Introduction
For foreign-invested enterprises (FIEs) in Vietnam, a tax inspection is not a question of if but when. And 2026 is the year the rules around it changed significantly.
From 1 July 2026, a new Law on Tax Administration (Luật Quản lý thuế / Law No. 108/2025/QH15) took effect, replacing the old law (Law No. 38/2019/QH14). Risk-based selection of inspection targets was already in use before this, but under the new law its framework has become more systematic and stronger, together with greater use of data and compliance assessment. Alongside this, experts report that inspections have intensified in 2026, focusing on loss-making and low-margin companies.
This article organizes, from a manager’s point of view, what changed in Vietnam’s tax inspections in 2026, which companies are more likely to be selected, and what a manager who is not an accounting specialist should prepare in advance. Because individual tax positions differ by company, we recommend confirming actual responses with your accounting firm or tax advisor.
1. What changed in Vietnam’s tax inspections in 2026
The new Law on Tax Administration effective 1 July 2026 (Law No. 108/2025/QH15) places digitalization, data use, compliance management, and risk management on a more systematic legal footing. Its implementing instruments took effect on the same date: Decree No. 252/2026/NĐ-CP, and — for the specific rules on compliance and risk management — Circular No. 94/2026/TT-BTC, which replaces the former Circular No. 31/2021/TT-BTC (overview of the new regime).
Risk-based administration means the authorities compare your filing data against industry averages and prioritize higher-risk companies for inspection. It has been in use since the days of the old law (Law No. 38/2019/QH14) and the former Circular No. 31/2021/TT-BTC, but under the new law and Circular No. 94/2026/TT-BTC it has been reorganized into a more systematic framework that includes compliance assessment and data-driven automation. Put the other way around: the harder your numbers are to explain, the more likely you are to be selected.
On top of this, experts such as KPMG report that a special audit plan is running from April through December 2026. In particular, companies with annual revenue of VND 1,000 billion or more (roughly VND 1 trillion) that posted losses in both 2023 and 2024 are among those flagged for further analysis, with focus areas including the reasonableness of the revenue–cost–profit relationship, revenue recognition timing, VAT, and related-party transactions (KPMG’s overview).
2. Which companies are more likely to be selected
Under risk-based selection, the companies whose numbers cannot be explained tend to get flagged. It helps to separate the types the authorities are prioritizing in 2026 from the cases that generally carry higher tax risk.
Types the authorities are prioritizing in 2026:
- Losses continuing for several years, or margins unnaturally low compared with peers (especially larger companies).
- Frequent related-party transactions (payments to the parent, intra-group purchases, royalties). Intra-group charges and related-party transactions are among the focus areas for 2026.
Cases that generally carry higher tax risk:
- Revenue or profit swinging sharply from the prior year.
- Cash-heavy business models where the reality of revenue is hard to see.
- Frequent late filings or amended returns.
- Large input VAT credits or VAT refunds.
For FIEs, transfer pricing is especially easy to overlook. A company that regularly transacts with its parent may fall within the scope of related-party transaction filing and transfer pricing documentation. That said, certain exemptions apply (based on revenue and transaction-size thresholds), so it is important to confirm with your accounting firm whether documentation is actually required for you. On 1 July 2026, the new transfer pricing decree, Decree No. 255/2026/NĐ-CP, took effect, replacing the old decree (Decree No. 132/2020/NĐ-CP). The new decree also raises the documentation-exemption revenue threshold for some taxpayers, among other changes (overview of the new decree).
3. How a tax inspection unfolds
A tax inspection roughly follows the steps below. As a manager, you do not need the fine detail — just a sense of what is asked at each stage.
- Advance notice. In most cases, written notice arrives setting out the period and scope of the inspection.
- On-site review. Inspectors examine the ledgers, supporting documents, and contracts, and ask about the content of transactions and the basis for how they were treated.
- Presentation of findings. Based on the review, the findings are set out, and the company provides explanations and additional documents as needed.
- Conclusion. As an adjustment, additional tax may be assessed along with penalties and late-payment interest. Where conduct is judged serious, heavier sanctions can apply.
A tax inspection record (biên bản kiểm tra thuế) is prepared. A routine inspection generally runs up to 20 days, or up to 40 days for companies with related-party transactions, each extendable once in certain cases. Frequency and the period covered vary with the company’s situation, but at every stage it is important to be able to explain “why we treated it this way,” in both documents and words.
One practical note: when inspectors do come on-site, how you receive them matters more than many managers expect. Treating them as guests — sharing a meal, offering fruit, creating a courteous and welcoming atmosphere — can make a real difference. Inspectors are people too, and good rapport often leads to a smoother process and more flexible handling. This works best, of course, on top of solid documents and honest explanations.
4. The issues most often raised
A package of tax-related decrees was overhauled in July 2026 (overview of the 2026 changes). Inspections tend to concentrate on the following:
- Disallowed deductions. If the supporting documents, contracts, or evidence of substance are insufficient, deductions are disallowed. Deductibility carries documentation requirements, which are organized in the CIT implementing circular, Circular No. 20/2026/TT-BTC.
- Disallowed input VAT credits. Without a valid electronic invoice (e-invoice) and proof of payment, credits are not allowed. E-invoices are governed by Decree No. 254/2026/NĐ-CP.
- Transfer pricing. Without a documented basis (contemporaneous documentation) for related-party pricing, income can be adjusted upward. Decree No. 255/2026/NĐ-CP is the current framework.
- Withholding and foreign contractor tax (FCT). Missed withholding on payments abroad is a classic finding.
- Payroll and personal income tax (PIT). Errors in taxable/non-taxable allowances or in withholding become targets.
The common thread is that it is less about “the treatment itself” and more about “the documents and rationale that back it up.”
5. What managers should prepare in advance
You cannot prepare for an inspection only after the notice arrives. What you should do in calm times comes down to five points:
- Organize and keep supporting documents monthly. Retain invoices, contracts, VAT invoices, and remittance records in a form that lets you trace the flow of a transaction later.
- Keep contracts consistent with reality. Check periodically that contract terms do not diverge from what actually happened in transactions and payments.
- Prepare transfer pricing documentation. Companies with related-party transactions should keep documentation that justifies their pricing. It is safest to confirm whether it is required with your accounting firm.
- Keep an internal record of the rationale for key tax positions. Rather than leaving it to the firm, keep a note or email inside the company on why a treatment was chosen.
- Secure the contact and access to data. Decide who handles the inspection, and make sure you can access your accounting data and e-filing accounts yourself.
These are needed whether or not you outsource the accounting. For how to structure the accounting function itself, see also the separate article, “Vietnam FIE Accounting: In-house vs Outsourcing (Accounting Firm & BPO).”
6. If you outsource to an accounting firm
Even if you outsource the bookkeeping and filing, the duty to explain and the final responsibility in a tax inspection stay with the company.
The firm supports you by preparing documents, attending the inspection, and giving technical advice. But only the company can explain the background of a transaction and the business judgment behind it. The inspector’s questions ultimately come back to the company. If no one inside knows the past context, you cannot answer on the spot, and the response drags on.
In other words, precisely because you outsource, keeping a minimum “ability to explain” inside the company is what protects you in an inspection.
Conclusion
In Vietnam in 2026, the overhaul of the Law on Tax Administration has made the already risk-based selection of inspection targets more systematic and stronger, together with greater use of data and compliance assessment. It is an era in which the harder a company’s numbers are to explain, the more exposed it is in an inspection.
That said, managers are not expected to have deep tax knowledge. Organize your documents, align contracts with reality, keep a record of the rationale for key judgments, and have the necessary documentation ready. This steady work in calm times is what protects the company when an inspection begins. When a specific judgment is unclear, we recommend consulting your accounting firm or tax advisor early.
FAQ
Q1. If we are loss-making, will we definitely be inspected?
Not necessarily. Risk-based selection has been in use for some time, but under the 2026 Law on Tax Administration (Law No. 108/2025/QH15) and Circular No. 94/2026/TT-BTC it has become more systematic, and loss-making or low-margin companies are more likely to be flagged. Larger companies with consecutive losses, in particular, are among the priorities for 2026. What matters is less the loss itself than being able to explain those numbers with documents and rationale.
Q2. If we outsource to an accounting firm, are we safe in an inspection too?
You can outsource the work and the attendance, but the duty to explain and the final responsibility stay with the company. The firm supports you with document preparation and technical advice, but only the company can explain the background of a transaction and the business judgment. Even when you outsource, keeping a minimum “ability to explain” inside is your safeguard.
Q3. What should we prepare first?
A good starting point is checking that your supporting documents and filed returns for the last one to two years are consistent. Alongside that, align contracts with reality, confirm whether transfer pricing documentation is required if you have related-party transactions, and record the rationale for key tax positions. For scope and priority, it is safest to consult your accounting firm.
