DECREE 320/2025/ND-CP DETAILING A NUMBER OF ARTICLES AND MEASURES TO ORGANIZE AND GUIDE THE IMPLEMENTATION OF THE LAW ON CORPORATE INCOME TAX

On December 15, 2025, the Government issued Decree 320/2025/ND-CP (Decree 320) detailing a number of articles and measures to organize and guide the implementation of the Law on Corporate Income Tax. We would like to extract some outstanding contents of Decree 320 as follows:

1. Changes to regulations on taxpayers

1.1. Clarification of taxpayers being foreign enterprises

According to Point b, Clause 1, Article 2 of the Law on CIT 2025, enterprises established under the provisions of foreign law (hereinafter referred to as foreign enterprises) with or without permanent establishments in Vietnam are corporate income tax (CIT) payers.

To clarify this regulation, Clause 1, Article 2 of Decree 320 has specifically explained foreign enterprises as follows:

– Foreign enterprises having permanent establishments in Vietnam shall pay tax on taxable incomes arising in Vietnam and taxable incomes arising outside Vietnam related to the operation of such permanent establishments;

– Foreign enterprises with permanent establishments in Vietnam shall pay tax on taxable incomes arising in Vietnam but these incomes are not related to the operation of the permanent establishment;

– Foreign enterprises with permanent establishments in Vietnam (excluding the above-mentioned foreign enterprises) that provide goods and services in Vietnam in the form of e-commerce business, business on the digital basis of tax payment for taxable incomes arising in Vietnam;

– Foreign enterprises that do not have permanent establishments in Vietnam shall pay tax on taxable incomes arising in Vietnam.

1.2. Expanding the subjects of taxpayers on behalf of

Specifically, Clause 2, Article 2 of Decree 320 has specified taxpayers in case of paying tax on their behalf, including:

– Organizations established and operating (or registered for operation) in accordance with Vietnamese law: When doing e-commerce business, based on digital platforms, receiving capital transfer on the basis of contracts with foreign enterprises.

In which, including the organization managing the e-commerce trading floor and the organization managing the digital platform.

– Securities investment fund management company: This company is the taxpayer on behalf of the investor when the securities investment fund distributes income to investors and is the taxpayer for income from the transfer and lease of real estate of the real estate investment fund.

In case the transferee of capital of a foreign enterprise is a foreign organization or individual, the taxpayer is an enterprise established under the laws of Vietnam where the foreign organizations invest capital.

2. Amendment and supplementation of income exempt from CIT

2.1. Supplementation of income exempt from CIT

According to Clause 3, Article 4 on tax-exempt income in Decree 320, the Government supplements a number of types of income from the provision of technical services directly in service of agriculture that are exempt from tax, including: Income from flood drainage, flood prevention, tidal surge prevention, salinity prevention, salinity washing, etc wash the alum, keep it sweet.

At the same time, this regulation also supplements the guidance on the above-mentioned technical services which are determined based on the level 1 economic sector code of the agricultural sector specified in the Vietnam Economic Sector System.

2.2. Selling new technology products is only exempt from tax for 3 years

This content applies to income from the sale of new technology products. Specifically, according to Point b, Clause 4, Article 4 of Decree 320, income from the sale of products made from new technologies applied for the first time in Vietnam is exempt from tax for 03 years from the date of income from the sale of products.

3. Non-cash payment vouchers

According to Point c, Clause 1, Article 9 of Decree 320, expenses for the purchase of goods, services and other payments with one-time non-cash payment vouchers valued at VND 05 million or more will be deducted when determining CIT taxable income.

Non-cash payment vouchers shall comply with the provisions of legal documents on VAT.

– In case of purchasing goods or services from a seller with a value of less than VND 05 million but purchased many times on the same day with a total value of VND 05 million or more, they shall only be included in the deductible expenses in case there are non-cash payment vouchers.

– In case the enterprise incurs expenses authorized by the enterprise/assigned to employees to directly purchase goods and services to serve the production and business activities of the enterprise from VND 5 million or more and these expenses are paid by the employee by non-cash payment services, they shall be included in the deductible expenses if fully satisfying the following conditions: Having invoices and documents in accordance with the law on accounting, invoices, vouchers and financial regulations or internal regulations or decisions of enterprises regulating the authorization or permission of employees to pay for the purchase of goods, services to serve the production and business activities of the enterprise and this expenditure is then repaid by the enterprise to the employee;

– In case of purchasing goods or services each time with a value of VND 05 million or more, but by the time of recording the expenses, the enterprise has not yet paid, the enterprise shall be included in the deductible expenses when determining taxable income. In case the enterprise does not have non-cash payment vouchers when making payments, it must declare and adjust the cost reduction for the value of goods and services without non-cash payment vouchers in the tax period in which the cash payment arises (including cases where the tax authority and functional agencies already have decide on inspection and examination of the tax period incurring this expense).

– For the following cases: Purchase of agricultural, forestry and fishery products directly sold by producers or fishermen; purchase of handicraft products made of jute, sedge, bamboo, bamboo, leaves, hammocks, rattan, straw, coconut shells, coconut skulls or raw materials taken advantage of agricultural products directly sold by artisanal producers; buying scrap from people who directly collect it; purchase of utensils and assets directly sold by households and individuals; purchase of goods and services of individuals and business households (excluding the above-mentioned cases) whose turnover is below the threshold of value-added taxable turnover, there must be vouchers of payment in accordance with the law on accounting, invoices and vouchers for sellers (for cases where the purchase value of goods, daily services of each household or individual of VND 05 million or more that must be paid non-cash) and the list of goods and services purchased by the legal representative or authorized person of the enterprise and taken responsibility;

4. Loss determination and loss transfer

According to the provisions of Article 7 of Decree 320, the regulations on determination of losses and loss carryover are as follows:

– Losses incurred in the tax period are the negative difference in taxable income, excluding losses carried forward from previous years.

– Enterprises that suffer losses after tax finalization shall transfer all and continuously losses to taxable income in subsequent years. The time for carrying forward losses shall not exceed 05 years, counting from the year following the year in which the loss arises.

– The enterprise temporarily carries forward losses to the income of the quarters of the year when determining the temporarily paid tax amount on a quarterly basis and officially transfer it into the year when making the annual tax finalization return.

5. Regarding tax rates

According to the provisions of Article 11 of Decree 320 on tax rates for enterprises as follows:

– Tax rate of 20%: the general tax rate applies to most businesses.

– Tax rate of 15%: enterprises with total annual revenue of not more than 3 billion VND.

– Tax rate of 17%: enterprises with total annual revenue of over VND 3 billion and not exceeding VND 50 billion.

– Tax rates for oil and gas prospection, exploration and exploitation: from 25% to 50% depending on each project.