The implementation of new tax regulations in Vietnam has left many small business owners feeling anxious about compliance and the possibility of penalties. As of January 1, 2026, the country has shifted from a fixed tax method to a self-declaration system based on actual revenue, creating uncertainty among entrepreneurs.

A business director in Hanoi, whose company generates approximately 2 billion VND annually, shared that the influx of new tax decrees and circulars has caused confusion. "We are trying to comply diligently, but the constant changes make it challenging to keep up," she expressed.

Support for Taxpayers

The Tax Authority has acknowledged the challenges faced by small businesses and has pledged to provide support during this transition period. They highlighted the importance of a gradual implementation of new policies to allow taxpayers to adapt effectively. The Authority suggested a transition period of 3 to 6 months during which any errors detected should be met with guidance rather than immediate penalties.

Legal experts also stress the need for a suitable transition mechanism. For instance, if a taxpayer makes a mistake within six months of the new regulations coming into effect, they could be exempt from penalties under certain conditions. This approach aims to alleviate the stress on businesses as they navigate the new tax landscape.

Focus on High-Risk Cases

In response to concerns from the business community, the Tax Authority has stated that it will focus its management efforts on high-risk cases while ensuring that small and newly established businesses receive special attention through tax exemptions and simplified filing procedures.

The goal is to streamline tax compliance processes, reduce costs, and minimize errors in tax declarations. The Tax Authority is also working on enhancing electronic tax filing applications to make them more user-friendly and efficient.

Future Developments

As part of its commitment to support taxpayers, the Tax Authority plans to develop clear and accessible guidance materials tailored to different business sectors. This includes various formats such as videos, FAQs, and live-streamed sessions to ensure that taxpayers can easily understand their obligations without needing to visit tax offices in person.

Currently, minor violations in tax declarations may result in warnings rather than fines, provided they are rectified promptly. The Tax Authority aims to create a comprehensive database of business compliance to better assist taxpayers and manage high-risk cases effectively.

Overall, while the transition to new tax regulations poses challenges, the Tax Authority's proactive approach aims to support small businesses in fulfilling their tax obligations while minimizing the risk of penalties.