Dear Valued Clients,
To support our valued clients in promptly updating changes to the tax and tax administration legal framework, while proactively reviewing and adjusting compliance activities during their business operations, we are pleased to provide this Legal Update Newsletter summarizing several important new regulations effective from 01/07/2026.
IN THIS ISSUE
I. Law on Tax Administration No. 108/2025/QH15
II. Decree No. 252 guiding the Law on Tax Administration No. 108/2025/QH15
III. Decree No. 253/2026/ND-CP guiding the Law on Personal Income Tax No. 109/2025/QH15
IV. Circular No. 87/2026/TT-BTC guiding Decree No. 253/2026/ND-CP
V. Decree No. 254/2026/ND-CP on electronic invoices and electronic documents
UPDATE HIGHLIGHTS
I. Law on Tax Administration No. 108/2025/QH15 takes effect from 01/07/2026
Reduction of the deadline for submitting amended tax returns from 10 years to 5 years
“A taxpayer who discovers that a tax return or other tax payment submitted to the tax authority contains errors or omissions may submit an amended tax return or other tax payment within 05 years from the date following the expiry of the deadline for submission of the tax return or other tax payment for the tax period containing the errors...”
Clause 5, Article 12
II. Decree No. 252 guiding the Law on Tax Administration No. 108/2025/QH15 takes effect from 01/07/2026
• Changes to the deadline for submitting tax returns: The deadline for submitting a tax return is amended to no later than the tenth (10th) day following the date on which the tax obligation arises for taxes declared on each occurrence basis.
• Changes to the deadline for submitting the tax finalization return in the case of the first tax year calculated on a consecutive 12-month basis and tax finalization upon departure from Vietnam:
“In a calendar year, where an individual is present in Vietnam for fewer than 183 days but, when calculated over 12 consecutive months from the first day of presence in Vietnam, reaches 183 days or more, the deadline for submitting the personal income tax finalization return for the first year is no later than the last day of the fourth month from the last day of the month in which the full 12 consecutive months are completed.
d) Before departure, for a resident foreign individual whose employment contract in Vietnam is terminated, but no later than 45 days from the date of termination of the employment contract;”
III. Decree No. 253/2026/ND-CP guiding the Law on Personal Income Tax No. 109/2025/QH15 takes effect from 01/07/2026
- The tax-exempt ceiling for mid-shift meals and lunch allowances is increased to VND 1.2 million/month.
- No tax is imposed on the portion of severance or job-loss allowances exceeding the prescribed level where specific provisions are stipulated in the financial regulations, internal regulations, employment contract or collective labour agreement.
- The maximum deductible amount for contributions to voluntary pension funds is increased to VND 3 million/month.
- Tax shall be withheld and paid for resident individuals without an employment contract, or with an employment contract of less than 03 months, who receive income of VND 5 million or more per payment, at a rate of 10% of the income before payment to the individual.
- Additional deductions are introduced for medical expenses (VND 23 million/year) and education and training expenses (VND 24 million/year), subject to the prescribed conditions.
- Personal income tax exemption applies to overtime wages and salaries and wages paid for unused annual leave days.
- Individuals earning additional income from other sources where such income averages no more than VND 15 million per month during the year and has been subject to 10% withholding are not required to finalize tax on such income.
IV. Circular No. 87/2026/TT-BTC guiding Decree No. 253/2026/ND-CP
The income threshold for determining dependants eligible for family circumstance-based deductions is increased. Accordingly, a dependant may have average income of no more than VND 3 million/month from all income sources during the year, instead of VND 1 million/month under the previous regulations.
Detailed documentation requirements for proving dependant status are provided for each group of eligible dependants.
V. Decree No. 254/2026/ND-CP providing detailed regulations and measures for the organization and implementation of the Law on Tax Administration No. 108/2025/QH15 regarding electronic invoices and electronic documents
Regarding the timing of invoice issuance
• An additional provision stipulates that where a deposit is collected in accordance with the Civil Code to secure the performance of a service provision contract, an invoice is not required to be issued.
Regarding invoice contents
• Additional requirements are provided regarding the information “Name, address, tax identification number or identification number of the entity having a relationship with the state budget, or personal identification number of the purchaser”. Where the purchaser is a consumer and provides their name, address and personal identification number, the invoice must state such information (for a foreign purchaser providing information for invoice issuance, the address and personal identification number may be replaced by passport or entry/exit document number and nationality); where the purchaser does not provide their name, address or personal identification number, the invoice must clearly state “Sold to consumer”.
Should you require further discussion on the above matters or an assessment of the impact of the new regulations on your business operations, TLA is always ready to accompany and support you.
Yours sincerely,
TLA CONSULTING COMPANY LIMITED
TAX | CUSTOMS | LEGAL | ACCOUNTING
TLA Consulting – A Trusted Advisor
9th Floor, Detech II Tower, 107 Nguyen Phong Sac, Cau Giay Ward, Hanoi, Vietnam
Web: tlaconsulting.vn
Tel: 0983 433 435
