Tax and Finance Newsletter – September 2026

Tax and Finance Newsletter – September 2026

At Anh Consulting and Auditing Co., Ltd. (ACAC), we place strong emphasis on keeping pace with regulatory developments and providing accurate professional knowledge to help businesses make effective financial decisions, remain compliant, and adapt flexibly in a changing policy environment.

The most notable development in September 2026 is the provisions of Decree No. 255/2026/ND-CP on interest expenses and service costs between related parties – a cost category frequently disallowed during inspections of FDI enterprises. In addition, a number of practical issues regarding VAT deduction, deductible expenses, personal income tax, and invoices have been clarified. ACAC’s September 2026 newsletter summarizes the most notable updates to help enterprises and business individuals stay informed and adjust accordingly in a timely manner.

Tax Policy Guidance and Updates

Value-Added Tax (VAT)

Under Decree No. 181/2025/ND-CP (as amended by Decree No. 144/2026/ND-CP), goods and services purchased on deferred or installment payment terms valued at VND 5 million or more remain eligible for input VAT deduction before the payment due date. If the due date passes without non-cash payment documentation, the enterprise must reduce the deduction at criterion [37]; once such documentation is obtained, the additional deduction is claimed at criterion [38] of the period in which the documentation is obtained, without the need to file a supplementary return (Form 01/GTGT, Circular No. 89/2026/TT-BTC).

Corporate Income Tax (CIT)

Under Circular No. 20/2026/TT-BTC, expenses of VND 5 million or more paid on the company’s behalf by an employee using a personal account remain deductible, provided there are sufficient invoices, a letter of authorization or internal policy permitting such payment, the employee’s bank transfer documentation, and the company’s reimbursement documentation. The letter of authorization is the document most commonly missing at the time of finalization; companies should issue it before the expense is incurred.

Personal Income Tax (PIT)

Under Decree No. 253/2026/ND-CP, non-contractual damages (including late-payment interest) are exempt from PIT where supported by a court judgment/decision or a notarized/certified compensation agreement. Income from an inherited capital contribution is taxed at 10% on the amount exceeding VND 20 million per receipt, with the value determined based on the most recent accounting records prior to the registration of ownership.

Other Taxes

Under Decree No. 68/2026/ND-CP, a business household with multiple locations may file a consolidated tax return under a single dossier but must pay tax separately for each location, using a single shared tax code and recording the location code on invoices; a household with annual revenue exceeding VND 1 billion is required to use e-invoices. Regarding land rental, Decree No. 103/2024/ND-CP caps the payment deadline at a maximum of 180 days from the date the land price is approved, for cases of lump-sum payment without auction.

Interest Expense Cap and Related-Party Service Cost Deductibility under Decree No. 255/2026/ND-CP

Enterprises with related-party transactions may deduct net interest expense up to a maximum of 30% of net profit plus net interest expense and depreciation/amortization; any excess may be carried forward for up to five (05) subsequent years. Service costs incurred with related parties are deductible only where the services directly serve business operations, are priced on an arm’s-length basis, and are supported by documentation evidencing the allocation methodology; duplicated fees, costs serving shareholder interests, or fees paid through intermediaries that create no value will be disallowed. Enterprises should review their interest expense ratios and intra-group service cost documentation ahead of the 2026 annual finalization.

Other Matters

Under Decree No. 254/2026/ND-CP, enterprises gifting mooncakes to employees are still required to issue invoices; a consolidated monthly or quarterly invoice with an accompanying schedule may be issued, recording “Sold to consumer” where recipient information is unavailable. During the month, the Tax Department also issued Official Letter No. 7163/CT-QLNT on CIT incentives for advertising activities, Official Letter No. 7167/CT-QLNT on conditions for confirming dependents, Official Letter No. 7118/CT-QLNT on tax declaration, and Official Letter No. 7020/CT-QLNT on VAT policy.

Transparency – Updates – Partnership

Through its monthly newsletter, ACAC aims not only to deliver authoritative information but also to help enterprises understand the practical impact of policy changes, enabling them to proactively adjust their financial strategies and risk management.

We believe that transparency, professional rigor, and timely updates form the foundation for the sustainable growth of Vietnam’s business community in this era of global integration.

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