New tax compliance requirements Vietnam
From January 1, 2026, many tax regulations and accounting systems in Vietnam will officially change – directly affecting household businesses, enterprises, and accounting departments. This article summarizes the important new corporate tax reform Vietnam 2026, clearly outlining the changes, affected parties, and practical considerations to help businesses, accountants, and household businesses adapt.
Among the new tax and accounting policies effective from January 1, 2026, the most notable is the abolition of lump-sum tax for household businesses and the adjustment of the taxable revenue threshold. Below is a detailed summary of CIT policy changes Vietnam foreign investors:
1. Value Added Tax (VAT)
1.1. The Concept of Value Added Tax (VAT)
Value Added Tax (VAT) is an indirect tax levied on the added value of goods and services throughout the production, distribution, and consumption process. Businesses are the entities that declare and pay the tax, but the ultimate taxpayer is the consumer through the selling price of goods and services.
1.2. Methods of Calculating VAT
Currently, businesses can apply two methods of calculating VAT depending on their revenue scale and registration form. Details are as follows:
Deduction method: Applicable to businesses with revenue of VND 1 billion/year or more, or businesses that voluntarily register to apply it (if they fully comply with accounting and invoicing regulations).
Direct method: Applicable to businesses with revenue under VND 1 billion, those engaged in the buying and selling of gold, silver, and precious stones, or in cases where the conditions for deduction are not met.
New tax compliance requirements Vietnam
1.3. VAT Rate
The current prevailing VAT rate is 10%. According to Resolution 204/2025/QH15 and Decree 174/2025/ND-CP, the Government will further reduce the VAT rate to 8% from July 1, 2025 to December 31, 2026.
1.4. VAT Declaration Period
Regarding the declaration deadline, businesses declare VAT monthly or quarterly, depending on their revenue scale:
- Monthly declaration: Businesses with revenue of VND 50 billion or more in the previous year.
- Quarterly declaration: Businesses with revenue of less than VND 50 billion in the previous year and newly established businesses.
2. Corporate Income Tax (CIT)
2.1. Corporate Income Tax Concept
Corporate income tax (CIT) is a tax levied on profits after deducting legitimate expenses in production and business activities, directly reflecting the business performance of an enterprise.
2.2. Methods of Calculating CIT
Enterprises can determine CIT using the following two common methods, depending on the form of management and corporate tax risk Vietnam new rules:
- Direct method: Applicable to foreign enterprises (contractors) or cases where expenses cannot be determined. Tax is paid as a percentage of revenue depending on the industry.
- Declaration method: This is the most common method; the tax is calculated based on taxable income, i.e., the profit after deducting legitimate expenses.
3. Business License Fee
The business license fee is a direct tax that organizations and businesses engaged in the production and trading of goods and services must pay annually based on their charter capital/investment capital as stated on their business registration certificate.
Note: From January 1, 2026, the collection and payment of business license fees will officially cease for all businesses and economic organizations according to Resolution 198/2025/QH15 and Decree 362/2025/ND-CP.
CIT policy changes Vietnam foreign investors
4. Other Specific Taxes and Fees Based on the Characteristics of Each Business
In addition to common taxes, businesses should note some specific taxes and fees that arise depending on their field of activity:
- Import and Export Tax: Applies when businesses exchange goods across the Vietnamese border. Customs documents are used simultaneously as tax declaration documents.
- Excise Tax (SCT): Applies to goods/services with restricted consumption or luxury items such as: alcohol, beer, tobacco, cars with fewer than 24 seats, yachts, casinos, golf, etc. According to the 2026 update, this list will be expanded to include soft drinks with a sugar content exceeding 5g/100ml. Businesses should also note that items subject to SCT (except gasoline) are not eligible for the 8% VAT reduction.
- Environmental Protection Tax (EPT): Applies to businesses producing/importing goods that negatively impact the environment (gasoline, plastic bags, herbicides, etc.).
- Resource Tax: Applies to businesses exploiting natural resources (minerals, mineral water, oil and gas, etc.). Oil and gas activities have specific tax settlement regulations and surcharges.
- Non-Agricultural Land Use Tax: Applies when businesses use land for production and business purposes. Businesses declare using Form 02/TK-SDDPNN specifically for organizations.
In summary, from January 1, 2026, there are many notable new tax incentive changes Vietnam FDI and accounting policies: Circular 99/2025/TT-BTC updates the accounting regime; the Tax Law and related decrees (e.g., Corporate Income Tax Law 67/2025) change the calculation method and tax incentives; policies for household businesses and electronic invoices are also tightened and adjusted. Businesses, accountants, and household businesses need to proactively review documents, update software, and adjust processes.
>>>Read more: Corporate tax vietnam – Simplified tax services for businesses vietnam
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