Labour Regulations Update in May 2025

Using personal identification numbers instead of tax codes from 1st July 2025

As previously announced by Talentnet, and in accordance with the Law on Tax Administration and Circular 86/2024/TT-BTC of the Ministry of Finance regulating tax registration, starting 1st July 2025, personal identification numbers will be used instead of tax codes.

Talentnet would like to bring the following important notes regarding this transition:

1. Transition principles:

• In cases where business households, household representatives, or individuals who are subject to using the personal identification number instead of a tax code and who were issued a tax code before 1st July 2025, and whose registered tax information matches the data stored in the National Population Database, they will be allowed to use the personal identification number instead of the tax code from 1st July 2025. This includes adjustments or additions to tax obligations based on the previously issued tax code.
• For business households, household businesses, and individuals who were issued a tax code before 1st July 2025, but whose tax registration information of the business household representative, household business representative, or individual does not match or is incomplete compared to the information stored in the National Population Database, the Tax Authority will update the tax code status of such business households, household businesses, and individuals to status 10 “Tax code pending personal identification number update.” The taxpayer must complete the procedures to update tax registration information with the Tax Authority as per regulations to ensure consistency with the national database before using the personal identification number as a tax code.
• In cases where individuals have been issued more than one tax code, the taxpayer must update personal identification information for all issued tax codes so that the Tax Authority can integrate and consolidate the data under the personal identification number.

2. Requirements for enterprises/individuals:

• Remind all employees to review their personal information and dependent information to ensure all details are accurate. They should also update their personal identification numbers into their individual tax codes and those of their dependents according to Talentnet’s previous guidance.
• Individuals can check whether their registered tax information matches the National Population Database via the General Department of Taxation’s portal: https://www.gdt.gov.vn, or the electronic tax site: thuedientu.gdt.gov.vn, or through their individual tax transaction accounts on the icanhan or eTaxMobile applications (if the individual has been issued an electronic tax transaction account). In case of discrepancies, taxpayers should contact their directly managing Tax Authority, or the local Tax Department or Regional Tax Department where they reside to update the correct information in the tax registration system.

Resolution 198/2025/QH15 on several special mechanisms and policies for private sector economic development

On 17th May 2025, the 15th National Assembly at its 9th session passed Resolution 198/2025/QH15 regarding several special mechanisms and policies for private sector economic development. Some notable policies mentioned in this Resolution are as follows:

• Exemption from personal income tax and corporate income tax for income derived from the transfer of shares, contributed capital, capital contribution rights, share purchase rights, or rights to purchase contributed capital in innovative start-up enterprises.
• Exemption from personal income tax for 2 years and a 50% reduction in tax payable for the next 4 years for income from wages and salaries received by experts and scientists working for innovative start-ups, research and development centers, innovation hubs, or intermediary organizations supporting innovative start-ups.
• Exemption from corporate income tax for small and medium enterprises for 3 years from the date of issuance of the first enterprise registration certificate.
• Business households and individual business owners will no longer be subject to the presumptive tax method starting 1st January 2026. Business households and individual business owners will pay taxes according to the Law on Tax Administration.
• Cessation of license fee collection and payment from 1st January 2026.
• The number of inspections/audits at enterprises, business households, and individual businesses (if any), including inter-agency inspections, is limited to once per year, except in cases with clear violations.
• Exemption from on-site inspections for enterprises, business households, and individual businesses that comply well with legal regulations.
• Retroactive application of legal provisions that adversely affect businesses, households, and individuals is not allowed.

This resolution applies to enterprises, business households, individual businesses, and other related organizations and individuals and is effective from the date of its approval by the National Assembly. Talentnet will continue to update with further guidance from the Authorities.