August Newsletter

ACAC – Finance Newsletter August 2025

ACAC – Key Tax and Legal Policies in August 2025

August 2025 witnessed a series of notable legal changes in taxation, land, labor, and digital technology, directly impacting corporate governance. As a professional consulting and auditing firm, Anh Consulting & Auditing Company Limited (ACAC) continues to provide comprehensive newsletters and in-depth analysis, helping businesses proactively grasp, comply with, and optimize policies.

“Policy updates are not only for compliance but also to spot opportunities in change. ACAC believes that knowledge and preparation are the most sustainable competitive advantages for businesses.”

Nguyễn Thị Mai Anh
General Director, ACAC Vietnam

1. Value Added Tax (VAT): Tax obligations on mergers and 0% rate for export processing enterprises

According to Official Letter 3364/CT-CS dated 22/08/2025, a merged enterprise must complete tax obligations before its tax code is terminated. If obligations are not yet fulfilled, the acquiring enterprise must inherit the responsibility as prescribed. The tax code of the merged entity will no longer be valid once revoked.

At the same time, according to Official Letter 1491/HYE-QLDN2, goods and services provided to Export Processing Enterprises (EPEs) are eligible for 0% VAT rate if the following conditions are met:

• Directly supplied to organizations within the duty-free zone;
• Consumed within the duty-free zone for export production activities;
• Not included in the list of goods and services excluded under Clause 4, Article 17 of Decree 181/2025/NĐ-CP.

2. Corporate Income Tax (CIT): JCM funding and guidance on investment loss provisions

According to Official Letter 3363/CT-CS (22/08/2025), contributions received by enterprises from the Joint Crediting Mechanism (JCM) (supported by the Japanese Government) are classified as other income and cannot be included in income benefiting from CIT incentives by location.

Additionally, Official Letter 3196/CT-CS (15/08/2025) clarifies that enterprises may only establish investment loss provisions when there is evidence that the investment value has declined at the time of preparing the annual financial statements. Without sufficient valuation evidence, the provision cost cannot be recognized as a deductible expense in determining taxable income.

3. Personal Income Tax (PIT): Guidance on taxation of meal allowances

According to Official Letter 805/TNI-QLDN1 dated 19/08/2025, meal allowances paid by enterprises to employees are not included in taxable PIT if:

• The allowance is specified in the labor contract, collective agreement, or company regulations;
• Does not exceed the limit prescribed by the Ministry of Labor, Invalids & Social Affairs.

If the allowance exceeds the prescribed limit, the excess must be included in the employee’s taxable income. This regulation is effective from 15/06/2025 and replaces previous guidance in Circular 26/2016/TT-BLĐTBXH.

4. Other Taxes: Land rent reduction in 2025 under Decree 230/2025/NĐ-CP

From 19/08/2025, Decree 230/2025/NĐ-CP takes effect, allowing enterprises to reduce land rent for 2025 if they meet the conditions prescribed by law.

• Deadline for submission: until 30/11/2025; submissions after this date will not be accepted.
• Processing time: within 30 days from receipt of complete documents.
• If land rent has already been paid, the difference will be offset or refunded according to the Tax Administration Law.

This regulation aims to support businesses in the post-challenge recovery period, reduce financial pressure, and maintain production operations.

5. Other Matters: Foreign labor regulations and technical requirements for digital signature software

According to Decree 219/2025/NĐ-CP (07/08/2025), foreign labor in Vietnam is classified into four groups: managers, executive directors, experts, and technical workers. This standardizes the legal framework, ensuring transparency and compatibility with international practices.

At the same time, Circular 15/2025/TT-BKHCN (15/08/2025) issued technical requirements for digital signature software and verification, including functions for identity authentication, certificate validation, connection to certification gateways, storage, and signature result notification. This is a major step in data security and corporate digital transformation.

6. Other Documents: Updates on new guidance from tax and customs authorities

• Official Letter 3365/CT-CS (22/08/2025): Land rent policies.
• Official Letter 20707/CHQ-NVTHQ (22/08/2025): Identification of subjects eligible for VAT reduction under Decree 174/2025/NĐ-CP.
• Official Letter 3333/CT-CS (21/08/2025): Regulations on administrative sanctions for late CIT filing.
• Official Letter 3225/CT-CS (15/08/2025): Consolidated text of the Multilateral Tax Agreement and Vietnam–Austria Tax Agreement.

ACAC – Knowledge and Standards as the Foundation for Sustainable Development

With the August 2025 newsletter, ACAC reaffirms its commitment to accompany Vietnamese enterprises in updating, analyzing, and applying financial and tax policies accurately and effectively.
The continuous changes in law are challenging but also motivate businesses to innovate thinking and enhance management capacity.

📄 Full document:
Accounting – Auditing – Tax & Corporate Finance Newsletter August 2025