Decree 70/2025/ND-CP on Tax Deduction Voucher Timing in Vietnam

On March 20, 2025, Decree 70/2025/ND-CP amending and supplementing a number of articles of Decree 123/2020/ND-CP dated October 19, 2020 of the Government regulating invoices and documents was issued. The Decree took effect from June 1, 2015 and amended and supplemented many contents compared to Decree 123/2020/ND-CP, including changes in the time of preparing tax deduction documents. Below, Viet An Law will update notable provisions of Decree 70/2025/ND-CP on tax deduction voucher timing in Vietnam.

How are vouchers, tax deductions, and personal income tax deduction vouchers understood?

A voucher is a document used to record information on deducted taxes, tax revenues, fees and charges belonging to the state budget according to the provisions of the law on tax administration.

Tax deduction is the act of organizations and individuals paying income tax to deduct the amount of tax payable from the taxpayer’s income before paying the income tax.

A personal income tax deduction voucher is a type of document recording information on the deducted personal income tax issued by organizations and individuals paying income to individuals whose personal income tax is deducted.

How many types of documents are there in the field of tax, fee and charge management?

According to Article 30 of Decree 123/2020/ND-CP, documents in the field of tax, fee and charge management of tax authorities include Personal income tax deduction documents and Receipts (including Tax, fee and charge receipts without pre-printed face value; Tax, fee and charge receipts with pre-printed face value; Tax, fee and charge receipts).

However, Decree 70/2025/ND-CP has added tax deduction documents for business activities on e-commerce and digital platforms. Thus, currently in the field of tax, fee and charge management, there are the following types of documents:

• Personal income tax deduction documents, tax deduction documents for business activities on e-commerce platforms, and digital platforms.
• Receipts (including receipts for tax, fee, and charge collection without pre-printed face value; receipts for tax, fee, and charge collection with pre-printed face value; receipts for tax, fee, and charge collection).

Decree 70/2025/ND-CP on the time of preparing tax deduction documents

According to Clause 17, Article 1 of Decree 70/2025/ND-CP amending and supplementing Article 31 of Decree 123/2020/ND-CP, the time of preparing tax deduction documents and the time of signing the documents are prescribed as follows:

• At the time of deducting personal income tax, collecting taxes, fees, and charges, the organization deducting personal income tax, the organization collecting taxes, fees, and charges must prepare documents and receipts and give them to the person whose income is subject to tax deduction, the person paying taxes, fees, and charges.
• The time of signing the document is the time when the organization or individual deducting personal income tax, the organization collecting taxes, fees, and charges electronically, uses the digital signature to sign the electronic document displayed in the format of day, month, and year of the calendar year.

Thus, from June 1, 2025, when Decree 70/2025/ND-CP takes effect, the time of making personal income tax deduction documents is determined to be at the time of personal income tax deduction. In the case of electronic documents, the time of signing the document is the time of tax deduction, displayed as the day, month, and year of the calendar year.

Principles for establishing, managing and using personal income tax deduction voucher according to Decree 70/2025/ND-CP

Pursuant to Point a, Clause 3, Article 1 of Decree 70/2025/ND-CP amending and supplementing Clause 2, Article 4 of Decree 123/2020/ND-CP, when deducting personal income tax, the following principles must be followed:

• Organizations and individuals that deduct tax must prepare tax deduction documents and give them to people whose income is subject to tax deduction and must fully record the contents according to this regulation.
• In case of using electronic documents, they must follow the standard data format of the tax authority. In case of individuals authorizing tax settlement, personal income tax deduction documents will not be issued.
• For individuals who do not sign a labor contract or sign a labor contract for less than 03 months, the organization or individual that pays income shall issue a tax deduction document for each tax deduction or issue one deduction document for multiple tax deductions in a tax year when requested by the individual.
• For individuals signing a labor contract for 03 months or more, the organization or individual paying the income will only issue the individual one tax deduction certificate in a tax year.

Electronic document format

According to Clause 20, Article 1 of Decree 70/2025/ND-CP, the format of electronic documents is prescribed as follows:

• The electronic document format uses XML text formatting language (XML is the abbreviation of the English phrase “eXtensible Markup Language” created for the purpose of sharing electronic data between information technology systems).
• The electronic document format consists of two components: the component containing electronic document business data and the component containing digital signature data.
• The General Department of Taxation and the General Department of Customs develop and publish the component containing electronic document business data, the component containing digital signature data and provide tools to display the contents of electronic documents according to regulations.

In addition, electronic documents must display the full and accurate contents of the document to ensure that they do not lead to misunderstandings so that users can read them electronically.

What are the contents of a personal income tax deduction voucher?

The contents of personal income tax deduction vouchers are specified in Clause 18, Article 1 of Decree 70/2025/ND-CP amending and supplementing Clause 1, Article 32 of Decree 123/2020/ND-CP, specifically as follows:

• Name of tax deduction voucher; symbol of tax deduction voucher form, symbol of tax deduction voucher, serial number of tax deduction voucher.
• Name, address, tax code of the organization or individual paying the income.
• Name, address, telephone number, tax code of the individual receiving the income (if the individual already has a tax code) or personal identification number.
• Nationality (if the taxpayer is not of Vietnamese descent).
• Income, income payment time, total taxable income, compulsory insurance premiums; charity, humanitarian, and education incentives; tax deducted.
• Date, month, and year of tax deduction voucher.
• Full name and signature of the person paying the income.

Note: In case of using electronic personal income tax deduction documents, the signature on the electronic documents is a digital signature.

Above is the entire content related to Decree 70/2025/ND-CP on tax deduction voucher timing in Vietnam. Customers who need legal advice, please contact Viet An Law for the fastest, most professional support, at the most reasonable cost!