Knowledge base

Tay Ninh Tax Department responds to a question about personal income tax calculation for a teacher's income from providing tutoring at school - specifically 30 sessions per year at 700,000 VND each, totaling 35,000,000 VND per year, paid by parents. According to the tax authority's guidance, tutoring income at school constitutes employment income (Article 2 of Circular 111/2013/TT-BTC). Taxable income is determined after deducting allowable deductions (personal deductions, mandatory insurance, etc.). The 35,000,000 VND per year is not the full taxable amount but rather gross income before deductions. Since this is employment income, the progressive tax schedule applies. The teacher must combine all employment income (including tutoring) for the year and calculate tax under the progressive schedule after applying eligible deductions.

Dien Bien Tax Department responds to a civil servant working in a particularly difficult border area regarding PIT exemptions for special allowances and long-service allowances. Per guidance in Point b, Clause 2, Article 2 of Circular 111/2013/TT-BTC and Clause 1, Article 11 of Circular 92/2015/TT-BTC: area allowances (phu cap khu vuc) and attraction allowances (phu cap thu hut) paid in accordance with regulations of competent State authorities are excluded from PIT taxable income. Note: The tax authority's official conclusion addresses only phu cap khu vuc and phu cap thu hut - it does not directly confirm the exemption of phu cap dac biet (special border allowance) or phu cap lau nam (long-service allowance) that the taxpayer asked about. The excess of any allowance above the level set by competent State authorities must be included in taxable income.

The Ministry of Finance provides guidance (through the Dak Lak Tax Department) on the PIT obligation for a land transfer that took place in 1989, with the buyer only applying for the first-time Land Use Rights Certificate in 2026. According to the Ministry of Finance's guidance: because the land transfer occurred in 1989 (before the PIT Law existed and before 1 January 2009, when the PIT Law took effect with respect to income from real estate transfers), this transaction does not give rise to a PIT obligation on the part of the transferor (Mr. Luong Dinh Thap). The buyer, when applying for the first-time certificate in 2026, is not required to pay PIT on behalf of the 1989 seller for this transaction.

The tax authority provided guidance to Sophia Law Firm LLC (TIN: 0315746296) on the tax treatment of a scenario where the firm collects US immigration service fees from its clients and remits them to a US-based immigration service company under the EB-3 employment-based immigration program. The collection-and-payment-on-behalf amount is confirmed as excluded from the law firm's taxable revenue if supported by adequate documentation: legal service contract, agency/authorization agreement for collection on behalf, payment receipts, outbound remittance documents, and documents from the foreign immigration company (emails with attached contracts are acceptable even when US companies do not use official seals). Regarding foreign contractor tax (FCT): the immigration service fees remitted to the foreign company are subject to FCT and must be withheld and remitted by the Vietnamese party. For invoicing, the legal service fee portion and the collection-on-behalf portion must be shown separately on the invoice.

The Ministry of Finance clarified that the land use fee exemption/reduction for converting pond land to residential use under Article 10, Clause 2(c) of Resolution 254/2025/QH15 only applies to pond land situated within the same plot as an existing residential parcel with a house. If the pond plot is a separate parcel and not part of an existing residential lot, the exemption does not apply. Consequently, a family whose pond was allocated in 1955 as a separate parcel (not within the same residential plot) would not qualify for the land use fee exemption when converting that pond to residential use.

A company asked the Ministry of Finance whether audited financial statements qualify as 'other documents proving completed capital contribution' under point d, clause 12, Article 3 of Decree 168/2025/ND-CP when filing to change its charter capital. The Ministry of Finance noted that Decree 168/2025/ND-CP sets out the types of documents that may serve as proof of capital contribution. However, rather than confirming or denying directly, the Ministry directed the company to contact the provincial Business Registration Authority where the company is headquartered, as that body is responsible for receiving filings and assessing their validity. In practice, audited financial statements may fall under the catch-all 'other documents' in point d, but this was not confirmed by the Ministry - companies should consult their provincial Business Registration Office directly.

A legal consultant asked about a situation where a founding shareholder of a joint-stock company had registered to contribute shares (in another company) as capital but actually contributed Vietnamese dong cash within the 90-day window. Questions raised: Does the company need to notify the Business Registration Authority? Could there be an administrative penalty? What steps should be taken to comply? The Ministry of Finance responded: The 2020 Law on Enterprises does not specifically address changes in the type of contributed assets within the 90-day window - such cases are governed by civil law and the company's charter. Regarding notification obligations, companies must notify the Business Registration Authority when changing items listed in Article 31(1) of the Law on Enterprises, including founding shareholder information. Merely updating or supplementing information (not constituting a registered change) is handled under Article 57 of Decree 168/2025/ND-CP. Companies must distinguish between 'registered change notification' and 'information update/supplement' to identify the correct obligations and avoid administrative penalties.

Decree 359/2025/ND-CP issued on December 31, 2025 amends and supplements certain articles of Decree 181/2025/ND-CP detailing the implementation of the Value Added Tax Law. This is an important regulatory document that adjusts VAT provisions, directly affecting businesses' declaration, calculation, and finalization of VAT obligations. This decree demonstrates the Government's timely adjustment to VAT regulations to ensure feasibility and alignment with practical implementation. The amendments may relate to scope of application, taxable subjects, tax calculation methods, input VAT deduction, or tax administrative procedures. Although detailed content has not been fully disclosed, businesses need to monitor closely to stay updated on the changes. For small and medium enterprises, timely understanding of VAT amendments is critically important to ensure proper compliance with legal regulations and avoid risks of administrative tax penalties. Businesses should proactively study the complete document when published, consult tax advisory experts, and prepare to adjust their accounting systems, invoicing, and internal processes to comply with the new regulations.

The Ministry of Finance clarified the procedure for establishing the second business location of Cathay Life Insurance Co., Ltd. Vietnam (at 86 Tan Da Street, District 5, Ho Chi Minh City, now Cho Lon Ward) under Point c, Clause 3, Article 74 of the Insurance Business Law No. 08/2022/QH15 (as amended by Law No. 139/2025/QH15). The Ministry confirmed that under Point c, Clause 3, Article 74, opening, closing, or changing a business location only requires written notification to the Ministry of Finance within 15 days of the change. The Ministry does not issue any approval or acknowledgment document for this type of change. The insurance enterprise self-issues the decision to establish the business location without needing to register with the provincial Department of Finance. Therefore, Cathay Life Insurance's second business location establishment is fully compliant through notification alone, with no approval letter from the Ministry required.

The General Department of Customs issued Official Letter No. 11365/CHQ-NVTHQ dated 11/02/2026 in response to Hai Thuan Phat Import-Export Trading Services Co., Ltd. (Tax code: 0315392921) regarding confirmation of no outstanding customs tax debt for business dissolution. As of 07/02/2026, the company has no outstanding tax or other payables related to import-export activities on the centralised tax accounting system. Regional sub-departments have 3 days from when the document is uploaded to the Cces system to verify their own records and report any debt found. From the issuance date, the company may not register new customs declarations; the confirmation is valid for 3 days from the date of signing, subject to the company's written pledge that it has no outstanding tax obligations.