2026 Tax Regulation Update For Real Estate Enterprises

On January 29, 2026, Sliner’s Tax Advisory Team conducted an on-site training session at the offices of VINAHUD, one of Vietnam’s established real estate development and urban housing companies. The session provided a comprehensive walkthrough of the new tax regulations taking effect in 2025–2026, with a focused lens on their direct implications for real estate enterprises.

The training covered four critical areas - Corporate Income Tax (CIT), Value Added Tax (VAT), invoice regulations, and tax administration - equipping VINAHUD’s finance and accounting teams with the knowledge to navigate compliance obligations and identify opportunities under the new framework.

Training Objectives: Update key tax changes for the 2025 tax finalization and fiscal year 2026, assess immediate and long-term impacts on real estate operations, identify sector-specific compliance risks, and recommend actionable strategies for adaptation.

Four Pillars of the 2026 Tax Policy

The session opened with an overview of the new legislative landscape, highlighting the four key regulatory pillars affecting real estate enterprises and their respective effective dates.

Tighter Compliance, Progressive Rates, Restricted Loss Offsets

Non-Cash Payment Threshold: From VND 20 Million to VND 5 Million

One of the most impactful changes for daily operations is the reduction of the non-cash payment threshold from VND 20 million to VND 5 million (VAT-inclusive) for purchased goods and services, including imports. This means that any transaction at or above VND 5 million must be supported by non-cash payment documentation to qualify as a deductible expense for CIT purposes.

Additionally, salary and wage payments exceeding VND 5 million now require non-cash payment documentation. The Ministry of Finance confirmed this interpretation in Official Letter No. 218/CST-TN dated January 27, 2026. Two new forms of accepted non-cash payment were also introduced: payment via stocks or bonds as stipulated in contracts, and authorized employee payments under the enterprise’s internal financial regulations.

Progressive CIT Rates by Revenue

The new CIT framework introduces a progressive rate structure based on annual revenue tiers: 15% for enterprises with revenue up to VND 3 billion, 17% for VND 3–50 billion, and the standard 20% for revenue exceeding VND 50 billion. This structure primarily benefits smaller real estate developers and single-project companies. For large-scale RE enterprises like VINAHUD, the standard 20% rate continues to apply.

Real Estate Loss Offset Restrictions

Under the previous regime (Circular 96/2015/TT-BTC), losses from real estate activities could be offset against both ordinary business profits and tax-incentivized profits. Under Decree 320/2025, real estate losses can now only be offset against ordinary business profits, no longer against incentivized income. This change is designed to manage real estate risk separately and prevent the use of RE losses to reduce preferential tax obligations.

Deductible Land Prices, Input VAT Rules, and Refund Conditions

VAT Taxable Price for Real Estate Activities

The session provided an in-depth analysis of how the VAT taxable price for real estate is calculated: the selling price (excluding VAT) minus land use fees or land rental payments remitted to the state budget (the “deductible land price”). This deductible amount varies depending on how the land was acquired — whether through state allocation, BT (Build-Transfer) contracts, capital contribution, or transfer from organizations or individuals — each with its own specific calculation methodology under Article 8, Decree 181/2025.

Notable change: The new regulations remove the concept of “compensation and site clearance costs” from the deductible land price definition. While the wording has changed, this does not fundamentally alter the current applicable taxable price methodology. However, enterprises must now cross-reference the Land Law for site clearance expense compliance. The principle for determining the deductible land price is now based on actual land use fees paid, independent of timing considerations as was previously the case.

Input VAT Deduction for Late Contract Payments

Pursuant to Article 26, Decree 181/2025, for deferred or installment purchases of VND 5 million or above, businesses may still claim input VAT credit before the payment due date as stipulated in the contract. However, if the payment deadline passes without non-cash payment documentation, the business must declare and adjust downward the input VAT already deducted for the corresponding portion. This has significant cash flow implications for real estate enterprises with complex payment schedules across multiple contractors and project phases.

Removal of Seller’s VAT Obligation as Refund Condition

Decree 359/2025 abolished the requirement under Decree 181/2025 that the seller must have filed VAT declarations and paid outstanding VAT as a condition for the buyer’s VAT refund eligibility. With this decree in effect, all VAT refund conditions related to the seller’s compliance status have been removed, regardless of the applicable period. This is a meaningful simplification for real estate enterprises seeking VAT refunds on large-scale development projects.

Modernized Invoicing and Flexible Tax Administration

Key Invoice Changes under Decree 70/2025

The session walked through several critical updates to electronic invoicing rules. The digital signature timestamp must now be within one business day of the invoice issue date. The provision for canceling incorrectly issued invoices has been abolished — instead, before adjusting or replacing an erroneous e-invoice, the seller and buyer (if a business entity) must prepare a written agreement documenting the errors. For individual buyers, the seller must notify the buyer directly or via the seller’s website.

New buyer identification requirements were also introduced: budget-related entities must display their budget relationship code on invoices, and individual buyers must have their personal identification number shown. Notably, the session also addressed a practical scenario frequently encountered in real estate: how to handle invoices for project handovers with outstanding payments, distinguishing between contract value adjustments (which allow invoice amendments) and bad debt write-offs (which do not).

Quarterly Tax Filing & State Budget Obligation Dates

Newly established enterprises can now opt for monthly or quarterly tax filing from inception, reducing administrative pressure and supporting project cash flow management. In addition, Decree 373/2025 amended the rules for determining the date of obligation to the state budget for land-related transactions. From February 14, 2026, this date is now determined under Article 155 of the 2024 Land Law - and if administrative delays occur in file transfers or financial obligation determinations, the assessment date defaults to when the Land Registration Office received the complete application.

Tax Audit Risks and Recommended Actions

The session concluded with an identification of the most pressing tax audit risk areas specific to real estate enterprises, followed by concrete recommendations for VINAHUD and similar companies to strengthen their compliance posture ahead of the 2026 enforcement cycle.

1. Cash Payment Exposure

With the VND 5 million threshold, enterprises must systematically review all payment processes to eliminate cash transactions that could disqualify expense deductions.

2. Brokerage & Site Clearance Documentation

Brokerage fees and site clearance costs remain a frequent audit trigger. Complete documentation chains are essential to substantiate these expenses.

3. Input VAT Credit Procedures

Late payments without non-cash documentation now require immediate VAT adjustment declarations — a process that must be built into internal accounting workflows.

4. Land Obligation Timing Errors

Incorrectly determining the date of state budget obligations for land transactions is a compliance risk that can trigger penalties and late payment interest.

Sliner’s Recommended Actions

1. Review payment processes & contracts - Audit all existing contracts and payment workflows against the new VND 5 million non-cash threshold. Update procurement and HR payment procedures accordingly.

2. Standardize invoice & banking documentation - Ensure all invoice records, banking confirmations, and non-cash payment evidence are organized and audit-ready for each tax period.

3. Retrain accounting teams & project management - Conduct targeted training for accounting staff and project management teams on the new compliance requirements, particularly around invoice timing and VAT adjustment obligations.

4. Prepare proactively for 2026+ tax audits - Conduct internal pre-audit reviews focusing on the four risk areas identified above, ensuring documentation completeness and regulatory alignment before formal inspections.

The 2026 tax policy reforms do not increase the effective CIT rate for large real estate enterprises. However, they substantially tighten the conditions around expense deductibility and VAT compliance. Enterprises that prepare early will be better positioned to reduce risk exposure and optimize cash flow under the new framework.

At Sliner, we stand ready to support enterprises across sectors in navigating these regulatory transitions - from tax compliance reviews and documentation standardization to staff training and pre-audit preparation. Your proactive compliance today is the foundation for sustainable growth tomorrow.

Need Tax Advisory for Your Enterprise?

Whether you’re preparing for the 2025 tax finalization or planning for 2026 and beyond, Sliner’s team brings sector-specific expertise to help you stay ahead of regulatory changes.

Contact Us: [email protected]  |  www.sliner.sg

Disclaimer: This event recap is intended for general informational purposes only and does not constitute professional tax, legal, or financial advice. Readers should consult qualified advisors regarding their specific circumstances.

Sliner International — Tax & Financial Advisory