Corporate Income Tax
CIT Incentives for Non-Payment Sample Goods
In cases where a company is benefiting from CIT incentives based on investment location conditions and receives goods (tools, equipment, raw materials, finished products, etc.) from foreign suppliers without payment, the value of the goods not payable is classified as other income. This is not considered income generated from the investment project that is receiving the incentives, thus it is not eligible for CIT incentives according to the regulations outlined in the tax laws.
(Official Letter 2541/CT-CS dated July 18, 2025, from the Tax Department)
Personal Income Tax
Registration of Dependents
- Individuals can register dependents to receive family deductions when calculating personal income tax (PIT). When a taxpayer registers for family deductions for dependents, the tax authority will issue a tax ID for the dependents if they do not already have one. The tax authority has established the relationship of dependents for the taxpayer for the duration of the family deduction calculation at the income-paying organization where the individual declares information in the dependent registration application.
- Taxpayers only need to register and submit documentation for each dependent once during the period they are eligible for family deductions. However, when changing workplaces, since there is no information-sharing connection between income-paying organizations, the new workplace will not have the basis to calculate family deductions for the taxpayer. Therefore, taxpayers must re-register dependents to receive family deductions during the tax declaration period in the new workplace.
- Currently, the Ministry of Finance is drafting a new Personal Income Tax Law (replacement) and a new Tax Management Law (replacement). The tax authority is developing and operating a centralized electronic data system that allows for the storage and retrieval of information about family deductions for dependents through tax ID/national identification number. Thus, the tax authority acknowledges and reflects the reader's feedback to propose amendments to tax policies and regulations related to tax management.
(Official Letter 2821/CT-CS dated July 30, 2025, from the Tax Department)
Taxable Income from Meal Allowances
Based on the above regulations, in cases where a company incurs expenses for meal allowances for employees working at the company, if these expenses are specifically defined in the employment contract, collective labor agreement, or the company's internal regulations, the determination of taxable income for these allowances (from June 15, 2025, onwards) is as follows:
- If the company provides cooking (or purchases meal portions) for employees, this meal allowance will not be included in the taxable PIT of employees.
- If the company does not provide cooking (or purchase meals) and instead compensates employees with cash, if the cash amount is in accordance with the regulations in the employment contract, collective labor agreement, or the company's internal regulations, it will not be included in the taxable PIT. If the cash amount exceeds the regulations, the excess will be included in the taxable PIT.
(Official Letter 915/BNI-QLDN1 dated July 22, 2025, from Bac Ninh Province Tax Authority)
Union Fees
Adjustment to Reduce Union Contribution Rates
The union contribution rate for 2025 officially decreases from July 1 to 0.5% of salary, instead of the previous 1% as per Decision 1408/QĐ-TLĐ in 2024. For union members in private enterprises, the contribution is 0.5% of the salary subject to mandatory social insurance.
(Decision 61/QĐ-TLĐ 2025 dated July 29, 2025, from the Vietnam General Confederation of Labor)
