New July Summary - RSM Vietnam

LAW NO. 48/2024/QH15 ON VALUE-ADDED TAX 2024

On 26 November 2024, The National Assembly of Vietnam issued Law No. 48/2024/QH15 (“Law on value-added tax 2024”) and this law comes into force from 1 July 2025. The key highlights of Law on value-added tax 2024, as follows:

1/ Add some taxpayers:

• Households, individuals that manufacture and sell goods, services subject to VAT.

• Organizations and individuals do not have permanent establishments in Vietnam, doing e-commerce business or digital platform-based business with organizations and individuals in Vietnam.

• Organizations managing e-commerce exchanges or digital platforms with payment feature that deduct, pay and declare deducted tax on behalf of household businesses and individual businesses on such commerce exchanges or digital platforms

2/ Add taxable price for promotional goods and services

• VAT for promotional goods and services prescribed by regulations of law on commerce shall be zero

3/ Change requirement for deduction of input VAT

• From July 1st 2025, there is documentary evidence of cashless payment for goods and services purchased, except in special cases specified by the Government

• For exported goods and services, in addition to the requirements specified in Point a and Point b of this Clause, there must also be a contract with the foreign party for sale, processing of goods, provision of services; invoices for sale of goods, provision of services; documentary evidence of cashless payment; customs declarations for exports; packing list, bill of lading, goods insurance documents (if any). The Government shall specify requirements for VAT deduction in case of export of goods via overseas e-commerce platforms and some other special cases

4/ VAT refund

• In month or quarter, if residual input VAT credit on exported goods and services of a business establishment is 300 million VND or more, it will be refunded by month/quarter, unless the imports are then exported to another country

5/ Requirements for applying 0% tax rate to services and goods supplied to duty-free zones

• Goods from domestic Vietnam sold to organizations in the duty-free zone and consumed in the duty-free zone directly serving export production activities

• Services provided directly to organizations in the duty-free zone and consumed in the duty-free zone directly serving export production activities

LAW ON SOCIAL INSURANCE No. 41/2024/QH15

On June 29, 2024, the National Assembly promulgated Law No. 41/2024/QH15 (“Law on Social Insurance 2024”), effective from July 1, 2025. The key new provisions are summarized as follows:

1/ Addition and expansion of participants in social insurance (SI):

• Persons working under an indefinite-term labor contract or a definite-term labor contract with a term of at least 01 month, including cases where the employee and the employer agree under a different title but the content reflects paid employment with remuneration, salary, and the management, administration, and supervision of one party;

• Part-time officials at commune level, in villages, or residential groups;

• Employees working on a part-time basis whose monthly salary is equal to or higher than the minimum salary used as the basis for compulsory social insurance contribution;

• Owners of household businesses with business registration, participating in accordance with Government regulations;

• Enterprise managers, controllers, representatives of state-owned capital, representatives of capital contributed by enterprises as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or controllers, and other elected management positions of cooperatives and unions of cooperatives as prescribed by the Law on Cooperatives, who do not receive a salary;

• And other entities specified in Article 2 of this Law.

2/ Regulations on the “reference level” replacing the “statutory pay rate” (base salary):

• The reference level is the amount decided by the Government to be used as the basis for calculating the contribution level and benefits of certain SI regimes. It can be understood that the reference level will replace the statutory pay rate as the basis for calculating the contribution and benefit levels for certain SI regimes.

• When the statutory pay rate has not yet been abolished, the reference level specified in this Law shall be equal to the statutory pay rate. At the time the statutory pay rate is abolished, the reference level shall not be lower than that statutory pay rate.

3/ Basis for social insurance contributions:

• Continue to use the monthly salary as the basis for social insurance contribution. However, it should be noted that under the 2024 Law on Social Insurance, the basis for social insurance contribution will also include other additional amounts agreed to be paid regularly and stably in each pay period. This change helps enhance transparency, fairness, and better coverage of actual income.

4/ Eligibility for pension with at least 15 years of SI contributions:

• Expanding the opportunity to receive pensions for SI participants by reducing the minimum contribution period required for pension entitlement from 20 years to 15 years.

5/ Other new provisions:

• Addition of social retirement allowance.

• Addition of a monthly allowance for employees who are not eligible for a pension and have not yet reached the age to receive social allowance.

• Addition of new benefits under the voluntary social insurance scheme.

• Addition of a lump-sum allowance upon retirement.

• Amendment and supplementation of regulations on lump-sum social insurance withdrawal.

• Amendment and supplementation of regulations on sickness and maternity benefits.

• Strengthening of penalties for violations.

• Other new provisions as stipulated in this Law.

RESOLUTION NO. 204/2025/QH15 ON REDUCTION OF VALUE-ADDED TAX

On 17 June 2025, the National Assembly adopted Resolution No. 204/2025/QH15 at its 9th Session, 15th Legislature, providing for the reduction of value-added tax (“VAT”), specifically as follows:

• From 1 July 2025 to the end of 31 December 2026, the VAT rate shall be reduced by 2% for goods and services currently subject to the 10% rate – meaning a reduction to 8% for most goods and services, except for the following groups: telecommunications; financial, banking, and securities activities; insurance; real estate business; metal products; mining products (excluding coal); goods and services subject to special consumption tax (excluding gasoline).

• The scope of the tax reduction is expanded to include additional sectors, such as transportation, logistics, and information technology services – key industries in the development of the digital economy.

  
  

DECREE NO. 117/2025/NĐ-CP ON TAX ADMINISTRATION FOR E-COMMERCE PLATFORM AND DIGITAL PLATFORM BUSINESS ACTIVITIES OF HOUSEHOLDS AND INDIVIDUALS

On June 9, 2025, the Government issued Decree No. 117/2025/NĐ-CP on tax administration for e-commerce platform and digital platform business activities of households and individuals. Accordingly, the guidance on tax withholding and payment on behalf of households and individuals conducting business on e-commerce platforms is as follows:

Regulations	Detailed contents
Scope of regulation	Tax administration for e-commerce platform and digital platform business activities of households and individuals
Subjects of application	1.     E-commerce platform/digital platform operators (domestic and foreign) 2.     Resident and non-resident households and individuals
Time of withholding	Immediately upon successful transaction and buyer’s acceptance of payment
Withholding rate (%)	-       Value-Added Tax (VAT): Goods: 1% – Services: 5% – Transportation: 3% -       Personal Income Tax (PIT) for resident individuals: Goods: 0.5% – Services: 2% – Transportation: 1.5% -       Personal Income Tax (PIT) for non-resident individuals: Goods: 1% – Services: 5% – Transportation: 2%
Tax declaration and payment	E-commerce platform operators shall declare taxes on a monthly basis, offsetting cancelled/returned transactions Tax return using Form No. 01/CNKD-TMĐT and Schedule No. 01-1/BK-CNKD-TMĐT
Platform tax identification number (TIN)	Organizations (domestic and foreign) shall be issued a 10-digit tax identification number (TIN) for tax declaration and payment on behalf of taxpayers
Resident individual dossier	Electronic declaration of VAT, PIT, excise tax, environmental protection tax, and natural resources tax on a monthly basis or upon each occurrence
Non-resident individual dossier	Electronic declaration of VAT and PIT on a per-occurrence basis
Responsibilities of e-commerce platform operators	-       Withhold and pay taxes on behalf of taxpayers -       Issue withholding certificates -       Retain transaction data -       Fulfill other responsibilities as prescribed by law
Responsibilities of business individuals and organizations	-       Provide accurate and complete information to the e-commerce platform operator -       No need to declare/pay again if taxes have already been paid on their behalf -       Self-declare applicable taxes if not subject to tax payment on their behalf

DECREE NO. 122/2025/NĐ-CP ON DECENTRALIZATION AND DEVOLUTION IN THE FIELD OF TAX ADMINISTRATION

On June 11, 2025, the Government issued Decree No. 122/2025/NĐ-CP on the decentralization and devolution of tax administration, specifically as follows:

1. Decentralization to the Ministry of Finance to perform seven groups of tax administration tasks:

• Provide guidance on exempting taxpayers from submitting documents in tax returns, tax payment dossiers, tax refund dossiers, and other tax dossiers that are already available to state management agencies, based on actual conditions and IT infrastructure;

• Provide guidance on tax return dossiers; types of taxes to be declared monthly, quarterly, annually, per occurrence of tax obligation, finalization of tax; and declaration of fees and charges payable;

• Provide guidance on deadlines for submitting tax returns for agricultural land use tax; non-agricultural land use tax; land use levy; land rent and water surface rent; charges for mining rights; charges for water resource exploitation rights; registration fees; business license tax; and other state budget revenues;

• Provide guidance on the place of filing tax returns for taxpayers engaged in multiple production and business activities; taxpayers conducting business activities in multiple localities; taxpayers with tax obligations declared and paid on a per-occurrence basis; revenues from land; exploitation rights for water resources and minerals; personal income tax finalization; and taxpayers declaring taxes via electronic transactions;

• Provide guidance on procedures, dossiers, and timelines for debt freezing in eligible cases;

• Exercise the authority to decide on debt write-off for enterprises and cooperatives with outstanding tax debts, late payment interest, and fines of VND 15 billion or more as prescribed;

• Provide guidance on e-invoice services, including cases where the use of e-invoices with tax authority codes is exempt from service fees, cases where such use is subject to service fees, and cases of using e-invoices without tax authority codes through e-invoice service providers.

2. Delegation to the Ministry of Finance to exercise the authority to comment on and decide on the signing of Advance Pricing Agreement (APA) contents with enterprises engaged in related-party transactions, for bilateral and multilateral APAs involving foreign tax authorities, in accordance with Clause 5, Article 41 of Decree No. 126/2020/NĐ-CP.

3. Debt write-off dossiers and APAs that have been submitted to the Prime Minister before the effective date of this Decree (July 1, 2025) but have not yet been decided upon shall continue to be handled by the Prime Minister.

4. Duration of application of decentralization and devolution in tax administration:

• Decree No. 122/2025/NĐ-CP of the Government on decentralization and devolution in tax administration shall take effect from July 1, 2025 to March 1, 2027, except for the following cases:

• The Ministry of Finance reports to the Government to propose, and the National Assembly decides, to extend the application period of all or part of this Decree;

• If laws, National Assembly resolutions, ordinances, Standing Committee resolutions, Government decrees/resolutions, or Prime Minister decisions on the authority, responsibilities, procedures, and processes prescribed in this Decree are promulgated between July 1, 2025 and March 1, 2027, the corresponding provisions of this Decree shall cease to be effective from the effective date of those legal instruments;

• During the period this Decree is in effect, if there are discrepancies between its provisions on authority, responsibilities, procedures, and processes and those of other relevant legal instruments, the provisions of this Decree shall prevail.

DECREE No. 158/2025/NĐ-CP

On June 25, 2025, the Government promulgated Decree No. 158/2025/NĐ-CP, effective from July 1, 2025. This Decree provides detailed provisions and guidance on the implementation of certain articles of the Law on Social Insurance regarding compulsory social insurance, aiming to concretize the Law’s regulations and address practical issues arising in implementation. Key points to note include:

1/ Clarification of compulsory SI participants:

Business household owners: The Law on Social Insurance No. 41/2024/QH15 included business household owners in the compulsory participant group. Decree 158/2025/NĐ-CP further specifies the implementation roadmap:

• Phase 1 (from July 1, 2025): Applies to business household owners paying tax under the declaration method;

• Phase 2 (from July 1, 2029): Applies to the remaining business household owners.

• Certain cases not subject to compulsory social insurance under Clause 5, Article 3 of Decree No. 158/2025/NĐ-CP include:

• Employees working part-time whose monthly salary, as calculated under Clause 2, Article 7 of Decree No. 158/2025/NĐ-CP, is lower than the minimum salary used as the basis for compulsory social insurance contributions;

• Employees working under probationary contracts as prescribed by the labor law are not subject to compulsory social insurance.

2/ Detailed guidance on the reference level:

• The Decree confirms that the reference level will serve as the basis for calculating SI contribution and benefit amounts, as stipulated by law.

• While the statutory pay rate has not yet been abolished, the reference level will equal the statutory pay rate; after abolition, the reference level must not be lower and may be adjusted in line with increases in the consumer price index, economic growth, and the capacity of the state budget and SI fund.

3/ Detailed guidance on salary as the basis for SI contributions:

• The definition includes: job-/position-based salary, allowances, and additional payments.

• For part-time officials at the commune/village/residential group level, if their allowances are lower than the minimum contribution level, contributions will be made based on the minimum level.

• For employees paid in foreign currency, wages will be converted into VND according to exchange rates published by state-owned commercial banks at two fixed points each year (January 2 and July 1).

4/ Other notes:

• Detailed provisions on back payment and collection of social insurance contributions in cases of salary increases, signing of new contracts overseas, or late payment as prescribed by law.

• Temporary suspension of compulsory social insurance contributions when an employee is suspended from work.

• Retirement regime applicable to individuals who have contributed to both compulsory and voluntary social insurance.

DECREE NO. 174/2025/ND-CP PROVIDING FOR THE VALUE-ADDED TAX REDUCTION POLICY UNDER RESOLUTION NO. 204/2025/QH15 DATED 17 JUNE 2025 OF THE NATIONAL ASSEMBLY

On 30 June 2025, the Government promulgated Decree No. 174/2025/ND-CP providing for the value-added tax (“VAT”) reduction policy under Resolution No. 204/2025/QH15 dated 17 June 2025 of the National Assembly. Accordingly, the Decree provides guidance as follows:

1/ VAT Reduction

VAT shall be reduced for groups of goods and services currently subject to the 10% VAT rate, except for the following:

• Telecommunications; financial, banking, and securities activities; insurance; real estate business; metal products; mining products (excluding coal). Details are provided in Appendix I issued together with this Decree.

• Goods and services subject to special consumption tax (excluding gasoline). Details are provided in Appendix II issued together with this Decree.

• The VAT reduction for each type of goods and services specified above shall be applied uniformly at all stages of importation, production, processing, and commercial trading.

Where the goods and services specified in Appendices I and II issued together with this Decree are not subject to VAT or are subject to the 5% VAT rate per the Law on Value-Added Tax, the provisions of the Law on Value-Added Tax shall apply, and no VAT reduction shall be given.

2/ VAT Reduction Rate

• Business establishments that calculate VAT by the credit method shall apply the VAT rate of 8% for the goods and services specified above.

• Business establishments (including business households and individual businesspersons) that calculate VAT by the percentage (%) of turnover method shall be entitled to a 20% reduction of the percentage rate used to calculate VAT when issuing invoices for the goods and services eligible for VAT reduction as specified above.

DECREE NO. 181/2025/NĐ-CP ON ELABORATION OF SOME ARTICLES OF THE LAW ON VALUE-ADDED TAX 2024

On 1 July 2025, The National Assembly of Vietnam issued Decree No. 181/2025/NĐ-CP that instructs some articles of Law on value-added tax 2024. The key highlights of Decree as follows:

1/ Proof of cashless payment

• Residuals must have proof of cashless payment for any purchase (include imported goods) from 5 million VND or more including VAT.

• For example, in additional to payment via bank, in some special cases mentioned in Point b, Clause 2, Article 14 of the Law on Value Added Tax, if having full and valid documents, are also considered as non-cash payment documents, including: offsetting the value of goods, offsetting debts, authorized payments through a third party, payment for goods and services by bonds and stocks.

• In case of payment by offsetting method, there must be a record of data comparison and confirmation between the two parties. In case of offsetting debts through a third party, there must be a record of debt offsetting of the three parties as the basis for tax deduction.

• In case a taxpayer makes multiple purchases in the same day with a total value of 5 million VND or more but the value of each separate purchase is less than 5 million VND, VAT shall only be deductible if there are proofs of cashless payment

2/ Deduction and refund tax

• Deduction method applies for business establishments that earn an annual revenue of at least 01 billion VND from sale of goods/services. Refund tax applies for business with an un-deducted input VAT amount of 300 million VND or more and for programs funded by ODA grants, grant aid or humanitarian aid.

3/ Add clause to clarify activities directly serving export production of enterprises in duty-free zones.

According to Clause 2, Article 11 of Decree 181, services provided to organizations and individuals in the duty-free zone and consumed in the duty-free zone are subject to a 0% tax rate if they meet the condition of "directly serving the production and processing of goods for export". The following cases are considered "directly serving" (applying a 0% tax rate):

• Repair, maintenance and installation services for machinery, equipment and production lines.

• Wastewater, waste and garbage treatment services arising from the production process of manufacturing enterprises.

• Inspection, calibration and quality assessment services for products or raw materials for production.

• Fumigation and sterilization services for raw materials, warehouses and products.

• Other services that are inherently linked and inseparable from the creation of export products.

OFFICIAL LETTER NO. 40/2025/TT-BTC: AMENDING AND SUPPLEMENTING TAX ADMINISTRATION CIRCULARS TO DEFINE AUTHORITY OF LOCAL GOVERNMENTS IN A 2-TIER MODEL

On June 13, 2025, the Ministry of Finance issued Circular 40/2025/TT-BTC to amend and supplement a number of current circulars in the field of tax administration. This circular was issued to define the authority of local governments in a 2-tier organizational model, and it takes effect on July 1, 2025. Key highlights of the Circular include:

On the Tax Advisory Council:

• The composition of the Tax Advisory Council includes the Chairman or Vice Chairman of the Commune-level People's Committee, tax officials, commune-level financial officials, representatives of the Commune-level Fatherland Front, the head of the Commune Police, the head of the residential group or equivalent level, the head of the market management board, and representatives of business households and individuals in the area.

• The Chairman of the Commune-level People's Committee will be responsible for establishing this Council. The number of business households and individuals participating in the Council will not exceed 5 people.

• The Commune-level Tax Advisory Council will coordinate with the Tax Team of the Regional Tax Department to inspect and propose tax exemptions or reductions for agricultural land use tax.

On Tax Declaration and Payment:

• For non-agricultural land use tax, taxpayers who have the right to use multiple land plots in the same commune/ward/special zone can prepare a tax declaration for each plot if the total area does not exceed the limit. However, if there are multiple plots in different communes/wards/special zones and the total area exceeds the limit, taxpayers must prepare a consolidated tax declaration and submit it to the Tax Team of the Regional Tax Department of their choice.

• Tax declaration forms have been revised, replacing the phrases "phường/xã" (ward/commune), "huyện" (district), "quận/huyện/thị xã" (urban district/rural district/town), and "xã/phường/thị trấn" (commune/ward/township) with "xã/phường/đặc khu" (commune/ward/special zone).

On Tax Registration and Electronic Transactions:

• The Circular clearly defines the procedures for changing tax registration information that affects the direct tax-managing authority. Specifically, taxpayers must submit their application to the tax authority of their previous location before registering the address change with the business registration authority.

• For electronic transactions, the tax authority will process the application and return the results through the administrative procedure resolution information system, which is synchronized with the national information system for business and cooperative registration.

Tax Management for Business Households:

• The public disclosure of information on revenue and presumptive tax for business households will be done in two stages.

• First stage: Posted at the one-stop-shop or the headquarters of the Tax Team of the Regional Tax Department, the Commune-level People's Committee, and the market management board from December 20 to 31 every year. Feedback will be accepted no later than December 31.

• Second stage: Posted before January 30 every year at similar locations for public and business household monitoring.

This circular holds significant importance in standardizing tax administration regulations, especially in the context of changing administrative boundaries and local government models, ensuring consistency and transparency in revenue collection activities.

CIRCULAR NO. 69/2025/TT-CP ON ELABORATION OF SOME ARTICLES OF THE LAW ON VALUE-ADDED TAX AND GUIDELINES FOR IMPLEMENTATION OF THE GOVERNMENT’S DECREE NO. 181/2025/ND-CP DATED JULY 01, 2025 ELABORATING THE LAW ON VALUE-ADDED TAX

On July 1st 2025, The National Assembly of Vietnam issued circular no. 69/2025/TT-CP on elaboration of some articles of the law on value-added tax and guidelines for implementation of Decree No. 181/2025/NĐ-CP. The key highlights of Circular as follows:

1/ Requirements for application of 0% VAT

Circular clarifies the conditionals for taxpayers to be eligible 0% VAT on exported goods and services

• Contracts: There must be a sales contract or processing contract for exported goods, or a service supply contract with an organization or individual abroad.

• Payment Documents: There must be proof of cashless payment for the exported goods and services. The Circular provides specific guidance on accepted forms (e.g., bank transfers, Letters of Credit (L/C), debt offsetting...).

• Customs Declarations: For exported goods, a customs declaration with completed customs procedures (i.e., customs clearance confirmed) is mandatory. The Circular also provides guidance for special cases that do not require a customs declaration.

• Exported Services: The Circular clarifies the definition of "exported services" as services provided to foreign organizations or individuals and consumed outside the territory of Vietnam. Furthermore, it lists specific cases that are not eligible for the 0% tax rate (even if they meet all other conditions), such as services tied to real estate in Vietnam, insurance services within Vietnam, etc.

2/ Detailed Regulations on Input VAT Deduction

The Circular officially confirms that invoices with a value of less than VND 5 million VND (inclusive of VAT), when paid in cash, are still eligible for input VAT deduction.

Guidance on Complex Payment Scenarios:

• Debt Offsetting: Provides detailed guidance on the required dossiers and documents for bilateral or trilateral debt offsetting (must include debt reconciliation records and confirmations from all parties).

• Authorized Payments: If an enterprise authorizes a third party to make payments on its behalf, there must be an authorization contract and proof of fund transfer from the authorized party to the seller.

• Payment by Assets: In cases of using goods or assets for payment, there must be a contract and VAT invoices for both sides of the transaction.

3/ Guidance on VAT Refunds

• Refunds for Investment Projects: Clearly guides that the refundable input VAT for an investment project is the amount that has been paid according to the project's progress or the amount that has not been fully deducted after a certain period (usually 12 months or a fiscal year).

• Refunds for Exports: Guides how to determine the amount of input VAT to be refunded that corresponds to the revenue from exported goods and services during a period. Enterprises with an un-deducted input VAT amount of 300 million VND or more due to exports are eligible for refunds on a monthly or quarterly basis.

• VAT Refund Dossiers: Provides a detailed checklist of documents for each refund case, including the Refund Request Form, a list of invoices and vouchers, customs declarations, etc., helping businesses prepare complete dossiers and avoid rejections.

OFFICIAL LETTER NO. 1292/CST-GTGT ON THE 0% VAT POLICY FOR SERVICES PROVIDED TO ORGANIZATIONS IN NON-TARIFF ZONES

On July 24, 2025, the Department of Tax Policy Management and Supervision (Ministry of Finance) issued Official Letter No. 1292/CST-GTGT regarding the 0% Value Added Tax (VAT) policy for services provided to organizations in non-tariff zones.

According to the official letter, services provided directly to organizations located in a non-tariff zone and consumed within that zone to serve their direct production and export activities will be subject to a 0% tax rate.

This guidance is based on the following:

• Law on VAT No. 48/2024/QH15: Point b, Clause 1, Article 9 of this law stipulates that the 0% tax rate applies to "Export services, including: services provided directly to organizations in a non-tariff zone and consumed within that non-tariff zone to serve direct production and export activities."

• Decree No. 181/2025/ND-CP: Article 17 of this decree provides detailed regulations on the 0% tax rate, which includes services provided directly to organizations in a non-tariff zone and consumed within that area to serve production and export activities.

In this specific case, services provided by EY Company, such as auditing, tax consulting, M&A consulting, and management consulting, will be subject to a 0% VAT rate if they meet the following criteria:

• The services are provided directly to an organization in a non-tariff zone.

• The services are consumed within the non-tariff zone.

• The services are used to directly serve the production and export activities of the organization within the non-tariff zone.

• The services are not used for any other activities that are not production and export.

• The services are not on the list of services stipulated in Clause 4, Article 17 of Decree No. 181/2025/ND-CP.

This official letter was issued to address a question from EY Vietnam Consulting Joint Stock Company regarding the VAT policy and to provide clear guidance on applying the 0% tax rate to specific services.

OFFICIAL LETTER NO. 915/BNI-QLDN1 RE: PIT-TAXABLE INCOME FOR MID-SHIFT MEAL ALLOWANCES

On 22 July 2025, the Bac Ninh Tax Department issued Official Letter No. 915/BNI-QLDN1 providing guidance to Samsung Electronics Vietnam Co., Ltd. on personal income tax (PIT) policy regarding mid-shift meal allowances.

From 25 June 2025, in cases where the Company incurs expenses for mid-shift meals for employees working at the Company, if such expenses are clearly stipulated in terms of eligibility conditions and benefit levels in the labor contract, collective labor agreement, or the Company’s internal regulations/policies, the determination of PIT-taxable income for this allowance is as follows:

• If the Company organizes cooking (or purchases meal portions) for employees, such mid-shift meal expenses are not included in the employees’ PIT-taxable income.

• If the Company does not organize cooking (or purchase meal portions) but provides cash allowances to employees, and the cash allowance level is in accordance with the labor contract, collective labor agreement, or the Company’s internal regulations/policies, it is not included in PIT-taxable income. If the cash allowance exceeds the stipulated amount, the excess portion shall be included in PIT-taxable income.

On April 28, 2025, the Ministry of Home Affairs issued Circular No. 003/2025/TT-BNV, repealing Circular No. 26/2016/TT-BLDTBXH, thereby removing the VND 730,000/person/month cap on mid-shift meal allowances. Clause 9, Article 34 of Decree No. 44/2025/ND-CP and Official Letter No. 915/BNV-QLDN1/2025 provide that enterprises may determine a reasonable allowance level based on agreements in collective labour agreements or their internal rules and regulations.

Accordingly, under Official Letter No. 915/BNI-QLDN1/2025 and related documents, the VND 730,000/month cap has been abolished, replaced by a mechanism allowing enterprises to set the allowance level through internal agreements.

OFFICIAL LETTER NO. 2376/CT-NVT RE: USE OF ENTERPRISE ADDRESS INFORMATION AFTER CHANGES IN ADMINISTRATIVE BOUNDARIES

On 10 July 2025, the Tax Department issued guidance on the use of enterprise addresses on invoices after changes in administrative boundaries as follows:

1/ Enterprises and business households are not required to change the address on the Business Registration Certificate solely due to changes in administrative boundaries, except when requested or when implementing other changes simultaneously.

2/ The tax authority will proactively update addresses according to the two-level administrative area in the system, synchronize them with applications and e-invoices, and notify taxpayers accordingly.

3/ Recording address information on invoices:

For enterprises registered via the interconnected system:

• If the address has been updated by the tax authority and synchronized with the e-invoice system, the taxpayer shall use the updated address provided by the tax authority.

• If the address has been updated by the tax authority but not yet synchronized with the e-invoice system, the taxpayer shall use the address on the Business Registration Certificate.

  
  

For enterprises not registered via the interconnected system: Use the address updated by the tax authority according to the two-level administrative area in the tax industry’s application system and notified to the taxpayer.

The taxpayer’s address as stated on a valid Business Registration Certificate and the address updated by the tax authority according to the two-level administrative area both have legal validity for use on invoices.

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