Legal Updates
Changes in VAT Rates for Various Goods and Services Effective from July 1, 2025
After 16 years of implementation, the 2008 Value Added Tax (“VAT”) Law has revealed numerous limitations and inadequacies in practical application.
Clarification on personal income tax on capital contribution transfer activities
In discussions with enterprises, in Official Letter No. 4082/TCT-QLN, the General Department of Taxation had affirm that the enterprise where the individual transfers their capital contribution is responsible for filing and paying the tax on behalf of the individual if the enterprise cannot prove that the individual have fulfilled their personal income tax obligations.
Land rent in 2024 may be reduced by up to 30%
Currently, the Government is finalizing and gathering opinion on a draft decree stipulating a reduction in land lease fee for 2024 to boost production and business.
Legislation on Personal Data Protection Regulations
To address the urgent need for a legal framework for personal data protection in Vietnam, the Government issued Decree 13/2023/ND-CP on Personal Data Protection ("Decree 13") in April 2023.
Adjustment of regulations on promotional activities
To simplify administrative procedures related to promotional activities and to create more favorable conditions for businesses, on 10 October 2024, the government issued Decree 128/2024/ND-CP (“Decree 128”) amending and supplementing several articles of Decree 81/2018/ND-CP (“Decree 81”) dated 22 May 2018, which detailed the Commercial Law regarding trade promotion activities.
Clarification on tax policy for discounts
In discussions with enterprises, the General Department of Taxation issued Official Letter No. 4991/TCT-CS dated November 5, 2024, providing opinions on VAT and corporate income tax (CIT) policies applicable to commercial discounts for goods and services.
Proposal for Continuing the Reduction of Environmental Protection Tax on Gasoline, Diesel, and Lubricants in 2025
Amidst global and domestic economic challenges, the Draft Resolution on the Environmental Protection Tax rates for gasoline, oil, and lubricants in 2025 ("Draft") is currently under consideration by the National Assembly. The Draft aims to alleviate difficulties, support citizens and businesses, and promote production, business activities, and economic development.
Proposal to Extend 2% VAT Reduction Until June 2025
In a continued effort to stimulate consumer demand and support businesses amidst ongoing economic uncertainties, the National Assembly is considering the Draft Resolution on extending the 2% VAT reduction until the end of June 2025 ("Draft").
Special investment procedures for encouraged sectors
On November 29, 2024, the National Assembly promulgated Law No. 57/2024/QH15, amending and supplementing several provisions of the Law on Planning, the Law on Investment, the Law on Public-Private Partnership Investment, and the Law on Bidding.
Proposed 30% reduction in land rental fees for 2024
Based on feedback from ministries, sectors, and local authorities, the Ministry of Finance has consolidated, finalized, and issued the Draft Decree on the reduction of land rental fees for 2024 on December 5, 2024 (“Draft”).
Tightening corporate responsibility for fire prevention and fighting under the New Fire Prevention and Fighting Law 2024
On November 29, 2024, the National Assembly passed Law No. 55/2024/QH15 on Fire Prevention, Fighting, and Rescue (“Fire Prevention and Fighting Law 2024”), replacing the Fire Prevention and Fighting Law No. 27/2001/QH10, as amended and supplemented by Laws No. 40/2013/QH13 and No. 30/2023/QH15 (“Fire Prevention and Fighting Law 2001”). The new law will take effect on July 1, 2025
