I. Mandatory Electronic Invoicing: Entering a Deeper Stage in 2026

Vietnam fully implemented e-invoicing (Hóa đơn điện tử) in 2022, in accordance with Government Decree No. 123/2020/ND-CP, requiring businesses to issue, transmit, and store invoices through systems approved by the General Department of Taxation (GDT). From 2025, the tax authorities completed the basic infrastructure and entered the "cross-checking" phase. The new requirements for 2026 are mainly reflected in the following three aspects:

1. Real-time verification of declared data: The tax bureau system will instantly compare the input and output VAT data declared by enterprises. Any discrepancies with the electronic invoice records will be automatically flagged by the system and trigger a tax payment notice or audit procedure.
2. The procedures for reissuing and canceling electronic invoices have been tightened: the time limit for correcting errors in electronic invoices has been greatly shortened, and more explanatory documents must be attached to reissue invoices. The flexibility of "reissuing invoices after the fact" in the past is gradually disappearing.
3. Supplier compliance liability: If a foreign-invested enterprise's Vietnamese supplier fails to issue electronic invoices in accordance with regulations, the purchaser's right to input tax deduction may be challenged or even subject to fines. The purchasing department needs to proactively verify the supplier's electronic invoice compliance status.

II. Review of Corporate Income Tax (CIT) Preferential Conditions: Preferential treatment will no longer be "automatically extended".

Vietnam's standard CIT tax rate is 20%, while the preferential tax rates for foreign-invested manufacturing enterprises are typically 10% (applicable to industries that encourage investment) or 17% (under specific conditions), with tax-free periods and tax-reduction periods designed in conjunction with these rates.

In 2025-2026, the Vietnam Tax Service will strengthen its annual review of eligibility for preferential treatment, with the main impacts including:

1. Preferential conditions must be verified annually: Vietnam implemented a new Enterprise Income Tax Law (No. 67/2025/QH15) on October 1, 2025, abolishing the preferential treatment granted to enterprises located in industrial zones. Previously, new investments in industrial zones enjoyed a 2-year tax exemption followed by a 4-year 50% tax reduction; this is no longer automatically applicable under the new law. Enterprises cannot assume that the preferential tax rate will "automatically continue" and must confirm annually that their business scope still falls within the scope of the original investment permit. Business expansion or transformation may result in some income no longer being eligible for the preferential tax rate.
2. Stricter requirements for R&D expense recognition: R&D expenses that can be deducted from CIT will require more complete technical documentation starting in 2026, including R&D plans, personnel input records, and results reports. The finance department should establish a document management mechanism in advance.
3. Clarification of the starting point for calculating the tax exemption period: Some Taiwanese businesses have made misjudgments when calculating the starting point for the CIT tax exemption period (it should be calculated from the year in which taxable income is first generated). The tax bureau is gradually investigating historical cases and recommends that companies review their own records.

III. Actual Impact on the Financial Operations of Foreign-Invested Enterprises

The dual pressures of e-invoices and new CIT regulations have forced Taiwanese businesses to shift their financial operations from "passive compliance" to "proactive management." ERP systems must be integrated with e-invoice platforms to ensure seamless invoicing, reporting, and reconciliation; monthly closing schedules need to be moved up to allow time for verifying discrepancies in e-invoices; and businesses should conduct self-checks on their eligibility for preferential treatment before filing their annual CIT return to avoid tax arrears and penalties due to business changes.

IV. Compliance Action Recommendations

In response to the rapidly evolving tax environment in Vietnam, businesses can strengthen their compliance by taking the following four steps:

First, immediately review whether the existing electronic invoice system complies with the latest GDT technical specifications;

Second, please have your local tax advisor review whether the CIT preferential conditions are still valid;

Third, establish a compliance checklist for supplier e-invoices;

Fourth, import ERP systems with tax filing modules to automate accounting and track compliance data.

The digitalization of Vietnam's tax regulations will not stop. Taiwanese businesses that act early are not only avoiding risks, but also building more efficient financial governance capabilities while competitors are still observing.