PROFESSIONAL NEWSLETTER AUGUST 2025

Based on the provided August 2025 Professional Newsletter, here is a summary of the new legal documents and official guidance from tax authorities.

New Legal Documents

• Trade Union Fees: A new decision from the Vietnam General Confederation of Labor reduces the trade union fee rate, effective July 1, 2025. For most groups, the new rate is 0.5% (down from 1%). Trade union members are exempt from paying fees if they receive a social insurance allowance or are unemployed for at least one month.
• Independent Auditing Penalties: Decree No. 228/2025/NĐ-CP, effective August 18, 2025, details administrative penalties in the field of independent auditing. The maximum fines have increased significantly, up to VND 1 billion for individuals and VND 2 billion for organizations. The statute of limitations for violations has also been extended from one to five years.
• Land Rent Reduction: Decree No. 230/2025/NĐ-CP, effective August 19, 2025, provides a 30% reduction on 2025 land rent for certain land users who pay annual rent to the State. Investors of industrial parks must pass this reduction on to sub-lessees within 30 days of the decision.
• Foreign Workers in Vietnam: Decree 219/2025/NĐ-CP, effective August 7, 2025, streamlines the process for work permits for foreign workers. The new process integrates the demand report and work permit application into a single, consolidated dossier, eliminating the need for two separate submissions.

Official Guidance from Tax Authorities

• Taxpayer Dependents: When a taxpayer registers a dependent for a family circumstance-based deduction, the tax authority will issue a Tax Identification Number (TIN) for the dependent. If a taxpayer changes jobs, they must re-register their dependent at the new workplace to continue receiving the deduction.
• Exit Suspension: The tax authority can impose an exit suspension on Vietnamese citizens or foreigners with overdue tax debts who are leaving Vietnam. The regulation does not set a specific debt threshold for this measure.
• Personal Income Tax (PIT): Taxpayers with serious illnesses may be eligible for certain PIT incentives. Financial support from an employer for an employee’s serious illness treatment is not included in taxable PIT income. Taxpayers with serious illnesses may also receive a reduction in their total PIT payable for the year.
• Supplementary Tax Returns: After January 1, 2025, taxpayers can file a supplementary tax return to correct errors within 10 years of the original tax return deadline. This is allowed only if a tax inspection has not been announced or the error is outside the scope of the inspection.
• Cashless Payments: The Prime Minister has requested that ministries and agencies strengthen supervision of state budget payments, tax collection, and compliance with invoice laws to promote cashless payments. Violators, especially those who deliberately use cash to evade taxes, will be handled strictly.
• Invoices for Transportation Services: Invoices for transportation services must include the vehicle’s license plate number and the itinerary. For international transport, any relevant international treaties or agreements Vietnam is a party to will take precedence over domestic law regarding bills of lading and related information.
• Resource Tax: If extracted resources are processed before being sold, the taxable output is calculated based on the consumption norm per unit of the final product. The resource tax calculation price is the selling price, but it cannot be lower than the price set by the provincial People’s Committee.
• VAT Rates: Services such as auditing, tax consulting, and management consulting are eligible for a 0% VAT rate if they are provided directly to and consumed by an organization in a non-tariff zone for its export production activities.