•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
On May 7, 2026, a draft decree outlining how certain provisions of Vietnam’s Tax Management Law will be implemented includes regulations on declaring and paying VAT, as well as a VAT withholding mechanism, for business collaborations and for digital platforms.
The Vietnam Chamber of Commerce and Industry (VCCI) said the draft would require organizations to declare VAT on the full revenue from the collaboration, regardless of how profits are shared. VCCI also noted that the draft would require withholding and remitting personal income tax for cooperating individuals.
VCCI argued this approach may not align with the economic substance of transactions and could create practical difficulties for different business models. It cited ride-hailing services as an example, where platforms and drivers typically split revenue based on negotiated shares.
“Adjust the regulation so the organization only declares and pays value-added tax on the portion of revenue or income that the individual receives under the business cooperation contract, while continuing to fulfill the obligation to declare and withhold personal income tax for the individual partner.” (VCCI comment)
According to VCCI, under the draft’s calculation method, firms would still pay VAT at 10% on total trip revenue even if they only realize a small portion of that revenue. VCCI said this could force businesses to incur VAT obligations higher than the revenue they actually earn, and that input invoices from drivers may be insufficient to deduct legitimate costs.
For drivers, VCCI said applying VAT rates equivalent to those for businesses is not appropriate because individual traders often qualify for exemptions or are subject to lower tax rates.
VCCI also commented on the draft’s provisions on platform responsibilities to withhold and remit taxes on behalf of household businesses and individual traders. It said draft Articles 43 and 44 would require platform owners to withhold taxes based on a percentage of revenue generated in Vietnam, in line with VAT, corporate income tax, and personal income tax laws, while repealing Decree 117/2025/NĐ-CP.
VCCI said Decree 117/2025/NĐ-CP previously provided a clear basis for withholding tax. It added that current sectoral tax rules do not specify withholding rates, creating difficulties given the wide range of goods and services offered on digital platforms.
VCCI reported that the business community has argued that repealing Decree 117 without a full replacement is inappropriate. It said platform-withheld taxes from households and individual traders represent tax collection at source and are temporary in nature.
VCCI proposed two alternatives:
Add specific percentage-based rules on revenue to determine withholding tax in a manner similar to the previous approach. VCCI cited examples for VAT (1% on goods, 5% on services, 3% on transport) and for resident individuals’ personal income tax (0.5% on goods, 2% on services, 1.5% on transport or services related to goods). It also cited examples for non-residents (1%, 5%, and 2% respectively).
If additional time is needed to complete sector-specific tax regulations, retain the force of Decree 117/2025/NĐ-CP until replacement rules are issued, to avoid legal gaps and ensure continuity of tax obligations.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
