State Budget Law No. 89/2025/QH15 (Consolidated Document No. 89/VBHN-VPQH)
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Based on:89/2025/QH15 - Government Official Gazette
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Consolidated Document No. 89/VBHN-VPQH merges State Budget Law No. 89/2025/QH15 (effective from the 2026 budget year) with amendments introduced by National Reserve Law No. 145/2025/QH15 (effective 1 July 2026). It is the framework law governing the entire cycle of preparing, executing, auditing, finalizing, disclosing and overseeing the state budget at both central and local levels (provincial and commune). For businesses and accountants, the most relevant part is Article 36, which sets the revenue-sharing ratios between the central and local budgets: value-added tax (VAT) is split 70% central / 30% local; corporate income tax (CIT, excluding oil and gas and the global minimum top-up tax) and personal income tax fall into the percentage-shared revenue category; import-export duties and the supplementary CIT under Vietnam's global minimum tax (Pillar Two) rules go 100% to the central budget. The Law also sets budget-balance principles, local government borrowing limits, budget reserve levels (2%-5% of spending), and lists 12 categories of prohibited conduct in budget management. Overall, this is a foundational public-finance management law rather than a direct source of business filing or payment obligations - specific tax duties remain governed by the Tax Administration Law, VAT Law, CIT Law and similar statutes. Still, the revenue-allocation rules and public investment priorities are useful context for assessing fiscal policy direction and public investment opportunities relevant to business.
Document overview
This is Consolidated Document No. 89/VBHN-VPQH, merging State Budget Law No. 89/2025/QH15 (passed by the National Assembly on 25 June 2025, effective from the 2026 budget year) with amendments introduced by National Reserve Law No. 145/2025/QH15 (effective 1 July 2026). The Law replaces the legal framework for preparing, executing, auditing, finalizing, disclosing and overseeing the state budget.
Scope and applicable entities
The Law applies to state agencies, political organizations, the Vietnam Fatherland Front, public non-business units, and other organizations and individuals connected to the state budget. The budget system comprises the central budget and local budgets (provincial level and commune level under the two-tier local government model).
Budget balance and management principles
- Total revenue from taxes, charges and fees must exceed total recurrent spending; any deficit must be smaller than development investment spending.
- Borrowing to cover the deficit may only fund development investment, never recurrent spending.
- Local government debt ceiling: up to 120% of local budget revenue estimates (for localities not receiving balancing transfers) or 80% (for localities that do receive them).
- Budget reserve: 2%-5% of total spending at each budget level.
- Financial reserve fund: balance capped at 25% of each level's annual budget expenditure estimate.
Revenue-sharing between central and local budgets (Article 36)
This section is directly relevant to corporate tax and accounting practice:
- Revenue retained 100% by the central budget: export and import duties; special consumption tax on imported goods; natural resource tax and corporate income tax (CIT) from oil and gas exploration and extraction; the supplementary CIT under Vietnam's global minimum tax rules (Pillar Two top-up tax).
- Revenue shared by percentage between central and local budgets: CIT (excluding oil/gas and the global minimum top-up tax), personal income tax, special consumption tax (excluding imports), and environmental protection tax.
- Value-added tax (VAT, net of refunds): 70% to the central budget, 30% to local budgets.
- Land-use and land-lease fees: split 15/85 or 20/80 between central and local budgets depending on whether the locality receives balancing transfers.
Budget disclosure and oversight
Budget estimates, execution status and final accounts must be publicly disclosed (except for state-secret, defense, security and national-reserve content), with mandatory publication on agencies' electronic portals where one exists. The Vietnam Fatherland Front leads community oversight of the state budget.
Prohibited acts
The Law lists 12 categories of prohibited conduct in the budget field, including: collecting revenue in violation of tax, fee and charge laws; creating unauthorized revenue or spending items; spending without an approved estimate or outside approved norms and standards; borrowing beyond fiscal capacity; incorrect accounting entries against the state budget chart of accounts; and late or non-compliant preparation, submission or approval of final accounts.
Budget estimate preparation (Chapter IV)
Revenue estimates are built on macroeconomic forecasts and current tax, fee and charge laws. Development investment and recurrent spending estimates must follow the five-year financial plan, the medium-term public investment plan, and applicable spending norms and standards.
Effective dates
State Budget Law No. 89/2025/QH15 takes effect from the 2026 budget year (1 January 2026). The amendment under Clause 2, Article 34 of National Reserve Law No. 145/2025/QH15 takes effect on 1 July 2026.
Note: The source PDF scrape from Cong Bao cuts off mid-Article 46 and does not include Chapters V onward (budget execution, accounting, final accounts, audit). This summary reflects only Chapters I-IV (through Article 46) as captured in the source.