07 Tax and Fee Policies Effective from July 1, 2025: What Should Businesses Prepare?

Mid-2025 marks a critical turning point in Vietnam’s tax and fee policy system. Following the Tax System Reform Strategy through 2030 and the growing demands of the digital economy, a series of revised laws on taxes and charges will officially take effect from July 1, 2025.

Major tax laws – including those on Value-Added Tax (VAT), Personal Income Tax (PIT), Corporate Income Tax (CIT), and Special Consumption Tax (SCT) – have been amended simultaneously, requiring businesses and individuals to swiftly update their accounting practices, financial operations, and transaction structures in compliance with the new regulations.

List of 07 Notable Legal Documents Effective from July 1, 2025

1. Amended Law on Value-Added Tax (VAT)
Adds more non-taxable goods and services; adjusts refund principles and regulations on e-invoices.

2. Amended Law on Special Consumption Tax (SCT)
Expands taxable items including sugary beverages and e-cigarettes, promoting healthier consumption behaviors.

3. Amended Law on Corporate Income Tax (CIT)
Adjusts preferential tax policies for SMEs and expands deductible expenses for tax calculation.

4. Amended Law on Personal Income Tax (PIT)
Increases family deductions, adjusts tax brackets, and updates exempt income categories.

5. Amended Law on Natural Resource Tax
Revises methods of determining taxable prices and resource obligations using modern management principles.

6. Amended Law on Fees and Charges
Clarifies collection mechanisms, enhances transparency in setting fee rates, and requires public disclosure.

7. Decree guiding implementation of amended tax laws
Provides unified and detailed instructions on applying the revised tax regulations nationwide.

Timeline and Implementation

All the above documents will take full effect from July 1, 2025. There is no extended transition period, making it crucial for businesses to:

• Review and update accounting systems
• Revise tax declaration procedures
• Upgrade e-invoice software
• Align financial policies with the new legal framework

Impacts on Businesses and Individuals

These changes will have widespread impacts on:

• Production and trading enterprises: Need to adjust pricing structures and control input/output in line with tax policies.
• Small businesses and household businesses: Must understand new eligibility for tax relief to avoid penalties for incorrect declarations.
• High-income individuals and investors: Will be affected by changes in PIT calculation, requiring better personal financial planning.
• Sectors such as beverages, e-cigarettes, and natural resource industries: Must reevaluate supply chains and business models to handle increased tax pressure.

Recommendations from LTS LAW

To ensure compliance and operational efficiency, LTS LAW advises businesses and household enterprises to:

• Review current accounting and tax systems to assess risks and exposure to the new laws.
• Update e-invoicing and internal tax management systems to match revised calculation methods.
• Consult legal and tax experts to identify entitlements and obligations based on specific business models.
• Organize internal training for finance, accounting, and management teams on key legal updates to reduce errors and avoid penalties.

LTS LAW – Your Trusted Legal Partner in Times of Transition

With over 10 years of experience in tax and business legal consulting, LTS LAW is ready to assist with:

• Tailored tax law advice by sector
• Audit and adjustment of accounting and tax reporting systems
• Representation in working with tax authorities
• Drafting of internal procedures and documentation in line with new tax policies

Contact LTS LAW for Immediate Support

Understanding and proactively responding to new tax and fee policies is essential for maintaining compliance and sustainable business growth.
LTS LAW is committed to guiding you through this legal transition efficiently and lawfully.

Hotline: 0902 798 066
Website: https://lts.com.vn