August 2025 News Summary

DECREE NO. 236/2025/ND-CP OF THE GOVERNMENT ELABORATING SOME ARTICLES OF THE NATIONAL ASSEMBLY’S RESOLUTION NO. 107/2023/QH15 DATED 29 NOVEMBER 2023 ON THE APPLICATION OF SUPPLEMENTARY CORPORATE INCOME TAX UNDER THE GLOBAL ANTI-BASE EROSION (GLOBE) RULES

On August 29, 2025, the Government issued Decree No. 236/2025/ND-CP (“Decree 236”) detailing several articles of Resolution No. 107/2023/QH15 (“Resolution 107”) on the application of supplementary corporate income tax under the Global Anti-Base Erosion (GloBE) rules within the OECD Pillar Two framework in Vietnam, based on two main principles:

Qualified Domestic Minimum Top-up Tax (“QDMTT”)	Income Inclusion Rule (“IIR”)
Applicable to one or more constituent entities (“CEs”) of a multinational enterprise group	Applicable to ultimate parent entities, partially owned parent entities, or intermediate parent entities in Vietnam, and to constituent entities abroad that are subject to low tax rates

1.     Tax payers

Tax payers in Vietnam who meet the following conditions shall be subject to the Global Minimum Tax (“GMT”) regulations:

• Constituent entities (CEs) of a multinational enterprise group whose consolidated annual revenue amounts to at least EUR 750 million in at least 2 of the 4 fiscal years immediately preceding the fiscal year in which the tax liability is determined, excluding cases of relief.

• Constituent entities of a newly established multinational enterprise group that has operated for less than 4 fiscal years prior to the fiscal year in which the tax liability is determined, if at least 2 fiscal years record consolidated annual revenue of EUR 750 million or more.

A multinational enterprises (MNE) group with revenue of EUR 750 million is determined based on consolidated revenue in certain specific cases as follows:

• Where one or more fiscal years consist of a period other than 12 months, the EUR 750 million revenue threshold for each fiscal year shall be adjusted proportionally to the number of days in that fiscal year divided by 365.

• In cases of spin-off, merger, or consolidation in any of the 4 fiscal years preceding the fiscal year in which the tax liability is determined, the consolidated revenue shall be determined based on agreements among the constituent entities/the group.

2.     Cases of relief or reduction of tax liability

a.     Relief in the initial phase of international investment activities

The QDMTT shall be determined as zero in a fiscal year if both of the following conditions are met:

• The group has constituent entities (CEs) in no more than six jurisdictions; and

• The total carrying value of tangible assets in jurisdictions other than the reference jurisdiction does not exceed EUR 50 million.

b.     Relief where QDMTT has been implemented

If a jurisdiction has implemented a QDMTT in accordance with the list issued by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, then the top-up tax in that jurisdiction, under Vietnam’s regulations, shall be determined as zero.

However, if an MNE group is not subject to QDMTT in such jurisdiction, or if the tax authority of that jurisdiction does not collect the QDMTT, the group shall not be eligible for this relief.

c.     Relief during the transitional period

Under Resolution 107, taxpayers may be eligible for relief, with supplementary corporate income tax determined as zero, if they meet at least one of the criteria relating to profit, minimum revenue/income, or effective tax rate.

Constituent entities that are one or several resident CEs in Vietnam shall not be entitled to this relief mechanism (i.e., shall not have their top-up tax determined as zero). The choice of applying the relief in one jurisdiction shall not be recognized where:

• Vietnam may be allocated top-up tax in cases where the effective tax rate for the jurisdiction applying the relief is below the minimum rate;

• The Vietnamese tax authority has notified the liable CE within three years after the filing of the QDMTT return of specific events and circumstances that may have materially affected the eligibility for relief of resident CEs in such jurisdiction, and has requested the CE to clarify within six months the impact of those events and circumstances; and

• The liable CE fails to demonstrate that such events and circumstances do not materially affect the relief conditions within the allowed timeframe.

During the transitional period, no administrative penalties shall be imposed for the following cases:

• Late submission or non-submission of the notification of the CE responsible for filing and paying tax, and the list of CEs as prescribed;

• Late submission of tax registration dossiers (up to 90 days past the deadline);

• Late notification of changes in tax registration details;

• Incorrect or incomplete declaration not leading to underpayment of tax or increase of relieved, reduced, or refunded tax;

• Late submission of tax returns in certain cases;

• Incorrect declaration leading to underpayment of tax in certain cases.

3.     Filing requirements

        (All deadlines are calculated from the fiscal year-end (FYE) of the ultimate parent entity).

Deadline	Requirement	Forms to be filed
QDMTT	IIR
FYE + 30 days	List of CEs and Notification of the CE responsible for filing (Consolidated Notification Form)	Form No. 01/TB-ĐVHT (to be submitted directly at the tax authority, by post, or via the electronic portal)
FYE + 90 days	Tax registration	Form No. 01-ĐKTĐ-ĐVHT (the taxpayer will receive Form No. 01-MST-ĐVHT from the tax authority as notification of tax registration result)
FYE + 12 months	Documentation packag:
Information return under QDMTT/IIR provisions	Form No. 01/TKTT-QDMTT	Form No. 01/TKTT-IIR
Supplementary Corporate Income Tax return	Form No. 01/TNDN-QDMTT	Form No. 01/TKTT-IIR
	Explanatory memorandum of differences due to different accounting standards	Form No. 01/TM
	Financial data report of each CE for consolidation purposes	As prescribed by local regulations	As prescribed by local regulations
	Consolidated financial statements of the Ultimate Parent Entity	Not required	As prescribed by local regulations
FYE + 15 months (18 moths for the first year)	Information return under the Global Minimum Tax regulations of the MNE Group	As prescribed by local regulations	Not required

DECREE NO. 219/2025/ND-CP GUIDING FOREIGN EMPLOYEES WORKING IN VIETNAM

The Government promulgated Decree No. 219/2025/ND-CP (“Decree 219”) dated August 07, 2025, which supersedes previous regulations and provides detailed stipulations on foreign employees working in Vietnam. This includes conditions and procedures for the issuance of work permits (“WP”) and cases of work permit exemption, as follows:

1.     Conditions for issuing a work permit to experts

Under prior regulations, all applications for a WP for experts required a minimum of three (3) years of relevant work experience. However, pursuant to Clause 3, Article 3 of Decree 219, an expert shall be granted a work permit provided the following conditions are met:

• Possession of a bachelor's degree or higher and a minimum of two (2) years of relevant work experience; or

• Possession of a bachelor's degree or higher and one (1) year of work experience in specialized fields such as science, technology, innovation, national digital transformation, or prioritized socio-economic development sectors.

 

2.  Provincial People's Committees Authorized to issue work permits to foreigners effective August 07, 2025

Pursuant to Clause 1, Article 4 of Decree 219, the authority to issue, re-issue, extend, and revoke WPs and confirmations of non-subjection to WP requirements is assigned to the provincial-level People's Committees (“PPC”). The PPC acts as the licensing authority and may, if deemed necessary, delegate this function to its specialized subsidiary agencies, replacing the previous authority of the Department of Labour, Invalids and Social Affairs (DOLISA).

3.    Concurrent online processing of criminal record certificates with work permits

Pursuant to Clause 3, Article 6 of Decree 219, an integrated procedure has been established, enabling employers to simultaneously carry out the application procedures for both the WP and the Judicial Record Certificate via the National Public Service Portal.

This integrated procedure operates between the National Public Service Portal, the WP-issuing authority (under the PPC), and the police authority issuing the Judicial Record Certificate. Consequently, the electronic versions of both the WP and the Judicial Record Certificate will be returned concurrently.

4.     Foreigners working fewer than 90 days/year are not subject to work permit requirements

Pursuant to Point a, Clause 13, Article 7 of Decree 219, a foreigner working in Vietnam with a total working time of fewer than 90 days within one year (calculated from January 01 to December 31) is not subject to WP requirements.

However, pursuant to Clause 4, Article 9 of Decree 219, the employer in this case must submit a written notification to the competent authority at least 03 working days in advance.

5.     Additional cases where foreigners are not subject to work permit requirements in vietnam

Decree 219 supplements additional cases of non-subjection to WP requirements, including foreigners working in the fields of finance, science, technology, innovation, national digital transformation, and prioritized socio-economic development sectors.

6.    Changes to notification requirements for cases not requiring a confirmation of non-subjection

Pursuant to Clause 4, Article 9 of Decree 219, for cases exempt from the procedure for obtaining a confirmation of non-subjection to WP requirements, the employer must notify the competent confirmation-issuing authority in the locality where the foreign employee is expected to work at least 03 working days before the foreign employee’s anticipated commencement date of work in Vietnam.

7.     Additional basis for determining the validity term of work permits and confirmations

Article 21 of Decree 219 stipulates that the validity term of a WP and a WP exemption confirmation shall not exceed 02 (two) years and is based on the term of supporting documents such as: the labor contract, dispatch document for business assignment, international agreement, the enterprise’s business registration certificate/operation license, etc.

8.     Work permit issued in one province permits work in multiple localities

The provision under Clause 5, Article 22 of Decree 219 permits a foreign employee already in possession of a WP to work in multiple provinces and centrally-governed cities. However, the enterprise must provide prior notification to the competent authority in the locality where the employee is expected to work at least 03 working days in advance.

9.     Work permit may be extended only once, for a maximum of 2 years

Pursuant to Article 29 of Decree 219, a WP may be extended only once, for a maximum term not exceeding 02 (two) years.

10.  New regulations on the revocation of work permits and wp exemption confirmations

30 and 32 of Decree 219 stipulate the cases for revocation of a WP or a confirmation of non-subjection to WP requirements, which include:

• The supporting documents have expired or become invalid;

• The employee or the employer violates regulations on the issuance, re-issuance, or extension of the WP;

• The employee performs work inconsistent with the content specified in the confirmation of non-subjection to WP requirements;

• The foreign employee is prosecuted or subject to criminal liability during their working period in Vietnam;

• The employer ceases its operations;

• A written notice is received from the overseas-based employer announcing the cessation of work in Vietnam.

DECREE NO. 167/2025/NĐ-CP NEW REGULATIONS ON CUSTOMS DECLARATION FOR IMPORTED AND EXPORTED GOODS FROM AUGUST 15, 2025

 

On June 30, 2025, the Government issued Decree No. 167/2025/NĐ-CP amending and supplementing Decree No. 08/2015/NĐ-CP on customs procedures; customs inspection, supervision, and control. This Decree takes effect from August 15, 2025. Accordingly, Decree No. 167/2025/NĐ-CP introduces several notable new provisions, specifically as follows:

1.     Regulations on Customs Clearance Locations

Pursuant to Clause 1, Article 1 of Decree No. 167/2025/NĐ-CP (amending Article 35 of Decree No. 08/2015/NĐ-CP), the Government specifies the customs clearance locations for different types of goods:

• Letters, parcels, and packages sent via express delivery services: Customs procedures are carried out at the regional Customs Sub-Department managing the postal/express delivery consolidation points (e.g., Hanoi, Ho Chi Minh City, Hai Phong...);

• Transit goods sent via postal/express delivery services: Customs procedures are conducted at the first entry checkpoint and the final exit checkpoint;

• Temporarily imported goods for re-export: Procedures are performed at the relevant Customs Sub-Department at the border checkpoint, under continuous supervision during the entire storage period.

2.     Incentives for enterprises

Pursuant to Clause 4, Article 1 of Decree No. 167/2025/NĐ-CP (adding Clause 4, Article 9 of Decree No. 08/2015/NĐ-CP) and Clause 7, Article 1 of Decree No. 167/2025/NĐ-CP (amending and supplementing Article 12 of Decree No. 08/2015/NĐ-CP), enterprises are exempt from post-clearance inspections at customs offices, except in cases where there are signs of violations or random inspections to assess the level of compliance with the law.

Other priorities such as priority in delivery, and inspection of documents/goods remain in place under current regulations, unless violations occur or random inspections are required.

3.     Regulations on customs declaration methods

Pursuant to Clause 12, Article 1 of Decree No. 167/2025/NĐ-CP (amending and supplementing Clause 2, Article 25 of Decree No. 08/2015/NĐ-CP), customs declarants have the right to choose between electronic declaration and paper declaration in special cases, including:

• Luggage exceeding the duty-free allowance;

• Exported, imported, temporarily exported, or re-imported goods serving national defense and security;

• Goods belonging to individuals entitled to privileges and immunities;

• Cases where the customs electronic data processing system and the customs electronic declaration system cannot interact due to technical reasons attributable to one or both systems, or other causes.

In case of technical failures, enterprises must submit an official written notification to the customs authority and immediately make supplementary declarations once the system is restored.

4.     Specific regulations on on-the-spot import and export

As of August 15, 2025, Decree No. 167/2025/NĐ-CP introduces detailed provisions on “on-the-spot import and export” under Clause 19, Article 1 (amending Article 35 of Decree No. 08/2015/NĐ-CP), specifically as follows:

On-the-spot export and import goods shall include: goods processed in Vietnam under orders from foreign traders and delivered domestically; or goods purchased/sold, leased/borrowed between Vietnamese enterprises and foreign traders, delivered and received at the designation of the foreign trader.

• Customs procedures: goods may be delivered first and declared later, or declared first and delivered later. Goods shall be considered as having completed customs procedures when both the on-the-spot export declaration and the on-the-spot import declaration have been finalized.

• Supervision procedures: goods shall be subject to inspection and supervision from the time of delivery/receipt until the completion of customs procedures.

5.     Customs procedures for re-import of exported goods

Pursuant to Article 47 of Decree No. 08/2015/NĐ-CP as amended and supplemented by Clause 25, Article 1 of Decree No. 167/2025/NĐ-CP, customs procedures for re-imported goods are provided with several new points as follows:

• Applicable subject: Traders are permitted to re-import unused goods of their own that have been returned. However, processed goods for foreign traders that have been exported shall not be re-imported for destruction.

• Customs declaration: Enterprises must register a re-import declaration at the Customs Sub-Department of the re-import border gate or at the place where goods are stored (if approved by the customs authority), while clearly stating the reason for re-import.

• Tax policy: Within the approved period, re-imported goods for repair/reprocessing shall not be subject to import duty; if the time limit is exceeded without re-export, full duties and related charges must be paid.

• In case re-export is not possible: Exported processed goods must undergo procedures for domestic consumption (opening a new declaration and paying duties) or be destroyed under customs supervision. If the matter involves import duty refunds, the customs authority shall notify the relevant unit for handling.

OFFICIAL LETTER NO. 17892/CHQ-GSQL – GUIDANCE ON GOODS REMOVED FROM BONDED WAREHOUSES FOR EXPORT THROUGH BORDER GATES

On August 06, 2025, the Customs Department issued Official Letter No. 17892/CHQ-GSQL providing regulations on the handling of goods removed from bonded warehouses for export through border gates. Some key points for enterprises to note are as follows:

1.     Statistics and management of goods status in bonded warehouses

• When carrying out procedures for removing goods from bonded warehouses for transportation to the export border gate, enterprises must prepare complete information and be ready to provide it to the Customs Sub-Department, including:

• Quantity of goods (kg/tons/bags/packages/parcels/...);

• Storage period in the bonded warehouse, including any extensions (if applicable);

• Actual condition of goods (intact, damaged, deteriorated in quality,...);

• Expiry date (valid, near expiry, or expired);

•  Storage location (at the export border gate, another bonded warehouse, or the original bonded warehouse);

• Customs procedures already performed (export, transportation, storage,...).

2.     Notes on storage time limits and penalties for violations

For shipments that have exceeded the permitted storage period in Vietnam under the bonded warehouse regime, the customs authority shall handle them in accordance with Decree No. 128/2020/NĐ-CP on administrative sanctions in the field of customs. Specifically, the act of leaving goods in bonded warehouses beyond the prescribed time limit shall be subject to a fine ranging from VND 1,000,000 to VND 2,000,000.

If goods have exceeded the storage period in the bonded warehouse, within 90 days the enterprise may still carry out procedures to receive the goods. However, in such cases, the enterprise shall be subject to administrative sanctions in the field of customs and must bear all costs incurred due to the delayed receipt of goods.

If the 90-day period is exceeded, the customs authority shall handle the goods in accordance with procedures on backlogged goods and establish ownership by the entire people as prescribed in Circulars No. 203/2014/TT-BTC, 57/2018/TT-BTC, and 36/2015/TT-BTC (as amended in 2025). This means that the enterprise shall lose ownership of the shipment.

OFFICIAL LETTER NO. 1804/BHXH-QLT ON THE USE OF PERSONAL IDENTIFICATION NUMBERS/CITIZEN IDENTIFICATION CARDS IN REPLACEMENT OF SOCIAL INSURANCE NUMBERS AND MANAGEMENT CODES

On August 4, 2025, the Government issued Official Letter No. 1804/BHXH-QLT (“Official Letter 1804”), requiring enterprises to update employees’ Personal Identification Numbers (PIN) / Citizen Identification Numbers (CIC) and apply the new unit management codes in social insurance transactions. This measure is considered an important preparatory step to prevent errors in employee records, ensure consistency and integration of data management across competent authorities, facilitate the synchronization of databases for state administration purposes, and ultimately create administrative convenience for both employees and employers. Key points under Official Letter 1804 include:

1.     Social Insurance Numbers (SI numbers) of participants

Effective August 01, 2025, all employees shall officially use their Personal Identification Number (as stated on their Citizen ID card) to participate in and conduct all transactions for social insurance (SI), health insurance (HI), and unemployment insurance (UI), replacing the old social insurance code.

2.     Unit management codes for SI, HI, and Unemployment Insurance (UI) participation

Employers must use the new management codes (ĐD, ĐT, LH) in all procedures with the Social Insurance Authority. Specifically:

• ĐD (Unit Identification Code): This code is used to identify the participating unit and must be recorded on all administrative forms and documents in transactions with the Social Insurance Agency;

• ĐT (Participant Classification Code): This is a 2-character alphabetic code designating the category of the health insurance participant, which is managed within the database of the Social Insurance Agency;

• LH (Business Type Code): This is a 3-character code classifying the type of business operation, as promulgated under the Prime Minister's Decision No. 27/2018/QĐ-TTg dated July 6, 2018.

During the transition period, the social insurance software will continue to accept dossiers using the old social insurance code. However, enterprises are strongly advised to update their systems promptly to avoid any potential disruption in operations.

OFFICIAL LETTER NO. 3495/CT-NVT ON SUPPORTING BUSINESS HOUSEHOLDS IN THE USE OF ELECTRONIC INVOICES GENERATED FROM CASH REGISTERS

On August 28, 2025, under Official Letter No. 3495/CT-NVT of 2025, the Tax Department requested provincial and municipal Tax Departments to implement communication, dissemination of policies, and direct support regarding the use of electronic invoices (“e-invoices”) generated from cash registers for each business household.  

Pursuant to Clause 1, Article 11 of Decree No. 123/2020/ND-CP (as amended and supplemented by Clause 8, Article 1 of Decree No. 70/2025/ND-CP), the use of electronic invoices generated from cash registers and connected to the tax authorities’ database is mandatory for the following organizations:  

• Business households with annual revenue of VND 1 billion or more;

• Business households registered to use cash registers;

• Business households of a scale meeting the criteria of micro-enterprises that are required to implement accounting regimes and declare taxes under the declaration method;

• Enterprises selling goods or providing services directly to consumers (such as shopping centers, supermarkets, restaurants, hotels, passenger transportation, entertainment services, etc.).

Therefore, business households and enterprises subject to the requirement, if they have not yet registered to use cash registers, must proceed with the registration and use of electronic invoices generated from cash registers in accordance with the law and the directives of the Tax Department:

• Register for and fully use electronic invoices generated from cash registers in accordance with regulations (ensuring 100% compliance by all subjects under the scope of application);

• Proactively coordinate with tax authorities to receive communication, guidance, and support during the process of registration and use;

• If there is a need to convert to the enterprise model, comply with regulations on business registration, tax registration, declaration, and payment of taxes;

• Ensure compliance with regulations on the issuance, management, and use of invoices, and remain ready for inspection and supervision by the tax authorities.

DECISION NO. 61/QĐ-TLĐ ON ADJUSTMENT AND REDUCTION OF TRADE UNION FEE CONTRIBUTIONS

On July 29, 2025, the Vietnam General Confederation of Labour issued Decision No. 61/QĐ-TLĐ on the adjustment and reduction of trade union fee contributions. Some key points for enterprises to note are as follows:

1.     Specific contribution rates for each group of subjects

Group of members	Basis for contribution	Contribution Rate	Notes
Public service units not receiving 100% of salaries from the State Budget	Salary used as the basis for compulsory social insurance contribution	0.5%
State-owned enterprises, joint-stock companies with controlling state capital	Net salary (after deduction of social insurance, health insurance, unemployment insurance, and personal income tax)	0.5%, maximum 10% of base salary	A higher rate may be collected if approved by the Executive Committee of the trade union through a Resolution, with written documentation, and specifically stipulated in the grassroots trade union’s internal expenditure regulations
Non-state enterprises, non-public units, foreign organizations, representative offices, Vietnamese employees working overseas	Salary used as the basis for compulsory social insurance contribution
Enterprises unable to determine salary as the basis for social insurance contribution	Fixed assessment	Minimum 0.5% of base salary	Applicable to labor unions and individuals not subject to compulsory social insurance contribution

2. Exemption from union fee payment in certain special cases

The Vietnam General Confederation of Labour stipulates that trade union members shall be exempt from paying union fees in the following cases:

• Receiving social insurance benefits for one month or more, such as maternity leave, long-term sick leave, ...;

• Having no employment, no income, or taking unpaid personal leave for one month or more.

During these periods, members are not required to pay trade union fees, and the grassroots trade union shall fully record such periods to ensure that the long-term rights and benefits of the members are not affected.

3. Additional union fees collected (if any)

If a grassroots trade union is permitted to collect union fees at a higher rate, the additional amount collected shall be retained 100% by the grassroots trade union to supplement its operating expenses.

When finalizing accounts, the additional amount must be recorded separately and reported to the superior trade union using the prescribed form

Download PDF file here!

RSM Vietnam_August 2025 News Summary.pdf

Download PDF • 103KB