Knowledge base

The Law on Specialized Court at the International Financial Center has been passed by the National Assembly at the 10th Session, 15th Tenure. Drafted by the Supreme People's Court and reviewed by the Committee on Law and Justice, this law establishes a special legal mechanism to resolve disputes arising at Vietnam's International Financial Center. This law is significant in building a legal framework for the International Financial Center, creating a transparent and modern investment environment that meets international standards. The specialized court will have jurisdiction to resolve commercial, financial, and investment disputes arising in this zone according to international standards and practices, contributing to enhanced competitiveness and attracting foreign investment. For small and medium enterprises, especially those with financial or investment activities or planning to participate in the International Financial Center, this law provides a more professional dispute resolution mechanism that meets international standards. This helps protect the rights of parties involved in transactions and builds confidence for both domestic and international investors.

The Law Amending and Supplementing Certain Articles of the Law on Insurance Business has been passed by the National Assembly at the 10th Session, 15th Legislature. This is an important legislative document aimed at updating and perfecting the legal framework for insurance business in Vietnam, aligned with the practical development of the insurance market and international integration. The draft law was prepared by the Ministry of Finance and reviewed by the Economic and Financial Committee of the National Assembly. This law will impact insurance business enterprises, insurance brokers, insurance agents, as well as businesses and individuals purchasing insurance. For SME businesses, the law amendments may affect the purchase of insurance for assets, professional liability, and employee insurance. Business owners should monitor the new regulations to ensure compliance and take advantage of opportunities from improved insurance products.

The National Assembly has passed the Law Amending and Supplementing Several Articles of the Value Added Tax Law at the 10th Session of the 15th Legislature. This is an important legal document aimed at improving the VAT system to align with economic development realities and international integration. The Law was drafted under the leadership of the Ministry of Finance and reviewed by the Economic and Financial Committee. The amendments to the VAT Law aim to resolve practical implementation difficulties, adjust provisions to suit new contexts, and ensure fairness and transparency in tax collection. For small and medium enterprises, this Law may bring changes to taxable subjects, tax calculation methods, applicable tax rates, or tax incentives. Business owners should closely monitor the detailed content of the Law when officially published to adjust accounting, tax declarations, and business operations in accordance with the new regulations.

The Ministry of Home Affairs is drafting a Law to amend and supplement certain articles of the current Social Insurance Law. This draft is expected to be submitted and adopted at the 1st Session of the XVI National Assembly. The Committee on Culture and Society will be the lead agency for reviewing this draft law. For small and medium-sized enterprises (SMEs), amendments to the Social Insurance Law may affect obligations related to social insurance, health insurance, and unemployment insurance contributions for employees. Changes may involve contribution rates, eligible participants, employee benefits, and procedures for settling social insurance benefits. Businesses should closely monitor the draft content to prepare for adjustments to HR policies and labor cost budgets accordingly. Updating social insurance regulations is necessary to ensure employee rights and align with the current socio-economic situation. Business owners should proactively study the detailed draft when it is fully published to develop timely implementation plans, avoiding violations of labor and social insurance laws.

Under Article 7(3) of Decree No. 20/2026/NĐ-CP, small and medium-sized enterprises (SMEs) registering for the first time are exempt from corporate income tax (CIT) for 3 years from the date taxable income arises. The key condition is that the founder must not currently be a capital-contributing member or the member with the highest capital contribution in any operating enterprise at the time of establishing the new enterprise. The Hanoi Tax Authority confirmed: a person who previously owned a single-member LLC since 2023 but fully transferred all capital contributions to another party in April 2024, and who currently is neither a general partner nor the highest capital contributor in any operating enterprise, qualifies for the 3-year CIT exemption upon establishing a new small enterprise - provided the new enterprise meets all SME criteria under applicable law. The tax authority directs the taxpayer to consult additional guidance documents from the Hanoi Tax Department at https://hanoi.gdt.gov.vn or to contact the directly managing tax office for specific support.

Under Article 26(2)(i) of Decree No. 181/2025/NĐ-CP, when goods or services purchased for taxable business activities are paid for by an authorized employee of the business using non-cash payment methods in accordance with the enterprise's financial or internal regulations, and the enterprise subsequently reimburses the employee by non-cash means, the input VAT on such purchases is deductible. The Ministry of Finance directed the inquirer to study the provisions of Article 26(2)(i) of Decree 181/2025/NĐ-CP to assess the validity of the payment arrangement through the driver's personal bank account. For this to be valid, the authorization to pay must be consistent with the enterprise's financial or internal regulations, and the reimbursement to the employee must also be made by non-cash transfer. This is an important clarification for enterprises incurring project-site expenses that need to be paid through an authorized employee rather than directly transferred to the service provider.