Knowledge base

The Ministry of Finance confirms that under Article 9(3)(a) of Decree No. 262/2025/ND-CP dated 14 October 2025, the business lines of a science and technology (S&T) organization must align with the fields of activity stated in its S&T organization registration certificate issued by a competent authority. This means S&T organizations may not freely register business lines that fall outside the scope of their issued S&T certificate. Local business registration authorities have the power to reject non-conforming business lines. The rule is intended to ensure consistency between actual business activities and the stated purpose for which the S&T organization was established.

The Ministry of Finance clarified whether cash wage and salary payments to employees qualify as deductible expenses for corporate income tax (CIT) purposes under CIT Law 67/2025/QH15 and Decree 320/2025/ND-CP. A construction company pays workers between VND 11-22 million per month in three cash instalments (on the 10th, 20th, and 31st of each month), each payment below VND 20 million, supported by payroll sheets, timesheets, and cash vouchers. Under Decree 320/2025/ND-CP, salary and wage expenses are deductible for CIT if: actually paid, properly documented (payroll sheets, timesheets, cash payment vouchers), and stipulated in labour contracts or collective bargaining agreements. Applicable rules on non-cash payment thresholds must also be observed. The Ministry confirmed that cash salary payments with adequate documentation and compliant with labour, accounting, and tax regulations are deductible as reasonable business expenses. Enterprises must ensure compliance with non-cash payment regulations for applicable transaction thresholds.

The Hanoi Tax Department confirmed that a 10-employee company paying salary twice monthly in cash (first payment on the 15th, second at month-end, each via a separate cash voucher) may deduct both salary payments as expenses for corporate income tax (CIT) purposes, provided proper supporting documents exist. Under Law on CIT No. 67/2025/QH15 and Decree 320/2025/ND-CP, salary expenses are deductible when supported by a payroll sheet, attendance record, and individual cash payment vouchers. The key conditions are that the expense must actually be incurred, relate to business operations, and be backed by adequate documentation. The tax authority advised the company to verify its situation against applicable tax laws and, if further queries arise, to consult http://hanoi.gdt.gov.vn or contact its direct tax management office.

The Department of Accounting and Auditing Management and Supervision (Ministry of Finance) confirmed that industrial zone infrastructure enterprises subleasing state-leased land (where the state lease uses a lump-sum payment model) must determine the nature of their sublease contract — as asset rental (VAS 06) or service provision (VAS 14) — based on the contract terms, land law provisions, and actual circumstances. Revenue must be **allocated over the lease period** for operating leases rather than recognized in full upon receipt of payment. This is important revenue accounting guidance for industrial zone enterprises, affecting financial statement presentation and CIT declarations based on revenue actually earned each period.

Decree 236/2025/ND-CP, effective from October 15, 2025, provides detailed regulations on the application of supplementary corporate income tax (CIT) under Pillar Two of the Global Anti-Base Erosion (BEPS 2.0) framework proposed by the OECD. This Decree implements National Assembly Resolution 107/2023/QH15, ensuring that large multinational enterprise (MNE) groups pay a minimum effective tax rate of 15% globally. The Decree applies to multinational groups with consolidated global revenue of at least 750 million Euros in at least 2 of the 4 consecutive fiscal years prior. Entities within these groups operating in Vietnam must comply with supplementary tax rules if their effective tax rate falls below 15%. For small and medium-sized enterprises (SMEs) not part of such large groups, this Decree has no direct impact. The Decree details methods for determining qualifying income and taxes, calculating effective tax rates, and mechanisms for collecting supplementary taxes (including the Income Inclusion Rule - IIR and Undertaxed Profits Rule - UTPR). Businesses must file GloBE Information Returns and Supplementary CIT Returns, with specific forms and guidance provided. The Decree also includes transitional rules and safe harbors to reduce compliance burdens during the initial implementation phase.

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.

The Ministry of Finance provided guidance on PIT and CIT treatment for meal allowances and overtime pay where employees are remunerated under a product-based (lump-sum output) pay scheme. From 01/7/2025, meal allowances that do not exceed the limit prescribed by labor law are not counted as taxable PIT income. Reasonable, documented meal allowance payments are deductible for CIT purposes. For overtime pay, the incremental portion of income paid above the normal working day rate is PIT-exempt. Product-based overtime pay is deductible for CIT if supported by full documentation (labor contracts, task assignment decisions, timesheets, payslips, payment vouchers). This guidance is based on Circular 40/2021/TT-BTC and applicable tax regulations effective from 2025.

Tax Sub-department 25 of Ho Chi Minh City responded to a query from Ms. Nguyen Thi Loan regarding eligibility for the 3-year CIT exemption for newly established enterprises under Resolution 198/2025/QH15. The authority clarified that the enterprise must qualify as a small and medium enterprise (per Article 5, Decree 80/2021/ND-CP) and must satisfy the conditions in Clause 3, Article 7 of Decree 20/2026/ND-CP. Among the disqualifying conditions: the exemption does not apply if the legal representative, general partner, or highest capital contributor of the new enterprise has held an equivalent role in another enterprise that is currently operating or was dissolved less than 12 months prior. The tax authority did not issue a definitive conclusion for the taxpayer's specific situation, instead instructing Ms. Loan to apply the cited regulations to her own facts to determine eligibility.

The Ministry of Finance clarified the eligibility conditions for the 3-year corporate income tax (CIT) exemption for newly established small and medium enterprises (SMEs) under National Assembly Resolution 198/2025/QH15 and Government Decree 20/2026/ND-CP. The query concerned a single-member LLC established in early 2025 that changed ownership in September 2025 and hired a foreign director. To qualify for the 3-year CIT exemption, a newly established SME must meet conditions set out in Resolution 198/2025/QH15 and Decree 20/2026/ND-CP, including that the owner(s) must not have previously established or contributed capital to any other enterprise. The Ministry confirmed that if both the former and new owner had never established or invested in any other company, the enterprise may still be eligible for the exemption. Eligibility is assessed based on the actual circumstances at the time of establishment and throughout the company's operation. The enterprise should maintain supporting documentation to present to the tax authority upon request.