Tax & Legal Updates - Issue June 2026

Highlights include:

✔️ CIT: Deductibility of labour sub-leasing expenses; CIT incentives for extension of investment projects; deductibility of infrastructure funding; CIT incentives for expansion investment projects 

✔️ VAT: VAT invoice issuance timing for purchase cards

✔️ PIT: Transition from monthly to quarterly PIT declaration; PIT treatment of payments to individuals and business households

✔️ FCT: PIT and FCT on costs for foreign experts supporting enterprise operations; tax treaty relief dossier requirements for royalties 

 ✔️ New legal documents: Amendments to trade promotion regulations; extension of 2026 payment deadlines for VAT, CIT, PIT, and land rent 

1. Corporate Income Tax (CIT)

• Official Letter No. 3705/CT-CS issued by the Tax Department providing guidance on deductible expenses for labour sub-leasing (labour outsourcing) activities  
• Official Letter No. 2758/CT-CS issued by the Tax Department providing guidance on CIT incentives in the case of an extension of an investment project  
• Official Letter No. 2959/CT-CS issued by the Tax Department providing guidance on funding for the construction of infrastructure works  
• Official Letter No. 3006/CT-CS issued by the Tax Department providing guidance on CIT incentives for expansion investment projects

2. Value Added Tax, Invoices, and Tax Administration (VAT) 

• Official Letter No. 3337/CT-CS issued by the Tax Department providing guidance on VAT and the timing of invoice issuance for purchase cards

3. Personal Income Tax (PIT) and Transactions with Individuals and Business Households

• Official Letter No. 4021/CT-NVT issued by the Tax Department providing guidance on the change from monthly to quarterly PIT declaration from the tax period of April 2026  
• Official Letter No. 3152/CTH-QLDN3 issued by the Can Tho City Tax Office providing guidance on the purchase of goods and services from individuals or business households and PIT declaration for expenditures paid to individuals and business households

4. Foreign Contractor Tax (FCT) and Tax Exemption Applications under Tax Treaties

• Official Letter No. 5466/HYE-QLDN2 issued by the Hung Yen Province Tax Office providing guidance on PIT and FCT on costs for foreign experts coming to Vietnam to support the enterprise's operations  
• Official Letter No. 3326/CT-CS issued by the Tax Department providing guidance on the application dossier for tax treaty relief in respect of royalties 

5.  New legal documents:

• Decree No. 239/2026/ND-CP issued by the Government amending and supplementing several articles of Decree No. 81/2018/ND-CP on trade promotion activities  
• Decree No. 245/2026/ND-CP issued by the Government on the extension of payment deadlines for VAT, CIT, PIT, and land rent in 2026 

How we can help?

Navigating Vietnam’s evolving tax and legal environment requires timely insights and practical guidance. Our Tax and Legal specialists can support businesses in assessing compliance risks, optimizing tax positions, and adapting effectively to regulatory changes. 

Please refer to the full updates in the Download section below.