The timing of determining taxable revenue for corporate income tax purposes in certain cases.

In Circular 20/2026/TT-BTC, the Ministry of Finance clearly stipulates the time for determining taxable revenue for corporate income tax purposes in certain cases specified in point c, clause 2, Article 8 and clause 3, Article 12 of Decree No. 320/2025/ND-CP:

The time of determining taxable revenue for corporate income tax purposes in certain cases for businesses established under Vietnamese law is as follows:

For exported goods, the time of determining taxable revenue for corporate income tax purposes is the date of transfer of ownership according to the export contract. If the date of transfer of ownership cannot be determined, the time of determining taxable revenue for corporate income tax purposes shall be based on the provisions of customs law regarding the basis for determining exported goods.

For air transport operations, the time of determining taxable revenue for corporate income tax purposes is the time when the transportation service is completed for the buyer.

For construction and installation activities (including shipbuilding), the time of determining taxable revenue for corporate income tax purposes is the time of acceptance of the project, project item, or construction and installation volume, regardless of whether payment has been received or not.

For electricity and water supply services, the time of determining taxable revenue for corporate income tax purposes is the date of confirmation of electricity and water meter readings recorded on the electricity and water bills.

The timing for determining taxable revenue for corporate income tax purposes in certain cases for foreign businesses is as follows:

For capital transfer transactions, the time of determining taxable revenue for corporate income tax purposes is the time when the original capital transfer contract takes effect as stipulated.

For the transfer of securities and certificates of deposit, the time of determining taxable revenue for corporate income tax purposes is the time of transfer.

For the transfer of derivative securities in the form of futures contracts, the time of determining taxable income for corporate income tax purposes is the time when the buy or sell order of the futures contract is matched on the stock exchange's trading system or the time when the futures contract expires.

Corporate income tax for foreign businesses operating in Vietnam.

According to the Circular, corporate income tax for foreign enterprises operating in Vietnam, as stipulated in Article 2, Clause 4 of Article 3, and Clause 3 of Article 12 of Decree No. 320/2025/ND-CP, is regulated as follows:

This regulation applies to foreign enterprises specified in points b2, b3 and b4 of Clause 1, Article 2 of Decree No. 320/2025/ND-CP (except for cases specified in Clause 2 of this Article) in the following cases:

- Foreign enterprises with or without a permanent establishment in Vietnam, including enterprises engaged in e-commerce or digital platform-based business activities (hereinafter collectively referred to as foreign contractors, foreign subcontractors) conducting business in Vietnam or generating income in Vietnam based on contracts, agreements, or commitments between the foreign contractor and Vietnamese organizations or individuals, or between the foreign contractor and foreign subcontractors to perform a part of the contractor's contract work;

- Foreign contractors and foreign subcontractors providing services, providing services associated with goods, supplying and distributing goods (including cases where they authorize or hire Vietnamese organizations or individuals to perform part of the distribution service or other services related to the sale of goods in Vietnam) in the form of on-the-spot export and import or according to international trade terms (Incoterms), except for processing and returning goods to foreign enterprises that commissioned the processing; providing goods and services in Vietnam through e-commerce and digital platform businesses.

For the supply and distribution of goods in Vietnam as stipulated in this point, it applies when the foreign contractor or foreign subcontractor remains the owner of the goods delivered to Vietnamese organizations or individuals, or is responsible for the costs of distribution, advertising, marketing, service quality, and quality of goods delivered to Vietnamese organizations or individuals, or sets the selling price of the goods or the price of the services provided;

- Foreign contractors and foreign subcontractors supplying goods in the form of delivery points located within the territory of Vietnam (except for cases stipulated in Clause 2 of this Article) or supplying goods accompanied by certain services performed in Vietnam such as advertising services, marketing, trade promotion activities, after-sales services, installation, commissioning, warranty, maintenance, replacement and other services accompanying the supply of goods (including cases where the accompanying services are free of charge), whether or not the provision of the above-mentioned services is included in the value of the goods supply contract;

- Foreign contractors and foreign subcontractors conduct negotiations and sign contracts in the name of foreign enterprises through Vietnamese organizations or individuals;

- Foreign contractors and foreign subcontractors exercise the right to export, import, and distribute goods in the Vietnamese market, purchase goods for export, and sell goods to Vietnamese traders in accordance with the law on commerce and the law on foreign trade management.

Here's how to determine the amount of corporate income tax payable:

The amount of corporate income tax payable by foreign contractors and foreign subcontractors is determined based on taxable revenue and a percentage of taxable revenue. Specifically, as follows:

In this context, taxable revenue for corporate income tax purposes is the total revenue received by the foreign contractor or foreign subcontractor, before deducting any taxes payable. Taxable revenue for corporate income tax purposes also includes any expenses paid by the Vietnamese party on behalf of the foreign contractor or foreign subcontractor (if any).