Vietnam Tax
Updates
April 2022
Vietnam Accounting
& Taxation Changes
This April 2022 publication of our Tax and
Accounting Updates looks at guidelines for
finalisation of Personal Income Tax for the
2021 tax year, increase in overtime hours
from 200 hours to 300 hours per year,
instructions on timing of invoice issuance
for entitlement to VAT reduction to 8%, rent
support for employees in industrial zones,
export processing zones and key economic
zones, and contents of petition for application
of transitional RCEP safeguard measures.
GUIDELINES FOR FINALISATION OF PERSONAL
INCOME TAX FOR THE 2021 TAX YEAR
On 24 March 2022, the General Department of Taxation
issued Official Letter 883/TCT-DNNCN guiding Personal
Income Tax (PIT) finalisation. Some highlights from the
Official Letter are:
Deadline to directly finalise PIT with tax authorities
Accordingly, based on the provisions at Points a and b,
Clause 2, Article 44 of the 2019 Tax Administration Law,
the deadline for declaring and submitting PIT finalisation
documents is as follows:
• For income-paying organisations: The deadline for
submitting tax finalisation declarations is the last day
of the third month from the end of the calendar year,
i.e., 31 March 2022.
• For individuals who directly finalise tax: The deadline
for submitting tax finalisation documents is the last
day of the 4th month from the end of the calendar
year, i.e., 30 April 2022.
• If an individual has a refund for PIT but submits the
tax finalisation declaration late, no penalty will be
applied for administrative violations in tax filing.
• Where the deadline for tax finalisation coincides
with a prescribed holiday, the deadline will be the
next working day of that holiday according to the
provisions of the Civil Code.
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Vietnam Tax Updates,
April 2022

Applications for self-finalisation of PIT 4. A copy of the tax withholding certificate issued by the
employer or a copy of the bank documents for the
According to the Official Letter, an application submitted overseas tax payment and the taxpayer’s certificate,
by a taxpayer who directly finalises PIT with a tax if the foreign authority does not send a written
authority will include: confirmation for the tax payment according to the
law of that country.
1. PIT finalisation using form No. 02/QTT-TNCN
5. Proof documents for donations to charitable funds,
enclosed with Circular 80/2021/TT-BTC dated 9
humanitarian funds, or scholarship funds (if any).
September 2021.
6. Proof documents for the amount paid by the
2. An attached list of registered dependents for
overseas income-paying organisation if the
deductions according to form No. 02-1/BK-QTT-TNCN
taxpayer was paid from abroad by an international
issued together with Circular 80/2021/TT-BTC dated
organisation, Embassy, or Consulate.
29 September 2021.
7. Dependant registration documents if the taxpayer
3. Photocopies of proof documents for the amount of
claims a deduction for unregistered dependants at
tax withheld or provisionally paid during the year or
the time of finalisation.
paid overseas (if any).
If the income-paying organisation has closed down
and therefore, could not provide PIT withholding
INCREASE IN OVERTIME HOURS FROM 200 HOURS TO
documents for the taxpayer, the tax office must
300 HOURS PER YEAR
consider using the taxation database and processing
the taxpayer’s finalisation without requiring the
On 23 March 2022, the Standing Committee of the
documents.
National Assembly approved Resolution 17/2022/
If the income-paying organisation or individual
UBTVQH15 on the annual and monthly overtime hours
(employer) uses electronic PIT withholding
of employees while ensuring COVID-19 prevention and
documents, the taxpayer must print and submit the
control and socio-economic recovery and development.
hard copies of the documents.

According to the Resolution, an employer may assign

employees to work overtime for 200-300 hours per year
if it is agreed by the employees, except for the following
cases:

• Employees aged between full 15 and under 18

• Employees with mild disabilities with work capacity
reduction of at least 51% or employees with severe
disabilities or extremely severe disabilities
• Employees doing arduous, hazardous, dangerous, or
extremely arduous, hazardous works
• Female employees in their 7th month of pregnancy
onward or in the 6th month of pregnancy onward, in
case they work in the highlands, remote areas, border
areas, or islands.
• Female employees nursing children under 12 months
old

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Vietnam Tax Updates,
April 2022
Although the employer is allowed to assign the employee
to work overtime for a maximum of 300 hours in a
year, the employer may assign the employee, with the
employee’s consent, to work overtime for more than 40
hours but not more than 60 hours in a month.
(Currently, according to Article 107 of the Labour Code on
overtime, the employer is allowed to assign the employee
to work overtime with the employee’s consent and must
ensure the overtime hours are not more than 40 hours in
a month.)
Resolution 17/2022/UBTVQH15 took effect from 1 April
2022 but the regulations on overtime hours in this
Resolution apply from 1 January 2022.
INSTRUCTIONS ON THE TIMING OF INVOICE ISSUANCE
FOR ENTITLEMENT TO VAT REDUCTION TO 8%
On 23 March 2022, the Ministry of Finance issued the
Official Letter 2688/BTC-TCT regarding Value-Added Tax
(VAT) prescribed in the Government’s Decree 15/2022/
ND-CP.
According to this document, the Ministry of Finance
provides instructions on the timing of invoice issuance for
entitlement to the VAT reduction policy. In particular:
• If business entities signing contracts for profitable
services which have invoiced these services at the
time of payment at a 10% rate before 1 February
2022 and these services are completed during
the period from 1 February 2022 to the end of 31
December 2022:
- The amount invoiced before 1 February 2022 will
not be eligible for VAT reduction.
- The remaining amount invoiced within the period
from 1 February 2022 to the end of 31 December
2022 will be eligible for VAT reduction.
• If business entities, subject to 10% VAT in January
2022, do not issue their invoices until February 2022,
they will be considered as late issuing invoices, thus
not being eligible for the VAT reduction.
• For any invoice issued before 1 February 2022 at a
10% rate, if there is any error identified in the invoice
after 1 February 2022, the new correcting invoice or
the goods return invoice will be issued at the VAT rate
of 10%.
• For special goods and services such as electricity,
business entities will be entitled to VAT reduction as
per laws and regulations if invoices are issued from 1
February 2022 to 31 December 2022.
RENT SUPPORT FOR EMPLOYEES IN INDUSTRIAL
ZONES, EXPORT PROCESSING ZONES AND KEY
ECONOMIC ZONES
On 28 March 2022, the Prime Minister released Decision
08/2022/QD-TTg on implementation of policies on rent
support for employees.
Specifically, an employee who is working for an enterprise
in an industrial zone or an export processing zone, or a key
economic zone will be eligible for support if the employee
satisfies all of the following conditions:
• Rent accommodation from 1 February 2022 to 30
June 2022.
• Have an indefinite-term employment contract or a
fixed-term employment contract for at least 1 month
which was concluded and executed before 1 April
2022.
• Participating in compulsory Social Insurance
(included in the list of participants in compulsory
Social Insurance of Social Insurance Agency) in
the preceding month of the month in which the
enterprise makes the list of employees applying for
rent support.
Where the employee is not participating in compulsory
Social Insurance, as specified in Clause 4 Article 2 of
Decree 115/2015/ND-CP, the employee must be included
in the enterprise’s payroll for the preceding month of
the month in which the enterprise prepares the list of
employees applying for rent support.
Employees working in enterprises meeting all of the
above conditions will receive a support of 500.000VND
per person per month from the State. The support
duration is up to 3 months and the support will be
provided monthly.
Decision 08/2022/QD-TTg came into force on 28 March
2022.
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Vietnam Tax Updates,
April 2022

CONTENTS OF PETITION FOR APPLICATION OF that support or oppose the measures

TRANSITIONAL RCEP SAFEGUARD MEASURES
On 23 March 2022, the Ministry of Industry and Trade
promulgated Circular 07/2022/TT-BCT providing
guidance on implementation of trade remedies in the
Regional Comprehensive Economic Partnership (RCEP)
Agreement.
According to the Circular, a petition for application of
transitional RCEP safeguard measures will contain:
• Name, address and necessary information of the
organisation or individual that is a representative of
domestic production industry
• Information, data and evidence for determining the
representative of domestic production industry, etc.
• Names and addresses of producers of similar goods
• Description of imports that are eligible for special
preferential import tariff according to RCEP
Agreement and have to undergo investigation
for application of transitional RCEP safeguard
measures, etc.
• Description of similar goods or directly competitive
goods of domestic production industry, etc.
• Information about the volume, quantity and value
of goods within 3 years before submission of the
documentation and at least 6 months after the
RCEP Agreement comes into force; etc.
• Specific requirements for application of the
transitional RCEP safeguard measures, duration and
level of application.
This Circular will be effective from 8 May 2022.

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