CBS Legal, LLC.

19/06/2026

Legal & Business Insights – Tax Treatment of Labour Outsourcing Expenses (Vietnam)

The issuance of Official Letter 3705/CT-CS on 5 June 2026 reinforces a strict and increasingly enforced principle in Vietnamese tax practice: the tax deductibility of expenses is contingent upon the legal validity of the underlying business activity.

From a corporate tax perspective, companies’ payments for outsourced labour services may be denied input Value Added Tax (“VAT”) credit and disallowed for Corporate Income Tax (“CIT”) purposes where the service provider is not duly licensed or operates beyond its registered business scope in relation to labour outsourcing services - a conditional business line under Vietnamese laws. This reflects a clear substance-over-form approach, whereby the Vietnamese tax authorities may re-characterize any contractual arrangement based on actual operational control rather than its legal form.

In practice, this imposes a heightened compliance burden on companies, which must conduct due diligence on outsourced labour providers not only from a commercial perspective but also from a regulatory licensing standpoint. Failure to do so may expose companies to significant VAT and CIT risks, including tax reassessments, penalties, and late payment interest.

Companies engaging outsourced labour services in Vietnam should ensure that either (i) the service provider holds a valid labour outsourcing license(s), or (ii) the arrangement is properly structured as a genuine, output-based services contract. Otherwise, the tax positions may be highly vulnerable.

15/06/2026

📢 Vietnam and Liechtenstein Signed Memorandum on Draft Double Taxation Agreement

On 12 June 2026, Vietnam and Liechtenstein signed a Memorandum of Understanding (“MoU”) on the draft Double Taxation Avoidance Agreement (“DTA”), following the second round of negotiations held in Khanh Hoa Province.

During the three-day negotiations (10–12 June 2026), delegations from both countries addressed outstanding technical issues and reached full agreement on the draft treaty at the technical level.

The signing of the MoU represents a significant milestone toward the formal conclusion of the DTA, subject to the completion of internal approval procedures in both jurisdictions.

The DTA is expected to further strengthen bilateral trade and investment relations between Vietnam and Liechtenstein. In particular, it will:

✔️ eliminate double taxation for businesses and investors by establishing a clearer, more stable, and transparent tax framework;

✔️ facilitate cross-border trade and investment activities between both jurisdictions; and

✔️ enhance cooperation in tax administration, including measures to prevent tax evasion and mitigate tax risks for businesses operating in both jurisdictions.

28/05/2026

TAX TREATY UPDATE

Vietnam’s Tax Authority has issued Official Letter No. 3355/CT-CS dated 25 May 2026, announcing the effective and application dates of the Protocol dated 4 May 2023 amending the Double Taxation Avoidance Agreement (“DTA”) between Vietnam and Luxembourg, originally signed on 4 March 1996.

According to Official Letter No. 3355/CT-CS, the Protocol entered into force on 14 April 2026 and will apply from 1 January 2027.

The amending Protocol aligns the DTA with OECD standards on Exchange of Information and introduces revisions to the taxation rules applicable to employees engaged in cross-border transportation activities.

Should you have any questions or require further assistance, please contact our lawyers or advisors.

25/05/2026

From 15 June 2026, the Department of Home Affairs of Ho Chi Minh City will issue e-Work Permits and e-Certificates of Exemption from Work Permits for foreign employees.

Under this new approach, both the submission of applications and the receipt of results will be conducted via the Public Service Portal (https://dichvucong.gov.vn/), replacing the traditional issuance of physical hard-copy documents.

We expect that e-Temporary Residence Cards for foreign employees will be implemented in the near future, further enhancing administrative efficiency and ensuring greater consistency.

20/05/2026

VIETNAM'S PERSONAL INCOME TAX FILING TRANSITIONS TO QUARTERLY FILING

Vietnam has abolished the monthly Personal Income Tax (PIT) filing requirement, transitioning to a quarterly filing regime.

This change aims to reduce compliance costs and administrative burden, streamline procedures, and enhance overall convenience for businesses operating in Vietnam.

We note that this is primarily a filing change rather than a change in employer withholding obligations. Proactive alignment of internal payroll processes will be critical to ensure compliance under the new regime. We recommend that you:

📌 Maintain the monthly payroll and compensation & benefits (C&B) processes to ensure accurate PIT withholding at source as usual; and

📌 Ensure full compliance with ongoing monthly obligations/deductions, particularly statutory contributions such as social insurance, health insurance, and unemployment insurance, which continue to be reported and paid on a monthly basis.

Please contact us if you need more details.

20/05/2026

Our CBS Legal & Business Insights for May 2026 updating employers' financial obligations in Vietnam regardless of whether trade union has been established.

Given the increased regulatory focus, we recommend that employers review their current practices to ensure full compliance and mitigate potential risks.

13/05/2026

Ngày 12/05/2026, Tòa Phúc Thẩm Liên Bang Hoa Kỳ (Federal Circuit) tạm thời cho phép duy trì thuế 10% toàn cầu

Tòa Phúc thẩm Liên bang Hoa Kỳ đã ban hành quyết định (tham khảo bản tiếng Anh tại đây: https://www.cit.uscourts.gov/sites/cit/files/26-47.pdf?utm_source=chatgpt.com) tạm hoãn đối với phán quyết trước đó của Tòa Thương mại Quốc tế Hoa Kỳ (US Court of International Trade -“CIT”), theo đó:

- Chính phủ Hoa Kỳ được tiếp tục áp dụng và thu thuế 10% toàn cầu trong thời gian xử lý kháng cáo.

- Phán quyết của CIT (cho rằng các mức thuế này là trái pháp luật) hiện chưa có hiệu lực thi hành.

Bối cảnh trước đó:

Ngày 07/05/2026, CIT kết luận rằng việc áp thuế 10% toàn cầu của Tổng thống Donald Trump vượt quá thẩm quyền theo Section 122 – Trade Act of 1974.

Chính phủ Hoa Kỳ đã kháng cáo và đề nghị tòa phúc thẩm tạm dừng hiệu lực phán quyết.

Quyết định của Federal Circuit không phải là phán quyết cuối cùng về tính hợp pháp của mức thuế suất. Do vậy, mức thuế vẫn được áp dụng và thu bình thường. Các rủi ro pháp lý, thuế vẫn tồn tại, phụ thuộc vào kết quả kháng cáo.

Các doanh nghiệp Việt Nam xuất nhập khẩu vào Hoa Kỳ cần lưu ý theo dõi sát diễn biến vụ việc, đánh giá khả năng hoàn thuế nếu phán quyết cuối cùng bất lợi cho Chính phủ Hoa Kỳ, và cân nhắc điều chỉnh giá, hợp đồng và phân bổ rủi ro thuế.

07/05/2026

THÔNG BÁO KHÓA BỒI DƯỠNG CHO NGƯỜI TẬP SỰ HÀNH NGHỀ LUẬT SƯ
Thông báo chương trình bồi dưỡng cho những người tập sự hành nghề luật sư tham dự kiểm tra kết quả tập sự hành nghề luật sư thuộc Đoàn Luật sư TP. Hà Nội vào các ngày 05, 06, 07 tháng 6 năm 2026.

17/04/2026

Vietnam – Pre-Arrival Immigration Declaration (Tan Son Nhat Airport)

The Vietnam Immigration Authority has issued Official Letter 1474/CACK TSN introducing a pre-arrival immigration declaration requirement for certain travelers arriving at Tan Son Nhat International Airport, effective from 15 April 2026.

The requirement applies to (i) Foreign nationals entering Vietnam with valid visas; and (ii) Overseas Vietnamese (Viet Kieu) using foreign passports

Travelers are encouraged to complete the declaration online within 48 hours prior to departure via:
https://prearrival.immigration.gov.vn

Alternatively, travelers may scan a QR code upon arrival at the airport to complete the process.

This initiative aims to: (i) Streamline immigration procedures
(ii) Reduce congestion at the airport; and (ii) Support the digitalization of border control.

The declaration is not a visa and does not replace existing entry requirements.

Travelers who do not complete the declaration in advance may still be admitted into Vietnam, but should expect longer processing times and potential queues at immigration checkpoints.

Companies/HR teams should proactively inform incoming foreign employees and visitors and assist them in completing the declaration prior to departure.

Travelers should complete the declaration in advance to avoid delays upon arrival.

Pre-Arrival Information - IMMIGRATION