New tax policy in Vietnam in 2025: What are key notes and required actions?
New tax policy in Vietnam in 2025: What are key notes and required actions?
The year 2025 brings significant changes in Vietnam's tax policy, affecting individuals, businesses, and the economy. Understanding the new points in tax policy will help you better prepare for personal and business financial plans for the new year.
Below are the new tax policies in 2025, important notes, and required actions in 2025 to ensure tax obligations:
(1) Reduction of Value-Added Tax (VAT) in the first 6 months
According to Resolution 174/2024/QH15, the National Assembly decided to continue reducing the VAT rate by 2% for goods and services groups from 10% to 8% from January 1, 2025, to June 30, 2025. This is clearly stipulated in Clause 1 Article 1 of Decree 180/2024/ND-CP. However, certain types of goods and services are not eligible for VAT reduction in the first 6 months of 2025 as follows:
- Telecommunications, financial, banking, securities, insurance activities, real estate business, metals and fabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details are in Appendix 1 issued with Decree 180/2024/ND-CP.
- Goods and services subject to special consumption tax. Details are in Appendix 2 issued with Decree 180/2024/ND-CP.
- Information technology in accordance with the laws on information technology. Details are in Appendix 3 issued with Decree 180/2024/ND-CP.
(2) Continued 50% Reduction of Environmental Protection Tax on Gasoline and Oil
According to Article 1 of Resolution 60/2024/UBTVQH15, the environmental protection tax rates for gasoline, oil, and lubricants from January 1, 2025, to December 31, 2025, are as follows:
(1) Gasoline, except ethanol: 2,000 VND/liter.
(2) Jet fuel: 1,000 VND/liter.
(3) Diesel oil: 1,000 VND/liter.
(4) Kerosene: 600 VND/liter.
(5) Mazut oil: 1,000 VND/liter.
(6) Lubricant: 1,000 VND/liter.
(7) Grease: 1,000 VND/kg.
Thus, in 2025, the environmental protection tax on gasoline and oil will continue to be reduced by 50% from the tax rates set in Section 1, Clause 1, Article 1 of Resolution 579/2018/UBTVQH14.
(3) Amendments to the Tax Administration Law 2019
The Law amending the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Law on Management and Use of Public Assets, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Administrative Violation Handling Law 2024 (hereinafter referred to as the Amended and Supplemented Law of 2024) introduces many important reforms to improve responsibility and efficiency in tax management. One notable aspect is the responsibility of taxpayers to accurately, truthfully, and fully declare tax dossiers, and bear legal responsibility for the information provided. Additionally, the law focuses on tax management in the field of e-commerce.
According to the new regulations, foreign suppliers must register, declare, and pay taxes directly in Vietnam. At the same time, e-commerce platforms are responsible for withholding and paying taxes on behalf of individuals and organizations doing business on their platforms.
These adjustments aim to meet effective management needs in the context of the growing e-commerce landscape and contribute to ensuring equity in tax obligation enforcement.
(4) Mandatory Transition to Electronic Invoices for Selling Public Assets?
According to Clause 2, Article 95 of Decree 151/2017/ND-CP (amended by Clause 60, Article 1 of Decree 114/2024/ND-CP), the transition to using electronic invoices for selling public assets is mandatory.
In addition, the General Department of Taxation has issued Official Dispatch 6425/TCT-DNNCN in 2024 to implement the management and registration of using electronic invoices for selling public assets, providing detailed instructions for tax authorities.
The mandatory transition to using electronic invoices in public asset transactions increases transparency, saves time and costs, and reduces the risk of errors and fraud.
(5) End of VAT Exemption for Imported Goods via Express Delivery under 1 Million VND
From February 18, 2025, when Decision 01/2025/QD-TTg takes effect, imported goods under 1 million VND sent via express delivery will officially no longer be exempt from import tax and input VAT (at the import stage).
(6) Reports Required for the 2024 Tax Year:
- Corporate Income Tax Finalization
+ Corporate Income Tax Finalization Declaration
+ Financial Reports
- Personal Income Tax Finalization
- Resource Tax Finalization
(7) Actions Required in 2025 include:
- Payment declaration of business license tax
- VAT Declaration
- Personal Income Tax on Salaries and Wages
- Declaration of Non-agricultural Land Use Tax for 2025
- Registration of Depreciation Method for Fixed Assets
- Tax Agent
- Use of Invoices and Documents
- Information on expired tax, fee, and charge policies in 2025
- Information on new tax, fee, and charge policies effective from 2025
New tax policy in Vietnam in 2025: What are key notes and required actions? (Image from the Internet)
What incomes are subject to personal income tax in Vietnam in 2025?
According to Article 3 of the Personal Income Tax Law 2007 (amended by Clause 1, Article 1 of the Amendment to the Personal Income Tax Law 2012 and Article 2 of the Law on Amending Tax Laws 2014), the following incomes are subject to personal income tax:
(1) Income from Business:
- Income from goods and services production and business activities;
- Income from independent professional activities of individuals licensed or certified as per the law.
Income from business as mentioned above does not include income of individuals whose business revenue is 100 million VND/year or less.
(2) Income from Salaries and Wages:
- Salaries, wages, and forms of remuneration;
- Allowances and subsidies, except for allowances and subsidies under the laws on preferential policies for individuals with meritorious services, national defense, security, hazardous job allowances, location allowances, extraordinary difficulty allowances, labor accident allowances, occupational disease allowances, single payment maternity leave or adoptive child leave allowances, reduced labor capability allowances, one-time retirement benefits, monthly dependents, severance pay, job loss subsidies according to the Labor Code, and other allowances provided by Social Insurance, allowances for addressing social evils;
- Remuneration in various forms;
- Payments received from participating in business associations, boards of directors, board of supervision, managing councils, and organizations;
- Other benefits received in cash or non-cash form;
- Bonuses, except bonuses associated with state-granted titles, national and international awards, technological and invention bonuses recognized by competent state agencies, bonuses for detecting and reporting law violations with state authorities.
(3) Income from Capital Investment:
- Loan interest;
- Profit from shares;
- Income from capital investment in other forms, except income from government bonds.
(4) Income from Capital Transfer:
- Income from transferring capital in economic organizations;
- Income from security transfer;
- Income from other forms of capital transfer.
(5) Income from Real Estate Transfer:
- Income from the transfer of land use rights and property associated with land;
- Income from the transfer of ownership or use rights of residential housing;
- Income from transferring rights to lease land and water;
- Other income received from real estate transfers.
(6) Income from Winning:
- Lottery wins;
- Promotional winnings;
- Betting winnings;
- Wins from games, competitions with prizes, and other forms of winnings.
(7) Income from Royalties:
- Income from transferring, transferring the right to use intellectual property objects;
- Income from technology transfers.
(8) Income from Franchising:
(9) Income from Inheritance:
Includes securities, capital in economic organizations, business establishments, real estate, and other assets registered for ownership or usage rights.
(10) Income from Gifts:
Includes securities, capital in economic organizations, business establishments, real estate, and other assets registered for ownership or usage rights.
How is the personal income tax period determined in Vietnam?
Based on the provisions of Article 7 Personal Income Tax Law 2007 (amended by Clause 3, Article 1 of the Amendment to the Personal Income Tax Law 2012), the tax assessment period is determined as follows:
(1) For Resident Individuals
- Annual assessment applies to income from business; income from salaries and wages;
- Assessment per occurrence applies to income from capital investment; income from capital transfer, except securities transfer; real estate transfer; winnings; royalties; franchising; inheritance; gifts;
- Assessment per occurrence or annually applies to income from securities transferral.
Additionally, the annual tax assessment applicable to income from business and from salaries and wages is guided in Article 6 of Circular 111/2013/TT-BTC for resident individuals as follows:
+ Annual tax assessment: applies to income from business and from salaries and wages.
If individuals reside in Vietnam for 183 days or more in a calendar year, the tax assessment is based on the calendar year.
If individuals reside in Vietnam for less than 183 days in a calendar year but for 183 consecutive days within 12 months from the first presence day in Vietnam, the initial assessment period is determined as a continuous 12 months from the first presence day in Vietnam. From the second year onwards, the tax period follows the calendar year.
+ Per occurrence assessment applies to income from capital investment, capital transfer, real estate transfer, winnings, royalties, franchising, inheritance, gifts.
+ Per occurrence or annual applies to securities transfer income.
(2) For Non-Resident Individuals
The tax assessment for non-resident individuals is calculated per occurrence of income generation.
For non-residential business individuals with fixed business locations such as stores or stalls, the tax period applies as for resident business income individuals.
