Decree No. 373/2025/ND-CP and Key Tax Management Considerations for Enterprises from 2026

During the transitional period between 2025 and 2026, Vietnam’s tax legal framework is undergoing a series of significant changes, particularly in the system of regulations guiding the implementation of the Law on Tax Administration. Among these, Decree No. 373/2025/ND-CP stands out as one of the most noteworthy instruments. The Decree amends and supplements several provisions of Decree No. 126/2020/ND-CP and will take effect from 14 February 2026.

From the perspective of enterprises and accounting functions, Decree 373 does not introduce new tax liabilities. However, it materially adjusts the manner in which tax administration, tax declarations, and the handling of certain common practical situations are conducted. A proper understanding of the scope of application and the specific amendments introduced by this Decree is therefore essential for enterprises seeking to mitigate compliance risks, particularly in the context of tax finalisation and post-tax audit reviews.

Legislative background and its relationship with the Law on Tax Administration

Decree No. 373/2025/ND-CP is a guiding regulation issued to implement certain provisions of the Law on Tax Administration through amendments to Decree No. 126/2020/ND-CP. In this context, it is important to clearly distinguish between the promulgation of new legislation and its effective date.

The new Law on Tax Administration No. 108/2025/QH15 will only come into force on 1 July 2026. Accordingly, at the time Decree 373 takes effect on 14 February 2026, the prevailing legal framework governing tax administration activities remains the Law on Tax Administration No. 38/2019/QH14.

The issuance of a new decree prior to the effectiveness of the new law may give rise to confusion in practice. In substance, Decree 373 primarily addresses technical and procedural matters as well as methods of handling specific situations, with the aim of refining the existing tax administration mechanism before the transition to the new legal framework from mid-2026.

Personal income tax finalisation and the responsibilities of enterprises

One of the aspects receiving the greatest attention from enterprises and accounting departments under Decree 373 relates to the determination of the competent tax authority for personal income tax finalisation in cases where employees earn income from two or more sources.

Previously, where an employee changed employers during the year or simultaneously earned income from multiple entities, determining the appropriate tax authority for filing the annual tax finalisation dossier often proved problematic. Newly engaged employers frequently lacked information on the employee’s prior tax finalisation status, while employees themselves were uncertain as to whether the dossier should be submitted to the tax authority of their former employer, current employer, or place of residence.

Under the new provisions of Decree 373, a resident individual earning salary or wage income from two or more payers within the same tax year must submit the personal income tax finalisation dossier to the tax authority responsible for the payer providing the highest income during that year. In cases where multiple payers provide the highest income at an equal level, the individual is entitled to choose any of the corresponding tax authorities for submission.

Notably, where the dossier is submitted to an incorrect tax authority, the receiving authority is required to support the transfer of the dossier to the competent authority. This approach significantly reduces the administrative burden on employees and indirectly minimises the risk of disputes or complaints related to personal income tax finalisation at the enterprise level.

For enterprises, understanding this regulation enables accounting teams to provide more accurate guidance to employees during the tax finalisation period, particularly for middle and senior-level personnel with employment histories involving multiple entities within the same fiscal year.

Quarterly tax declaration without eligibility and handling under the new regulations

Another issue frequently encountered in practice involves cases where enterprises or taxpayers have applied quarterly tax declarations but subsequently determine that they do not meet the eligibility criteria for such filing.

Under the previous provisions of Decree No. 126/2020/ND-CP, such incorrect application could result in the requirement to re-declare on a monthly basis, recalculate tax liabilities for the affected periods, and incur late payment interest or even administrative penalties. This exposure caused significant concern among enterprises when reviewing their tax declaration records.

Decree 373 adopts a clearer and more flexible approach. Where a taxpayer has declared on a quarterly basis without meeting the eligibility requirements, the subsequently submitted monthly tax returns will not be subject to administrative penalties. These monthly returns are treated as replacement tax returns for the previously submitted quarterly declarations.

This approach reflects a shift in tax administration towards encouraging self-correction and voluntary compliance rather than imposing immediate sanctions for technical errors. Nevertheless, enterprises remain responsible for proactively reviewing the conditions applicable to quarterly filing in order to minimise the need for repeated adjustments during the tax year.

Tax declaration forms and transitional principles

Decree No. 373/2025/ND-CP also introduces amendments and supplements to the system of tax declaration forms promulgated together with Decree No. 126/2020/ND-CP. However, the application of the revised forms is not immediate across all tax periods.

Specifically, for the 2025 tax year, enterprises and taxpayers are required to continue using the forms prescribed under Decree No. 126/2020/ND-CP and Circular No. 80/2021/TT-BTC for tax declaration and finalisation purposes. Only upon completion of the 2025 tax finalisation cycle will the amended forms be applied in accordance with the revised regulations.

This transitional arrangement reflects the principle of consistency in tax finalisation procedures, ensuring that changes to declaration forms do not disrupt the reconciliation and inspection processes conducted by enterprises and tax authorities.

Practical considerations for enterprises and accounting teams

From a tax risk management perspective, Decree 373 does not alter the substance of tax obligations but has a direct impact on compliance procedures and implementation practices. During the period from early 2026 until the new Law on Tax Administration takes effect, enterprises should pay particular attention to applying the correct legal instruments, effective dates, and applicable subjects.

Misinterpreting that all provisions of Law No. 108/2025/QH15 are already applicable from the beginning of 2026 may result in errors in tax declaration and record management. At the same time, accounting teams should proactively update themselves on the revised regulations relating to personal income tax finalisation and tax filing cycles in order to provide timely and accurate advice to employees and management.

Conclusion

Decree No. 373/2025/ND-CP represents an important adjustment within the regulatory framework guiding the implementation of the Law on Tax Administration, particularly in the transitional period leading to the new legal regime from mid-2026. For enterprises, properly understanding and applying the provisions of this Decree not only helps mitigate the risk of penalties but also contributes to maintaining stability in tax management during a period of significant regulatory change.

Where enterprises require a review of their internal tax management processes or an assessment of compliance risks based on their specific operational circumstances, the GreenNRJ team is available to provide professional discussions and in-depth analysis in accordance with the prevailing legal framework.