CIT Exemption for Newly Registered Small and Medium Enterprises - Determining Eligibility Conditions
The Hanoi Tax Department provided guidance on the corporate income tax (CIT) exemption conditions for newly registered small and medium-sized enterprises (SMEs). Under Article 3.3 of Decree 196/2025/ND-CP, newly established SMEs are exempt from CIT for two years from the first year they generate taxable income. Key conditions: the enterprise must qualify as an SME under Decree 80/2021/ND-CP, must not have been established through conversion, division, separation, merger or consolidation of another enterprise, and must not be a state-owned enterprise. Enterprise B (established 15/04/2024) needs to determine its size classification (micro, small, or medium) based on insured employee headcount and financial criteria at the time of registration to confirm eligibility for the exemption. The tax authority recommends the business consult further guidance on the Hanoi Tax website or contact its managing tax office directly.
Two-Year CIT Exemption for Enterprises Converted from Household Businesses under Law No. 67/2025/QH15
The Ministry of Finance provides guidance on the two-year Corporate Income Tax (CIT) exemption applicable to enterprises converted from household businesses under Law No. 67/2025/QH15. The law takes effect from 1 October 2026 and applies from the 2025 tax period onward. To determine eligibility, the tax authority directs enterprises to assess their actual circumstances against the requirements set out in Decree No. 320/2025/ND-CP dated 15 December 2025, which provides detailed guidance for implementing the CIT Law.
Consolidated Circular Guiding Foreign Currency Remittance Receipt and Payment Services (Circular 34/2015/TT-NHNN, as amended through Circular 75/2025/TT-NHNN)
This is a State Bank of Vietnam (SBV) consolidated text that merges the original Circular 34/2015/TT-NHNN (guiding foreign currency remittance receipt and payment services) with four rounds of amendments made by Circulars 11/2016, 15/2019, 24/2022, and most recently 75/2025/TT-NHNN. The rules cover two service models: (1) an economic organization directly receiving foreign currency sent home by overseas Vietnamese or foreign nationals and paying it to beneficiaries in Vietnam, and (2) agency-based payment services provided by banks, foreign bank branches, or other economic organizations. Covered entities include licensed forex-service credit institutions, credit institutions acting only as agents, and economic organizations (including Vietnam Post Corporation). Key principles: an economic organization that directly receives and pays remittances may only appoint a credit institution as its agent, not another economic organization, and no sub-delegation is allowed. A single credit institution may act as agent for only one economic organization, while an economic organization or credit institution may act as agent for multiple licensed institutions. New registrations, and changes to name, address, foreign partner, or agent bank require approval from the SBV Regional Branch where the company is headquartered (20-working-day processing, valid up to 5 years, renewal filed at least 30 days before expiry). Smaller changes, such as adding payment locations or switching bank accounts, only need to be reported twice a year, by January 10 and July 10. What businesses in or entering this service should note: Circular 75/2025/TT-NHNN, effective from December 31, 2025, meaningfully simplified the paperwork - it dropped several required documents from application dossiers, repealed duplicate procedural articles, replaced the application and approval-decision form templates entirely (Appendices 1, 3, 5, 8, 10, 12, etc.), and shifted licensing authority to the newly restructured SBV Regional Branches. Companies should use the updated forms and file with their regional SBV branch rather than the former provincial branch.
E-Invoice Correction for Retail Sales: Household Business (Group 2) Failure to Select Retail Sales Flag on MTT Software
The Ho Chi Minh City Tax Department responded to a Group 2 household business (taxed on revenue, fashion retail sector) using MTT e-invoice software. In Q1/2026, staff failed to tick the 'retail sale' flag on the software, meaning daily consolidated invoices for retail transactions were not generated as expected. Based on the cited legal provisions (Article 12.2 of Decree 123/2020/ND-CP and Article 2.5 of Decree 70/2025/ND-CP), e-invoices issued from cash register systems (MTT) on a per-transaction basis are valid invoices. Where invoices were issued per transaction but the retail aggregation flag was not selected, the business must review its invoicing process against tax authority guidelines and reconcile declared revenue to make corrections if discrepancies exist. The business is advised to contact the directly managing tax authority for specific support. The response also states the general principle that Group 2 household businesses are obligated to report invoice usage and pay tax based on actual revenue. A technical omission in the software does not exempt the business from its revenue declaration obligations.
Consolidated Law on Public-Private Partnership (PPP) Investment
Consolidated Document No. 81/VBHN-VPQH consolidates the Law on Public-Private Partnership Investment No. 64/2020/QH14 (effective 1 January 2021) together with 7 amending laws: Law 03/2022/QH15, Law on Water Resources 28/2023/QH15, Law on Roads 35/2024/QH15, Law 57/2024/QH15, Law 90/2025/QH15, Law on High Technology 133/2025/QH15, and Law on Rehabilitation and Insolvency 142/2025/QH15. The Law governs the full PPP investment cycle - from project preparation and investor selection, through contracting (BOT, BTO, BOO, O&M, BTL, BLT, BT and mixed contracts), to implementation, audit, and contract termination. This is a legal instrument for large-scale infrastructure investment (transport, health, education, energy, and other public investment sectors) and is not directly relevant to the routine tax obligations of SMEs.
Timing of Taxable Income Recognition for Employer-Paid Benefits Covering Multiple Periods
Ho Chi Minh City Tax Department provides guidance to Panasonic Electric Works Vietnam Co., Ltd. on when to recognize Personal Income Tax (PIT) liability for employer-paid benefits covering multiple months or work periods (such as advance rent payments). The taxable income recognition point is when the employee actually benefits from the payment, not the date the company makes the payment or records it in its books. From the 2026 tax year, the company must apply the new Personal Income Tax Law No. 109/2025/QH15 dated 10 December 2025.
VAT Deductibility and CIT Expense Conditions When a Logistics Company Pays Import Costs on Behalf of Another
The Ho Chi Minh City Tax Department provides guidance on non-cash payment requirements for VAT input deductibility and CIT deductible expenses under the current legal framework. Under Article 14 of the Law on VAT 2024 and Article 26 of Decree 181/2025/ND-CP, purchases of goods and services worth VND 5 million or more (including imported goods) must be supported by non-cash payment instruments for input VAT to be deductible. Similarly, under Article 9 of the Law on Corporate Income Tax 2025 and Article 9 of Decree 320/2025/ND-CP, expenses on goods and services of VND 5 million or more must be supported by non-cash payment proof to qualify as deductible CIT expenses. Where a logistics company pays customs and transport fees of VND 5 million or more on behalf of the importer, and the importer does not comply with non-cash payment requirements, those expenses risk being disallowed for CIT purposes and the corresponding input VAT may not be deductible. The Tax Department advises businesses to study and comply with Article 14 of the VAT Law, Article 9 of the CIT Law, and their implementing regulations.
PIT Declaration and Payment on Behalf of Individual/Household Businesses Receiving Trade Discounts from 2026
The Ho Chi Minh City Tax Department guides a livestock feed manufacturer on its obligations to declare and pay PIT on behalf of individual/household businesses receiving monthly trade discounts tied to sales volumes. The flat-rate household tax regime was abolished from 2026. From the January 2026 tax period, the company can no longer use form 01/CNKD under Circular 40/2021/TT-BTC. Instead, the company must declare and pay tax on behalf of the individual under the provisions of Article 4 of Circular 10/2024/TT-BTC dated 10 February 2024 (effective 1 July 2025).
Scope of Official Letter No. 5680/CT-CS on PIT Exemption for Professional Service Income from Science and Technology Contracts
Ho Chi Minh City Tax Department responds to a query about the scope of Official Letter No. 5680/CT-CS regarding PIT exemption for individuals performing professional services under science and technology contracts funded by the state budget. Under Personal Income Tax Law No. 109/2025/QH15 (effective 1 July 2026), wages and salaries from performing science, technology, and innovation tasks are exempt from PIT. From 2026 onward, taxpayers earning income from science and technology task contracts must comply with Article 4 of the new Law and related regulations.
Consolidated Document No. 61/VBHN-VPQH - Corporate Income Tax Law (Consolidating Law No. 67/2025/QH15 and Amendments)
The National Assembly Office publishes Consolidated Document No. 61/VBHN-VPQH consolidating the Corporate Income Tax Law No. 67/2025/QH15 dated 14 June 2025 (effective 1 October 2026), as amended by five laws: Cybersecurity Law No. 116/2025/QH15, Criminal Judgment Enforcement Law No. 127/2025/QH15, High Technology Law No. 133/2025/QH15, Law No. 141/2025/QH15 (amending the Public Debt Management Law), and Investment Law No. 143/2025/QH15. The Law defines taxpayers (domestic enterprises, foreign enterprises with and without permanent establishments, cooperatives, public service units, and other business organisations), taxable income, exempt income categories, the tax period, the tax calculation base, and the calculation method. The source text is truncated before the incentives chapter and transitional provisions; tax rates, incentive schedules, and the specific tax period from which the Law applies are not visible in the available text.
Decree 366/2025/ND-CP: On Management and Investment of State Capital in Enterprises
Decree 366/2025/ND-CP regulates the management and investment of state capital in enterprises, effective from January 01, 2026. This document replaces previous regulations to strengthen state capital management efficiency, enhance transparency in investment processes, and elevate the accountability of state ownership representative agencies. This decree primarily governs state-owned enterprises, including 100% state-owned enterprises, joint-stock companies, and limited liability companies with state capital contribution. For private SMEs, the decree has indirect impact when they engage in transactions, partnerships, or competition with state-owned enterprises. New regulations on governance, information disclosure, and investment efficiency assessment may affect the overall business environment. SME owners should note this decree to better understand the operation and management methods of partners, customers, or competitors that are state-owned enterprises. This helps them make appropriate business decisions, especially in sectors with state participation such as infrastructure, energy, and telecommunications.
Circular 40/2026/TT-BTC: Regulations on exemption of certain fees to support production and business in the transportation sector
Circular 40/2026/TT-BTC issued by the Ministry of Finance on April 6, 2026, effective from April 7, 2026, stipulates the exemption of certain fees to support businesses operating in the transportation sector. This is an important preferential policy aimed at reducing compliance costs and operational expenses for transport enterprises. This document is issued in the context of the Government continuing to implement solutions to support businesses, especially small and medium-sized enterprises in the transportation industry - a sector heavily affected by fuel costs, maintenance expenses, and various administrative fees. The exemption and reduction of fees will help businesses have additional resources to maintain operations, invest in vehicle upgrades, and improve service quality. Businesses operating in passenger transport, freight transport, logistics, and related services need to understand the fees that are exempted under these regulations to legally and effectively take advantage of these incentives. The circular takes effect immediately one day after promulgation, demonstrating the urgency of this support policy.
Decision No. 482/QD-TTg on Environmental Tax, VAT, and Special Consumption Tax Rates for Petrol, Diesel, and Jet Fuel
The Prime Minister issues Decision No. 482/QD-TTg dated 26 March 2026 applying special tax rates on petrol, diesel, and jet fuel to stabilize fuel prices. The Decision is effective from midnight on 26 March 2026 to the end of 15 April 2026. Key measures: environmental protection tax on petrol (excluding ethanol), diesel, and jet fuel reduced to VND 0/litre; petrol, diesel, and jet fuel exempt from VAT declaration and payment but input VAT remains deductible; special consumption tax rate on petrol reduced to 0%.
Consolidated Document No. 18/VBHN-BCT: Rules of Origin under the ASEAN-Korea Free Trade Agreement (AKFTA)
Consolidated Document No. 18/VBHN-BCT, issued by the Ministry of Industry and Trade, merges Circular No. 49/2025/TT-BCT (dated September 9, 2025) with amendments in Circular No. 12/2026/TT-BCT (dated March 9, 2026) into a single, unified statement of the Rules of Origin under the ASEAN-Korea Free Trade Agreement (AKFTA). It takes effect on May 1, 2026 and applies to Certificate of Origin (C/O) issuing bodies, import-export traders, and any organization or individual involved in determining the origin of goods traded with Korea. The core content sets out three routes for goods to qualify as AKFTA-originating and receive preferential tariff treatment: (1) wholly obtained goods (grown, raised, or extracted entirely within one member country); (2) meeting a minimum Regional Value Content (RVC) of 40% of FOB value, or a 4-digit tariff classification change (CTH); or (3) satisfying the Product Specific Rules listed by HS code in Appendix I. The circular also sets a 10% de minimis threshold for non-originating materials that fail the CTH test, cumulation rules allowing origin to carry across ASEAN and Korea, and a list of minor processing operations (packaging, labeling, simple assembly, etc.) that do not by themselves confer origin. For import-export businesses, the most operationally important part covers the process for obtaining, verifying, and using Form AK Certificates of Origin: in Vietnam, C/O issuance is handled by the Import-Export Department (Ministry of Industry and Trade) and provincial People's Committees; the C/O must be submitted to the importing country's customs within 12 months of issuance; shipments with an FOB value under 200 USD are exempt from submitting a C/O; and the importing country's customs may request a post-issuance verification within 6 months if authenticity is in doubt. Businesses exporting to Korea under AKFTA preferences should review their origin documentation and Form AK C/O application process against this consolidated text starting May 1, 2026.
Are Roasted and Seasoned Pine Nuts and Cashews Considered Minimally Processed for VAT Exemption Purposes?
The Ministry of Finance clarifies the VAT classification of roasted and seasoned pine nuts and cashews under the revised VAT regime effective 1 January 2026. Under Decree No. 181/2025/ND-CP, 'minimal processing' is narrowly defined to include only: cleaning, drying, husking, milling, polishing, salting, vacuum sealing, cold storage, and similar standard preservation methods. Roasting and seasoning are not included in this list. Where classification is unclear, businesses should consult the Ministry of Agriculture and Environment. Products that exceed minimal processing are subject to 10% VAT rather than the 0% exemption or 5% rate applicable to minimally processed agricultural goods.
Invoice and Tax Treatment for Expired Unused Gift Vouchers
Ho Chi Minh City Tax Sub-department 1 (on behalf of the Ministry of Finance) advises on the invoice and VAT treatment for 7 gift vouchers of VND 1 million each that were fully paid by customers but expired unused. Under Article 4(1) of Decree No. 123/2020/ND-CP (as amended by Decree No. 70/2025/ND-CP), sellers must issue invoices when selling goods or providing services. The tax authority advises the business to assess its specific situation against the invoicing rules to determine whether an invoice must be issued for the value of the expired vouchers. The tax authority did not issue a definitive ruling but instructed the business to self-assess based on the nature of the transaction and applicable invoicing principles.
VAT Rate Applied to Plant Seeds Sold to Farmers from 1 January 2026
The Ministry of Finance clarifies the VAT treatment of plant seeds sold by a deduction-method taxpayer to farmers from 1 January 2026. Under Article 5(2) of VAT Law No. 48/2024/QH15, plant propagation materials as defined by plant cultivation law are not subject to VAT. Therefore, if the seeds in question are classified as plant propagation materials under cultivation law, they fall outside the scope of VAT entirely - no VAT applies. Businesses must consult plant cultivation legislation to determine whether their specific seeds qualify as propagation materials, as that classification is the decisive criterion for VAT treatment.
Consolidated Circular on Safety and Security for Online Banking Services (Circular 50/2024/TT-NHNN as amended by Circular 77/2025/TT-NHNN)
This is a consolidated text issued by the State Bank of Vietnam (SBV/NHNN) merging Circular 50/2024/TT-NHNN dated October 31, 2024 (effective January 1, 2025) with the amendments introduced by Circular 77/2025/TT-NHNN dated December 31, 2025 (effective March 1, 2026). It sets mandatory safety and security requirements for providing online banking services, applying to credit institutions, foreign bank branches, payment intermediary service providers, credit information companies, and (new under the amendment) Mobile Money service providers. Key technical requirements include: information systems must meet security level 3 or higher (level 4 or higher for financial switching and clearing systems) and comply with Vietnamese standard TCVN 11930:2017; network infrastructure must include application and database firewalls plus DoS/DDoS protection; application software must undergo source-code control and testing against the OWASP Top Ten (web) or OWASP Mobile Application Security standard (mobile); Mobile Banking apps must be distributed only through official app stores and must detect and auto-exit when debuggers, emulators, or rooted/jailbroken devices are detected. Transaction confirmation is risk-tiered, combining passwords, PINs, OTPs (SMS/Voice/Soft Token), biometric matching, or e-signatures; payment transactions by organizational customers must separate the creation and approval steps, except for household businesses or micro-enterprises using simplified accounting. A notable new element introduced by Circular 77/2025/TT-NHNN is the «newly established organizational customer» category (entities incorporated or newly onboarded within the past 12 months), which must undergo a risk assessment to determine when biometric or secure e-signature verification applies, with exemptions for state agencies, listed companies, and Fortune Global 500 entities. The new rules under Articles 3 and 10 take effect on a staggered timeline: providers serving both individual and organizational customers must comply from July 1, 2026, while providers serving organizational customers only must comply from October 1, 2026. This is a cybersecurity and technical-standards document for banks and payment intermediaries, outside the tax, accounting, e-invoice, labor, or customs scope that RegHub tracks.
Consolidated Decision on Payment Rules for Trade at Vietnam-Cambodia Border Areas
The State Bank of Vietnam has issued Consolidated Document No. 26/VBHN-NHNN, merging Decision 17/2004/QD-NHNN with three rounds of amendments (2011, 2015, and most recently Circular 75/2025/TT-NHNN, effective December 31, 2025) governing payment methods for trade in goods and services at Vietnam-Cambodia border areas. The rules apply only to transactions conducted at the border areas themselves, not to Vietnam-Cambodia trade in general. The affected parties are Vietnamese enterprises, licensed household import-export traders, border residents, commercial banks operating in border provinces, and Cambodian trading partners. Five payment methods are permitted: bank transfer in freely convertible currency, payment via a Cambodian trader's VND or foreign-currency account at a Vietnamese bank, payment via VND-KHR accounts between banks of the two countries, cash payment in VND or KHR (with a customs declaration requirement when carrying cash across the border), and barter. The most notable change in this update is administrative in nature: the term 'State Bank Branch of the province' was renamed 'State Bank Regional Branch' to reflect the central bank's reorganization, one now-unused payment method (point d of Article 3 and all of Article 8) was repealed, and the periodic reporting template was replaced. Businesses engaged in Cambodia border trade and the banks that serve them should update their reporting templates and the name of the recipient agency, but the update does not create significant new obligations.
Decision Approving Expansion of the Southeast Nghe An Economic Zone, Nghe An Province
The Prime Minister issued a Decision approving the expansion of the Southeast Nghe An Economic Zone in Nghe An Province. The Decision adjusts the boundary and area of the economic zone in accordance with the Nghe An provincial master plan for 2021-2030. The expansion is grounded in the Planning Law, the Investment Law, and Decree 35/2022/ND-CP on industrial zone and economic zone management. This is an administrative decision on regional economic planning, not directly relevant to routine SME tax obligations, though enterprises investing in the economic zone may qualify for specific tax incentives.
Circular 33/2026/TT-BTC: Regulations on Financial Regime of Vietnam Deposit Insurance
Circular 33/2026/TT-BTC issued by the Ministry of Finance on March 30, 2026, effective from May 1, 2026, regulates the financial regime of Vietnam Deposit Insurance (DIV). This document establishes the legal framework governing the financial operations of the deposit insurance organization, including revenue sources, expenses, fund management, accounting procedures, and financial reporting. This regulation primarily applies to Vietnam Deposit Insurance and credit institutions participating in deposit insurance schemes. For SMEs, this Circular has indirect impact through its influence on the financial and banking system with which businesses transact. When the deposit insurance system operates efficiently and transparently, it builds confidence among depositors and ensures banking system safety, thereby stabilizing the business environment for enterprises. Businesses do not need to undertake direct compliance procedures related to this Circular, as it governs the internal operations of DIV. However, understanding the deposit insurance mechanism helps businesses assess risks when selecting banks for deposits and manage their cash flow more securely.
Circular 15/2026/TT-BCT Amends Circular 38/2025/TT-BCT on Delegation of Administrative Procedures in Industry and Trade
On March 25, 2026, the Ministry of Industry and Trade issued Circular No. 15/2026/TT-BCT, amending Circular No. 38/2025/TT-BCT on delegating authority to handle administrative procedures in sectors under the Ministry's management. The Circular takes effect on April 10, 2026. The main changes are: (1) adjusting authority to issue, reissue, and amend industrial explosives licenses for research/testing organizations or companies holding a Group 1 mineral-operation license; (2) adding a new procedure allowing provincial People's Committees to approve safety management documents (safety management program, risk assessment report, emergency response plan) for oil and gas facilities in their locality, with a 20-working-day appraisal period followed by a 5-working-day approval period; (3) reassigning permit authority for transporting dangerous goods: the Chemicals Agency now handles Class 5 and Class 8 goods, while provincial People's Committees handle Class 1 (excluding industrial explosives), 2, 3, 4, and 9; (4) simplifying the cigarette and cigar import reporting procedure by replacing the specific receiving-agency name with the general term «Licensing Agency» and removing the fixed email-submission requirement; (5) updating the province/city codes used for foreign representative offices and branches to follow the current administrative unit list; (6) clarifying a six-step process for provincial People's Committees to conduct legal-knowledge examinations for multi-level marketing. The Circular mainly applies to businesses operating in industrial explosives, oil and gas, dangerous goods transport, tobacco trading, foreign representative offices/branches, and multi-level marketing. Licenses and certificates issued before April 10, 2026 remain valid until their stated expiry, and complete applications submitted before that date continue to be processed under the prior rules. This is a procedural/administrative circular that does not create new tax, accounting, or invoicing obligations, so it has limited direct impact on most small and medium businesses outside the sectors listed above.
Decree No. 85/2026/ND-CP on Supplementary Retirement Insurance
On March 25, 2026, the Government issued Decree No. 85/2026/ND-CP on supplementary retirement insurance, implementing Article 127.3 of the 2024 Social Insurance Law (Law No. 41/2024/QH15). This creates a voluntary, employer-sponsored pension benefit scheme for employees who already participate in compulsory social insurance. Participation cannot be made a condition of hiring, contract renewal, or tied to bonus and performance policies, and contribution levels are freely negotiated between employer and employee. The Decree sets up an individual retirement account for each participating employee and governs the establishment, management, and investment of supplementary pension funds. Eligible investments include government bonds, bank deposits, listed stocks and bonds, and fund certificates, subject to concentration limits (for example, a minimum 40 percent allocation to government bonds for funds with net assets of 5 billion VND or more, and caps on exposure to a single issuer or related-party group). Asset custodians, supervisory banks, and individual account administrators each have defined licensing conditions and liability to compensate participants if valuation or investment errors occur. Employees may draw benefits monthly, as a lump sum, or a combination of both; early withdrawal before retirement age (outside force majeure cases such as death, terminal illness, or 81 percent or greater loss of working capacity) triggers a fee of up to 5 percent of the withdrawal amount. On tax treatment, employer contributions are deductible for corporate income tax purposes up to the limits set by CIT law, and employees receive personal income tax incentives on both contributions and payouts. The Decree also sets licensing conditions for pension fund management companies (minimum 5 years of fund management experience, at least 1,000 billion VND in assets under management, and licensed staff), plus grounds for license revocation such as dissolution, fraud, or repeated compliance violations. SME owners considering this benefit should note that it is a market-based product - the State does not guarantee investment returns or payout amounts. Note: the Cong Bao source text retrieved for this article is cut off mid-Article 40 (Chapter III); the final provisions of the Decree, including the effective date, were not present in the source text used to prepare this summary.
PIT Exemption for Overtime Income Earned in December 2025 but Paid in January 2026
The Ho Chi Minh City Tax Department responds to a query about whether overtime pay earned in December 2025 but paid in January 2026 qualifies for PIT exemption under the new Personal Income Tax Law. Under Clause 8, Article 4 of PIT Law No. 109/2025/QH15, overtime pay and night-shift pay are exempt from PIT. Since the payment was made in January 2026 (the 2026 tax period), the tax authority determines this income falls under Law No. 109/2025/QH15 and is therefore PIT-exempt.
CIT Obligations for Construction Contractors on Religious/Cultural Projects Funded by Religious Organizations
The Ho Chi Minh City Tax Department responds to a query about the tax obligations of construction contractors on a religious/cultural infrastructure project where the project owner is an international Buddhist organization and funding comes from charitable donations. Since the query concerns tax obligations of organizations/enterprises, the tax authority instructs Company A (main contractor) and Company B (subcontractor) to consult directly with their managing tax authority with actual documentation for specific guidance.
8% or 10% VAT Rate for Inox (Stainless Steel) Boiler and Furniture Products (Industry Code 2511)
The Phu Tho Tax Authority provides guidance to a company manufacturing stainless steel boilers and furniture (primary industry code 2511) on the applicable VAT rate under Decree No. 174/2025/ND-CP. Decree No. 174/2025/ND-CP dated 30 June 2025 reduces VAT from 10% to 8% for all goods and services currently subject to the 10% rate, except for categories listed in Appendix I and Appendix II. While "metal products" (san pham kim loai) are generally among the excluded categories, the actual classification depends on the official product industry nomenclature. Referencing Decision No. 43/2018/QD-TTg dated 01 November 2018 (Vietnam Product Industry Classification System), industry code 2511 is classified as "Cau kien kim loai" (metal structural components/fabricated metal products). This specific sub-category is NOT included in Appendix I or Appendix II of Decree No. 174/2025/ND-CP. Therefore, metal structural components (code 2511) are eligible for the reduced 8% VAT rate. The company should verify its actual products and supporting documentation to confirm eligibility for the VAT reduction as stipulated.