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

1. Value-Added-Tax & IMPORT TAXES

1.a. Products manufactured from fabricated metals are entitled to a 2% value-added tax reduction.

• The company shall identify its products based on the product codes, names, and descriptions provided in the Appendix issued together with Decision No. 43/2018/QD-TTg, and compare them with the List of goods and services not eligible for value-added tax (VAT) reduction issued together with Circular No. 174/2025/TT-BTC. In cases where the products fall under the List of goods attached to Circular No. 174/2025/TT-BTC, they shall not be entitled to VAT reduction.
• For products manufactured from fabricated metals classified under Section 25, which are not included in the List of goods and services issued together with Circular No. 174/2025/TT-BTC, a VAT reduction shall apply.

1.b. Principles for making supplementary declarations of input VAT errors or omissions applicable from July 1, 2025.

• The Tax Department stated that, from July 1, 2025, the Law on Value-Added Tax No. 48/2024/QH15 and Decree No. 181/2025/ND-CP have specifically provided regulations on the declaration and deduction of input VAT in cases of errors or omissions. Enterprises are therefore requested to study and comply with these provisions. Accordingly, under Point đ, Clause 1, Article 14 of Law No. 48/2024/QH15 and Clauses 5 and 6, Article 23 of Decree No. 181/2025/ND-CP, when errors or omissions in input VAT are detected, business establishments shall make supplementary declarations in accordance with the following principles:
• A supplementary declaration shall be made in the month or quarter in which the error or omission in input VAT arises, if such error or omission results in an increase in tax payable or a reduction in refundable tax for that month or quarter.
• A supplementary declaration shall be made in the month or quarter when the error or omission is detected, if such error or omission results in a decrease in tax payable, or only increases or decreases the amount of VAT to be carried forward to the subsequent period.

1.c. On-the-spot imported goods shall not be exempt from import duty and value-added tax.

• Clause 3 Article 3 of Law No. 90/2025/QH15 supplements Article 47a of the Customs Law, stipulating that on-the-spot import and export goods are goods delivered and received in Viet Nam under the designation of a foreign trader pursuant to sale, processing, leasing, or borrowing contracts. Cases that meet these conditions shall carry out customs procedures under Article 35 of Circular No. 08/2015/TT-BTC (as amended by Circular No. 167/2025/TT-BTC) and Article 86 of Circular No. 38/2015/TT-BTC (as amended by Circular No. 39/2018/TT-BTC).
• According to Circular No. 134/2016/TT-BTC (as amended by Circular No. 18/2021/TT-BTC), in cases where on-the-spot imports are not registered under the processing type, the importer must declare and pay import duty based on the applicable duty rate and customs value at the time of registration. If import duty has been paid for production or business purposes and the imported products have been actually exported abroad or to a non-tariff zone, the paid duty shall be refunded in accordance with Article 36 of this Circular
• On-the-spot import and export goods remain subject to VAT. Where goods are registered under other types (not processing), the taxpayer shall use code A11 (commercial import) or A12 (import for production and business) to declare and pay import duty and VAT.

2. Personal Income Tax (PIT)

2a. Some notes on PIT withholding and accounting for business trip allowance.

• Taxable PIT income with respect to lump-sum business trip allowances: This is the portion of business trip allowances exceeding the limits prescribed by the State. Specifically: For employees working in business organizations and representative offices, the limit on business trip allowances shall be applied consistently with the level determined for corporate income tax (CIT) purposes. For employees working in international organizations or representative offices of foreign organizations, the limit on business trip allowances shall be applied in accordance with the regulations of such international organizations or representative offices of foreign organizations (see Point đ.4, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC).

• Where the enterprise has a financial/internal regulation stipulating allowances for travel, accommodation, and per diem for employees on business trips, and such regulation is properly implemented, these expenses shall be deductible.
• Payment by employees’ personal bank cards for business trip expenses of VND 20 million or more (including airfares):
• Such expenses shall be deductible if the following conditions are met:
• Valid invoices and supporting documents are available.
• A decision or written authorization for the employee’s business trip is issued.
• The enterprise’s financial/internal regulation permits employees to pay using personal bank cards, with subsequent reimbursement by the enterprise.
• Purchase of air tickets via e-commerce websites: The documents serving as the basis for deductibility include the electronic air ticket, boarding pass, and the enterprise’s non-cash payment vouchers showing the individual undertaking the transportation service.

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2b. Three Additional Types of Income Exempt from Personal Income Tax Effective from October 1, 2025

• Income from salaries and wages received from performing science, technology, and innovation tasks.
• Income from copyright related to science, technology, and innovation tasks when the results of such tasks are commercialized in accordance with the laws on science, technology, innovation, and intellectual property.
• Income of individual investors and experts working for start-up innovation projects, founders of start-up enterprises, and individual investors contributing capital to venture capital funds.

3. Corporate Income Tax (CIT)

3a. New Regulations on Corporate Income Tax Rates effective from October 1, 2025.

• The standard CIT rate is 20%, except for the cases specified in (2), (3), and (4) below, and entities eligible for preferential rates under Article 13 of the Law on Corporate Income Tax 2025.
• A 15% CIT rate applies to enterprises with annual total revenue not exceeding VND 3 billion.
• A 17% CIT rate applies to enterprises with annual total revenue of over VND 3 billion up to VND 50 billion standard CIT rate is 20%, except for the cases specified in (2), (3), and (4) below, and entities eligible for preferential rates under Article 13 of the Law on Corporate Income Tax 2025

• Oil and gas exploration and exploitation: from 25% to 50%. The specific rate applicable to each petroleum contract shall be decided by the Prime Minister based on location, exploitation conditions, and reserve capacity.
• Exploration and exploitation of precious and rare natural resources (including platinum, gold, silver, tin, tungsten, antimony, gemstones, rare earths, and other rare resources as prescribed by law): 50%. For mines where 70% or more of the allocated area lies in regions with exceptionally difficult socio-economic conditions, the applicable rate is 40%.

3b. The transfer of a subsidiary is exempt from value-added tax but subject to declaration and payment of corporate income tax.

• According to the guidance of the Tax Department, in the case where a company transfers its wholly-owned subsidiary to another company, if such transfer is determined to be a capital transfer, it shall fall under the category not subject to value-added tax in accordance with Clause 8 Article 4 of Circular No. 219/2013/TT-BTC.
• With respect to corporate income tax (CIT), in the case where a company transfers its entire capital contribution equivalent to 100% of the charter capital in a subsidiary in the form of a capital transfer associated with real estate, in accordance with the provisions of the Law on Enterprises and the Law on Investment, the company shall be required to declare and pay CIT under real estate transfer activities. The tax declaration shall be made using Form No. 06/TNDN issued together with Circular No. 80/2021/TT-BTC.

3c. Notes on Provisional Payment of Corporate Income Tax.

• According to the Tax Department, the Law on Tax Administration and its implementing instruments already provide regulations on the deadline for quarterly provisional corporate income tax payments and the total amount of CIT to be provisionally paid quarterly. Specifically, under Clause 1, Article 55 of the Law on Tax Administration No. 38/2019/QH14, the deadline for provisional quarterly CIT payments is the 30th day of the first month of the following quarter at the latest.
• The total CIT provisionally paid for all four quarters must not be less than 80% of the CIT payable under the annual finalization. If the enterprise pays less than this threshold, late payment interest shall be charged on the underpaid tax amount (Clause 3, Article 1 of Decree No. 91/2022/ND-CP).

4. Social Insurance – Trade Union

a. From July 1, 2025, Certificates of Social Insurance Leave issued under the old form will no longer be accepted.

• Accordingly, the Ministry of Health notes that Certificates of Social Insurance Leave issued prior to the effective date of Circular No. 25/2025/TT-BYT (July 1, 2025) shall remain valid as the basis for entitlement to social insurance benefits. For Certificates issued after July 1, 2025, it is mandatory to use the new form promulgated under Circular No. 25/2025/TT-BYT. The difference between the new form and the old form (issued under Circular No. 18/2022/TT-BYT) lies in the addition of information on the employee’s citizen identification number/identity card number/passport number/personal identification number; other contents remain unchanged from the old form.
• During the initial implementation of Circular No. 25/2025/TT-BYT, for documents issued by hospitals still using the old form and not yet switched to the new form, in order to ensure employees’ rights and avoid inconvenience, the Ministry of Health has requested that enterprises prepare a list of employees whose documents were issued by hospitals in non-compliance with regulations, and submit an official letter to the Department of Health or the health authority of the relevant ministries/agencies managing such hospitals, requesting the supplementation of information on the documents already issued, as prescribed in Point b, Clause 4, Article 28 of Circular No. 25/2025/TT-BYT.

b. Online Procedures for Unemployment Benefits applicable from September 17, 2025.

• Settlement of entitlement to unemployment benefits
• Monthly notification of job search activities.
• Settlement of entitlement to unemployment benefits
• Settlement of entitlement to unemployment benefits
• Transfer of entitlement to unemployment benefits (integrated procedure for transfer-out and transfer-in).
• Termination of entitlement to unemployment benefits.

5. OTHER

a. Household Businesses to Receive Free Accounting Software and Invoicing Support from the State.

• With respect to the use of invoices by household businesses, the Tax Department notes that, pursuant to the provisions of Decree No. 70/2025/NĐ-CP, from June 1, 2025, when selling goods or providing services directly to consumers, household businesses under the lump-sum tax regime with annual revenue exceeding VND 1 billion must issue electronic invoices generated from cash registers connected to and transmitting data to the tax authority, and deliver such invoices to buyers. The electronic invoice data is already available on the tax authority’s system, allowing both sellers and buyers to look up invoices on the system without the need to print paper copies.
• Under the current guidance provided in Circular No. 40/2021/TT-BTC, there is no provision requiring lump-sum household businesses to retain purchase invoices or supporting documents.
• As stipulated at Point b, Clause 4, Article 13 of Circular No. 40/2021/TT-BTC, in cases where a lump-sum household business changes its business scale (premises size, labor use, or revenue), it must declare adjustments and supplements to the Tax Return using Form No. 01/CNKD. The tax authority, based on the household business’s tax return and the tax sector’s database, shall issue a Notice of adjustment of lump-sum tax if it determines that declared revenue has changed by 50% or more compared to the previously assessed lump-sum revenue, effective from the time of such change within the tax year.

b. Notes on conditions for exemption from business license fee during business suspension.

• The conditions for exemption from the business license fee during business suspension are stipulated in Clause 2, Article 1 of Decree No. 22/2020/NĐ-CP and Clause 4, Article 1 of Circular No. 65/2020/TT-BTC, as follows: a written request for suspension of production and business operations must be submitted to the tax authority or the business registration authority before the deadline for payment of the business license fee (January 30 each year), and the business license fee of the year in which suspension is requested has not yet been paid.
• Accordingly, if a Company has submitted a written request to the business registration authority to suspend production and business operations in the calendar year 2025 (from January 1 to December 31) before the license fee payment deadline (before January 30) and has not yet paid the 2025 business license fee, then the Company is not required to pay the license fee for 2025.

6. INVOICES

a. Some notes on recording the purchaser’s tax identification number on invoices.

• The presentation of the buyer’s name, address, and taxpayer identification number on e-invoices shall comply with the provisions of Clause 5 and Point c, Clause 14, Article 10 of Decree No. 123/2020/ND-CP (as amended and supplemented at Points a and d, Clause 7, Article 1 of Decree No. 70/2025/ND-CP). Accordingly, in cases where the buyer is a business establishment with a TIN, the buyer’s name, address, and TIN stated on the invoice must be consistent with the information on the enterprise/branch registration certificate, household business registration certificate, tax registration certificate, or TIN notification
• If the purchaser does not have a tax identification number, the TIN is not required to be shown on the e-invoice. In addition, in cases specified at Point c, Clause 14 , Article 10, it is not mandatory to indicate the purchaser’s name, address, or TIN on the invoice. As from June 1, 2025, where the purchaser provides a TIN or personal identification number, the invoice must also include such TIN or personal identification number.
• For e-invoices generated from cash registers, the invoice must show the purchaser’s name, address, tax identification number/personal identification number/telephone number if so requested by the purchaser (see Clause 3, Article 11 of Decree No. 123/2020/ND-CP, as amended and supplemented under Clause 8, Article 1 of Decree No. 70/2025/ND-CP).

b. Notes on issuing and adjusting invoices for sales with trade discounts.

• Adjustment on the last purchase/next period invoice: The discount amount shall be adjusted on the sales/service invoice of the last purchase or subsequent period, ensuring the discount amount does not exceed the value of goods or services recorded on that invoice.
• Issuing an adjustment invoice: An adjustment invoice may be issued together with a list of the invoices subject to adjustment, including amounts and tax adjustments. The list must be kept at the entity and presented upon request by the tax authority or other competent state authority (Clause 13, Article 1 of Decree No. 70/2025/NĐ-CP amending and supplementing Article 19 of Decree No. 123/2020/NĐ-CP.
• Tax return adjustments: Based on the adjustment invoice and related records, both the buyer and the seller shall declare adjustments to sales revenue, purchase revenue, input and output VAT in the period when the adjustment invoice is issued.
• Adjustment invoice for trade discounts: This is an adjustment invoice for previously issued invoices, used to adjust differences in amounts only; it is not used to declare sales revenue already incurred. Accordingly, in the electronic invoice system of the General Department of Taxation, the line “Total amount before tax” will display the trade discount amount, while the line “Total trade discount amount” will display as 0.

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