Accounting & Tax, Lasted News

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

Posted on 30/12/202525/02/2026 by ASS

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.

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.

BOOK A FREE CONSULTATION

setting up company in Vietnam

Accounting & Tax, Lasted News

Updated Rules on VAT Deductibility for Delayed Payments

Posted on 05/12/202505/12/2025 by ASS

On November 25, 2025, the Tax Department issued Official Letter No. 5487/CT-CS providing guidance on value-added tax (VAT) policies for deferred or installment payments of goods and services valued at VND 5 million or more, in cases where non-cash payment vouchers are not available at the payment due date.

1. Key Points of the Official Letter for VAT Deductibility for delayed payments

1.1. Legal Basis

Clause 2, Article 14 of the Law on Value-Added Tax No. 48/2024/QH15 dated November 26, 2024.
According to Article 25 of Decree No. 181/2025/NĐ-CP dated July 1, 2025 of the Government on invoices and documents for tax payment.
According to Article 26 of Decree No. 181/2025/NĐ-CP dated July 1, 2025 of the Government on non-cash payment documents.

1.2. Principles for Deducting Input VAT in Cases of Deferred or Installment Payments

For goods and services worth VND 5 million or more, when payment is made on a deferred or installment basis, if the enterprise fails to provide non-cash payment documents by the due date specified in the contract or its addendum, it is required to:

The enterprise must declare and adjust to reduce the deductible input VAT for the portion of goods or services that does not have valid non-cash payment documents.
This adjustment must be carried out in the tax period in which the payment obligation arises under the contract or contract addendum.

In cases where, after making the downward adjustment, the enterprise is able to provide the required non-cash payment documents,

The enterprise may subsequently declare and reclaim the input VAT deduction for those goods and services once the required non-cash payment documents have been provided in accordance with regulations.

See the full official letter at: VAT deductibility for delayed payments

2. Types of Non-Cash Payment Methods in Decree No. 181/2025/NĐ-CP

Non-cash payment methods, as prescribed in Article 26 of Decree 181/2025/NĐ-CP, include:

No.	Non-cash payment methods	Required documents
1	Bank transfer	A bank transfer slip is required; cash deposit receipts into the seller’s account are not accepted.
2	Offsetting liabilities arising from the purchase and sale of goods or services	A contract specifying the offsetting method and a reconciliation statement between the parties are required.
3	Debt settlement via loan/borrowed funds	There must be a written loan/borrowing agreement established in advance, along with bank transfer documents from the lender’s account to the borrower’s account.
4	Payment through a third party by authorization	It must be clearly specified in the written contract, and the authorized recipient/third party must be an organization or individual operating legally.
5	Payment by shares or bonds	There must be a written transfer agreement signed prior to the payment date.
6	In cases where the remaining payment, made through multiple methods, totals from VND 5 million or more	The remaining amount must be supported by valid non-cash payment documents.
7	Payment into a Compulsory Account at the State Treasury	In cases of tax enforcement, payment is made into a third-party account designated by the government authority.
8	Deferred or installment payment	The sales contract must be accompanied by the invoice and proof of payment when the payment becomes due.
9	For purchases or import values under VND 5 million per transaction, or for gifts and donations	Non-cash payment documents are not required
10	Authorization for employees/individuals to make payment	Financial or internal regulations + reimbursement documents for employees.
11	Multiple purchases within the same day with a total value of VND 5 million or more	Input VAT is deductible only when supported by valid non-cash payment documents.

Vina TPT Tax Services is ready to support your business with accurate VAT review, input tax deduction assessment, compliant documentation checks, and timely declarations. Contact Vina TPT for expert guidance and end-to-end tax compliance support tailored to your enterprise.

Accounting & Tax, Labor & Insurance Knowledge, Lasted News

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

Posted on 02/12/202502/12/2025 by ASS

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

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

1. VAT & IMPORT/EXPORT DUTIES

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

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

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

Jewellery and parts thereof, of other precious metal, whether or not plated or clad with precious metal (HS codes 7113.19.10 and 7113.19.90);

Articles of goldsmiths’ or silversmiths’ wares and parts thereof, of other precious metal, whether or not plated or clad with precious metal (HS code 7114.19.00);

Other articles of gold or silver (HS code 7115.90.10).

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

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

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

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

Possession of a VAT invoice for the purchase of goods and services or VAT payment document.

Availability of non-cash payment evidence.

For exported goods and services, additional documents are required: contract, invoice, non-cash payment evidence, customs declaration, and other related documents.

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

The authorisation for payment to the third party must be specifically stipulated in a written contract.

The third party must be an organisation or individual lawfully operating.

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

2. PERSONAL INCOME TAX (PIT)

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

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

The deduction for the taxpayer himself/herself is increased from VND 11 million to VND 15.5 million per month (VND 186 million per year) (Article 1, point a). This means the taxpayer may deduct this amount when calculating taxable income, thereby reducing the tax payable.

The deduction for each dependant is increased from VND 4.4 million to VND 6.2 million per month (Article 1, point b). Accordingly, taxpayers with dependants will enjoy an additional deduction corresponding to the number of dependants, further easing the tax burden.

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

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

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

3. CORPORATE INCOME TAX (CIT)

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

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

Expanded scope of taxpayers:

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

2. Taxable income:

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

3.New CIT rates based on revenue:

Standard rate: 20%

Enterprises with total annual revenue not exceeding VND 3 billion: 15%

Enterprises with total annual revenue exceeding VND 3 billion but not exceeding VND 50 billion: 17%

Oil and gas exploration and production activities: 25% – 50% depending on the project.

4.Determination of taxable income:

Taxable income from business activities is the total income from all business activities.

Loss carry-forward is allowed between activities, except for real estate transfer activities, investment projects, and participation rights in investment projects when the entity is enjoying tax incentives.

Income from the transfer of mineral exploration, extraction, and processing projects must be accounted for separately and may not be offset against other activities.

5.Tax exemption and reduction:

Public-service entities providing public services in socio-economically disadvantaged areas are entitled to a 50% reduction of CIT payable.

Enterprises converted from household businesses are exempt from CIT for two consecutive years from the year taxable income first arises.

6.Science and technology development fund:

Maximum contribution rate increased to 20%.

7.New tax calculation method:

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

8.Additional deductible expenses:

Expenses related to seconded personnel participating in management, administration, and control at credit institutions under special control or commercial banks subject to mandatory transfer.

Certain expenses incurred for business and production purposes but not yet generating corresponding revenue in the period, as stipulated by the Government.

Expenses for supporting the construction of public infrastructure that simultaneously serves business and production activities.

Expenses related to greenhouse gas emission reduction, carbon neutrality, net-zero initiatives, and environmental pollution reduction linked to business and production activities.

Certain contributions to funds established by decision of the Prime Minister or the Government.

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

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

For housing investment projects intended for transfer/sale: If the investor collects advance payments according to progress, it must make provisional quarterly Corporate Income Tax (CIT) payments equal to 1% of the amounts collected, pursuant to Point b, Clause 6, Article 8 of Decree No. 126/2020/NĐ-CP.

Regarding interest expense for enterprises with related-party transactions: Deductible interest expense is subject to the cap under Clause 3, Article 16 of Decree No. 132/2020/NĐ-CP and applies to all enterprises with related-party transactions, irrespective of whether they are domestic or foreign-invested enterprises.

4. SOCIAL, HEALTH & UNEMPLOYMENT INSURANCE – TRADE UNION

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

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

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

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

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

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

(3) Maximum level of unemployment benefits

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

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

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

Late payment interest rate: 0.03% per day calculated on the amount and number of days of late or evaded payment (Article 3, Clause 1, Point d; Article 7, Clause 2).

Conversion period to evasion: An act of late payment shall be converted to an act of evasion after 60 days from the expiry of the latest payment deadline, provided that the Social Insurance Agency has issued a written reminder (Article 6, Clause 1, Point c).

Evasion by understating salary: The act of registering a salary base for social insurance contributions lower than prescribed under the Social Insurance Law shall be deemed evasion (Article 6, Clause 1, Point b).

Exemption from evasion classification (force majeure): Specific enumeration of 4 force majeure cases not to be considered as evasion (such as storms, floods, dangerous epidemics, emergency situations) as announced by competent authorities (Article 4).

5. ACCOUNTING REGIME

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

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

Circular No. 200/2014/TT-BTC guiding the accounting regime for enterprises;

Circular No. 75/2015/TT-BTC (amending Article 128 of Circular 200);

Circular No. 53/2016/TT-BTC (amending and supplementing certain provisions of Circular 200);

Circular No. 195/2012/TT-BTC dated 15 November 2012 guiding accounting for main investors.

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

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

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

Assets and liabilities shall be converted to Vietnamese Dong at the average transfer buying/selling exchange rate of the commercial bank where the enterprise regularly conducts transactions as at the end of the accounting period;

Owner’s equity (owner’s contributed capital, capital surplus, other capital, convertible bond options) shall be converted to Vietnamese Dong at the actual transaction exchange rate on the date of capital contribution;

Revaluation differences of assets shall be converted to Vietnamese Dong at the actual transaction exchange rate on the revaluation date; …..

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

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

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

6. OTHER

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

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

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

Entities required to submit the report:

Agencies, organisations, enterprises, cooperatives, households, and individuals that hire, employ, or utilise labour.

Those with headquarters or places of operation within the territory of Ho Chi Minh City.

2. Content of the report:

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

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

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

Submission to the Department of Home Affairs: Send the report online via Google Form: https://forms.gle/CiLKksGKq5McCyDP7.

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

5. Important notes:

After the prescribed deadline, the Department of Home Affairs will not accept any reports.

The Department of Home Affairs will compile the implementation status as a basis for confirming compliance with legal regulations upon request from relevant agencies.

Failure to submit the report on time may result in administrative violations under Clause 2, Article 8 of Decree No. 12/2022/NĐ-CP.

Accounting & Tax, Lasted News

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

Posted on 01/12/202517/04/2026 by ASS

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

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

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

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

2. Month-End Filing Process Managed by Tax Consultants

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

2.1 Collecting & Verifying Monthly Documents

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

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

2.2 Reconciliation of Accounting & Tax Data

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

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

2.3 Preparing Monthly Tax Returns

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

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

2.4 Internal Approval & Electronic Submission

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

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

2.5 Post-Filing Compliance Follow-up

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

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

3. Key Requirements for Quarter-End Fillings

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

3.1 Gather Complete Documentation

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

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

3.2. Accurate Revenue and Expense Reporting

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

3.3 VAT, CIT, and PIT Compliance

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

3.4 Reconciliation of Key Accounts

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

3.5. Internal Controls and Review

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

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

SCHEDULE A COMPLIANCE CHECK

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

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

During this process, tax consultants focus on:

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

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

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

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

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

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

BOOK A FREE CONSULTATION

Accounting & Tax, Lasted News, Tax Knowledge

VAT and import tax solutions for e-commerce businesses

Posted on 03/11/202515/04/2026 by ASS

Vina TPT Tax Service - professional tax preparation services for e-commerce businesses in Vietnam

1. Navigating Complex Tax Requirements in Vietnam’s E-commerce Market

A professional tax preparation services is essential as the boom of e-commerce in Vietnam brings great growth opportunities, but also makes the tax system more complicated than ever. Online businesses, especially those doing business across borders, have to deal with declaring, paying, and refunding value added tax (VAT), and handling import duties when goods are imported into Vietnam.

In this context, the need for tax services is increasing, not only to comply with regulations, but also to optimize costs, avoid administrative fines and ensure transparent financial operations. Understanding the current e-commerce tax policy is the first step for businesses to develop sustainably on the digital platform.

2. Understanding VAT Obligations for Online Sellers

According to the Law on Value Added Tax, all organizations and individuals doing business in Vietnam, including through e-commerce platforms must declare and pay value added tax (VAT).

For domestic enterprises, the common VAT rate is 10% on revenue, except for some goods and services that enjoy preferential tax rates of 0% or 5%. Enterprises must issue electronic invoices for each transaction, including online orders. For e-commerce platforms or international sales platforms, tax authorities require registration and VAT declaration on behalf of foreign sellers when transactions arise in Vietnam.

E-commerce businesses also need to note: determining the location of tax generation, the time of revenue recognition, and the deduction method are important factors for accurate declaration, avoiding late payment or incorrect declaration of value added tobligations. This is one of the reasons why e-commerce companies should use a tax consultant specializing in VAT for guidance on declaration and risk control.

3. Managing Import Duty for Cross-Border E-commerce

For businesses importing goods for online sales, import duty is an indispensable financial obligation. The tax rate depends on the HS code of the product, the origin of the goods, and the trade agreement that Vietnam has signed (such as CPTPP, RCEP, or AJCEP).

Goods imported into Vietnam are not only subject to import duty, but also have to pay value added tax calculated on the total value of imported goods (CIF price + import tax). In addition, some items may also be subject to special consumption tax or environmental fees if they are on the controlled list.

For e-commerce businesses with a cross-border logistics model, managing customs documents, declared goods value, and tax refund procedures when returning or exchanging goods is very important. Small errors in import declarations can lead to tax arrears, late payment penalties, or delays at the port. Therefore, cooperating with a Vietnam tax consultant with experience in the field of import duty will help businesses minimize risks and control costs better.

GET EXPERT IMPORT DUTY SUPPORT

4. Common Tax Challenges for E-commerce Companies

E-commerce activities have high transaction speeds, large order volumes and many different sources of goods, leading to common tax errors. Some common problems include:

Incorrect declaration of HS code, leading to incorrect calculation of import tax rates.
Incorrect customs declaration value, changing the tax basis and being collected after inspection.
Incorrect VAT declaration, causing businesses to be fined for late payment or not eligible for deductions.
Lack of customs documents or electronic invoices, making it difficult to prove valid expenses and tax refunds.

These errors not only affect reputation but also increase operating costs. Using tax services helps e-commerce businesses review the entire tax process, minimize risks and optimize financial obligations.

5. Smart Tax Preparation & Compliance Solutions from Vina TPT

Vina TPT Tax Service provides professional solutions specifically for e-commerce businesses in Vietnam. With a team of experts with more than 20 years of experience in the field of tax consulting, accounting and compliance, Vina TPT provides comprehensive tax preparation including:

Consulting and declaring value added tax (VAT) in accordance with legal regulations.
Checking and confirming import duty for imported goods, optimizing valid HS codes.
Reviewing the system of accounting and customs documents, ensuring the validity of tax refunds and VAT deductions.
Building an e-commerce tax management strategy suitable for the scale and business model.

Vina TPT’s experts are not only knowledgeable about Vietnamese regulations but also proficient in international standards, helping Japanese, Korean, Singaporean or European businesses operating in the e-commerce field easily adapt to the Vietnamese tax system.

6. Why Professional Tax Consultants Make a Difference

Working with an experienced Vietnam tax consultant like Vina TPT helps businesses save a significant amount of time and compliance costs. Businesses no longer have to worry about periodic tax audits, newly issued regulations or incorrect Tax declarations. In addition, a professional tax consultant helps optimize cash flow, accurately determine deductible expenses, and support businesses in quick tax refund procedures. This allows the management team to focus resources on core activities such as developing online platforms, products and business strategies.

Contact Vina TPT Tax Service now to receive free consultation from our team of experts on tax services for e-commerce businesses.

Contact vina tpt tax service

Accounting & Tax, Lasted News

Vietnam Tax Policies and Financial Support for Korean Logistics Companies

Posted on 03/11/202515/04/2026 by ASS

1. Expanding Logistics Networks, Expanding Tax Challenges

In recent years, a growing number of Korean logistics companies have opened branches, transit warehouses or distribution centers in Vietnam. This is a strategic move, as Vietnam is becoming the new logistics hub of Southeast Asia, with its favorable location and rapidly developing port and airport system.

However, along with the opportunity to expand its operating network comes a series of new challenges in tax planning. When a business operates in both countries, cash flow, contracts, and operating costs all need to be carefully calculated to comply with Vietnamese law while optimizing the overall profit of the group.

Lack of appropriate tax planning can lead to double taxation, loss of investment incentives or tax arrears due to incorrect declarations. Therefore, tax planning is not just the job of the accounting department, but a core financial strategy in cross-border operations.

2. Overview of Vietnam’s Tax Policies for Logistics Companies

Vietnam’s tax system for the logistics industry is highly specific, reflecting the diversity of activities in this sector.

First, businesses must comply with corporate income tax (CIT) usually at 20%. However, if the business operates in an industrial park or an encouraged economic zone, it may enjoy a lower preferential tax rate.

Next is value-added tax (VAT) on transportation services. Depending on the type of service – domestic, international or transit, the applicable VAT rate may vary, and determining the correct rate is important to avoid audit risks.

Companies that have contracts to hire contractors or use services from abroad should pay attention to Foreign Contractor Tax, which is often applied to service fees, software or outsourcing from the Korean headquarters. In addition, import duties on transport vehicles or specialized equipment (container trucks, forklifts, refrigeration systems, etc.) are also significant costs that need to be managed in the overall tax plan.

Understanding these policies in detail is essential for Korean logistics companies to operate efficiently and compliantly in Vietnam’s regulatory landscape.

3. Available Tax Incentives and Financial Support

In addition to tax obligations, Vietnam also offers many tax incentives and financial support to encourage foreign investment.

Korean logistics companies can enjoy corporate income tax exemptions or reductions when setting up facilities in industrial parks, high-tech parks, or border economic zones. For projects focusing on digital transformation, logistics process automation, or green investments (e.g., using electric vehicles, renewable energy), businesses can receive additional incentives on accelerated depreciation and tax exemptions for a certain period of time.

In addition, the Vietnamese government is implementing many financial support programs, including preferential credit packages for businesses applying smart technology in logistics operations, and a temporary VAT reduction policy to stimulate consumption and circulation of goods.

Taking advantage of tax incentives not only helps businesses reduce short-term costs but also enhances long-term competitiveness in the regional market.

MAXIMIZE YOUR VIETNAM TAX BENEFITS

4. Key Tax Planning Strategies for Korean Investors

An effective tax planning strategy is not only based on correct declarations, but also needs to be linked to actual business operations. For Korean investors, this involves many layers of strategy.

First is optimizing the contract structure between the Korean headquarters and the Vietnam branch. Clearly defining the nature of the transaction, for example, a service contract, asset leasing or goods distribution, helps avoid the risk of being taxed in the wrong group.

Second, businesses need to manage outsourcing costs transparently. Outsourcing payments from the parent company or international suppliers must have records proving the value of the service, to avoid being adjusted under anti-transfer pricing regulations.

Third is controlling international cash flows, ensuring that payment flows between Korea and Vietnam are made at the right time, in the right currency, and with a clear legal basis.

Finally, Korean companies should take advantage of the double taxation agreement (DTA) between Korea and Vietnam. This agreement helps businesses avoid double taxation on the same income, while also providing a solid legal basis for cross-border operations.

These strategies are only effective when implemented under the guidance of tax advisory experts who understand both legal systems of Korea and Vietnam.

Download Vietnam Tax Handbook For Investor

5. How Vina TPT Tax Service Ensures Compliance and Optimization

In that context, Vina TPT Tax Service has become a trusted partner for Korean logistics companies operating in Vietnam. With in-depth expertise in Vietnam tax service for Korean logistics companies, Vina TPT not only helps businesses comply but also supports the optimization of tax strategies.

Vina TPT’s team of experts has practical experience in the logistics industry – from maritime transport, warehousing, to supply chain services. They not only advise on documents but also directly support businesses in the process of preparing reports, declaring taxes, working with tax authorities and conducting periodic reviews.

Vina TPT’s special feature is the “advisory and execution” model – meaning both strategic consulting and practical implementation. Thanks to that, Korean companies do not need to worry about the lack of personnel who understand Vietnamese regulations, while still ensuring the tax system operates accurately and effectively.

With the philosophy of “Transparency – Accuracy – Optimization”, Vina TPT helps foreign enterprises turn tax compliance into a sustainable competitive advantage.

Contact Vina TPT Tax Service now for free consultation on tax planning and tax incentives specifically for Korean logistics businesses in Vietnam – optimize costs, comply with the law and develop sustainably with leading experts.

BOOK A FREE CONSULTATION

Accounting & Tax

Tax Services for Japanese Manufacturing Companies in Vietnam

Posted on 03/11/202514/04/2026 by ASS

1. The Precision of Japanese Manufacturing Meets Vietnam’s Tax Reality

Japanese companies are globally renowned for their “Kaizen” spirit – precision and continuous improvement in production. When expanding their investment to Vietnam, especially in the mechanical engineering and machine manufacturing sector, they bring with them strict standards of quality and efficiency.

However, the tax system in Vietnam has its own characteristics. Regulations on import tax, value-added tax (VAT), or corporate income tax (CIT) all have different calculation methods and declaration deadlines than in Japan. This difference makes tax management and compliance a big challenge, especially when businesses have to simultaneously handle contracts for purchasing components, technology transfer, warranty – maintenance, and research and development (R&D) costs.

Therefore, many Japanese companies have sought specialized tax services in Vietnam to ensure that all financial activities are legal, transparent, and cost-optimized.

START YOUR VIETNAM TAX COMPLIANCE SETUP

2. The Tax Landscape for Mechanical Manufacturers

The mechanical engineering and machinery manufacturing industry is directly affected by many different taxes. Each transaction and each contract has potential risks if not handled properly.

First of all, import tax on components is an important factor, especially for factories importing spare parts from Japan. If the HS code (commodity code) is declared incorrectly, the enterprise may be subject to additional tax or administrative fines. In addition, VAT for industrial products has a rather complicated tax refund and deduction mechanism, requiring accurate accounting for each shipment.

In addition, depreciation of machinery and equipment must comply with the time limit and depreciation method prescribed in Vietnamese accounting standards. For mechanical enterprises, the value of fixed assets is often very large; therefore, even a small error in recording depreciation can affect financial statements and corporate income tax.

Technology transfer, maintenance and warranty costs also need to be recorded at the right time and have valid documents. These are areas where tax advisory services with mechanical expertise can save businesses hundreds of thousands of dollars each year.

Download Vietnam Tax Handbook - Japanese Edition

3. Typical Compliance Risks

In fact, many Japanese enterprises in Vietnam face common tax risks that are difficult to detect early. One of the biggest risks is inaccurate transfer pricing. When a Vietnamese branch purchases components, equipment or technical services from its parent company in Japan, incorrect pricing can be considered by tax authorities as an act of transferring profits abroad.

Another risk is invalid maintenance and warranty costs due to a lack of clear contracts or insufficient payment documents. In addition, incorrect recording of fixed assets – for example, including leased machinery in the ownership list – also leads to improper tax deductions.

In addition, VAT deduction errors are common in enterprises with many input and output invoices, especially in import and export transactions. These errors can cause enterprises to be subject to tax arrears, late payment penalties, and even affect their reputation with authorities.

This is why mechanical manufacturing companies need specialized tax advisory services to help them identify risks, review accounting processes and ensure compliance with Vietnamese laws.

4. International Tax Services: Bridging Japan and Vietnam

One of the biggest challenges for Japanese businesses in Vietnam is the difference between the two accounting systems. Japan applies J-GAAP or IFRS accounting standards, while Vietnam follows VAS (Vietnamese Accounting Standards).

Therefore, international tax services act as a bridge between the two countries. This service not only helps businesses adjust accounting items to comply with regulations in Vietnam, but also supports reviewing internal contracts with parent companies, ensuring that R&D costs, royalties or technical service fees are recorded reasonably and have transparent documents.

A synchronous accounting system helps Japanese businesses report accurately to both markets, avoiding the situation of “one number, two reports” – both tax risks and loss of reputation with partners.

Thanks to international tax services, Japanese companies can operate in Vietnam with peace of mind while maintaining the same accuracy, transparency and efficiency as when operating at home.

5. Vina TPT’s Role in End-to-End Compliance

In Vietnam, Vina TPT Tax Service is one of the prestigious partners specializing in providing comprehensive solutions from Vietnam tax accounting to processing periodic reports and tax settlement.

The difference of Vina TPT lies in its deep understanding of the mechanical manufacturing industry and Japanese corporate culture. Their consulting team is not only good at tax expertise but also has a “Kaizen mindset” – a spirit of continuous improvement to help businesses operate more effectively every day.

Vina TPT supports businesses at every stage: from setting up the initial accounting system, preparing VAT and corporate income tax reports, to representing them in working with tax authorities when explanations are needed. The close coordination between the two teams – Japanese and Vietnamese – helps businesses not only comply with regulations but also optimize legal profits.

6. From Compliance to Competitiveness

Tax compliance is not only a legal obligation, but also the foundation of competitiveness. When the accounting and tax systems are managed transparently, businesses can easily calculate actual costs, control profits, and make more accurate investment decisions.

In the long term, a solid tax compliance strategy will help Japanese businesses in Vietnam not only avoid legal risks but also build a trustworthy image in the eyes of partners and management agencies.

With the support of Vina TPT Tax Service, that process becomes easier and more effective than ever.

Contact Vina TPT Tax Service now for free consultation on comprehensive tax management solutions.

BOOK A FREE CONSULTATION

Accounting & Tax, Tax Knowledge

Tax incentives for Korean electronics factories in Vietnam

Posted on 22/10/202510/04/2026 by ASS

Korean electronics factory in Vietnam receiving tax incentives

1. Why Korean Electronics Manufacturers Choose Vietnam

Tax incentives in Vietnam have played a major role in making the country a top investment destination for Korean electronics corporations such as Samsung, LG, Hanwha, and SK over the past decade. Factors that make Vietnam stand out include competitive labor costs, political stability, a strategic location near the Asian supply chain, and especially the extensive Free Trade Agreements (FTA) system.

In particular, tax incentives in Vietnam for Korean investors have created a strong motivation for long-term manufacturing expansion, especially in high-tech and electronic component production. These incentives not only reduce the initial investment burden but also help Korean enterprises enhance profitability and competitiveness in the regional and global markets.

In addition, the Vietnamese government is actively attracting investment in the high-tech and electronic component manufacturing sectors – this is a great advantage for Korean factories that want to establish long-term manufacturing operations. Therefore, the tax incentives policy in Vietnam is also designed to provide maximum support to this group of businesses.

2. Overview of Tax Incentives in Vietnam for Foreign Manufacturers

Currently, Vietnam is applying many tax incentives in Vietnam for foreign investors, especially in the fields of manufacturing, high technology and industrial zones. These preferential policies are designed to encourage long-term investment and improve the competitiveness of enterprises:

Exemption from corporate income tax (CIT) for the first 2-4 years, 50% reduction for the next 4-9 years, depending on the scale and field of investment.
Exemption from import tax on machinery, equipment, components to create fixed assets or serve R&D.
Land lease incentives in industrial parks, high-tech parks, helping to significantly reduce initial investment costs.

In addition, Vietnam also implements a special tax holiday policy for high-tech manufacturing projects. These are important advantages that help Vietnam become an attractive destination for foreign investors looking for an efficient and stable production environment in the region.

GET TAX INCENTIVE CONSULTATION

3. Tax Incentives for Korean Factories in Vietnam: Key Benefits for Electronics Manufacturing Projects

Korean electronics factories investing in Vietnam often enjoy many outstanding incentives:

Corporate Income Tax (CIT): Preferential tax rate of only 10% for 15 years (compared to the standard rate of 20%), with a long tax exemption and reduction period.
Import Duty Exemption: Exemption from import tax on machinery, production lines, and components that cannot be produced domestically.
Land Rental Incentive: Exemption or reduction of land rent in industrial zones, especially in Bac Ninh, Thai Nguyen, and Hai Phong, where many Korean factories are concentrated.
Value Added Tax (VAT) Refund: For exporting enterprises, input VAT is quickly refunded, helping to improve cash flow.

These incentives help Korean electronics factories shorten the payback period and maximize profits during the expansion phase.

4. Compliance and Documentation Required to Access Tax Incentives in Vietnam

To enjoy tax incentives in Vietnam, businesses need to prepare complete documents according to regulations:

Investment Certificate (IRC) and Enterprise Registration Certificate (ERC) clearly stating the eligible business lines.
Documents proving that the project is in an incentive sector or area.
Financial statements, CIT declarations and annual investment activity reports.
Relevant import documents, invoices and contracts (for import tax exemptions).

Due to the strict review process, missing documents or incorrect declarations can cause businesses to lose their right to enjoy incentives or be subject to tax arrears.

5. Strategic Tax Planning with Vietnam Tax Specialists for Long-Term Profitability

To make the most of tax incentives in Vietnam, businesses need to build a long-term tax strategy that both ensures compliance with regulations and optimizes financial efficiency. Tax planning is not simply about compliance with obligations, but also a management tool that helps businesses maintain a competitive advantage and develop sustainably in the Vietnamese market.

Tax specialists play an important role in this process by helping businesses restructure their investment models to suit the locations and preferential fields, thereby maximizing tax benefits. They also support businesses in optimizing depreciation policies, transfer pricing and eligible expenses, helping to significantly reduce corporate income tax (CIT) obligations while still complying with regulations. At the same time, tax experts also periodically monitor tax compliance, detect potential risks early and limit the risk of being inspected or administratively sanctioned.

A well-thought-out tax plan not only provides short-term financial benefits, but also lays a solid foundation for future expansion and reinvestment, helping businesses maintain flexibility and stability in a rapidly changing economic landscape.

Download Vietnam Tax Handbook For Investor

6. Partnering with Vina TPT Tax Service for Comprehensive Tax Support and Incentive Application

Vina TPT Tax Service is a trusted tax consulting partner of hundreds of FDI enterprises, including many Korean electronics factories in Vietnam. Our team of experts includes tax consultants and legal experts with over 15 years of experience, with in-depth knowledge of tax regulations, accounting and investment incentives in Vietnam.

Vina TPT provides comprehensive support from:

Evaluating eligibility for tax incentives.
Preparing and submitting tax exemption/reduction applications.
Tax strategy consulting, risk management and periodic compliance audits.

With Vina TPT Tax Service, Korean electronics factories not only ensure compliance with regulations but also optimize costs and sustainable profits in Vietnam.

Contact Vina TPT Tax Service now to get advice from our tax experts on optimal tax incentives and costs for your business in Vietnam.

BOOK A FREE CONSULTATION

Accounting & Tax, Lasted News

Tax Incentive in Vietnam 2025: Comprehensive Guide to Optimize Profits under New CIT Law

Posted on 20/10/202509/04/2026 by ASS

Overview of corporate tax incentives in Vietnam 2025 under the new CIT Law

Tax Incentive: Comprehensive Guide to Corporate Tax Incentives in Vietnam 2025 – Optimize Profits with New CIT Law

With Vietnam’s Corporate Income Tax (CIT) Law 2025 officially in force from October 1, 2025, investors and CFOs are reassessing how to leverage tax incentives to strengthen profitability and compliance.

From 10 – 17% preferential CIT rates to multi-year tax holidays, the new regime gives both domestic and foreign companies more tools to optimize profits but only if you understand the rules.

In this guide, you’ll learn:

What a tax incentive is and why it matters for 2025
The main types of corporate tax incentives available in Vietnam
Key eligibility requirements and risk management
How to prepare and apply effectively with professional support

I. What is a Tax Incentive and Why Do Businesses Need to Know in 2025?

A tax incentive is a government policy designed to reduce or exempt tax liabilities for businesses that invest in targeted sectors or locations, with the aim of encouraging sustainable growth, innovation, and foreign direct investment (FDI).

Under the CIT Law 2025, tax incentives in Vietnam have evolved to:

Support the digital economy and green/clean industries.
Attract FDI via extended tax breaks and preferential schemes.
Motivate companies to reinvest profits inside Vietnam rather than only extracting them.

In today’s competitive ASEAN environment, understanding tax incentives isn’t optional, it’s a survival and growth strategy.

The standard corporate income tax rate remains 20 %. However, preferential rates are flexibly applied:

15 % for enterprises with annual revenue ≤ VND 3 billion
17 % for enterprises with revenue over VND 3 billion up to VND 50 billion
In specific cases (e.g., foreign-owned enterprises, cooperatives…) where cost/expense determination is difficult, a direct tax rate on revenue may apply

II. Key 2025 Updates: Major Types of Corporate Tax Incentives in Vietnam

1. Expanded deductible expenses under the 2025 CIT Law

Enterprises are now allowed to deduct additional expenses related to scientific research, digital transformation, testing new technologies, emission reduction, and community activities. This aims to create favorable conditions for businesses to pursue sustainable growth and innovation.

2. Incentives by sector, location, and investment project

Investment projects in high-tech sectors such as semiconductor production, AI, data centers, automobile manufacturing, and electronic device production are eligible for a preferential tax rate of 10% for up to 15 years.
Expansion projects applying clean technologies or contributing to environmental improvements may also qualify for tax exemptions or reductions if they meet specific requirements.

3. Clear incentive rules to avoid overlapping

If an enterprise falls under multiple incentive categories, it has the right to choose the most favorable one.
In cases where preferential provisions exist under specialized laws, the 2025 CIT Law will take precedence, except for specially regulated circumstances.

4. Loss carry-forward and Science & Technology Development Fund

Enterprises are allowed to carry forward losses continuously for up to 5 years.
They may allocate up to 20% of annual taxable income to establish a Science & Technology Development Fund, provided it is used for the correct purposes.

To explore how our consulting team can help you secure and optimize CIT incentives effectively, visit our dedicated Tax Consulting Service page for more details.

Explore Tax Consulting Services

III. Common Mistakes and How to Avoid – Plus Profit Optimization

Even with the best intentions, many businesses still miss out on their tax incentive benefits due to simple yet costly mistakes. Below are the most common pitfalls and how to fix them effectively.

Late or incomplete applications: One of the most frequent issues arises from delayed or missing documentation.
How to avoid: Ensure all required forms and supporting evidence are submitted before your project begins generating income to maintain eligibility.
Ignoring Permanent Establishment (PE) rules: With the 2025 update redefining PE status, overlooking this change can lead to unexpected tax liabilities.
How to avoid: Reassess your operational and contractual structure under the new PE definition to avoid misclassification.
Overlooking Double Taxation Treaties (DTT): Many foreign investors fail to leverage DTT benefits, leading to duplicate tax payments.
How to avoid: Coordinate early with professional consultants to utilize DTT relief and minimize cross-border tax exposure.
Unclear bookkeeping and expense tracking: Incomplete financial records can weaken your eligibility for incentives and invite compliance risks.
How to avoid: Implement digital accounting and reporting systems to ensure transparency and traceability.
No profit optimization strategy: Securing an incentive is only the first step, maximizing its impact requires strategic planning.
How to avoid: Partner with Vina TPT’s tax consultants to align your incentive structure with long-term financial goals and ROI optimization.

IV. What Should Businesses Prepare to Seize Opportunities from the 2025 CIT Law?

To stay ahead of regulatory changes and fully capitalize on new incentives, businesses must prepare proactively and strategically:

Review and assess impact: Conduct a detailed analysis of current financial performance, income, expenses, and business operations. Identify any necessary adjustments to comply with the new Corporate Income Tax (CIT) Law.
Understand eligibility criteria for incentives: Study the specific requirements for benefiting from the 2025 CIT incentives. Ensure your business meets all conditions before submitting any application.
Update accounting and financial systems: Make sure your accounting software and bookkeeping procedures comply with new regulations on revenue and expense recognition.
Train internal teams: Equip your finance and accounting personnel with updated knowledge through training sessions or specialized CIT 2025 courses.
Seek expert consultation: Engaging professional tax advisors is a smart move to avoid compliance risks and legally optimize your tax obligations.

Instead of navigating complex tax regulations on your own, you can connect directly with VINA TPT – trusted partner specializing in tax, accounting, and financial consulting ready to support your business in maximizing benefits under the 2025 CIT Law.

Conclusion

Tax incentives in Vietnam are more than just government policy, they’re a strategic growth lever for businesses preparing to thrive in the 2025 landscape.

Key takeaways:

Vietnam offers preferential CIT rates of 10 – 17% for up to 30 years.
Incentives now extend to green, digital, and financial sectors.
Compliance and timing remain critical to securing approval.

V. Why Partnering with Vina TPT Is the Most Effective Way to Leverage Tax Incentives?

The 2025 CIT incentives offer substantial opportunities to reduce tax burdens and enhance profits, but leveraging them effectively isn’t always simple. Businesses must interpret complex eligibility criteria, prepare accurate documentation, and meet strict compliance deadlines. Without expert guidance, it’s easy to miss optimal incentive schemes or face regulatory risks. That’s why partnering with a professional tax consulting firm becomes a strategic advantage.

Vina TPT Tax Service is a trusted advisor to hundreds of FDI and domestic enterprises, including manufacturing, technology, and service companies across Vietnam. Our team consists of senior tax consultants and legal experts with over 15 years of experience in tax planning, accounting compliance, and investment incentives.

We provide end-to-end support, including:

Assessing eligibility for tax incentives under the 2025 CIT Law
Structuring incentive applications for maximum tax savings
Preparing and submitting exemption/reduction dossiers
Designing long-term tax strategies aligned with business growth objectives
Conducting compliance audits and managing tax risks

With Vina TPT Tax Service, businesses are not only compliant but also positioned to optimize costs and secure sustainable profitability through legally maximized tax benefits.

Contact Vina TPT today and ensure your business fully capitalizes on Vietnam’s 2025 tax incentive opportunities.

Contact Vina TPT for Consultation

Accounting & Tax, Tax Knowledge

Comprehensive Tax and Compliance Services for Businesses in Vietnam

Posted on 03/10/202506/04/2026 by ASS

Business consultant providing corporate tax service and compliance support

1. Vietnam Tax & Compliance Overview

The tax environment and legal system in Vietnam are currently in a dynamic phase of updates, covering areas such as value added tax (VAT), corporate income tax (CIT), personal income tax (PIT), financial reporting standards, and electronic filing procedures. These ongoing changes make maintaining tax compliance a significant challenge for all businesses, especially FDI companies and newly established startups. Even minor mistakes in tax declaration or late payments can result in administrative fines, tax arrears, or surprise inspections by regulatory authorities.

For FDI enterprises, the documentation requirements are often more complex, as they must comply simultaneously with Vietnamese accounting standards (VAS) and international standards (IFRS), while also fulfilling regulations related to reporting foreign investment capital. Meanwhile, startups often face limited resources, lack specialized accounting teams, or have incomplete internal control processes. Managing taxes, preparing financial statements, and performing electronic tax filings without professional support can easily lead to common errors such as reporting incorrect indicators, omitting valid expenses, or calculating tax amounts incorrectly.

Using tax services, tax compliance services or full-package services such as accounting & tax services is the optimal solution to help businesses minimize risks and ensure full compliance with Vietnamese tax laws. A professional unit will support from tax code registration, monthly/quarterly tax reporting, implementing tax filing service Vietnam, to checking and periodically comparing books. In addition, tax compliance services also help businesses promptly update changes in tax policies, optimize reasonable CIT costs, prepare annual tax settlement documents and provide transparent data for audits.

2. Key Business Taxes & Compliance Requirements

2.1 Corporate & Operational Taxes

The main taxes that businesses in Vietnam must comply with include:

Corporate Income Tax (CIT): Corporate income tax with a common tax rate of 20%, requiring quarterly or annual declaration and payment.
Value- Added Tax (VAT): Value added tax applied to most goods and services, requiring electronic invoices and periodic reporting.
Foreign Contractor Tax (FCT): Applied to transactions with foreign contractors, requiring complex calculation and declaration processes.

And some other types of taxes depending on the industry and business activities, for example: import and export dutiestax,Natural Resources Tax resource tax, special consumption tax Land and Water Surface Rental, Transfer Pricing Taxation,…

A reputable tax compliance service will assist businesses in reviewing documents, preparing declarations and submitting them on time, avoiding the risk of being fined or collected.

2.2 Employee-Related Taxes

In addition to operating taxes, businesses must also manage:

Personal Income Tax (PIT): Personal income tax for employees, requiring monthly or quarterly deductions and declarations.
Social Insurance, Health Insurance, Unemployment Insurance: Obligation to pay compulsory social insurance and health insurance according to the provisions of the Labor Law.

Combining tax compliance service with the human resource management system – payroll helps businesses control tax and insurance deductions accurately, limiting risks of periodic inspections.

Download Vietnam Tax Handbook - Japanese Edition

3. Tax Compliance & Tax Filing Service

To operate legally and avoid the risks of late payment penalties or tax arrears, all businesses in Vietnam – from startups, SMEs to FDI companies – must fully comply with tax compliance and tax filing service Vietnam in accordance with the regulations of the tax authorities. This compliance includes many important obligations such as registering for a tax code, preparing and submitting monthly/quarterly tax declarations, annual financial statements, finalizing corporate income tax (CIT) and personal income tax (PIT), as well as paying social insurance, health insurance and union fees.

In reality, the tax declaration and payment process in Vietnam is quite complicated and requires absolute accuracy. Businesses need to clearly understand the deadlines for submitting each type of tax: VAT and PIT declarations are usually submitted monthly or quarterly, CIT reports and financial statements must be completed by the end of the fiscal year, while specific taxes such as Foreign Contractor Tax (FCT) can arise suddenly depending on business activities. Just a small error in tax calculation, reporting targets or late submission of documents can also lead to administrative fines, penalty interest or being subject to tax inspection.

Using a professional tax service or tax compliance service helps businesses significantly reduce this pressure. A reputable service provider will support from the stage of preparing documents, reviewing documents, to implementing tax filing service Vietnam on time on the electronic system of the General Department of Taxation. At the same time, accounting & tax service also acts as an internal control solution, helping businesses promptly update changes in tax laws, optimize deductions, and minimize the risk of being overcharged during settlement periods.

For FDI companies, combining tax compliance services with specialized consulting services like Vina TPT tax service is especially important because it must ensure both Vietnamese accounting standards (VAS) and international standards (IFRS). Vina TPT not only declares and pays taxes on time but also advises on long-term tax strategies, helps businesses optimize CIT, manage PIT for foreign employees, and prepare documents ready for audit or inspection. This is the foundation for businesses to maintain financial transparency and develop sustainably in Vietnam’s increasingly strict legal environment.

OPTIMIZE YOUR TAX STRATEGY

4. Integrated Accounting & Tax Service for Sustainable Growth

To achieve sustainable growth in a competitive and constantly changing business environment, businesses need an integrated accounting & tax service solution – a close combination of accounting service Vietnam and tax compliance service. This service not only ensures the preparation of financial statements according to Vietnamese Accounting Standards (VAS) or International Financial Reporting Standards (IFRS), but also includes in-depth analysis of cash flow management, cost optimization and preparation of documents for independent audit or tax inspection.

The synchronization between accounting and tax helps businesses:

Reduce the burden of legal compliance: All financial reports, tax declarations, corporate income tax (CIT) and personal income tax (PIT) finalizations are performed accurately and on time, avoiding the risk of late payment penalties or arrears.
Increase financial transparency: Consistent accounting and tax data support the management in making decisions based on actual data, thereby building long-term business plans and effective investment strategies.
Optimize operating costs and taxes: Experts can advise on appropriate deductions, cost control, cash flow allocation, and take advantage of tax incentives allowed by Vietnamese law.

Especially for FDI companies or startups, integrated accounting and tax solutions bring outstanding advantages when it comes to cross-border reporting for parent corporations, preparing consolidated financial statements, or handling transactions related to transfer pricing. With extensive experience, Vina TPT accounting & tax service not only performs accurate operations but also provides strategic advisory to help businesses maintain compliance, protect reputation, and develop sustainably in the Vietnamese market.

5. How Vina TPT Delivers Smarter Tax Compliance Service

Vina TPT tax service provides a comprehensive solution, helping businesses handle all procedures from tax code registration, declaration, preparation of periodic reports to representing work with tax authorities. The team of experts regularly updates the latest tax laws, advises on optimal CIT, VAT and PIT roadmaps suitable for each industry.

The strengths of Vina TPT tax compliance service lie in:

Experience in implementing for both domestic and FDI enterprises.
Multilingual service (English – Vietnamese – Japanese) suitable for international investors.
Transparent electronic processes, timely reporting help businesses easily control costs and risks.

Don’t let tax mistakes affect your business.

Contact Vina TPT today for advice on a complete accounting & tax service solution and start declaring taxes in Vietnam quickly – accurately – legally.

BOOK A FREE CONSULTATION