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Tax management for enterprises with related-party transactions according to Decree No. 20/2025/ND-CP dated 10 February 2025, amending and supplementing a number of articles of Decree No. 132/2020/ND-CP dated 5 November 2020

Decree No. 20/2025/ND-CP amends and supplements regulations on related parties. Accordingly, for the corporate income tax period from 2020 to 2023, in case borrowing enterprises only have affiliated relationships with economic organizations operating under the provisions of the Law on Credit Institutions and borrowing enterprises with lenders or guarantors in cases amended and supplemented in Article 1 of Decree No. 20/2025/ND-CP, have related-party transactions within the scope of regulation in Clause 2, Article 1 of Decree No. 132/2020/ND-CP and have non-deductible interest expenses as prescribed in Point a, Clause 3, Article 16 of Decree No. 132/2020/ND-CP, then from the tax period 2024, the following shall apply:

– In case the enterprise does not have affiliated relationships and does not have related-party transactions as prescribed in Decree No. 132/2020/ND-CP and Decree No. 20/2025/ND-CP, the non-deductible interest expenses that have not yet been carried forward to the next tax periods up to the end of the 2023 tax period, shall be evenly distributed to the subsequent tax periods for the remaining period according to the provisions at Point b, Clause 3, Article 16 of Decree No. 132/2020/ND-CP.

– In case the enterprise has an affiliated relationship and related-party transactions according to the provisions of Decree No. 132/2020/ND-CP and Decree No. 20/2025/ND-CP, the non-deductible interest expenses that have not yet been carried forward to the next tax periods shall be treated in accordance with the provisions of Point b, Clause 3, Article 16 of Decree No. 132/2020/ND-CP.

Circular No. 86/2024/TT-BTC dated 23 December 2024 “REGULATIONS ON TAX REGISTRATION”, which states that personal identification numbers will be used instead of personal tax codes

– Point b, Clause 1 and Clause 5, Article 5 of Circular No. 86/2024/TT-BTC stipulates the structure of tax codes for households, business households, and individuals, in which the personal identification number issued by the Ministry of Public Security is used instead of tax code.

– This Circular takes effect from 6 February 2025, replacing Circular No. 105/2020/TT-BTC dated 3 December 2020.

– Tax codes issued by tax authorities to individuals, households, and business households will be implemented until 30 June 2025. Accordingly, from 1 July 2025, personal identification numbers will replace tax codes for individuals, households, and business households.