Newsletter

Decree No. 174/2025/ND-CP dated 30 June 2025 stipulating the policy of reducing value added tax (“VAT”) according to Resolution No. 204/2025/QH15 dated 17 June 2025 of the National Assembly

1. Reduce the VAT rate by 2%, applicable to groups of goods and services specified in Clause 3, Article 9 of the Law on Value Added Tax No. 48/2024/QH15 (from 10% down to 8%) except for the following groups of goods and services: Telecommunications, financial activities, banking, securities, insurance, real estate business, metal products, and mineral products (except coal), goods and services subject to special consumption tax (except gasoline).

2. The Resolution takes effect from 1 July 2025 to 31 December 2026.

The Government issued Decree 70/2025/ND-CP (“Decree 70”) amending Decree No. 123/2020/ND-CP (“Decree 123”) dated 19 October 2020 of the Government regulating invoices and documents.

1. Additional subjects of application of electronic invoices:

Additional subjects are foreign suppliers that do not establish permanent establishments in Vietnam, engage in e-commerce, digital platform-based business and provide other services who will be allowed to voluntarily register for use of e-invoices.

2. Additional provisions on third parties allowed to issue invoices:

Sellers (including business households and business individuals) are allowed to authorize third parties to issue e-invoices for their selling of goods and provision of services.

3. Additional provisions on invoice types of export processing enterprises (“EPEs”):

EPEs with other business activities (other than export processing activities) declaring value-added tax by the direct method shall use sales invoices. Export processing enterprises that declare VAT using credit-invoice method shall use value-added invoices

4. Supplementing e-commerce invoices for exporting goods and providing services abroad:

From 1 June 2025, exporters will be allowed to use e-commerce invoices as a supplementary form of invoice.

5. Supplementing the time of invoice issuance for some cases such as: export of goods (including processing of goods for export), services provided to foreign organizations and individuals, selling goods and providing services in large quantities, etc.
6. Invoice content:

Add buyer information: in addition to name, address, tax code, use the buyer’s personal identification number or the unit code related to the budget.

7. Replacing and adjusting electronic invoices:

Remove the regulation on canceling incorrectly issued invoices.

Before adjusting/replacing incorrectly issued electronic invoices, for buyers who are enterprises, economic organizations, other organizations, business households, and business individuals: the seller and the buyer must have a written agreement clearly stating the incorrect content; in case the buyer is an individual, the seller must notify the buyer or notify on the seller’s website.

The digital signature of electronic invoices must be done within 01 (one) day from the date of invoice issuance; the seller declares tax according to the time of invoice issuance and the buyer declares tax according to the time of invoice receipt.

Law on Corporate Income Tax (“CIT”), Law No. 67/2025/QH15

1. Effective from 1 October 2025 and applied from the 2025 corporate income tax period
2. Additional exempt incomes

Income from the transfer of Certified Emissions Reductions (CERs), the initial transfer of carbon credits after issuance by enterprises granted Certified Emissions Reductions (CERs) and carbon credits; income from interest on green bonds; income from the initial transfer of green bonds after issuance

(Article 4 of the 2025 Corporate Income Tax Law)

3. Tax rates

The corporate income tax rate shall be 20%. A tax rate of 15% shall apply to enterprises whose total annual revenue does not exceed 3 billion VND. A tax rate of 17% shall apply to enterprises whose total annual revenue is from over 3 billion VND to 50 billion VND.

(Article 10 of the Law on Corporate Income Tax 2025)

However, this provision does not apply to enterprises that are subsidiaries or affiliated companies where the affiliated enterprise is not an enterprise that meets the conditions for applying preferential tax rates.

(Clause 4, Article 18 of the Law on Corporate Income Tax 2025).

4. Adding sectors and industries eligible for CIT incentives

• High-tech enterprises and high-tech agricultural enterprises under the 2008 Law on High Technology; science and technology enterprises under the 2013 Law on Science, Technology and Innovation.
• Investment in business support facilities for small and medium-sized enterprises (SMEs), including: technical support facilities, SME incubators; investment in business of co-working spaces supporting small and medium-sized startups and innovate according to the provisions of the 2017 Law on Provision of Assistance for SMEs.
• The press (including advertisements in newspapers) as stipulated by the Press Law.

5. The new CIT law also issues regulations on tax exemption and reduction, detailed in Article 14 of the Law on Corporate Income Tax 2025.