Knowledge base

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.

The Ministry of Finance clarifies whether Willer Vietnam Co., Ltd. - a wholly-owned subsidiary of Willer Inc. (Japan) with FY2025 revenue of VND 10.2 billion - qualifies for the 17% CIT rate under Decree No. 320/2025/ND-CP. Under Article 11(4)(c) of Decree No. 320/2025/ND-CP, the 15% and 17% preferential rates do not apply to Vietnamese-registered companies that are subsidiaries of, or affiliated with, entities that do not themselves qualify for those preferential rates. Since Willer Inc. (Japan) is a foreign enterprise not subject to Vietnamese CIT, the Ministry advises the business to self-assess the applicable rules and contact the directly managing tax authority for case-specific guidance.

The Ministry of Finance provides guidance on Article 32(d2) of Decree No. 57/2026/ND-CP regarding the valuation of annual land-rental rights in the enterprise value for establishing the starting price of equitization share auctions. The value of annual land-rental rights is included in enterprise value and must be determined by a qualified valuation consultant using methods consistent with valuation standards. The computed value must not be less than: the remaining lease term multiplied by the positive difference (if any) between the market rental determined by the consultant at the time of valuation and the actual rent currently being paid. Importantly, where the remaining lease term is less than 5 years, it must be treated as 5 years (a statutory minimum floor). The Ministry's example: if 3 years remain on the lease contract, calculate as if 5 years remain.

The Ministry of Finance clarifies the conditions for import duty exemption on goods imported for export processing when the taxpayer subcontracts processing to another entity. Under Article 10 of Decree 134/2016/ND-CP (as amended by Decree 18/2021/ND-CP), a company holding an export processing contract with a foreign party may pass materials to a Vietnamese sub-processor duty-free, provided the sub-processor owns or has the right to use a qualifying processing facility and equipment in Vietnam, and duly notifies customs of the sub-processing arrangement and contract. The Ministry does not explicitly confirm or deny whether a joint venture (lien danh) qualifies as an "organization" for this purpose. It directs the questioner to study applicable customs and import-export tax law independently. The key principle is that whichever entity receives the sub-processing work must meet all conditions of the Decree before the exemption applies.

The Department of Accounting and Auditing Management (Cuc QLKT) under the Ministry of Finance clarifies the accounting treatment for real estate businesses that issue invoices based on agreed collection milestones before transferring the property. Under Circular 99/2025/TT-BTC, Account 3387 (Deferred Revenue) may only be used when cash has already been received; it cannot be credited against Account 131 (Trade Receivables) for invoiced amounts not yet collected and where the goods or property have not been transferred. Any such internal tracking is for management purposes only and must not appear in the statutory financial statements. Tax obligations arising from invoices issued but not yet collected are governed separately by applicable tax law and must be determined accordingly.

The Ministry of Finance clarified the rules on deductible expenses for single purchases of goods or services worth VND 5 million or more that have not been paid at the time the expense is recognized, under Decree 320/2025/ND-CP and Circular 20/2026/TT-BTC. Under the regulations, when a company has not yet paid at the time of expense recognition, the cost may still be deducted if a contract and a goods/service handover record exist. However, when actual payment is eventually made without a non-cash payment voucher, the company must file a downward adjustment of the expense in the tax period in which the cash payment occurs - even if the tax authority has already issued an audit or inspection decision for that period. The Ministry of Finance noted that 'not yet paid' means payment has not actually been made at the time the expense is recognized, not merely that the contractual payment deadline has not yet arrived. Companies must monitor and adjust their declarations in the correct tax period.

The Ministry of Finance explained the difference between Decree 239/2025/ND-CP (amending Decree 31/2021/ND-CP on the Investment Law) and Decree 151/2025/ND-CP (Land Law) regarding which authority has the power to approve agreements for transferring land use rights to implement non-agricultural investment projects. Under Decree 239/2025, the approval authority was with the provincial People's Committee (UBND). Decree 151/2025 subsequently decentralized this authority to commune-level People's Committees (UBND cấp xã). However, from 31 January 2026, Decree 49/2026/ND-CP (guiding Resolution 254/2025/QH15) repealed Article 10 of Decree 151/2025 and reassigned the authority back to the provincial People's Committee under Article 14 of Decree 49/2026/ND-CP. The Ministry of Finance advised businesses to consult the relevant land management authority for specific guidance.

Ho Chi Minh City Tax Department responded to queries from a company established in February 2023 (no other legal representative, no related-party transactions, no entity type conversion) regarding its corporate income tax (CIT) declaration obligations. According to the guidance, the company must make quarterly provisional CIT payments (at least 80% of the total annual CIT due). At year-end, the company must submit an annual CIT finalization return and pay any shortfall (or request a refund if overpaid). If quarterly provisional payments are below 80% of the annual CIT liability, late payment interest will be charged. The Tax Department advised the company to contact its direct managing tax authority for specific guidance based on the company's actual documentation and circumstances.

The Ho Chi Minh City Tax Department responded to Hang Thang Co., Ltd. on the timing of invoice issuance for wood veneer lamination processing services. Under clause 6, Article 1 of Decree 70/2025/NĐ-CP amending Article 9 of Decree 123/2020/NĐ-CP, the invoice must be issued **at the time the service is completed**, regardless of whether payment has been received. The Tax Department determined that wood veneer lamination processing services do **not fall** within the list of services permitted to defer invoicing until after data reconciliation (provided under point a, clause 4, Article 9 of Decree 70/2025/NĐ-CP, which covers only aviation support, electricity, water, telecommunications, logistics, banking services, etc.). The company therefore cannot apply the post-reconciliation invoicing mechanism and must issue invoices at service completion.

The Ho Chi Minh City Tax Department answered a citizen's query on whether a monthly war-veteran (thuong binh) allowance counts as income when assessing whether a parent qualifies as a tax dependent for the Personal Income Tax (PIT) family deduction. Under Article 2 of the PIT Law and implementing guidance, war-veteran allowances are PIT-exempt income and are not counted when evaluating dependent eligibility. Under Article 9, clause 1, point d.2 of Circular 111/2013/TT-BTC (as amended), persons outside the working-age bracket (men 60+ or women 55+) qualify as dependents if they have no income, or if their average monthly income from all sources does not exceed VND 1,000,000. Because the war-veteran allowance is not taxable income, the Tax Department advises that a mother who is a Grade 3/4 war veteran aged over 70 and receives only this allowance — with no other income — meets the conditions to be registered as a tax dependent. The taxpayer should register the dependent formally with supporting documents (veteran certificate, proof of age).

The Ministry of Finance answered a query about the conditions under which a contractor may be proposed for abbreviated direct appointment (chi dinh thau rut gon) after contract finalization, given that Decree 214/2025/ND-CP does not spell out such conditions explicitly as it does for ordinary direct appointment (Article 79, clause 3(c)). The response directs practitioners to Article 80 of Decree 214/2025/ND-CP for the abbreviated direct-appointment procedure, and to Article 78 of the same Decree for the eligible circumstances. The abbreviated procedure must be matched to one of the qualifying circumstances in Article 78 — there is no separate, standalone set of eligibility conditions for the abbreviated track beyond those two provisions.

The Ministry of Finance answered a query on whether insurance guarantee certificates (giay chung nhan bao hiem bao lanh) can substitute for bank guarantee letters in advance-payment bonds (bao lanh tam ung) and warranty bonds (bao lanh bao hanh) in public investment projects. For advance-payment bonds: under Article 118, clause 2 of Decree 214/2025/ND-CP and Section 13.1 of Chapters VI and VII of the E-Bidding Document template for online goods procurement (Circular 79/2025/TT-BTC), advance-payment guarantees must be issued by a credit institution or a foreign bank branch established under Vietnamese law. Insurance guarantee certificates from insurance companies therefore cannot be used for advance-payment bonds. However, a contractor may use an alternative template if the project owner approves. For warranty bonds: procurement law does not prescribe a specific warranty guarantee template, so no binding rule restricts or permits the use of insurance guarantee certificates in that context.