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
Compared to Decree No. 320/2025/ND-CP, Circular No. 20/2026/TT-BTC introduces several notable detailed guidance points, including::
(i) Detailed guidance on supporting documentation for deductible expenses that were previously not specifically addressed, including:
- Authorization dossiers for employees to perform non-cash payments for expenses of VND 5 million or more;
- Expenses incurred for vocational education and training of employees;
- Sponsorships for scientific research, technology development, innovation, and digital transformation;
- Expenses incurred in support of production and business activities that have not yet generated corresponding revenue, including: Costs related to disposal of inventories, raw materials, or damaged assets; Marketing and product/service introduction expenses incurred prior to revenue generation; Land rental and infrastructure costs incurred during the pre-operational phase; v.v
(ii) Clarification on the timing for determining taxable revenue in certain cases, including:
- For exported goods: the point in time when ownership is transferred in accordance with the export contract;
- For capital transfers: the point in time when ownership of the capital is transferred;
- For transfers of securities and certificates of deposit: the point in time of transfer;
- ….
(iii) Guidance on corporate income tax applicable to foreign enterprises operating 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.
