Accounting and Tax Newsletter No. 02 – April 2025

Personal Income Tax

02/4/2025: Official Dispatch No. 425/CT-NVT from the Tax Department regarding the implementation guidance for the automatic personal income tax refund process

The Tax Department provides guidance to local tax sub-departments on implementing the automatic personal income tax (PIT) refund process. For PIT refund applications received before the launch date of the upgraded application version supporting this automatic process, the applications will continue to be processed in accordance with the Refund Procedure issued together with Decision No. 679/QĐ-TCT dated May 31, 2023, by the General Director of the General Department of Taxation.

09/4/2025: Official Dispatch No. 511/CT-CS from the Tax Department regarding personal income tax policy

The documentation required to prove a dependent is eligible for family circumstance-based deductions, in the case of the taxpayer’s parents, is specified in Article 1 of Circular No. 79/2022/TT-BTC. Accordingly, the taxpayer must provide legal documents proving the dependent is beyond working age, has no income, or has an average monthly income in the year from all sources not exceeding VND 1,000,000. The taxpayer must also make a written commitment and take legal responsibility for the authenticity of the submitted documents.

Import and Export Tax

10/4/2025: Official Dispatch No. 2515/BCT-XNK from the Ministry of Industry and Trade regarding strengthening the management of imported materials for the production of export goods

The Ministry of Industry and Trade requests export enterprises to:

• Proactively develop adaptation plans in response to the new international trade environment by seeking customers and partners in import markets with untapped potential and growth opportunities.
• Carefully consider the sources of raw materials used in the production of export goods to ensure they meet the requirements of importers, including product traceability and the origin of exported goods.

02/4/2025: Decree No. 82/2025/ND-CP by the Government on the Extension of Deadlines for VAT, Corporate Income Tax, Personal Income Tax, and Land Rent Payments in 2025

1. Eligible Subjects for Tax Extension:

(1) Enterprises, organizations, households, household businesses, and individuals engaged in production activities in economic sectors such as: food manufacturing and processing; textiles; apparel manufacturing; leather and related products; paper and paper products; rubber and plastic products; other non-metallic mineral products; metal production; mechanical processing; metal surface treatment and coating; manufacturing of electronic products, computers and optical products; automobile and other motor vehicle manufacturing; furniture production (beds, cabinets, tables, chairs); crude oil and natural gas extraction (excluding CIT on crude oil, condensate, and natural gas collected under agreements); coke and refined petroleum products; beverage manufacturing; etc.

(2) Enterprises, organizations, households, household businesses, and individuals engaged in business activities in economic sectors such as: transportation and warehousing; accommodation and food services; education and training; healthcare and social assistance; real estate business; labor and employment services; travel agency services, tour business and related support services; computer programming, consulting and other related services; information service activities; mining support services.

(3) Enterprises, organizations, households, household businesses, and individuals engaged in the production of prioritized supporting industry products and key mechanical products.

(4) Small and micro enterprises as defined in the Law on Supporting Small and Medium Enterprises (2017) and Decree No. 80/2021/ND-CP.

Note: The economic sectors and business fields mentioned in (1), (2), and (3) must be sectors in which the enterprises, organizations, households, household businesses, or individual businesses had revenue-generating activities in 2024 or 2025.

2. Extension Periods:

• For Value-Added Tax (VAT) (excluding VAT on imports):
  A 6-month extension for VAT amounts of February, March 2025 and Q1/2025; a 5-month extension for VAT of April, May, June 2025 and Q2/2025.
  The extension is calculated from the due date of VAT payment.
  Enterprises must still declare and submit VAT returns monthly/quarterly but are not required to pay the declared VAT until the extended deadline. The extended VAT payment deadlines are as follows:
  • February 2025: no later than September 20, 2025
  • March 2025: no later than October 20, 2025
  • April 2025: no later than October 20, 2025
  • May 2025: no later than November 20, 2025
  • June 2025: no later than December 20, 2025
  • Q1/2025: no later than October 31, 2025
  • Q2/2025: no later than December 31, 2025
    If enterprises have branches or affiliated units that declare VAT separately with their local tax authorities, these branches and units are also eligible for the VAT payment extension.
• For Corporate Income Tax (CIT):

A 5-month extension is granted for CIT temporarily paid in Q1 and Q2 of the 2025 tax year.

Branches and affiliated units declaring CIT separately with their respective tax authorities are also eligible for this extension.

• For Land Rent:

A 6-month extension from May 31, 2025 is granted for 50% of the 2025 land rent payable by enterprises, organizations, households, and individual businesses that are eligible under Article 3 of this Decree and are directly leased land by the State under decisions or contracts from competent authorities, with annual rent payment terms.

04/4/2025: Official Dispatch No. 469/CT-CS from the Tax Department on Tax Policy

1. Regulations on Provisions for Investment Losses

According to Clause 2, Article 5 of Circular No. 48/2019/TT-BTC, investments in domestic economic organizations, excluding securities investments, are subject to provisions for investment losses. Based on Article 84 of the Civil Code No. 91/2015/QH13 and Clause 1, Article 44 of the Law on Enterprises No. 59/2020/QH14, a branch is a dependent unit of a legal entity and is not considered a legal entity itself. Therefore, capital allocated by the Company to its branch does not fall under the scope of Clause 2, Article 5 of Circular No. 48/2019/TT-BTC and is not eligible for setting up provisions for investment losses.

2. Regulations on Loss Carryforward
Current corporate income tax laws stipulate loss carryforward in cases of enterprise transformation, mergers, or consolidations. However, there are no regulations allowing loss carryforward from the dissolution of an independently accounting branch to be included in the taxable income of the parent company.

Invoices

31/3/2025: Official Dispatch No. 3987/BTC-CT from the Ministry of Finance on Tax Administration for Business Households and Individuals; Promoting the Implementation of E-Invoices Generated from Cash Registers

The Ministry of Finance requests local authorities and relevant departments (Finance, Banking, Industry and Trade, Police, Construction, Market Management and Development, Health, Statistics, etc.) to closely coordinate with the tax authorities in managing taxes for business households and individuals, especially those paying fixed taxes in sectors such as retail shops, food and beverage establishments. Emphasis is placed on promoting the use of e-invoices generated from cash registers as a measure to combat tax loss, with a focus on key tasks.

Details are provided in the official dispatch.

07/3/2025: Official Dispatch No. 979/CTLAN-TTHT from Long An Tax Department on Corporate Income Tax Policy

In the case where a company re-evaluates the year-end balances of monetary items denominated in foreign currencies:

• Foreign exchange losses, including those from year-end revaluation of cash, bank deposits, in-transit funds, and receivables in foreign currencies, are not deductible when determining taxable corporate income.
• Foreign exchange gains, including those from year-end revaluation of cash, bank deposits, in-transit funds, and receivables in foreign currencies, are not included in taxable corporate income.

21/3/2025: Official Dispatch No. 08/CCTKV.IV-QLDN2-HNA from Regional Tax Sub-Department IV on Corporate Income Tax Incentives

Income arising from the cancellation of payables to suppliers is not considered income generated from business activities of an investment project located in a preferential area, and therefore is not eligible for corporate income tax incentives based on location.

25/3/2025: Official Dispatch No. 195/CCTKV13-QLDN3 from Regional Tax Sub-Department XIII on Determining Related-Party Relationships and Deductible Interest Expenses

As of 2024, if the total loan amount carried over from 2023 and additional loans in 2024 equal at least 10% of the owner’s contributed capital, in accordance with Clause 2, Article 5 of Decree No. 132/2020/ND-CP, the Company is considered to have a related-party relationship with the owner. The determination of total deductible interest expenses for corporate income tax purposes for enterprises with related-party transactions shall comply with Clause 3, Article 16 of Decree No. 132/2020/ND-CP.