors such as pharmaceuticals, oil and gas, or printing, where ownership may be limited or may require a local partner. 

  • What is the minimum capital required? 

No fixed minimum capital exists for most trading companies. Charter capital must be reasonable to support operations. Authorities often recommend at least USD 10,000 to show financial capability and avoid delays. The exact amount depends on your business plan and scale. 

  • How long does it take to set up? 

Setting up a business in Vietnam as a foreigner typically takes 1–2 months, depending on the complexity and the province. The IRC usually takes 30–45 working days, the ERC follows in 7–14 days. Additional licenses and post-registration steps may extend the timeline. 

  • Do I need a local partner? 

For general trading (import, export, wholesale, and distribution), no local partner is needed—100% foreign ownership is allowed. In restricted or conditional sectors (e.g., multi-outlet retail, pharmaceuticals, and media), a local partner or joint venture may be required. 

  • How to start a business in Vietnam as a foreigner? 

Follow these key steps: obtain the Investment Registration Certificate (IRC), then the Enterprise Registration Certificate (ERC), secure trading or sector-specific licenses, open a corporate bank account, contribute charter capital, and complete tax registration. Using professional services like Vina TPT’s company setup service ensures accuracy and efficiency. 

Vina TPT – Your Trusted Partner for Foreign Businesses in Vietnam 

Vina TPT is one of Vietnam’s leading company formation consultancies, specializing in helping foreign investors to set up companies in Vietnam for trading, manufacturing, and services. With over 20 years of experience, Vina TPT has assisted hundreds of FDI companies from Europe, the US, Japan, Korea, and Singapore in successfully obtaining IRCs, ERC, and required licenses in minimal time. 

  • Multilingual Expert Team: Lawyers, accountants, and registration specialists fluent in English, Japanese, and more for seamless communication. 
  • Fast and Transparent Process: Commitment to completing the IRC in 30–45 working days and the ERC in 7–14 days, with a near-100% success rate. 
  • Full-Service Package: From company registration to capital advisory, bank account opening, tax filing, work permits, social insurance, and transfer pricing support. 
  • Competitive and Transparent Pricing: Clear quotes with no hidden fees, ideal for SMEs. 
  • Long-Term Post-Setup Support: Daily operational guidance and updates on the latest laws (including the 2025 Investment Law changes) to minimize risks and support sustainable growth. 

We go beyond simply setting up a company in Vietnam – we help you build a strong foundation for success. With our commitment to “Fast – Accurate – Cost-Effective” service, Vina TPT saves time, reduces legal risks, and lets you focus on business growth. Hundreds of satisfied clients trust Vina TPT – contact us today for a free consultation and a personalized quote tailored to your needs. 

BOOK A FREE CONSULTATION

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Accounting & Tax, Lasted News, Tax News

Updated List of Foreign Contractors Registered for Tax in Vietnam 2024-2025

Posted on by ASS
List of foreign contractors registered for tax in Vietnam including Google, Meta and Microsoft

Official list of foreign contractors registered for tax in Vietnam under Circular 80

1. Comprehensive List of Foreign Contractors Registered for Tax in Vietnam

In recent years, the General Department of Taxation (GDT) of Vietnam has revolutionized the tax landscape for digital services. By launching a dedicated e-tax portal Vietnam (etaxvn.gdt.gov.vn), the GDT now allows foreign information providers and non-resident contractors to register, declare, and pay taxes directly. This shift significantly impacts how local businesses manage their Foreign Contractor Tax (FCT) obligations, moving the compliance burden from the local buyer to the international seller. Understanding the current list of foreign contractors registered for tax in Vietnam is the first step for any business to ensure they are applying the correct tax treatment for cross-border transactions.

2. Why You Need to Track This List

For Vietnamese accountants and business owners, regularly monitoring the list of foreign contractors registered for tax in Vietnam is crucial for navigating FCT compliance because:

  • Direct Tax Compliance: It determines whether the Vietnamese buyer must withhold tax or if the foreign information providers on the list of foreign contractors registered for tax in Vietnam handle it directly via the e-tax portal Vietnam.

  • Expense Validation: Ensuring the FCT tax codes (MST) provided on digital receipts matches the official list of foreign contractors registered for tax in Vietnam is vital for valid Corporate Income Tax (CIT) deductions.

  • Avoiding Double Taxation: By referring to the list of foreign contractors registered for tax in Vietnam, businesses can accurately apply rules for cross-border digital services under Circular 80/2021/TT-BTC without risk of overpayment.

3. Featured List of Foreign Contractors Registered for Tax in Vietnam

Below is the directory of major entities that have successfully registered their FCT tax codes as shown in the official list of foreign contractors registered for tax in Vietnam.

NO TAX CODE TAXPAYER’S NAME TC ISSUE DATE
1 9000001017 Addons Studio LLC 07/05/2024 14:40:41
2 9000001169 Lemon Squeezy LLC 02/05/2024 08:07:32
3 9000001151 Replay 02/05/2024 08:06:36
4 9000001144 SEMRUSH INC. 23/04/2024 17:50:45
5 9000001137 PMMAX Technology Limited 23/04/2024 17:50:38
6 9000001112 Elsevier B.V. 22/04/2024 08:42:25
7 9000001105 Elsevier Inc. 22/04/2024 08:42:09
8 9000001095 Elsevier Limited 22/04/2024 08:35:37
9 9000001088 Nanyang Technological University 22/04/2024 08:34:41
10 9000001070 Clearword Ltd 13/04/2024 15:33:34
11 9000001063 With Reach UK Ltd 09/04/2024 16:15:14
12 9000001056 Association Of Chartered Certified Accountants 25/03/2024 11:27:18
13 9000001049 Predibase 21/02/2024 08:45:09
14 9000001031 Posit Software PBC 16/02/2024 08:57:58
15 9000001024 CYBERGHOST S.R.L. 16/02/2024 08:53:01
16 9000000990 upvpn LLC 29/01/2024 18:07:05
17 9000000983 Ahrefs Pte. Ltd. 29/01/2024 18:06:29
18 9000000976 Brainfish Pty Ltd 17/01/2024 11:11:45
19 9000000969 Codecademy LLC 09/01/2024 19:35:40
20 9000000951 YX ECOMMERCE SUPPLY (HONG KONG) LIMITED 09/01/2024 19:32:28
21 9000000944 Surfshark B.V. 09/01/2024 19:23:55
22 9000000937 PIA Private Internet Access, Inc 15/12/2023 14:01:32
23 9000000912 Express Technologies Limited 08/12/2023 11:20:12
24 9000000905 FREEPIK COMPANY, S.L 26/10/2023 09:12:02
25 9000000895 Aptoide S.A. 26/10/2023 09:11:51
26 9000000888 Nintendo Co., Ltd. 24/10/2023 11:37:26
27 9000000870 Olea Global Pte. Ltd. 23/10/2023 14:47:48
28 9000000863 Metis.AI UG (haftungsbeschränkt) 07/10/2023 17:28:06
29 9000000856 VERICANT INTERNATIONAL HOLDINGS LIMITED 29/09/2023 16:31:27
30 9000000849 TRIP.COM TRAVEL SINGAPORE PTE. LTD. 17/09/2023 20:11:41
31 9000000831 Upwork Global Inc. 14/09/2023 11:06:50
32 9000000824 VELOTRADE MANAGEMENT LIMITED 13/09/2023 13:02:42
33 9000000817 Match Group, LLC. 05/09/2023 09:59:04
34 9000000782 Localization Academy Inc. 05/09/2023 09:58:13
35 9000000775 INDEFINITE 03/08/2023 08:40:28
36 9000000768 AMAZON ASIA-PACIFIC HOLDINGS PRIVATE LIMITED 03/08/2023 08:36:31
37 9000000750 HONG KONG EXPRESS AIRWAYS LIMITED 01/08/2023 17:05:16
38 9000000736 Blinks Labs GmbH 27/07/2023 10:54:38
39 9000000743 Epic Games Commerce GmbH 21/07/2023 14:46:26
40 9000000729 Sandbox Interactive GmbH 22/06/2023 16:11:48
41 9000000711 Epic Games Entertainment International GmbH 22/06/2023 16:11:16
42 9000000704 Foxit Software Incorporated 17/06/2023 12:28:16
43 9000000694 Ganjingworld Corporation 09/05/2023 09:16:02
44 9000000687 nordvpn S.A. 27/04/2023 10:14:53
45 9000000662 GARMIN (EUROPE) LIMITED 25/04/2023 10:27:45
46 9000000655 BYTEDANCE PTE. LTD. 21/04/2023 14:17:01
47 9000000648 POLIGON PTE. LTD. 21/04/2023 14:16:54
48 9000000630 MySchool Ltd 13/03/2023 15:23:57
49 9000000623 Udemy, Inc. 03/03/2023 10:02:33
50 9000000616 TENCENT MUSIC ENTERTAINMENT HONG KONG LIMITED 27/02/2023 08:58:33
51 9000000599 Bitrix, Inc. 06/02/2023 11:17:13
52 9000000581 Galactic Entertainment NFTs Limited 19/01/2023 14:53:33
53 9000000574 University of London 19/01/2023 11:03:26
54 9000000567 ZOOM VIDEO COMMUNICATIONS INC 10/01/2023 17:00:46
55 9000000542 TRADINGVIEW, INC. 25/11/2022 10:01:25
56 9000000535 Trinity College London Press Limited 23/11/2022 10:08:41
57 9000000528 NBA Digital Services International, Inc. 23/11/2022 10:02:24
58 9000000510 The Chancellor, Masters, and Scholars of the University of Cambridge 14/11/2022 10:21:00
59 9000000503 Shen Yun Zuo Pin, Inc. 09/11/2022 16:05:09
60 9000000422 Fenix International Limited 18/10/2022 10:59:50
61 9000000493 DialogEdu, LLC 10/10/2022 17:22:23
62 9000000486 Apple Distribution International Limited 29/09/2022 08:22:44
63 9000000479 Verifone Payments B.V. 21/09/2022 08:21:52
64 9000000461 ETSY IRELAND 13/09/2022 16:41:16
65 9000000454 Bloomberg Finance Singapore L.P. 13/09/2022 16:38:35
66 9000000447 PADDLE.COM MARKET LIMITED 05/09/2022 11:18:10
67 9000000415 Google Asia Pacific Pte Ltd 15/08/2022 14:54:14
68 9000000408 TOKGISTIC PTE. LTD. 11/08/2022 16:54:48
69 9000000398 University of Auckland 29/07/2022 17:24:35
70 9000000380 MORRIS SHIPPING INTERNATIONAL LIMITED 20/07/2022 08:46:30
71 9000000373 Bloomberg L.P. 11/07/2022 11:32:09
72 9000000366 eBay Marketplaces GmbH 28/06/2022 20:52:39
73 9000000359 Canva Pty Ltd 23/06/2022 18:37:44
74 9000000341 MCAFEE IRELAND LIMITED 01/06/2022 14:30:09
75 9000000334 CGTrader UAB 30/05/2022 10:39:47
76 9000000327 META PLATFORMS IRELAND LIMITED 27/05/2022 10:23:13
77 9000000302 Hostinger PTE Ltd. 27/05/2022 10:23:08
78 9000000292 META PLATFORMS TECHNOLOGIES IRELAND LIMITED 27/05/2022 10:22:58
79 9000000285 FACEBOOK PAYMENTS INTERNATIONAL LIMITED 27/05/2022 10:22:52
80 9000000278 2C2P PTE.LTD 24/05/2022 18:27:49
81 9000000260 PIPO (HK) Limited 20/05/2022 11:41:10
82 9000000207 Cricut Inc 06/05/2022 18:07:24
83 9000000197 Spotify AB 05/05/2022 14:30:46
84 9000000172 TRAVELOKA SERVICES PTE.LTD. 30/04/2022 08:47:53
85 9000000165 Huawei Services (Hong Kong) Co., Limited 29/04/2022 16:48:55
86 9000000158 IMAGE FUTURE INVESTMENT (HK) LIMITED 28/04/2022 15:52:35
87 9000000140 KLOOK TRAVEL TECHNOLOGY LIMITED 27/04/2022 17:03:21
88 9000000133 Samsung Electronics Co., Ltd. 27/04/2022 14:30:26
89 9000000126 LinkedIn Singapore Pte. Ltd. 18/04/2022 08:41:35
90 9000000119 EZVIZ INTERNATIONAL LIMITED 18/04/2022 08:41:25
91 9000000101 Educational Testing Service 13/04/2022 16:21:51
92 9000000091 Blizzard Entertainment Inc 06/04/2022 14:41:27
93 9000000084 TIKTOK PTE. LTD. 04/04/2022 11:07:49
94 9000000077 Netflix Pte. Ltd. 31/03/2022 15:39:17
95 9000000052 iHerb, LLC 30/03/2022 10:50:20
96 9000000045 Microsoft Regional Sales Pte Ltd 24/03/2022 15:56:01

How to Search for Foreign Tax IDs (MST) Online

To verify if a specific foreign partner is registered, follow these steps:

  1. Visit the Official Portal for Foreign Suppliers

  2. Navigate to the “Taxpayer Information” or “Look up Information” section.

  3. Enter the entity name or the 10-digit Tax ID to check their current status.

4. Key Considerations for FCT Compliance

  • Direct Registration: If a provider is found on the list of foreign contractors registered for tax in Vietnam, the local buyer is generally relieved from declaring and paying FCT on their behalf.

  • Invoicing & Verification: Always verify that the digital invoice includes a 10-digit FCT tax code that matches the list of foreign contractors registered for tax in Vietnam.

  • E-tax Portal Verification: Use the e-tax portal Vietnam to look up any new foreign information providers that might have joined the list of foreign contractors registered for tax in Vietnam mid-quarter.

5. Conclusion

Staying updated with the list of foreign contractors registered for tax in Vietnam is no longer just a recommendation—it is a critical requirement for maintaining financial transparency and FCT compliance. Referring to the official list of foreign contractors registered for tax in Vietnam ensures your business adheres to Circular 80/2021/TT-BTC guidelines.

For businesses, verifying the tax status of foreign information providers through this list of foreign contractors registered for tax in Vietnam is the most effective way to mitigate risks during tax audits. By confirming that a provider has registered their FCT tax code on the list of foreign contractors registered for tax in Vietnam, you can confidently manage your international payments and ensure that all expense claims remain valid under current laws.

6. How Vina TPT Supports Your FCT Compliance

Vina TPT Accounting Service provides specialized support for businesses dealing with foreign information providers and the list of foreign contractors registered for tax in Vietnam:

  • Tax Compliance Review: Verifying partners against the latest list of foreign contractors registered for tax in Vietnam.
  • Circular 80/2021/TT-BTC Advisory: Managing filings for providers not yet on the list of foreign contractors registered for tax in Vietnam.
  • FCT Tax Code Verification: Ensuring your receipts from the list of foreign contractors registered for tax in Vietnam are 100% tax-deductible.
  • E-tax Portal Management: Assisting with documentation and reporting via the e-tax portal Vietnam.

Contact Vina TPT today for a free consultation. Let us help you navigate the list of foreign contractors registered for tax in Vietnam and stay legally secure.

CONTACT YOUR EXPERT

Accounting & Tax, Labor & Insurance Knowledge, Lasted News

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

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Vietnam-Tax-Policy-Updates-November-2025-VAT-PIT-and-Labor-Vina-TPT

Vietnam-Tax-Policy-Updates-November-2025-VAT-PIT-and-Labor-Vina-TPT

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.

Vietnam-Tax-Policy-Updates-November-2025-VAT-PIT-and-Labor-Vina-TPT

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.

Vietnam-Tax-Policy-Updates-November-2025-VAT-PIT-and-Labor-Vina-TPT

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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Accounting & Tax, Lasted News

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!

Talk to Our Experts

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Accounting & Tax, Finance & Accounting Knowledge, Lasted News

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

Posted on by ASS
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!

Get Your Accounting Solution

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Company Formation, Lasted News

Capital Contribution and Business Setup for Foreign Investment in Vietnam

Posted on by ASS
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Capital-Contribution-and-Business-Setup-for-Foreign-Investment-in-Vietnam-Vina-TPT

1. Understanding Capital Contribution Requirements for Foreign investment in vietnam

Capital contribution is the most important step when establishing an FDI enterprise. According to Vietnamese law, foreign investors should note:

  • Minimum capital: Vietnam does not require a general legal capital level, but the charter capital must be appropriate and demonstrate the ability to implement the business model. Some specific industries (education, real estate, e-commerce, etc.) have higher capital requirements.
  • Form of capital contribution: Investors can contribute capital in cash, machinery and equipment, assets, intellectual property rights, or other legal assets.
  • Capital contribution period: Usually must be completed within 90 days from the date of issuance of the Certificate of Business Registration (or according to the period stated in the Investment Registration Certificate).

Determining capital accurately from the beginning helps reduce legal risks and limit capital adjustments later.

2. Types of Foreign Investment in Vietnam

When choosing a form of investment in Vietnam, investors need to consider their business objectives, project scale, level of control and desired scope of operations. Vietnam allows for a variety of flexible legal models, from establishing a new business to opening a branch or representative office. Each form carries different levels of risk, costs and compliance obligations, so choosing the right one at the outset will have a big impact on investment performance and long-term strategy.

Below are the most common forms of FDI in Vietnam:

Type Suitable for Advantages Disadvantages
Limited Liability Company (LLC) Small & medium enterprises

Investors needing strong control

 Simple structure

Easy to operate

High control

Fast setup

 Hard to raise capital

Extra procedures to convert to JSC
Joint Stock Company (JSC) Businesses expanding strongly

Companies seeking fundraising

 Easy capital raising Fit for large/multinational projects

Flexible share transfer

Good for future IPO

 Complex governance

More management bodies required

Higher compliance cost
Branch of Foreign Traders Foreign companies in eligible sectors Can conduct profit-making activities

No new legal entity required

Operate under parent company

 Limited to specific industries

Dependent on parent company

Hard to scale like an independent entity
Representative Office (RO) Market research stage

Building partner networks

 Simple setup

Low cost

No CIT applied

 Cannot generate revenue

Cannot sign commercial contracts

Not suitable for long-term investment

Choosing the appropriate form of FDI helps investors optimize costs, reduce legal risks and ensure that their business strategy in Vietnam is effectively implemented. For small and medium-sized projects, LLC is often the optimal choice; for strong expansion plans or many shareholders, JSC is more suitable. Meanwhile, branches and representative offices serve the purpose of market presence without the need to establish a new legal entity.

3. Steps to Set Up a Company with Capital Contribution

When setting up a Foreign investment in Vietnam, investors need to take the following main steps:

Step 1: Prepare investment documents

  • Investor information
  • Financial capacity report
  • Business plan
  • Headquarters lease contract, company charter

Step 2: Apply for Investment Registration Certificate (IRC): Confirm investment project and capital structure. Processing time: 15-30 days.

Step 3: Apply for Enterprise Registration Certificate (ERC): Officially establish the enterprise. Time: 3-5 days.

Step 4: Open an investment capital account: Required for FDI enterprises, used to receive capital from abroad.

Step 5: Make capital contribution: Investors transfer capital on time and complete the report.

Step 6: Post-establishment procedures

  • Tax registration
  • Digital signature
  • Corporate seal
  • Labor and insurance registration (if required)

Capital-Contribution-and-Business-Setup-for-Foreign-Investment-in-Vietnam-Vina-TPT

4. Compliance and Reporting Obligations

Foreign investment in Vietnam must ensure full compliance with the following regulations:

  • Capital contribution progress report
  • Accounting and bookkeeping according to VAS standards
  • Periodic tax declaration (VAT, CIT, PIT)
  • Annual financial report
  • Notification of changes in capital, headquarters, and representative

Non-compliance may result in administrative fines, restrictions on operations, or capital adjustment requirements.

AVOID COSTLY COMPLIANCE RISKS

5. Benefits of Proper Capital Contribution Management

Managing and implementing capital contribution in accordance with regulations is not only a legal requirement but also brings many practical values ​​to FDI enterprises in Vietnam:

Avoid legal risks and penalties

  • Contributing capital on time helps avoid administrative penalties.
  • Avoid being required to reduce charter capital or adjust the Investment Certificate.
  • Limit risks when checking, inspecting or working with banks.

Protecting investors’ ownership rights and capital contribution ratios

  • Clearly record the ownership ratio, voting rights and interests of each shareholder.
  • Avoid internal disputes, especially with investors from many different countries.
  • Increase transparency when planning to transfer shares or raise capital.

Increase the level of trust with banks, partners and management agencies

  • Adequate charter capital is an important factor in expanding credit limits.
  • Demonstrate the financial capacity and long-term commitment of investors in Vietnam.
  • Help partners and suppliers feel secure when signing contracts.

Optimize taxes and cash flow

  • A reasonable capital structure helps reduce the risk of transfer pricing adjustments and avoid tax disputes.
  • Easily control cash flow in and out through investment capital accounts.
  • Increase the ability to plan finances and operating budgets.

Create a solid foundation for expansion

  • Easy to add capital, open more branches or change the scope of the project.
  • Convenient when upgrading the type of business or expanding to a new industry.
  • Support the process of calling for more investors or strategic cooperation.

Increase long-term enterprise value

  • Enterprises with a transparent history of capital contribution are often highly appreciated when evaluating M&A.
  • Increase attractiveness to investment funds and global partners.
  • Create a competitive advantage when negotiating large contracts.

Minimize risks during divestment

  • Easily determine the value of the capital contribution when the investor wants to withdraw capital.
  • Reduce disputes due to the difference between actual capital contribution and registered capital.
  • Optimize tax benefits when transferring capital.

6. How Vina TPT Supports FDI Company Formation

Vina TPT Company Formation provides a complete package of support for the process of establishing and operating FDI enterprises:

  • Consulting on conditions for capital contribution and business lines
  • Preparing and submitting IRC & ERC documents
  • Shareholding structure, ownership ratio, charter
  • Support for opening investment capital accounts, guidance on capital contribution
  • Accounting – tax services – compliance with Vietnamese regulations
  • Consulting throughout for investors in operations and expansion

With experience working with international enterprises, Vina TPT ensures that the investment process in Vietnam becomes clear, safe and effective.

BOOK A FREE CONSULTATION

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Accounting & Tax, Lasted News

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

Posted on by ASS

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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