May, 2026 Newsletter
June 26th, 2026
Input VAT deduction for goods and services purchased on deferred payment or installment terms with a value of VND 05 million or more
On May 05th, 2026, the Government issued Decree No. 144/2026/ND-CP amending and supplementing a number of articles of Decree No. 181/2025/ND-CP dated July 01st, 2025 detailing the implementation of certain articles of the Law on Value-Added Tax, as amended and supplemented by Decree No. 359/2025/ND-CP dated December 31st, 2025. Accordingly, this Decree amends and supplements regulations on non-cash payment documents in certain special cases and takes effect from June 20th, 2026, specifically as follows:
For goods and services purchased on deferred payment or installment terms with a value of VND 05 million or more, a business establishment is entitled to deduct input value-added tax (“VAT”) provided that it possesses all of the following:
(i) A written contract for the purchase of goods and services;
(ii) A VAT invoice; and
(iii) Non-cash payment documents for the goods and services purchased on deferred payment or installment terms.
Note: Regarding non-cash payment documents:
- If non-cash payment documents are not yet available because the payment due date under the contract or contract appendix has not yet occurred, the business establishment is still entitled to deduct input VAT;
- Upon the payment due date stipulated in the contract or contract appendix, if non-cash payment documents are not available, the business establishment must declare and adjust downward the amount of deductible input VAT corresponding to the value of goods and services without non-cash payment documents in the tax period in which the payment obligation arises under the contract or contract appendix;
- In case after adjustment, the business establishment subsequently obtains non-cash payment documents, it shall be entitled to declare and deduct the input VAT corresponding to the value of goods and services with non-cash payment documents in the tax period in which those non-cash payment documents are available.
Reduction, modification of conditional business lines from July 01st, 2026
On May 15th, 2026, the Government issued the Resolution No. 66.17/2026/NQ-CP (“Resolution 66.17”) regarding the reduction, modification of conditional business lines. Accordingly, Resolution 66.17 removes 56 conditional business lines specified in Appendix IV of the Law on Investment 2025, thereby reducing the total number of conditional business lines from 198 to 142, specifically:
- The conditional business lines removed are those no longer included in the Appendix on List of conditional business lines, compared to the regulations previously set out in Appendix IV of the Law on Investment 2025, such as: asset auction practice; accounting services; duty-free business; insurance agency; casino business; sea transport services; liquor trading and several other business lines. Specifically, including business lines falling under the management of:
(1) Ministry of Justice: 03 business lines;
(2) Ministry of Education and Training: 04 business lines;
(3) Ministry of Agriculture and Environment: 12 business lines;
(4) Ministry of Finance: 07 business lines;
(5) Ministry of Construction: 09 business lines;
(6) Ministry of Industry and Trade: 03 business lines;
(7) Ministry of Science and Technology: 03 business lines;
(8) Ministry of Culture, Sports and Tourism: 05 business lines;
(9) Ministry of Health: 01 business line;
(10) Ministry of Home Affairs: 01 business line;
(11) Ministry of National Defence: 01 business line;
(12) Ministry of Public Security: 04 business line;
(13) State Bank of Vietnam: 01 business line;
(14) Others: 02 business lines.
- Application during the transitional period: For conditional business lines that have been reduced under the provisions of Resolution 66.17, organizations and individuals may continue to use licenses, certificates, credentials, written confirmations or other forms of written permission for investment and business issued by competent state authorities until the expiry of such documents.
- Effectiveness:
(i) Resolution 66.17 shall take effect from July 01st, 2026, until the end of February 28th, 2027, except for the case specified in section (ii) below.
(ii) In the event that the laws, resolutions of the National Assembly, ordinances, resolutions of the National Assembly Standing Committee, resolutions of the Government containing provisions on conditional business lines related to Resolution 66.17 are passed or issued and become effective between the date Resolution 66.17 is signed for promulgation and the end of February 28th, 2027, the corresponding provisions in Resolution 66.17 shall cease to have effect from the effective date of such legal documents.
(iii) During the period in which the provisions of Resolution 66.17 are effective, where provisions on conditional business lines in Resolution 66.17 differ from those in related legal documents, the provisions of Resolution 66.17 shall prevail, except for the case specified in section (ii) above.
Regulations on registration and use of accounts on the Electronic Labor Contract Platform for employers and employees
On May 15th, 2026, the Government issued Circular No. 08/2026/TT-BNV on elaboration of and guidelines for certain articles of Decree No. 337/2025/ND-CP dated December 24th, 2025 of the Government on electronic labor contracts. Accordingly, this Circular stipulates the registration and use of accounts on the Electronic Labor Contract Platform for employers and employees as follows:
- The electronic labor contract identifier is assigned according to the following principles:
(i) Each electronic labor contract submitted to the Electronic Labor Contract Platform that meets the prescribed requirements shall be assigned a unique ID that does not duplicate any other electronic labor contract.
(ii) An ID is assigned once and remains unchanged even where the electronic labor contract is amended, supplemented, suspended or terminated. Annexes to, notices of suspension of and termination notices for electronic labor contracts shall carry the ID of the relevant electronic labor contract.
(iii) Regulatory agencies shall use the ID as the digital data management identifier for electronic labor contracts. The assignment of an ID to an electronic labor contract shall not alter the time of conclusion, the content or the effective date of the electronic labor contract as agreed upon by the parties.
(iv) An ID shall be linked to display codes or search codes (based on administrative division codes, employee identifiers, employer tax codes) developed by the Electronic Labor Contract Platform to serve data utilization needs, but such codes shall not replace the ID.
- To register for an account to access the Electronic Labor Contract Platform, employees and employers must follow these two steps:
· Step 1: Register an electronic identity account in accordance with the law on electronic identification and authentication.
· Step 2: Use the electronic identity account issued by the National Electronic Identity and Authentication System (VNeID) in accordance with the law to log in to the Electronic Labor Contract Platform:
o Employees shall use personal electronic identity accounts;
o Employers that are organizations shall use organizational electronic identity accounts (in case unable to register an organizational electronic identity account in accordance with the law on electronic identification and authentication, it shall request the Ministry of Home Affairs to issue an access account for Electronic Labor Contract Platform);
o Employers that are individuals shall use personal electronic identity accounts.
- Reporting responsibilities of the employers: Employers are responsible for reporting on labor changes in accordance with Decree No. 145/2020/ND-CP (amended in 2025) through the Electronic Labor Contract Platform.
Advertisement using the words “best”, “only”, “the best”, “number one” or words of similar meaning must be supported by legitimate documents
On May 22nd, 2026, the Government issued Circular No. 12/2026/TT-BVHTTDL on elaboration of some articles of the Law on Advertising and Decree on elaboration of some articles of the Law on Advertising.
According to the Law on Advertising 2012, advertisement using the words “best”, “only”, “the best”, “number one” or words of similar meaning without legitimate documents proving so is prohibited act in advertising. Accordingly, Circular No. 12/2026/TT-BVHTTDL details this as follows:
- Words of similar meaning to the words “best”, “only”, “the best”, “number one” are Vietnamese or foreign-language words and phrases that assert a leading position, uniqueness or absolute superiority of a product, goods or service.
- Legitimate documents used for proving the words “best”, “only”, “the best”, “number one” or words of similar meaning (“Proof documents”) are one of the following documents:
(i) Market survey results conducted by organizations that are lawfully established and operating, and that have the function of market research;
(ii) Certificates issued by competent authorities or organizations at national, regional or international competitions, exhibitions or award programs that have selected, ranked, evaluated and recognized such products, goods, or services as “best”, “only”, “the best”, “number one” or by other words of similar meaning.
- The period during which Proof documents may be used on advertising products: correspond to the validity period of certificates or the market survey results.
- The use of Proof documents must adhere to the following principles:
· Ensuring the independence, objectivity and honesty;
· Not causing confusion to consumers and complying with relevant laws.
Guidance on the accounting regime for micro-enterprise from July 01st, 2026
On May 25th, 2026, the Minister of Finance issued Circular No. 58/2026/TT-BTC providing guidance on the accounting regime applicable to micro-enterprises (“Circular 58”). Accordingly, this Circular guides accounting documents, bookkeeping and the preparation and presentation of financial statements of micro-enterprises from July 01st, 2026 as follows:
1. Application of the accounting regime:
· Based on the method of paying value-added tax (“VAT”) and corporate income tax (“CIT”) in accordance with the laws on VAT and CIT, the micro-enterprises shall keep accounting books under Articles 5, 6, 7 and 8 of Circular 58 as follows:
(i) Where VAT and CIT are paid based on a percentage (%) of revenue: the Sales revenue ledger for goods and services shall be applied;
(ii) Where VAT is paid based on a percentage (%) of revenue and CIT is paid on taxable income: the revenue ledger for goods and services; Detailed revenue and expense ledger; Detailed ledger of materials, tools, products and goods; Detailed cash ledger shall be concurrently applied;
(iii) Where VAT is paid under the deduction method and CIT is paid based on a percentage (%) of revenue: the Sales revenue ledger for goods and services; VAT obligation monitoring ledger shall be concurrently applied;
(iv) Where Where VAT is paid under the deduction method and CIT is paid on taxable income: the Detailed revenue and expense ledger; Detailed ledger of materials, tools, products and goods; Detailed cash ledger; VAT obligation monitoring ledger shall be concurrently applied.
· In case during a fiscal year, a micro-enterprise undergoes changes to the criterias such that it no longer qualifies as an entity subject to Circular 58, it may continue to apply Circular 58 until the end of that fiscal year and must apply the accounting regime prescribed by law from the immediately following fiscal year.
· A micro-enterprise may elect to apply the accounting regime for small and medium-sized enterprises if that regime suits its business characteristics and management requirements, provided it is applied consistently throughout a fiscal year. Any change in the accounting regime applied may only be made on the first day of the following annual accounting period.
2. Responsibility for preparing and submitting financial statements:
2.1. For micro-enterprises paying CIT under the method of calculating tax on taxable income:
· Deadline for submitting financial statements: 90 days from the end of the annual accounting period.
· List of financial statements required to be prepared:
(i) Statement of financial position;
(ii) Statement of business performance.
2.2. For micro-enterprises paying CIT based on a percentage (%) of revenue from the sale of goods and services: are not required to prepare financial statements for submission to the competent state authority, unless otherwise required by other laws. In case such micro-enterprises elect to apply the accounting regime stipulated in items 1. (ii) and 1. (iv) above for their own business management purposes, they shall still prepare financial statements but is not obliged to submit them to the competent state authority, instead, the statements shall be kept, archived and used within the enterprise in accordance with regulations and provided upon request of the competent state authority.
3. Effective date: from July 01st, 2026 and apply to fiscal years commencing on or after July 01st, 2026.
Adjustment of pensions, social insurance benefits and monthly allowances from July 01st, 2026
On May 15th, 2026, the Government issued Decree No. 162/2026/ND-CP (“Decree 162”) regarding the adjustment of pensions, social insurance benefits and monthly allowances. Accordingly:
- The adjustment level:
(1) For individuals receiving pensions, social insurance benefits, monthly allowances as prescribed in clause 1 Article 1 of Decree 162: shall be adjusted to increase by 8% on the pension, social insurance benefit and monthly allowance of June 2026;
(2) For individuals receiving pensions, social insurance benefits, monthly allowances as prescribed in clause 2 Article 1 of Decree 162, whose benefit level after adjustment according to the provision in section (1) above is lower than 3,800,000 VND/month, shall be adjusted as follows:
· Increase by 300,000 VND/person/month for those whose benefit is equal to or lower than 3,500,000 VND/person/month.
· Increase to 3,800,000 VND/person/month for those whose benefit is more than 3,500,000 VND/person/month but less than 3,800,000 VND/person/month.
- Effective date: from July 01st, 2026.
- Transitional provision: The pensions, social insurance benefits, monthly allowances after adjustment are the basis for calculating the adjustment of pensions, social insurance allowances, monthly allowances in subsequent adjustments.
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