Knowledge base

The Ministry of Finance clarifies that when a commune-level People's Committee issues multiple supplementary budget allocation decisions during the year to Level-I budget estimating units, the forms used should follow the templates of Forms 47 and 48 in Appendix I of Circular 26/2026/TT-BTC. The allocation must detail expenditure by subordinate agency and by spending category (capital investment, recurrent expenditure, etc.). The Government did not delegate authority to the Ministry of Finance to issue separate forms specifically for commune-level People's Committees - Decree 73/2026/ND-CP only grants the Ministry authority over forms used by Level-I budget estimating units for their subordinate spending units. Authority to prescribe supporting documentation for Level-I unit allocations rests with the provincial Department of Finance, which proposes rules to the provincial People's Committee. Legal basis: Clauses 5 and 7 of Article 32 and Clause 1 of Article 33 of the State Budget Law; Decree 73/2026/ND-CP; Circular 26/2026/TT-BTC.

Tax Sub-Department No. 9 of Da Nang City advises a case where the former household business owner (ID 049090022529) transferred the business registration but the tax system still shows incomplete tax obligations. The tax authority determined that the household business has taxpayer type NNT 0300310 and a primary business registration (bran_type=9); tax obligations have been fulfilled but the dissolution/cessation application has not yet been submitted to the Business Registration Authority. To resolve this, the former owner must submit a dissolution/business cessation application to the Business Registration Authority. Once the authority updates the status to 01, the tax authority can complete the process allowing new digital signature registration. Tax Sub-Department No. 9 Da Nang (phone: 0235.3851210) is available for direct contact.

The Ministry of Finance clarified the VAT rate for domestically sold frozen seafood that has undergone only basic (simple) processing — cleaning, sorting, cutting, blast-freezing, and cold-storage at below -18°C. Under VAT Law 48/2024/QH15 (amended by Law 149/2025/QH15) and Decree 181/2025/ND-CP (amended by Decree 359/2025/ND-CP, effective 1 January 2026), cold storage and freezing are explicitly listed as basic processing operations. Consequently: self-producing or self-catching entities that sell such products are VAT-exempt (outside the scope of VAT). Enterprises or cooperatives buying and reselling to other enterprises/cooperatives are not required to declare and pay VAT but may claim input VAT credits. Sales to individuals or other parties attract a 5% VAT rate. Business households using the direct method pay 1% of revenue.

The Ministry of Finance clarified how the local residential land-allocation quota applies under point c, clause 2, Article 10 of Resolution 254/2025/QH15 when a household wants to convert 200 sq m of garden land to residential land on a plot that already has 300 sq m of existing residential land. The local residential allocation quota is 200 sq m. The household asked whether the existing 300 sq m of residential land must be deducted when assessing the quota. The Ministry concluded that point c, clause 2, Article 10 of Resolution 254/2025/QH15 and clauses 1 and 2 of Article 6 of Decree 50/2026/ND-CP do not require aggregation of existing residential land. The 200 sq m being converted is assessed independently against the 200 sq m quota: 30% of the difference applies to the area within the quota, 50% for the area exceeding the quota by up to one quota-width, and 100% for anything beyond that. This concession is applied only once per household, on one plot of the household's choosing.

The Dong Thap tax authority provided guidance on land use fees when converting 66 sqm of perennial crop land (CLN) to urban residential land (ODT). Applying Article 10(2)(c) of **Resolution 254/2025/QH15** and Article 6 of **Decree 50/2026/ND-CP**: garden and pond land on the same plot as residential land, when converted to residential use, qualifies for preferential rates. The rates are: **30%** of the difference between residential and agricultural land use fees for the area within the local residential allocation limit; **50%** for the area exceeding the limit by up to one additional limit; **100%** for the area exceeding two times the limit. This policy applies **only once** per household/individual, on **one plot** of their choosing. Households must submit an application at the one-stop service counter **before 1 January 2027** to qualify. Land prices are calculated using the official land price schedule at the time of the conversion approval decision.

The Hanoi Tax Department (Tax Base 22) provided guidance to Thach That General Hospital regarding the accidental filing of a VAT return under a daily period instead of the quarterly period on the e-government portal. The tax amount owed was paid on time and in full, but the declared period was incorrect. According to the Tax Department's guidance: based on Article 13(4)(b) of Decree No. 125/ND-CP dated 19 October 2020, the specific situation must be assessed. If a taxpayer files a tax return more than **74 days** beyond the prescribed deadline, administrative penalty for late filing applies. The fact that the tax amount was fully paid on time may be considered a **mitigating circumstance** in determining the penalty amount. The Tax Department advises the Hospital to review the relevant regulations and contact the tax authority directly for assistance with the correction and supplementary return process.

The Ministry of Finance confirmed that when a provincial People's Council (HDND) delegates to the provincial People's Committee (UBND) authority to determine specific local budget expenditure standards and norms under Point h, Clause 9, Article 31 of the State Budget Law No. 89/2025/QH15, the HDND **must issue a normative legal document** (a normative Resolution) — an administrative document is insufficient because decentralization must be established in a normative legal document per Clause 2, Article 13 of the Law on Local Government Organization. Where a sector-specific decree directly grants authority to the provincial UBND, the HDND must still issue a normative legal document delegating this task to the UBND if the matter falls under Point h, Clause 9, Article 31 of the State Budget Law. UBND self-determination without an HDND normative legal document does not comply with regulations.

The Ministry of Finance guidance states that when a company dismantles components of a tangible fixed asset (TFA) and replaces them with new equipment that increases capacity or extends useful life, the carrying cost of the removed component must be **deducted from the TFA's original cost**, while the cost of the new component is **added to the original cost** and depreciated going forward. This applies even when the removed parts do not individually qualify as stand-alone fixed assets. The deduction is recorded at the time the component is physically removed. The deduction value is estimated using TFA records or market data and must be disclosed in the financial statements. Companies bear sole responsibility for determining whether the activity constitutes routine maintenance (expensed) or a capital upgrade increasing economic benefit (capitalized), as only upgrades justify adjusting the TFA's original cost.

The Ho Chi Minh City Tax Department (through the Son La Tax Sub-department) confirms that affiliate marketing income earned through TikTok constitutes business income subject to tax declaration and payment. Even if TikTok withholds tax at source, individuals with multiple income streams must include all income in their annual personal income tax (PIT) settlement if total income exceeds the statutory threshold. A taxpayer who operates both a spa business and earns TikTok affiliate commissions must aggregate all income in the annual PIT settlement. Withholding at source by the platform reduces tax payable but does not eliminate the annual settlement obligation. The tax authority advises taxpayers to study applicable regulations and to file tax returns electronically in accordance with current law.

The Ministry of Finance (Department of Accounting and Auditing Supervision) clarifies that the phrase "organizations and service units not using the state budget" in Article 2.3 of the 2015 Accounting Law refers broadly to any organization that does not fall into the other four categories: state budget agencies, state agencies and budget-funded service units, enterprises, and cooperatives. This is the first interpretation - "organization" stands independently from "service unit." Examples include extra-budgetary state financial funds, social funds, and charitable funds. All such entities are required to organize an accounting apparatus and prepare financial statements. In addition to accounting law, the specific accounting obligations of each organization type depend on its governance structure, operational model, and financial mechanism as defined in relevant specialized regulations.

The Ho Chi Minh City Tax Department (Long Bien - Gia Lam area tax sub-department) provides guidance on a case where a business filed its 2024 PIT annual settlement on 25 March 2025 but issued 11 withholding tax receipts to employees on 15 April 2025, after the settlement deadline. Under Decree 70/2025/ND-CP amending Decree 125/2020/ND-CP, late issuance of withholding receipts (after the settlement date) may attract administrative tax penalties. However, if Official Letter 1992/CT-CS applies and no actual tax loss occurred, the authority may exercise discretion on penalty level. The business is advised to proactively contact the local tax authority for specific guidance on whether penalties apply and at what level, and to ensure correct electronic tax filing going forward.