Tax & Legal Newsletter | November 2025
Vietnam Tax and Legal Updates: Foreign Employees, PIT Deductions and Foreign Ownership in Credit Institutions
JPA Vietnam highlights key regulatory developments in November 2025, including new rules on foreign employees working in Vietnam, increased family circumstance deductions for personal income tax, and amendments to foreign shareholding regulations in Vietnamese credit institutions.
This newsletter summarizes selected tax and legal updates that may affect foreign-invested enterprises, employers, HR and payroll teams, finance departments, and investors operating in Vietnam.
Contents
01
Decree No. 219/2025/ND-CP on foreign employees working in Vietnam
Issued by the Government on 7 August 2025, Decree No. 219/2025/ND-CP provides regulations on foreign employees working in Vietnam. The Decree replaces Decree No. 152/2020/ND-CP and Decree No. 70/2023/ND-CP, which amended and supplemented Decree No. 152/2020/ND-CP.
Effective date: Decree No. 219/2025/ND-CP takes effect from 7 August 2025.
Key changes compared with Decree No. 152/2020/ND-CP
| Topic | Previous regulation under Decree No. 152/2020/ND-CP | New regulation under Decree No. 219/2025/ND-CP |
|---|---|---|
| Conditions for experts | Experts were required to hold a university degree or higher, or equivalent, and have at least three years of experience; or have at least five years of experience and a relevant professional certificate. | Experts may qualify with a university degree or higher and at least two years of experience; or a university degree or higher in a relevant field and at least one year of experience. |
| Technical workers | Technical workers were required to have completed technical or specialized training for at least one year and have at least three years of experience in the trained field; or have at least five years of relevant work experience. | Technical workers may qualify with at least one year of training and at least two years of experience; or at least three years of relevant work experience. |
| Executive directors | Certain executive director positions required at least three years of experience. | The Decree continues to clarify criteria for executives and foreign employees in managerial or specialized roles. |
| Competent authority | Work permits were issued by the Ministry of Labour, Invalids and Social Affairs or the Department of Labour, Invalids and Social Affairs. | The Provincial People’s Committee is identified as the competent authority for issuing work permits to foreign employees. |
| Electronic procedures | Electronic transactions for work permit procedures were not specifically regulated. | Employers are required to submit applications for issuance, reissuance, renewal of work permits and work permit exemption confirmations online via the National Public Service Portal. |
Foreign workers exempt from work permit requirements
Decree No. 219/2025/ND-CP expands and clarifies several cases where foreign workers may be exempt from the requirement to obtain a work permit.
- Foreign managers, executive directors, experts or technical workers entering Vietnam to work for a total period of less than 90 days in a calendar year.
- Intra-company transferees who have been employed by a foreign enterprise for at least 12 consecutive months.
- Foreign students or trainees with a training agreement, internship agreement or job offer letter from an employer in Vietnam.
- Foreign workers certified by the Ministry of Education and Training entering Vietnam for teaching, research or transfer of international education programs, or acting in management positions at certain educational institutions.
- Persons certified by ministries, ministerial agencies or provincial People’s Committees to enter Vietnam for work in finance, science, technology, innovation, national digital transformation or priority socio-economic development sectors.
Work permit procedures and processing timeline
| Topic | Previous regulation | New regulation |
|---|---|---|
| Application timing | Applications had to be submitted at least 15 working days before the foreign worker started working. | Applications must be submitted within 60 days and no less than 10 days before the expected start date. |
| Processing time | Within 10 working days from receipt of a complete work permit application. | Within 5 working days from receipt of a complete work permit application. |
| Medical examination report validity | The medical examination report was valid for no more than 12 months from the date of issuance. | The medical examination report is valid for 12 months from the date of signing the medical conclusion to the date of application submission, or must certify that the applicant meets health requirements under the Minister of Health’s regulations. |
| Digital health records | Not specified. | Medical examination results connected and shared on the Health Examination and Treatment Management Information System or the National Health Database may be used. |
02
Increase in family circumstance deductions for personal income tax
At the 50th session of the 15th National Assembly, the Standing Committee approved an increase in personal income tax family circumstance deductions. The new deduction levels will take effect from the 2026 tax period.
| Content | Previous level (2020–2025) | New level from 2026 |
|---|---|---|
| Deduction for taxpayers | VND 11,000,000 per month | VND 15,500,000 per month |
| Deduction for each dependent | VND 4,400,000 per month | VND 6,200,000 per month |
Business implication: Employers should review payroll systems, PIT withholding calculations and employee communications before the 2026 tax period to reflect the updated deduction levels.
03
Decree No. 69/2025/ND-CP amending Decree No. 01/2014/ND-CP
Decree No. 69/2025/ND-CP amends and supplements several articles of Decree No. 01/2014/ND-CP relating to foreign investors’ purchase of shares in Vietnamese credit institutions.
Expanded scope of regulation
Foreign-invested economic organizations that are required to meet the same relevant conditions and procedures as foreign investors when investing, contributing capital or purchasing shares must comply with regulations applicable to foreign investors when purchasing shares of Vietnamese credit institutions.
Amendments and supplements to definitions
- Foreign individual means any person holding foreign nationality.
- Foreign organization means an organization established under the law of a foreign country and carrying out business investment activities in Vietnam.
- Credit institution rated “very poor” and facing difficulties includes credit institutions placed under special control by the State Bank of Vietnam, commercial banks subject to mandatory transfer, and credit institutions rated “very poor” according to the latest ranking results announced by the State Bank of Vietnam.
Forms of share purchase and shareholding limits
Forms of share purchase
Foreign investors may purchase shares when credit institutions conduct share offerings, issue shares to increase charter capital, or sell treasury shares purchased before 1 January 2021.
Commercial banks
The total aggregate shareholding of foreign investors must not exceed 30% of the charter capital of a Vietnamese commercial bank.
Non-bank credit institutions
The total aggregate shareholding of foreign investors must not exceed 50% of the charter capital of a Vietnamese non-bank credit institution.
Mandatory transfer cases
Total foreign shareholding at the receiving bank under a mandatory transfer may exceed 30% but must not exceed 49% of charter capital, in accordance with the approved mandatory transfer plan.
Additional obligations for foreign investors
- When a foreign investor purchases additional shares resulting in an excess of the permitted shareholding limit, the investor must take appropriate actions to reduce its shareholding within a maximum of 6 months from the time the excess occurs.
- In cases where total shareholding exceeds the prescribed limit, the investor is not permitted to purchase additional shares of that credit institution until the total shareholding complies with the Decree.
- Upon expiry of a mandatory transfer plan, foreign investors may not purchase additional shares of the commercial bank acting as the transferee until total foreign shareholding at that bank falls below 30% of charter capital.
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This newsletter is for general information only and should not be considered professional advice for any specific case.
