Legal updates

In cases where a company leases factory premises for production and business activities but the lessor has not yet fulfilled the conditions required for leasing such premises, then pursuant to Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015 issued by the Ministry of Finance (amending and supplementing Article 6 of Circular No. 78/2014/TT-BTC), the rental expenses or depreciation expenses of fixed assets being the factory premises (if depreciation is applied to the asset) are not eligible to be considered deductible expenses when determining the company’s taxable corporate income.

Pursuant to Decision No. 571/QĐ-TTg dated March 12, 2025, issued by the Prime Minister on the establishment of a Steering Committee for the reorganization of administrative units at all levels and the development of a two-tier local government model, the Ministry of Finance issues this official dispatch to provide specific guidance on business registration procedures in the event of administrative boundary changes.

On April 2, 2025, the Government issued Decree No. 82/2025/NĐ-CP (“Decree 82”) on the extension of deadlines for the payment of value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT), and land rental in 2025. This Decree takes effect from the date of signing (April 2, 2025) and remains in force until December 31, 2025.

In the case where a company incurs a one-time payment for land lease expenses covering the entire lease term, along with management fees, for land areas that have not yet been put into use for its business operations, such expenses shall not be considered deductible when determining corporate income taxable income at the time the land has not yet been utilized for production or business purposes.

In cases where a company issues an invoice at the incorrect time as stipulated in Clause 2, Article 9 of Decree No. 123/2020/NĐ-CP but does not fall under the cases specified in Clause 9, Article 3 of Decree No. 123/2020/NĐ-CP (regarding the use of illegal invoices and documents, and the unlawful use of invoices and documents), and the invoice fully complies with the form and content requirements of Decree No. 123/2020/NĐ-CP, it will be considered a valid invoice.

The General Department of Taxation agrees with the proposal of the Hanoi Tax Department: In cases where fixed assets lack documentation proving the enterprise’s ownership (i.e., the enterprise has not been issued a Land Use Rights Certificate or a Certificate of Ownership for assets attached to the land) as required by law, such assets do not meet the conditions for depreciation deduction as an expense when determining taxable corporate income.

In cases where a domestic enterprise sells goods to a foreign trader with a presence in Vietnam and is designated to deliver the goods to a third party, which is a Vietnamese enterprise, through a bonded warehouse, such transactions do not meet the conditions for export sales to organizations and individuals abroad or for consumption outside Vietnam. Additionally, goods sold to organizations and individuals in non-tariff zones and consumed within these zones do not qualify as exported goods eligible for the 0% VAT rate under Clause 1, Article 9 of Circular No. 219/2013/TT-BTC.

In cases where a goods supply contract is signed between a Vietnamese entity and a foreign contractor under DDU or DAP delivery terms, where the seller is responsible for transporting the goods to the delivery location designated by the buyer, and the contract does not include any services provided in Vietnam (such as installation, trial run, warranty, maintenance, etc., including cases where these services are provided free of charge), the contract is subject only to value-added tax (VAT) on goods at the importation stage and a corporate income tax (CIT) rate of 1% on taxable revenue. 

The General Department of Taxation requests the Tax Department to confirm individuals’ tax obligations in accordance with the guidelines set forth in Circular No. 80/2021/TT-BTC dated September 29, 2021, issued by the Ministry of Finance.