Tax Newsletter

In the context of Vietnam’s tax policies continuing to be refined to enhance transparency, consistency, and practical applicability, the Ministry of Finance has issued Circular No. 20/2026/TT-BTC dated 12 March 2026, providing detailed guidance on a number of provisions of the Law on Corporate Income Tax and Decree No. 320/2025/ND-CP, while also releasing the Draft Decree guiding the 2025 Law on Personal Income Tax for public consultation. These changes not only affect the determination of deductible expenses, supporting documents, the timing of taxable revenue recognition, and the tax obligations of foreign enterprises, but also reflect a policy direction aimed at providing greater support to individual taxpayers through proposed exemptions, reductions, and higher caps for certain types of income, expenses, and employee benefits. In this newsletter, Grant Thornton Vietnam highlights the key updates and important issues that businesses should note, thereby helping our clients promptly stay informed of the latest regulations, review their internal compliance procedures, and proactively assess potential tax implications arising in practice during their business operations.

The key topics covered include:

• Key updates under Circular No. 20/2026/TT-BTC on Corporate Income Tax
  More detailed requirements on documentation and supporting records for deductible expenses
• Guidance on the management of expanded investment capital and the Science and Technology Development Fund
• Clarification on the timing of taxable revenue recognition for certain specific business activities
• Expanded and clarified tax obligations for foreign enterprises carrying out activities or deriving income in Vietnam
• Transitional provisions and key points for businesses to note when applying the new rules
• Notable proposals under the Draft Decree guiding the Law on Personal Income Tax
• Practical implications for businesses and taxpayers in compliance management