Knowledge base

The Ministry of Finance responded to a question about whether an individual whose only activity is property rental (using tax declaration form 01/BDS) must notify the tax authority of their bank account number (form 01/BK-STK), pursuant to Article 13(4) of Decree 68/2026/ND-CP and Article 4(1)(d) of Circular 18/2026/TT-BTC. Based on the Ministry of Finance's written response shown in the official image: The MoF cited Article 13(4) of Decree 68/2026/ND-CP and Article 4 of Circular 18/2026/TT-BTC to indicate that the bank account notification requirement applies to household businesses and individual traders using form 01/CNKD. Individuals whose only activity is property rental and who use form 01/BDS fall under a different category; they should refer specifically to the guidance in Circular 18/2026/TT-BTC and contact the local Tax Department for specific guidance.

The Customs Department responds to an enterprise's question about handling a situation where customs authorities notify the enterprise of numerous 2024 and 2025 import declarations with incorrect HS codes, resulting in wrong VAT (reduced from 10% to 8%) and import duties (increased from 3% to 5%). The enterprise has paid the additional import duties but is unsure how to handle the overpaid VAT. The Customs Department guidance: Under Article 60(1) of Tax Administration Law No. 38/2019/QH14, overpaid VAT is handled in three ways: (1) offset against other outstanding tax debts; (2) deducted from the next tax payment; or (3) refunded when the enterprise has no outstanding tax debts. When offsetting against outstanding debts, no late-payment interest is charged for the period from the date of overpayment to the date of offset. Importantly, for VAT to be refunded through customs, the enterprise must first file an adjustment with the domestic tax authority (tax office) regarding previously credited VAT input, before requesting the refund from customs. After issuing a refund decision, customs provides information to the tax authority.

The Ministry of Finance clarified where individuals with income from multiple employers across different provinces must file their personal income tax (PIT) finalization return (Form 02/QT-TNCN). Under Article 11 of Circular 105/2020/TT-BTC and Article 11 of Decree 24/2025/ND-CP on tax administration: individuals filing their own PIT finalization must submit the return to the tax authority directly managing the income-paying organization that withheld the largest amount of PIT during the year. Applied to the scenario: an individual with 30 income sources in Province A (total 3 billion VND, 100 million each) and 5 income sources in Province B (one source at 600 million VND). The individual must identify which paying organization withheld the most PIT - if that is an organization in Province B, the return is filed in Province B; if it is an organization in Province A, the return is filed in Province A. The tax authority directly managing the income-paying organization (not the individual's place of residence) determines the filing location. Additional tax payable is remitted there; tax refund claims are also processed at that location.

The Ministry of Finance clarified PIT obligations for sole proprietor households (HKD) in software programming (industry code 6201) classified under Group 3 of Decree 68/2026/ND-CP. Under Circular 40/2021/TT-BTC, software programming and application publishing activities are classified as IT services, with PIT calculated at a 2% rate on revenue. Decree 68/2026/ND-CP on household business management does not change how Group 3 household businesses calculate PIT - they continue to pay PIT at the percentage-of-revenue rate under Circular 40/2021/TT-BTC. For software programming activities, the 2% rate still applies. Taxable income is calculated as revenue multiplied by 2%, then subjected to the progressive tax schedule (17% rate on the corresponding income bracket). The Ministry of Finance acknowledged the unique characteristics of the software sector (no physical input invoices, intellectual product nature) and requested the household business report specific business circumstances to the Provincial Tax Department for further guidance.

The Ministry of Finance clarified how to calculate the land use fee when converting land use purpose from perennial crop land to residential land, based on National Assembly Resolution 245 and Government Decree 50/2026/ND-CP. Under the regulations, when calculating the land use fee for the portion within the residential land allocation quota: previously recognized residential land area is deducted from the quota to determine the remaining within-quota area. Applied to the scenario: a 667 m² parcel comprising 300 m² of recognized residential land and 367 m² of perennial crop land; local residential land allocation quota is 200 m²; the owner now seeks to convert 200 m² of crop land. Since the existing 300 m² recognized residential area already exceeds the 200 m² quota, the full 200 m² being converted will be charged at the above-quota rate (i.e., 100% of land price, no 30% preferential rate). Specific confirmation should be sought from the Hai Phong Provincial Tax Department.

The Ministry of Finance clarified how to determine whether a construction-sector company qualifies as a medium-sized enterprise under Article 5.3 of Decree 80/2021/ND-CP. A medium enterprise in the construction and industrial sector must satisfy: average annual insured employees not exceeding 200 persons; AND annual revenue not exceeding VND 200 billion OR total capital not exceeding VND 100 billion (either financial criterion suffices). In the case presented: fewer than 40 insured employees, but annual revenue above VND 200 billion AND total capital above VND 127 billion - both financial thresholds exceeded. The Ministry concluded the company does not qualify as an SME under applicable law.

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.

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.

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.

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.

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.

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.