March 2026 brought a wide range of important tax-related updates across tax administration, corporate income tax, personal income tax, value-added tax, fees and charges, e-invoicing, household business taxation, import-export tax, customs procedures, special consumption tax, environmental protection tax, and accounting.

These updates do not affect tax filing alone. They also have direct implications for how businesses prepare supporting documents, handle payment evidence, structure payroll policies, manage VAT input claims, record internal transactions, and align accounting data with e-invoicing systems.

This is the kind of policy cycle that pushes businesses away from a simple “file the right forms” mindset and toward a more demanding standard: being able to substantiate the commercial substance of each transaction with proper documentation, data, and internal process discipline.

Quick Overview: What stands out in the March 2026 tax updates?

The main developments include:

• Stricter support file requirements for deductible expenses under corporate income tax, especially for training and vocational education expenses, sponsorship expenses, market research expenses, new product and service development expenses, and bidding expenses for unsuccessful tenders

• Greater emphasis on non-cash payment evidence for transactions from VND 5 million

• Major developments affecting personal income tax relief thresholds and the progressive tax schedule from 2026

• New points relating to VAT refunds, input VAT conditions, logistics services, international transport, and labour outsourcing

• Important changes for household businesses and individual business operators from 1 January 2026

• Increased tax authority focus on e-invoices, accounting software, and the risk of operating parallel accounting systems

1. The broader direction of tax policy in March 2026

1.1 Documentation requirements are becoming more demanding

Recent guidance shows that regulators are not only asking whether a transaction took place. They are increasingly focused on whether a business can provide sufficient evidence of legal validity, business purpose, and actual implementation.

This matters most for categories that many companies used to process based on accounting habit rather than strong document discipline.

1.2 Transaction substance must align with invoices, payments, and tax reporting

One of the clearest trends is the expectation that the following must be fully aligned:

• contracts

• payment records

• invoices

• accounting treatment

• tax declarations

If one part does not match the real substance of the transaction, the risk of expense disallowance, VAT adjustment, or tax challenge during inspection rises significantly.

1.3 Tax administration is moving deeper into data and technology

Tax control is increasingly extending into:

• e-invoice data

• integration with sales systems

• accounting software

• abnormal data patterns

• the risk of maintaining parallel accounting records

For businesses, this is a clear signal that tax compliance is no longer just an accounting matter. It now sits at the intersection of finance, internal controls, technology, data governance, and compliance management.

2. Tax administration: Technical changes that can have very practical consequences

Many businesses tend to overlook procedural or technical updates. In practice, these are often the changes that cause filing delays, incorrect templates, and avoidable compliance issues.

2.1 Changes to land rent exemption and reduction dossiers

Certain cases involving land rent exemptions and reductions now require different supporting documents. Businesses should not assume that older filing practices remain acceptable where their case involves:

• land lease

• water surface lease

• financial relief relating to land use

• losses caused by natural disaster or fire

Particular attention should be paid to revised requirements around damage assessment records and documents evidencing government support.

2.2 Removal of older rules on land use levy exemption and reduction dossiers

The removal of older dossier rules in favour of alignment with current land legislation means businesses should revisit land-related compliance files, especially where they are handling investment projects, incentives, or land use conversion matters.

2.3 Updated corporate income tax filing templates

Some corporate income tax declaration forms have been replaced. This may look minor, but using outdated templates internally or within tax workflow systems can easily create filing errors.

3. Corporate income tax: The real focus is on deductible expense support files

3.1 Businesses need to rethink what qualifies as a deductible expense

One of the most important developments is the more detailed treatment of supporting documents for deductible expenses.

Businesses should pay closer attention to the following categories:

• training and vocational education expenses

• sponsorship expenses

• market research expenses

• new product and service development expenses

• bidding expenses for unsuccessful tenders

• depreciation expenses for assets held for lease during periods with no tenant

The key point is this: having an invoice or payment evidence is no longer enough on its own. Businesses need a full document trail showing commercial purpose, internal approval, implementation, and relevance to business operations.

3.2 Training and vocational education expenses can no longer be handled lightly

For training and vocational education expenses, businesses should ensure the underlying file includes documents such as:

• employment contracts

• financial regulations or internal policy

• internal training rules

• training approval decisions

• course registration records

• certificates, diplomas, or confirmation of study results

If the file lacks internal logic, the tax position of the expense becomes much weaker.

3.3 Sponsorship expenses require the correct confirmation documents

For sponsorship expenses, including those related to education, healthcare, disaster relief, and similar purposes, businesses should pay close attention to the required confirmation minutes in the prescribed form.

Many companies handle the transfer of funds properly but fail to complete the legal support file with the same level of care.

3.4 Market research expenses that do not lead to success and new product development expenses that are discontinued still require strong documentation

These expense categories are commercially real. Businesses often spend substantial time and money without generating an immediate commercial result.

This includes:

• market research expenses that do not lead to success

• new product development expenses that are later discontinued

• market research expenses

• new product and service development expenses

Where these arise, the supporting file must clearly show that the work was genuine, properly carried out, and connected to business activities.

3.5 Bidding expenses for unsuccessful tenders are a high-risk area if the support file is weak

This is another category that commonly arises in practice but is often poorly documented.

Businesses should pay close attention to:

• bidding expenses for unsuccessful tenders

• expenses incurred in tender participation where no contract is awarded

A defensible file should typically include tender invitation documents, tender submissions, tender results where available, and related records showing real participation in the bidding process.

3.6 Depreciation expenses for assets held for lease during periods with no tenant need commercial justification

For depreciation expenses on assets available for lease during periods with no tenant, businesses should be prepared to demonstrate that the asset was genuinely ready for business use and that the absence of a tenant was a temporary commercial condition rather than evidence that the asset lacked business purpose.

3.7 The non-cash payment threshold from VND 5 million should be reviewed immediately

A particularly important point is the emphasis on non-cash payment evidence for transactions of VND 5 million or more per payment.

If a business still has practices such as:

• cash settlement for larger transactions

• splitting transactions

• payment records that do not match the file

• unclear bank transfer descriptions

then the risks around deductible expense treatment and VAT creditability become much higher.

3.8 Short tax periods of under three months should no longer be assumed to roll into the following year

Businesses in any of the following situations should review their corporate income tax period treatment carefully:

• newly established entities

• conversion of business form

• change of ownership structure

• merger

• consolidation

• division or demerger

• dissolution

• bankruptcy

The earlier practice of rolling very short first or last tax periods into the following year should no longer be treated as a default assumption.

4. Personal income tax: Payroll for 2026 will need adjustment

4.1 New family deduction thresholds from 2026

This is one of the most practical changes because it directly affects monthly payroll withholding, employee net income, and year-end tax settlement.

Key thresholds include:

For the 2025 tax finalisation period

• VND 11 million per month for the taxpayer

• VND 4.4 million per month for each dependent

From the 2026 tax period

• VND 15.5 million per month for the taxpayer

• VND 6.2 million per month for each dependent

These are material changes. Businesses should update:

• payroll software

• monthly withholding tables

• dependent registration procedures

• internal communication to employees

4.2 The progressive personal income tax schedule is expected to move from 7 brackets to 5

If applied as stated in the policy update, this would be a major change for payroll operations and personal income tax calculations.

Failure to update the tax schedule properly may lead to:

• incorrect withholding

• incorrect year-end finalisation

• employee adjustments later on

• increased administrative workload at year-end

4.3 ID card, personal identification number, and tax code data must be aligned

A very practical but often overlooked issue is employee data alignment, especially in relation to:

• citizen identification card details

• personal identification numbers

• individual tax codes

• dependent tax information

For larger employers, failure to standardise this data early almost guarantees problems during tax finalisation.

5. VAT: Refunds, input VAT, and correct classification of services

5.1 VAT refund conditions for exported goods and services

Businesses with export activity should pay close attention to the VND 300 million threshold for uncredited input VAT in a month or quarter.

The real issue is not just eligibility. The real issue is whether the business can present a tight and defensible refund dossier, because VAT refund claims are always closely scrutinised.

5.2 Logistics services and international transportation must be classified carefully

The following categories need to be distinguished clearly:

• logistics services performed overseas

• international transportation

• logistics services performed in Vietnam

• domestic legs connected to international transport

If the service nature or place of performance is classified incorrectly, the VAT treatment can be wrong from the point of invoicing.

5.3 Labour outsourcing: Not every amount received is necessarily VAT-able revenue

This is an area that is easy to misunderstand. If businesses fail to separate clearly:

• the collection and disbursement element

• the service fee element

• the legal structure of the labour outsourcing arrangement

then the VAT treatment of the receipts can be materially affected.

5.4 Input VAT may need to be adjusted downward if non-cash payment evidence is missing

For deferred payment or instalment payment transactions with a value of VND 5 million or more, if non-cash payment evidence is not available by the contractual payment date, businesses may be required to reduce previously claimed input VAT.

This is a point that is easily missed in day-to-day operations.

6. Fees, e-invoicing, and household businesses: Changes with broad impact

6.1 Licence fee collection ends from 1 January 2026

If applied as indicated, this is a notable change because it affects a recurring annual administrative obligation.

That said, businesses should still review:

• capital charter change data

• business registration history

• prior year tax files

• transition issues

6.2 Some internal transfer transactions may require e-invoices

This is a very practical issue. Project costs incurred during the investment preparation stage and transferred to an independently accounted branch may be viewed as requiring an e-invoice.

Businesses operating through a head office and branches, or through project-based structures, should look carefully at this area.

6.3 Household businesses and individual business operators move into a new regime from 1 January 2026

Key points include:

• the presumptive tax method no longer applies from 1 January 2026

• the VND 500 million annual turnover threshold becomes central to determining VAT and personal income tax obligations

• once cumulative turnover exceeds VND 500 million, quarterly tax filing obligations may arise under the new regime

This affects not only household businesses themselves. It also affects companies that:

• purchase services from individual business operators

• make incentive, support, or discount payments to household businesses

• work with individual agents

• engage with smaller retail or service partners

7. Import-export tax and customs procedures: Internationally active businesses should review these now

7.1 Geopolitical risk is directly affecting import-export operations

The recommendations relating to conflict in the Middle East show that businesses should reassess:

• alternative sources of supply

• alternative markets

• delivery terms

• logistics clauses

• cargo insurance

• force majeure treatment

This is no longer just an issue for the import-export team. It is a trade risk management issue.

7.2 Preferential import duty reductions for certain petroleum products

Some items were noted as being reduced to a 0% preferential import duty rate from 9 March 2026 to 30 April 2026.

This matters especially for:

• energy companies

• logistics companies

• transport operators

• manufacturers with significant fuel-related cost exposure

7.3 Customs procedures, sealing rules, transport documents, and import dossiers should be rechecked

Guidance in relation to:

• cargo consolidation

• customs sealing

• bills of lading

• customs dossiers

• food safety import clearance notifications

can all affect customs clearance timing if misunderstood or handled incorrectly.

8. Special consumption tax, environmental tax, and accounting: The pressure point is fuel and accounting data

8.1 Fuel-related taxes saw major short-term movement

For the period from 00:00 on 26 March 2026 to 15 April 2026, there were significant changes relating to:

• environmental protection tax

• VAT

• special consumption tax

on gasoline, diesel, and aviation fuel.

This is especially relevant for businesses in:

• transport

• logistics

• manufacturing

• energy

• aviation

• sectors with significant fuel consumption

8.2 Tax authorities are increasing scrutiny of parallel accounting systems

This is one of the strongest governance signals in the entire update.

Providers of e-invoice solutions and tax technology services are being asked to coordinate in preventing tax fraud linked to:

• maintaining parallel accounting systems

• unusual data changes

• failure to transmit full e-invoice data based on actual transactions

This means businesses should immediately review their:

• sales systems

• accounting software

• e-invoice solutions

• data transmission flows

• user access rights and edit controls

9. What should businesses do now to reduce risk?

9.1 Review all payment processes

Prioritise transactions from VND 5 million upward, especially purchases of goods and services, project-related costs, internal expenses, and deferred payment transactions.

9.2 Review support files for deductible expenses

Pay special attention to:

• training and vocational education expenses

• sponsorship expenses

• market research expenses

• market research expenses that do not lead to success

• new product and service development expenses

• new product development expenses that are later discontinued

• bidding expenses for unsuccessful tenders

• depreciation expenses for assets held for lease during periods with no tenant

9.3 Update payroll systems

Businesses should check:

• family deduction thresholds

• personal income tax brackets

• ID and tax data

• dependent information

• monthly withholding logic

9.4 Review special transaction categories

This includes:

• international logistics

• labour outsourcing

• project cost transfers

• branch transactions

• deferred and instalment contracts

• input VAT positions

9.5 Re-engage with software providers

The goal is to ensure:

• accounting data matches invoice data

• there is no risk of parallel accounting records

• abnormal activity can be flagged

• data changes can be traced properly

10. Frequently asked questions about Vietnam’s March 2026 tax updates

What should businesses review first?

The top priorities are non-cash payment compliance, deductible expense support files, payroll and personal income tax settings, input VAT conditions, and alignment between accounting software and e-invoicing systems.

Which businesses are likely to feel the strongest impact?

Businesses most affected include those involved in:

• import-export

• logistics

• outsourced labour arrangements

• significant training, research, or sponsorship spending

• branch structures

• high fuel usage

• large employee populations

Conclusion

Vietnam’s tax policy updates in March 2026 point to a clear direction: stricter documentation, tighter data control, and stronger alignment between the real substance of a transaction and how it is invoiced, recorded, and reported for tax purposes.

Businesses that continue operating on old habits will face higher risk of:

• expense disallowance

• VAT adjustment

• payroll tax errors

• filing delays

• difficult explanations during tax review or inspection

By contrast, businesses that move early to tighten document control, payment processes, expense support files, transaction structures, payroll data, and accounting system integrity will be in a much stronger position to manage compliance risk and operate with greater confidence.

Source: Vu MacKenzie Vietnam