Vietnam's 2025 Law on Tax Administration, in force from 1 July 2026: 10 changes businesses must act on now
The short answer
Vietnam's Law on Tax Administration No. 108/2025/QH15 was passed by the National Assembly on 10 December 2025 and took effect on 1 July 2026. The rules on tax declaration, tax calculation and e-invoicing for household and individual businesses have applied since 1 January 2026.
The law shifts tax administration towards data, risk management and compliance management. For companies, the three most immediate changes are:
the window for amending tax returns is cut from 10 years to 5 years;
tax audits will be conducted online and remotely on electronic data wherever possible;
taxpayers are grouped by size, sector and compliance history.
Why this is more than a routine amendment
The new law replaces Law No. 38/2019/QH14 and changes how the tax authority engages with businesses. Previously, the authority mainly received filings and then audited according to a plan. Now it continuously cross-checks e-invoice data, tax administration records and other data sources to identify risk.
Companies whose numbers are consistent stand to gain: faster refunds and fewer on-site audits. For everyone else, data mismatches will surface earlier and more systematically.
The 10 changes that matter
1. Taxpayers are grouped by compliance profile. The tax authority groups taxpayers to decide on priority treatment and the appropriate management measures. The criteria are:
sector, field and mode of operation;
legal form and ownership structure;
revenue size and budget contributions;
level and history of tax compliance.
In other words, compliance history has become an asset. Repeated late payments or misstatements can move a company into a more closely monitored group.
2. The amendment window shrinks to 5 years. A taxpayer that finds an error in a filed return may amend it within 5 years from the filing deadline of the period concerned. The previous law allowed 10 years.
For matters already covered by a tax audit or inspection, the taxpayer must submit an explanation dossier. The authority reviews and approves it before the return can be adjusted. The window for self-correction is therefore much narrower.
3. Tax audits move online and remote. Audits are risk-based and give priority to working on electronic data. Audits must not overlap with tax inspections or State Audit Office reviews unless there is evidence of a violation.
Businesses should digitise their supporting documents and keep explanation files ready in electronic form. They should also expect requests for explanations to arrive without an on-site audit team.
4. Tax assessment now covers related-party non-compliance. The tax authority may impose a deemed tax assessment where a business:
fails to file, or files incomplete or untruthful returns;
fails to produce books and records;
uses unlawful invoices;
fails to comply with related-party transaction rules.
For foreign-invested enterprises, transfer pricing documentation is no longer a formality. Missing documentation can lead directly to a tax assessment.
5. Automated refunds, exemptions and reductions, phased in. The law provides the legal basis for automated refunds, exemptions and reductions based on data and risk criteria. Businesses with clean data will benefit first. Where a dossier is still required, it must be filed and its processing status tracked on the system.
6. Payment reference codes and late-payment interest. Where the tax authority has issued a reference code for an amount payable, payment must be made against that code.
Late-payment interest remains 0.03% per day and is self-assessed and self-paid. If the taxpayer has not determined the interest within 30 days of paying the tax, the authority will calculate it and issue a notice. Finance teams therefore need a routine for calculating late-payment interest whenever tax is paid late or an amendment increases the tax due.
7. Tax obligations must be settled before key corporate events. The law sets out the responsibility to settle tax obligations upon:
dissolution, bankruptcy or corporate reorganisation;
relocation of the head office that changes the supervising tax office, including relocations caused by changes to administrative boundaries;
transfer of capital or transfer of an investment project;
exit from Vietnam.
In M&A, tax clearance therefore becomes a precondition of the deal. Buyers should require confirmation of tax obligations before completion.
8. The digital economy and foreign suppliers. Foreign organisations and individuals doing business on e-commerce or other digital platforms are taxpayers in Vietnam. They file and pay directly or through an authorised representative, unless the withholding regime applies.
For household and individual sellers, platforms that offer both online ordering and payment must withhold, declare and pay tax on the sellers' behalf. Businesses buying digital services from overseas should establish clearly which party is responsible for filing, so that foreign contractor tax is neither paid twice nor missed.
9. Personal tax codes are now national ID numbers. The tax code of an individual, household, household business or individual business is the personal identification number issued under the law on identification. Employers should review employee and dependant data so that PIT withholding and finalisation match national records.
10. System outages do not create violations. If the tax authority's system fails and a taxpayer cannot meet a deadline as a result, the taxpayer is protected:
no administrative penalty is imposed;
no late-payment interest accrues;
the outage period does not count towards the authority's processing time.
Keep evidence such as screenshots, error messages and timestamps.
Also note: licensed tax agents may now provide accounting services to micro-enterprises, household businesses and individual businesses, provided they have at least one practising accountant.
Transitional rules
Situation | Governing law |
Tax exemptions, reductions or non-collection arising before 1 July 2026 | Law No. 38/2019/QH14 |
Tax arrears outstanding up to 30 June 2026 | Law No. 108/2025/QH15 |
Audits with a decision issued before 1 July 2026 but not yet concluded | Law No. 38/2019/QH14 |
Illustrative case
A foreign-invested manufacturer has a calendar financial year. In September 2026, its accountants find that service fees paid to the parent company in 2021 were deducted without adequate evidence of the benefit received.
The filing deadline for the 2021 CIT finalisation was 31 March 2022. On the 5-year rule, the company may self-amend that period until around 31 March 2027. If it amends voluntarily before any audit decision, it will typically pay only the tax shortfall and late-payment interest. If the authority finds the issue first, the company also faces penalty exposure and loses control of the narrative.
(How the deadline applies to each period should be checked against implementing guidance and the transitional provisions in force.)
90-day checklist
Review the last 5 years of tax filings, starting with periods whose amendment window is about to close.
Run a three-way reconciliation of e-invoices, accounting ledgers and tax returns. Digitise all supporting documents.
Adopt a procedure for self-calculating late-payment interest and tracking payment reference codes.
Update national ID numbers for employees and dependants in the payroll system.
For businesses with related-party transactions: complete documentation under Decree No. 255/2026/ND-CP.
Before any M&A, head-office relocation or restructuring: run a tax health check and confirm tax obligations.
FAQs
When does the 2025 Law on Tax Administration take effect?
On 1 July 2026. The rules on declaration, tax calculation and e-invoicing for household and individual businesses have applied since 1 January 2026.
How long do businesses have to amend tax returns?
Five years from the filing deadline of the period containing the error. The previous limit was ten years.
Which law governs an audit that began before 1 July 2026?
If the audit decision was issued before 1 July 2026 and no conclusion has been issued, the audit continues under Law No. 38/2019/QH14.
What if the e-tax system fails on a filing deadline?
No penalty or late-payment interest applies for the outage period. Businesses should keep evidence of the outage.
Legal basis
Law on Tax Administration No. 108/2025/QH15 dated 10 December 2025.
Law on Tax Administration No. 38/2019/QH14 (for transitional matters).
Decree No. 255/2026/ND-CP on tax administration of related-party transactions.
Decree No. 254/2026/ND-CP on e-invoices and e-documents.
How W&A can help
The new law rewards consistent data and penalises unresolved errors. W&A helps businesses get ahead of the change through:
Tax Health Check under the 2025 Law on Tax Administration: a review of 5 years of filings to identify periods that should be amended and quantify exposure.
Tax audit and inspection support: preparing electronic explanation files and engaging with the tax authority.
Tax attorney and licensed tax agent services: representing businesses in tax assessments, administrative complaints and tax disputes.
Transfer pricing: preparing Local and Master Files and defending documentation before the tax authority.
Transaction tax due diligence: confirming tax obligations ahead of M&A, capital transfers and restructurings.
Comments