Tax Policy Changes

Understanding the new tax regulations that affect your business is critical for continuity.

⚖️ Legal Framework

Decree 70/2025/ND-CP (amending Decree 123/2020)

Who is Affected?

Almost every business entity in Vietnam will be impacted. The regulation specifically targets:

Flat-tax Household Businesses
Previously: Operating on estimated taxes.
Now: Required to declare based on actual revenue.
Individuals Issuing Invoices
Requirement: Must use electronic invoices connected directly to Tax Authorities.
Micro Households/Businesses
Scope: Retail or service providers.
Requirement: Must record revenue by transaction, not monthly estimates.
POS/Software Users
Requirement: Businesses using POS terminals, cash registers, or sales software must connect revenue data in real-time with Tax Authorities.
COD/Collection Services
Requirement: Must declare revenue per collection transaction.

To comply with the new regulations, your business infrastructure must support:

Requirement	Description
Sales Software	Use software that connects with Tax Authorities for automatic data transmission.
Real-time Invoicing	Issue electronic invoices at the exact time of sale.
Transaction ID	Attach MST (tax identification number) to every transaction.
Data Retention	Store financial data securely for a minimum of 10 years.
Price Compliance	Displayed prices must match final invoice amounts.
Documentation	Manage import/export documents for regulated industries.
Audit Readiness	Support automatic revenue reconciliation by Tax Authorities.

Your obligations vary based on your annual revenue.

Annual Revenue	Tax Obligation	Declaration Cycle	Key Requirements
Under 200M VND*	• VAT Exempt • PIT Exempt	Periodic (2x/year)	Encouraged (Under 1B)
200M - 3B VND	• Direct Tax (% revenue)	Quarterly (4x/year)	MANDATORY: Connect cash registers if >1B & Retail
Over 3B VND	• VAT (Output - Input) • PIT (17% profit)	Monthly (>50B) Quarterly (<50B)	FULL COMPLIANCE

Note: Thresholds are subject to change. Current proposals suggest increasing the exempt limit from 200M to 500M-1B VND.

Any business selling goods or providing services directly to consumers is included:

✅ Compliance Made Easy

BANA is designed to meet 100% of these requirements out of the box:

Real-time Tax Connection: Automatic, invisible data transmission to CQT.
Instant E-Invoicing: Issue valid invoices with a single tap.
Transaction Tracking: Every sale is recorded with the required tax metadata.
Secure Storage: 10-year data retention on secure cloud servers.
Audit Support: One-click export for tax audits.