Vietnam Circular 12/2025 marketing authorization pharmaceutical

On May 16, 2025, the Ministry of Health promulgated Circular No. 12/2025/TT-BYT (“Circular 12”), governing the registration for marketing authorization (MA) of pharmaceutical products and active pharmaceutical ingredients (APIs) in Vietnam. Circular 12 officially supersedes Circular No. 08/2022/TT-BYT, Circular No. 16/2023/TT-BYT, and Circular No. 55/2024/TT-BYT. 

Compared to the previous regulations, Circular 12 has simplified administrative procedures and provided greater clarity on specific regulatory requirements regarding registration dossiers and processes for MA. Key revisions introduced under Circular 12 are as follow:

Changes in documentation requirements and administrative procedures for MA registration

One key revision of Circular 12 compared to Circular No. 08/2022/TT-BYT, is the revised CPP requirement, as Circular 12 now allow submission of a single CPP from either the country of manufacture or an EMA/SRA country where the product is actually marketed, which enhances access to new drugs, vaccines and biologics. However, enterprise responsibilities are significantly reinforced. Specifically, the period for CPP authenticity verification is now extended to 03 years from the date of a regulatory sanction decision. Manufacturers and applicants bear full legal responsibility for the accuracy and legitimacy of their registration dossiers.

Regarding the MA renewal process, dossiers may now be submitted at any time prior to expiration date without a maximum time limit, enabling continuous market presence for strategic products. The new regulation also specifies that the product name may be changed during renewal. All other changes must be handled through corresponding variation dossiers. If a name change is approved upon MA renewal, this modification must be implemented no later than 12 months following approval.

Notably, to improve dossier quality, Circular 12 imposes stricter limits on dossier supplementation: a maximum of 02 rounds, each within 06 months, for initial registration, renewal, and variation. A third round is only permitted under exceptional circumstances, either at the request of evaluating experts (with Advisory Council approval) or from the Advisory Council itself. This emphasizes the need for careful preparation to ensure that the initial dossier is complete and consistent, with post-approval changes (if any) to be handled through appropriate variation or supplementation procedures.

Harmonization with international standards via reference assessment procedures and clinical data 

Circular 12 have provide new regulation on reference assessment procedures, applied to drugs granted MA by EMA/SRA authorities, provided the Assessment Report is submitted within 05 years of the initial approval date. The Drug Administration of Vietnam (DAV) will verify technical document consistency with the reference dossier, and independently assess administrative and technical documents that differ. Assessment Reports from the EMA/SRA must be the official, final version, accompanied by any relevant decisions (if applicable), and must detail the evaluation of product quality, safety, and efficacy, along with the legal basis and scientific rationale for approval. At a minimum, these reports must cover administrative contents, quality, safety and efficacy data, together with a comparative equivalence table following Form 09/TT.

Clinical dossier requirements under Circular 12 also differ significantly from earlier regulations. Circular 12 mandates clinical data demonstrating safety and efficacy, sets clear exemption criteria for clinical trials or specific trial phases, and specifies cases requiring Phase IV trials. Circular 12 also outlines detailed clinical documentation requirements for new chemical drugs, vaccines, biologics, new non-innovator drugs (including first generics and super generics), and traditional or herbal medicinal products.

Delineation in authority to grant MA and shorten approval timelines 

Circular 12 modifies the MA issue authority. Accordingly, the DAV will issue MAs following consultation with the Advisory Council for the following cases: newly authorized drugs within the 03 years; withdrawn products (voluntarily or by order); critical variations (e.g., ETC/OTC reclassification, changes to indications, dosage, administration route, and patient population); and the designation of innovator drugs, reference biological products, or submissions involving bioequivalence (BE) studies. Circular 12 then empowered the DAV to grant MAs directly, without Advisory Council consultation for products: that have held MA for 05 years; non-critical variation dossiers; and updates to the package insert to align with approved innovator drugs.

To ensure timely access to medicines and minimize MA approval delays, Circular 12 shortens dossier evaluation timelines: 12 months for new registrations; 9 months for new registrations via the reference pathway; 3 months for major variations and minor variations requiring prior approval; and just 20 working days for minor variations requiring notification only. For contract-manufactured (CM) or technology-transferred (TT) drugs, evaluation timelines are also encouraged to be shortened: no more than 3 months for drug products prior to contract manufacturing and drug products prior to technology transfer already granted an MA, and no more than 9 months for those without an existing MA. 

Circular 12 contains several entirely novel provisions implemented for the first time, necessitating additional guidance from the DAV to ensure uniform application across the pharmaceutical sector. For enterprises, the new regulations under Circular 12 promise to simplify both the dossier requirements for obtaining MA as well as reducing the processing time. Therefore, proactively understanding and adapting to these significant changes in Circular 12 will be a key factor in maintaining a competitive advantage in the market. Circular 12 will take effect from July 1, 2025. 

Ministry of Health proposes stricter regulations on cosmetic business

The cosmetics sector in Vietnam is currently governed primarily by Decree No. 93/2016/ND-CP, Circular No. 06/2011/TT-BYT, and related legal documents. However, over time, these regulations have revealed significant gaps with substandard cosmetic products continuing to circulate openly in the market, posing risks to consumer health and undermining fair competition.

In response to these issues, the Ministry of Health is developing the first draft of a new Decree on Cosmetics Management (“Draft”) which seeks to strengthen the regulatory framework. The Draft introduces a range of proposed changes to improve oversight, address existing shortcomings, and promote a more transparent and equitable business environment in the cosmetics industry. 

One of the major focuses of the Draft is the tightening of regulations on cosmetic advertising. To prevent misleading or deceptive cosmetic advertisements, the Draft proposes to prohibit the use of images, uniforms, or names of doctors, pharmacists, healthcare professionals, or medical facilities in cosmetic advertisements. Additionally, the use of certain terms such as “treatment,” “heals immediately,” “eradicates,” “cures,” “permanently cured,” “kills viruses,” “kills fungi,” “fat reduction,” “weight loss,” and similar phrases in cosmetic advertising will be banned. These proposal are aimed at preventing cosmetics from being mistaken for medicinal products and enhancing the clarity and reliability of advertising content. While these stricter rules may initially challenge businesses in revising their promotional strategies, they are expected to support a healthier competitive environment and protect consumer interests.

The Draft also proposes enhanced requirements for cosmetic manufacturing facilities. Specifically, the Draft requires each facility to appoint a full-time quality assurance officer with a university degree in a relevant field, specialized training in cosmetic quality management, and at least two years of relevant experience. In terms of infrastructure, the Draft sets out more detailed and specific standards for ventilation, lighting, water systems, and equipment used in the manufacturing process, aiming to raise safety and quality benchmarks across the industry.

Moreover, in contrast to the current regulations, which only require the appointment of a production supervisor with relevant expertise, the Draft goes further by requiring that all personnel directly involved in the production process must possess appropriate professional knowledge, experience, skills, and competence consistent with the scale of the facility. Furthermore, these personnel must be trained in manufacturing procedures in accordance with CGMP principles. 

Significant changes are also proposed to the cosmetic product notification process. Under the current framework, a receipt number must be issued within three working days from the date a valid dossier is submitted, and remains valid for five years. The Draft, however, proposes to extend this processing period to ten working days and reduce the validity of the receipt number from five years to three. According to the Ministry, this adjustment is consistent with international practice, where the validity period often ranges from one to three years.

Overall, the Draft introduces more specific and detailed regulations compared to the current framework, reflecting the Ministry of Health’s efforts to address existing shortcomings and elevate the regulatory standards for the cosmetics sector. If adopted, the new regulations will likely extend the time required for cosmetic notification procedures and place greater restrictions on advertising activities. However, in the long run, the Draft is expected to help establish a more transparent, equitable, and stable business environment.

Tax department’s guidance on corporate income tax for capital transfers involving real estate

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The Tax Department has issued specific guidance on corporate income tax (CIT) related to capital transfer activities in Official Letter No. 159/CT-CS, dated March 14, 2025.

Specifically, a company sold its wholly owned single-member limited liability company (LLC) in the form of a capital transfer that included real estate assets. The company is currently facing difficulties in determining how the income from this transaction should be declared and what CIT rate should be applied.

The Tax Department emphasized the following principles for determining taxable income from capital transfers: If a company sells its wholly owned single-member LLC in the form of a capital transfer that includes real estate, the transaction must be declared and taxed as a real estate transfer rather than as a capital transfer. Accordingly, the applicable CIT rate for this type of transaction will be the same as that for real estate transfers, which is 20%.

Thus, based on the Tax Department’s guidance, businesses conducting capital transfers involving real estate assets within a single-member LLC must declare and pay CIT at the rate applicable to real estate transfers.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

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Tax department provides guidance on determining land rental expenses for CIT calculation

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On March 14, 2015, the Tax Department – Ministry of Finance issued an official letter addressing inquiries related to deductible expenses for corporate income tax (CIT) purposes. Specifically, the guidance pertains to the treatment of one-time lump-sum land rental payments and management fees for leased land that has not yet been utilized for production and business activities. The issue raised was whether land rental expenses for leased land that has not yet been put into use for business operations could be considered deductible when determining taxable income for CIT purposes.

According to the Tax Department, under current regulations, a business expense is deductible when calculating taxable income if it meets the following conditions: Firstly, the expense is actually incurred and relates to the company’s production and business activities; Secondly, the expense is supported by legitimate invoices and documentation as required by law; Thirdly, for expenses where an invoice is issued for a single purchase of goods or services valued at VND 20 million or more (including VAT), non-cash payment proof is required.

Based on this interpretation, the Tax Department holds that land rental expenses for leased land that has not yet been used for business activities do not satisfy the first condition above. Consequently, such expenses cannot be considered deductible at the time the leased land remains unused for production and business purposes. In other words, only when the leased land is put into use for business activities can the company recognize land rental expenses as deductible when calculating taxable income.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

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Proposal to expand VAT-exempt agricultural products

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Recently, the Ministry of Finance has announced and solicited public and business feedback on the draft Decree detailing the implementation of certain provisions of the Law on Value-Added Tax (“Draft“). The Draft introduces several noteworthy amendments, including the following:

Proposal to expand the scope of agricultural products exempt from value-added tax (“VAT”)

Under current regulations, one category exempt from VAT includes unprocessed or minimally processed products from cultivated plants, planted forests, livestock, aquaculture, and fishing. Minimally processed products are defined as those that have undergone minimally processing methods such as cleaning, drying, shelling, dehusking, cutting, salting, refrigeration, and other common preservation methods.

To support businesses in the agricultural sector, the Draft proposes expanding the definition of minimally processed agricultural products. Specifically, products that undergo the following processes will still be considered VAT-exempt: coarse milling, partial grinding, dehusking, polishing, husk removal, trimming, milling, polishing grains, glazing grains, separating into parts, deboning, chopping, skinning, crushing, flattening, airtight canning, sulfur dioxide preservation, chemical preservation to prevent decay, and soaking in sulfur solutions.

Proposal to clarify VAT calculation in specific cases

To minimize inconsistencies between businesses and tax authorities regarding VAT calculation, the Draft proposes additional provisions clarifying VAT calculations for specific scenarios.

According to the Draft, the taxable price for asset leasing services will be the rental price agreed upon in the lease contract. If the contract specifies a lump-sum payment for the entire lease term, the payment will be allocated to each taxable period accordingly.

For goods processing services, the VAT-taxable price will be the processing fee stipulated in the processing contract, including labor costs, fuel expenses, material costs, and other expenses incurred in processing the goods.

For construction and installation activities, the Draft provides two scenarios for determining VAT-taxable prices. If the construction contract includes materials, machinery, and equipment, the taxable price will consist of both the service fee and the value of the materials and equipment. If the contract does not include materials, machinery, and equipment, the taxable price will cover only the construction and installation service fee.

Proposal to require non-cash payments for invoices from VND 5 million for VAT deduction

Under current regulations, one of the conditions for VAT input tax deduction on purchases of goods and services exceeding VND 20 million is that businesses must provide proof of non-cash payment. However, the Draft proposes lowering this threshold to VND 5 million.

If this proposal is approved, purchases of goods and services with a single transaction value of VND 5 million or more (instead of the current VND 20 million) must have non-cash payment proof to qualify for VAT input tax deduction.

Clarification of non-cash payment documents

To ensure consistency in interpretation among tax authorities and businesses, the Draft also proposes additional regulations clarifying the definition of non-cash payment documents. These documents must be bank transaction records proving the transfer of funds from the buyer’s account to the seller’s account at a financial institution. Acceptable forms of non-cash payment include checks, payment orders, wire transfers, collection authorizations, bank cards, credit cards, mobile phone SIMs (e-wallets), and other approved payment methods.

If adopted, the provisions in the Draft will clarify various aspects of VAT regulations, ensuring greater transparency and accuracy in VAT declarations and payments for businesses.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

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Clarification on multiple issues in invoice and documentation regulations

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On March 20, 2025, the Government issued Decree No. 70/2025/ND-CP (“Decree 70”), amending and supplementing several provisions of Decree No. 123/2020/ND-CP on invoices and documents (“Decree 123”), with the aim of updating regulations concerning the time of issuance of invoices for certain types of business activities. The key updates in Decree 70 include the following:

Time of invoice issuance for export of goods and services 

Decree 70 supplements the regulations regarding the time of issuance of invoices for the export of goods and provision of services to foreign organizations and individuals. Specifically as follows:

  1. For export of goods (including export processing), the seller is responsible for determining the time of issuing invoices, but the invoice must be issued no later than the next working day after the goods are cleared through customs in accordance with customs regulations.
  2. For export of services, the time of issuing invoices is when the service is completed, irrespective of whether payment has been received. If payment is made prior to or during the provision of the service, the invoice must be issued when payment is received, except for cases involving advance payments or deposits to secure services such as accounting, auditing, financial and tax consulting, valuation, technical surveys, design, supervision consulting, and investment project formulation.

Amending and supplementing regulations on time of invoice issuance in specific cases

Sale of goods and provision of services in large quantities or frequently recurring

In addition to the large-volume and frequently occurring goods and services already regulated under Decree 123, Decree 70 has introduced several new categories of goods and services, including railway transport support services, e-commerce services, banking services, securities services, online lottery services, and toll collection services between investors and toll service providers, as well as other cases as guided by the Minister of Finance.

Accordingly, the time of issuing invoices for these cases is the completion of data reconciliation between the parties, but no later than the 7th day of the month following the month in which the service was provided, or no later than 7 days after the end of the agreed period. The agreed period for determining the amount of goods and services provided is based on the agreement between the seller and the buyer.

Lending activities and foreign exchange agency activities, foreign exchange receipt and payment services

Decree 70 supplements regulations on the time of issuing invoices for lending activities. Specifically, the time of issuing invoices is determined based on the interest payment schedule in the loan agreement between the financial institution and the borrower.

In cases where interest is not collected by the due date and the financial institution tracks off-balance sheet under laws on credit, the invoice is issued when the interest payment is received. In cases of early interest payment under the loan agreement, the invoice is issued when the early interest payment is collected.

For foreign exchange agency activities, including the receipt and payment of foreign exchange services by credit institutions, the invoice must be issued at the time of the foreign exchange transaction or when the foreign exchange receipt and payment service is completed.

Supplementing applicable entities and content of electronic invoices generated from cash registers

Decree No. 123 did not provide regulations on the applicable entities for electronic invoices generated from cash registers, which caused difficulties for enterprises in using invoices. To address these challenges, Decree No. 70 specifically stipulates that entities eligible to use electronic invoices generated from cash registers include households businesses and individual businesses with an annual revenue of VND 1 billion or higher, as well as enterprises engaged in the sale of goods and provision of services, including sales of goods and services directed to consumers (shopping centers, supermarkets, retailing (excluding automobiles, motorcycles, motorbikes, and other motor vehicles), food and beverage services, restaurants, hotels, passenger transportation services, direct support services for road transport, artistic performances, entertainment, cinema operations, and other personal services in accordance with the Vietnamese Economic Industry Classification System) using electronic invoices generated from cash registers with data connectivity to the tax authority.

Additionally, Decree No. 70 also provides specific regulations on the content of such invoices to facilitate enterprises in issuing invoices. The required contents of electronic invoices generated from cash registers include: Name, address, and tax identification number of the seller; Name, address, tax identification number/personal identification number/phone number of the buyer, as required by regulations (if the buyer requests); Name of goods, services, unit price, quantity, and payment price. In cases where organizations or enterprises pay tax through deducting method, the invoice must clearly indicate the selling price excluding Value Added Tax, Value Added Tax rate, Value Added Tax price, and total payment including Value Added Tax; Time of invoicing; The tax authority’s code or electronic data enabling the buyer to retrieve and declare information from the electronic invoice generated from the cash register. The seller send the electronic invoice to the buyer electronically (via SMS, email, or other forms) or provide a link or QR code for the buyer to search and download the electronic invoice.

Overall, Decree 70/2025/ND-CP is a significant reform that contributes to improving the regulatory framework on invoices and documentation, facilitating businesses and tax authorities in fulfilling tax obligations and managing invoices.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group

Guidance on determining investment incentive areas following administrative unit reorganization

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On April 9, 2025, the Ministry of Finance issued Official Letter No. 4525/BTC-PC to officially guide state management agencies and investors on how to determine areas eligible for investment incentives in the event of administrative boundary changes due to the reorganization and consolidation of administrative units. The Official Letter clarifies several important points as follows:

Continuation of current incentives for projects already granted investment registration certificates (“IRC”):

The Ministry of Finance affirms the principle that, regardless of administrative boundary changes, investors who have already been granted IRC will continue to enjoy the investment incentives related to the area as recorded in the IRC and the Investment Policy Approval Decision issued prior to the boundary change.

Determination of investment incentive areas for new projects:

For cases where investors register new investment projects after administrative boundaries have been reorganized compared to the list of incentive areas under Decree 31/2021/ND-CP but before the Government issues a new list of investment incentive areas, the Ministry of Finance provides the following guidance for determining investment incentive areas:

The investment incentive status of the newly established administrative unit will be determined based on classification of the majority of the former commune-level administrative units.

For example, if a new commune-level administrative unit is formed by merging several former communes, and the majority of those former communes were classified as areas with difficult socio-economic conditions, then the new commune-level unit will be classified as an area with difficult socio-economic conditions.

In cases where there is an equal number of former communes classified under different levels of investment incentive areas, the newly established administrative unit will be classified according to the area with more difficult socio-economic conditions in order to maximize investor benefits.

For instance, if a new commune-level administrative unit is formed from the merger of former communes, and the number of communes previously classified as areas with difficult socio-economic conditions is equal to the number classified as areas with especially difficult socio-economic conditions, then the newly established unit will be classified as an area with especially difficult socio-economic conditions.

Adjustment of the investment project after the change of administrative boundaries are non-mandatory

The Ministry of Finance emphasizes that investors are not obligated to carry out procedures to amend the IRC or the Investment Policy Approval Decision following administrative boundary changes. Any such amendments to update the new administrative boundaries are entirely at the investor’s discretion.

In short, Official Letter No. 4525/BTC-PC clarifies several important principles regarding the determination of investment incentive areas in the context of Vietnam’s ongoing nationwide administrative unit reorganization. Overall, the Ministry of Finance’s approach is to safeguard investors’ rights, ensuring that investors continue to enjoy the investment incentives previously granted prior to administrative boundary changes, and not requiring investors to amend investment project documents unless they wish to do so.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group

Enterprises are not required to update address upon reorganization of administrative boundaries

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In the area of business registration, the Ministry of Finance issued Official Letter No. 4370/BTC-DNTN on April 9, 2025, providing guidance on business registration procedures following administrative boundary changes.

According to the official letter, the Ministry of Finance clarified that business registration authorities are not allowed to require enterprises to change their address information when administrative boundaries are adjusted. Instead, the update of address information based on the new administrative boundaries will be carried out simultaneously with other information changes when the business requests such adjustments.

Therefore, after administrative boundaries change, businesses are still allowed to continue using their previously granted Business Registration Certificates, Branch/Representative Office/Business Location Registration Certificates, without needing to go through the procedure to update the address on those certificates.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group

Extended deadlines for VAT, corporate income tax, personal income tax, and land rent payments from April 2025

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On April 2, 2025, the Government officially issued Decree No. 82/2025/NĐ-CP regarding the extension of deadlines for the payment of value-added tax (“VAT”), corporate income tax (“CIT”), personal income tax (“PIT”), and land rent in 2025 (“Decree 82/2025”). Some of the key points of Decree 82/2025 are as follows:

Eligible enitites for tax payment extension

According to the new regulations, the extension of deadlines for the above-mentioned taxes applies only to enterprises, organizations, households, household businesses, and individuals engaged in production and business activities in specific sectors such as agriculture, forestry, fisheries, food processing, garment manufacturing, construction, publishing, transportation, accommodation services, education, healthcare, arts, entertainment, sports, the production of prioritized supporting industry products, key mechanical products, and several other sectors. In addition, the new decree also applies to small and micro-sized enterprises for taxes arising during the applicable period, in accordance with regulations.

Extented deadline for VAT payment

According to Decree 82/2025, the deadline for payment of VAT incurred by enterprises and organizations for the tax periods of February and March 2025, as well as Quarter I of 2025, will be extended by 6 months. Meanwhile, a 5-month extension will apply to VAT amounts due for April, May, and June 2025, and Quarter II of 2025. However, it is important for businesses to note that this extension does not apply to VAT on imports.

Extented deadline for CIT payment

For provisional CIT payments for Quarter I and Quarter II of the 2025 tax period, eligible enterprises are granted an extension of 5 months from the original CIT payment deadline under regulations of tax laws.

Extented deadline for land rent payment

According to the new Decree, the extension for land rent payment in 2025 applies only to 50% of the land rent amount payable in 2025 for eligible subjects that are directly leased land by the State under a Decision or Contract issued by a competent state authority, in the form of annual land rent payments. Specifically, the extension period is 6 months from May 31, 2025.

Regarding the extension procedure

To obtain a tax payment extension, enterprises are only required to submit the necessary documents to their directly managing tax authority once for all taxes and land rent arising in the eligible tax periods, together with the tax declaration submission. If the extension request dossiers are not submitted at the same time as the tax declaration, they must be submitted no later than May 30, 2025. 

In the context of the current economic challenges facing Vietnam, the issuance of Decree 82/2025 is expected to alleviate some of the difficulties and support business and production activities for individuals and enterprises of all sizes, thereby contributing to economic growth.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 | Fax: [+84 28] 3519 4668

Email: contact@aliat.group

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The Government proposes 30% reduction in the land lease fee for 2025

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In order to implement the Government’s directive under Resolution No. 233/NQ-CP dated December 10, 2024, on supporting individuals and businesses in developing production and business activities, the Government is currently drafting the Draft Decree regulating the reduction of land rental fees for 2025 (“Draft”).

Land rental reduction rate

The Draft proposes a 30% reduction in land rental fees, calculated based on the payable land rental amount for 2025. This reduction will not apply to any outstanding land rental fees from years prior to 2025 or to any late payment interest (if any).

If a land user is concurrently entitled to other land rental reductions and/or is entitled to deduct compensation and site clearance expenses from the payable land rental amount, the 30% reduction will be applied to the land rental amount payable after such other reductions and/or deductions in accordance with legal regulations.

Eligible entities to rent reductions

The Draft proposes that the land rental reduction will apply to lawful land users who are currently leasing land from the State based on a Land Lease Decision, a Land Lease Contract, or a Certificate of Land Use Rights and Ownership of Assets Attached to Land issued by a competent state authority, effective during 2025, under the form of annual land rental payment.

It is notable that the Draft proposes that the reduction will apply even to cases where the land user is not eligible for, or has exhausted the period of, other land rental exemptions or reductions, as well as to cases where the land user is already enjoying other forms of land rental reductions.

Application Dossier, Procedures, and Process

To be entitled to the 30% reduction in the payable land rental amount for 2025, the land user must submit the following documents: 

  1. A written request for the 2025 land rental reduction (using the template attached to the Draft); and
  2. A certified copy of the Decision of land lease or Agreement of land lease or Certificate of land use rights, ownership of assets attached to the land.

Within 30 days from the receipt of a complete and valid application, the competent authority will determine the reduced land rental amount and issue a Decision on land rental reduction in accordance with the laws on land use fees, land rental fees, and tax administration.

With the goal of achieving an 8% economic growth rate in 2025 as set out in Resolution No. 233/NQ-CP, this Draft is expected to ease the financial burden and create more favorable conditions for individuals and businesses to improve their production and business activities, thereby fostering the intended economic growth momentum.

DISCLAIMER

Legal News from Aliat Legal is provided for general informational and reference purposes only and should not be considered a legal opinion nor relied upon in lieu of specific advice. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication. Please contact us for further details on which you have concern.

Main office: 27-31 D7 Street, An Khanh Ward, Thu Duc City, Ho Chi Minh City

Telephone: 19005555338 |  Fax: [+84 28] 3519 4668

Email: contact@aliat.group

Website: www.aliat.group