TAXATION IN VIETNAM

Key Changes in Corporate Income Tax (CIT) applying from fiscal year 2025: CIT Law 2025 No. 67/2025/QH15 issued on 14Jun2025, Decree No. 320/2025/ND-CP issued on 15Dec2025 and Circular No. 20/2026/TT-BTC issued on 12Mar2026.

In this article, Vietnam Manual will give summary of Official Dispatches that Tax Authority responds to Tax Payer’s questions in Feb2026.

Vietnam government has given the major changes in Tax occurring within a short period. From Jan2026, beside the update on new tax laws and regulations, Vietnam Manual will issue monthly Tax News giving summary of Official Dispatchs that Tax authority responds to questions of Tax Payers.

The Personal Income Tax Law 109/2025/QH15 (Law 109) was approved by the National Assembly on 10 Dec 2025. The provisions relating to business income and employment income for tax residents apply for the 2026 tax year meanwhile the rest will take effect from 1Jul2026.

Vietnam has implemented significant tax and accounting reforms to address previously unresolved concerns, thereby incentivizing further investment and doing business in Vietnam. This Article outlines changes in Law No. 149/2025/QH15 (called the VAT Law 2025) effective from 1 January 2026.

In general, the Circular 99 effective from 1Jan2026 aligns more closely with international standards (IFRS), supports a principle-based approach. This shift from compliance by instruction to compliance by principle encourages a mindset closer to IFRS while maintaining the foundations of Vietnamese Accounting Standards (VAS).