The Employment Department based its guidance on the provisions under Points a and b, Clause 1, Article 2 of Decree No. 152/2020/NĐ-CP dated December 30, 2020 of the Government, which regulates foreign workers working in Vietnam and the recruitment and management of Vietnamese workers working for foreign organizations and individuals in Vietnam:
In cases where the tax authority directly determines the imposed import duty, if all conditions under Article 9 of the Law on Corporate Income Tax No. 14/2008/QH12 dated June 3, 2008 of the National Assembly (as amended and supplemented under Law No. 32/2013/QH13 and Law No. 71/2014/QH13) are met, the business establishment may include such amounts in deductible expenses when calculating corporate income tax.
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The taxpayer is only required to register and submit proof documents for each dependent once during the entire period they are eligible for family circumstance-based deductions. However, when changing workplace, since income-paying organizations do not have an information-sharing connection, the new employer will have no basis to apply the dependent deduction for the taxpayer. Therefore, the taxpayer must re-register their dependents to be eligible for the deduction immediately in the tax declaration period within the year at the new workplace.
Pursuant to current regulations, in order to unify the management of participant data through the use of Personal Identification Numbers (PIN) and Citizen Identification Numbers (CID), ensuring integration and synchronization of databases (DB) among agencies for administrative management purposes, and to facilitate individuals and enterprises in resolving administrative procedures, Vietnam Social Security guides provincial Social Security offices to use PIN/CID in replacement of SSN and unit management codes for participants of social insurance (SI) and health insurance (HI) as follows:
In case the Company incurs expenses for mid-shift meals for employees working at the Company, and such allowances are clearly stipulated in terms of eligibility conditions and benefit levels in the labor contract, collective labor agreement, or the Company’s internal regulations or policies, the determination of taxable income for PIT purposes for such allowances (effective from June 15, 2025) shall be as follows:
The current family circumstance deductions under PIT are as follows:
On July 4, 2025, the 4th Congress of the Vietnam Institute of Chartered Accountants (VICA) (2025-2030) was successfully held in Hanoi.
VAT Reduction: A reduction of the VAT rate from 10% to 8% is applied for certain groups of goods and services. The reduction does not apply to:
VINA BOOKKEEPING is proud to receive a Certificate of Merit and a Commemorative Medal from the Vietnam Tax Consultants’ Association (VTCA) in recognition of our contributions throughout the over 17 years of VTCA
From July 1, 2025, the personal identification number issued under the Law on Identity shall be used in place of the tax code for Vietnamese individuals. Additionally, the personal identification number of the head of a household, head of a household business, or individual businessperson will also be used instead of the tax identification number for those household businesses or individuals.
(i) Household business owners who pay tax under the declaration method are required to participate in compulsory social insurance starting from July 1, 2025. Meanwhile, the roadmap specifies that other household business owners with registered businesses will be subject to compulsory participation from July 1, 2029 (Clause 2, Article 3 of Decree 158).
