Circular No. 20/2026/TT-BTC detailing a number of Articles of the Law on Corporate Income Tax and Decree No. 320/2025/ND-CP dated December 15, 2025 of the Government.
On March 12, 2026, the Ministry of Finance issued Circular No. 20/2026/TT-BTC, detailing a number of Articles of the Law on Corporate Income Tax and Decree No. 320/2025/ND-CP, which provides detailed regulations on several articles and measures for the implementation and guidance of the Law on Corporate Income Tax
Circular No. 20/2026/TT-BTC provides detailed guidance on several notable points, including the following:
(i) Supporting documentation for expenses deductible for corporate income tax (“CIT”) purposes:
-Authorization documents for employees to carry out non-cash payments for expenses of VND 5 million or more;
-Expenses for vocational education and training activities for employees;
-Sponsorship expenses for scientific research, technology development, innovation, and digital transformation;
-Expenses serving production and business activities that have not yet generated corresponding revenue, including:
+Costs of disposal of inventories, raw materials, and damaged assets;
+Costs of product/service introduction and marketing prior to revenue generation;
+Land lease and infrastructure rental expenses during the pre-operational period;
+…
(ii) Clearly stipulating the timing for determining taxable revenue in certain cases:
– For exported goods: the time of determining taxable revenue is when ownership is transferred in accordance with the export contract;
– For capital transfers: the time of transfer of ownership of capital;
– For transfers of securities and certificates of deposit: the time of transfer;
– …
(iii) Guidance on Corporate Income Tax (CIT) applicable to foreign enterprises conducting business in Vietnam
Circular No. 20/2026/TT-BTC shall take effect from March 12, 2026 and is applicable from fiscal year of 2025.
For detailed information, please refer to the link.
