On 27 March 2026, the Department of Policy Management and Supervision on Taxes, Fees and Charges issued an official letter introducing key guidance on CIT under Decree 320/2025/NĐ-CP and Cir. 20/2026/TT-BTC
“In the Official Letter, the Authority provides detailed guidance on the amendments and removals relating to Corporate Income Tax (“CIT”) under Decree No. 320/2025/ND-CP and Circular No. 20/2026/TT-BTC, highlighting several notable points as follows:
(i) Taxable revenue for CIT purposes is defined as the total income received by foreign contractors and subcontractors, without deduction of any taxes payable.
(Previously, VAT was allowed to be excluded when determining CIT taxable income for foreign contractors.)
(ii) Timing for determining taxable revenue for exported goods is the point at which ownership is transferred in accordance with the contract.
(Previously, this was based on the completion of customs procedures.)
(iii) Revision to the threshold and scope of non-cash payment supporting documents, which are now required for purchases of goods and services, as well as other expenses, with a value of VND 5 million or more per transaction.
(Previously, this requirement only applied to input invoices with a value of VND 20 million or more.)
(iv) Additional requirement on non-cash payment documentation where enterprises authorize employees to procure goods and services valued at VND 5 million or more per transaction.
(v) Removal of the provision allowing the first or final tax period (if shorter than 03 months) to be consolidated with the adjacent tax period. This matter is now governed under the tax administration regulations.
The letter also sets out guidance on a number of new points. Kindly refer to the document for further information.
For detailed information, please refer to the link.
