Initial Tax Registration for FDI Companies in Vietnam

A newly established FDI company does not “register tax” as a standalone procedure: the enterprise code is simultaneously the tax code under the single-window interlinked mechanism (Decree 168/2025/NĐ-CP). However, “initial tax registration” in practice consists of a chain of tasks to complete immediately: registering the VAT calculation method, registering for e-invoices, registering digital signatures and the electronic tax account, declaring the business licence tax, and notifying the bank account. Missing any link can lead to late-declaration penalties in the very first year. Note: the Law on Tax Administration 108/2025/QH15, effective from 01/7/2026, will replace Law 38/2019 — enterprises need to follow it to update new obligations.

For FLAT LAW FIRM’s clients, a good legal matter plan must answer three questions: whether the dossier has sufficient legal basis, which authority has jurisdiction at the time of implementation, and which solution reduces risk while fitting the client’s commercial or family objectives.

This article is written in a practical direction, makes no commitment of results and does not replace individual advice. The analyses are built on current legislation, while using a cautious naming of authorities after changes in the state apparatus, administrative boundaries and the court system.

Quick summary

Topic	Initial tax registration for FDI companies
For whom	FDI companies, foreign investors and internal legal teams.
Points to check	Entity qualification, supporting documents, competent authority, implementation deadlines and risks arising at filing time.
Desired outcome	A clear handling plan, standardised documents, quantified risks and business/family decisions made on a cautious legal basis.

Key legal issues: Initial tax registration for FDI companies

The “initial tax registration” of an FDI company is not a standalone procedure: under the single-window interlinked mechanism, the enterprise code issued at incorporation registration is simultaneously the enterprise’s tax code (Decree 168/2025/NĐ-CP). However, for the enterprise to truly operate, after obtaining the tax code there is a chain of mandatory tasks to complete immediately: registering the value-added tax calculation method, registering for e-invoices, registering digital signatures and the electronic tax transaction account, declaring the business licence tax, and registering the bank account with the tax authority.

The most commonly missed item is the business licence tax: newly established enterprises must declare and pay it within the statutory deadline (there is a first-year exemption policy in some cases under current regulations — check the instrument in force at the time). Late declarations or late payments of initial tax obligations are all subject to administrative tax sanctions, and even small initial tax debts obstruct later procedures such as tax refunds and licence adjustments.

For FDI companies, note the Law on Tax Administration 108/2025/QH15 (effective with many new tax administration provisions) and the tax registration obligations of foreign contractors (if any). All initial registration information — tax calculation method, declaration periods, bank account — needs to be standardised from the start, because later amendments take time and may trigger supplementary declaration obligations.

Legal basis and verification sources

Process or dossier checklist

Step 1 — Receive the tax code: the enterprise code on the Enterprise Registration Certificate is simultaneously the tax code; check the information has been transmitted to the tax authority via the interlinked mechanism.

Step 2 — Register the VAT calculation method: choose the credit or direct method and register with the directly managing tax authority as soon as operations begin.

Step 3 — Register e-invoices: register for e-invoice use with the tax authority and issue invoices only after approval (details in the article on e-invoices for FDI companies).

Step 4 — Digital signatures and e-tax: register a digital signature, open an electronic tax transaction account to declare, pay taxes and receive notices from the tax authority.

Step 5 — Licence tax and bank account: declare and pay the business licence tax on time; notify the enterprise’s bank account to the tax authority; open accounting books and register the applicable accounting regime.

Common risks

Risk 1 — Late initial declarations: late registration of the tax calculation method, late licence-tax declarations — administrative tax sanctions from the first months of operation.

Risk 2 — Issuing invoices before approval: invalid invoices, buyers cannot credit input VAT; the enterprise is sanctioned and must remediate the incorrect invoices.

Risk 3 — No digital signature/e-tax account: cannot declare or pay taxes electronically; misses tax authority notices and is handled in absentia.

Risk 4 — Inconsistent registration information: address, bank account or representative on tax filings differing from enterprise registration — required explanations, inspections during tax refunds or licence adjustments.

Risk 5 — Missing foreign-investor obligations: where foreign contractors are involved or capital transfers occur, foreign contractor tax and capital transfer tax obligations arise, needing separate registration and declarations.

Competent authorities and filing points

The authority receiving and managing the initial tax obligations is the tax authority directly managing the enterprise (where its head office is located). Most procedures — registering the tax calculation method, e-invoice registration, licence-tax declaration, bank account registration — are done via the electronic tax system, combined with paper filings where required.

The tax code is issued through the interlinked mechanism at the business registration authority (the Department of Finance) upon enterprise formation. Enterprises should proactively work with the directly managing tax authority right after licensing to be guided on the tax calculation method, declaration periods and obligations applicable to their specific business model.

When to contact a lawyer

A lawyer (coordinated with a tax accountant) should participate when the business model is complex, has foreign elements, or when a quick decision is needed before declaring or filing. Specifically on initial tax registration, contact early in three cases: (1) the enterprise has transactions with its parent company/foreign affiliates from the start, needing a suitable tax calculation method and invoicing mechanism designed; (2) it is unclear whether the first-year licence-tax exemption applies; (3) there are foreign contractors or expected capital transfers in the early stage, needing foreign contractor tax and capital transfer tax obligations registered from the start to avoid arrears.

What FLAT LAW FIRM does

FLAT LAW FIRM (coordinated with tax accountants) sets up the “initial tax machinery” for FDI companies: choosing the VAT calculation method, registering for e-invoices, registering digital signatures and electronic tax accounts, declaring the licence tax, notifying the bank account — complete in the first weeks after licensing.

For models with transactions with the parent company or foreign affiliates from the start, we advise on compatible invoice, contract and payment-mechanism structures — so there is no costly remediation once transactions have arisen and the tax authority has recorded them.

We track changes in tax legislation — especially the Law on Tax Administration 108/2025/QH15 (effective from 01/7/2026, replacing Law 38/2019) — and update the compliance checklist for each enterprise, so tax obligations always stay one step ahead of management requirements.

Talk to FLAT LAW FIRM

If your enterprise or foreign investor needs support with investment, licences, contracts, disputes or regular legal advice in Vietnam, FLAT LAW FIRM can help assess the matter, propose solutions and implement appropriate work. Please contact us for advice.

FAQ

Where does an FDI company’s tax code come from?

The enterprise code issued at incorporation registration is simultaneously the enterprise’s tax code under the interlinked mechanism; no separate tax-code issuance procedure is needed.

Must a newly established company pay the licence tax?

Yes, except in exempted cases (e.g. the first year of establishment under some policies). The rate depends on the charter capital on the licence.

When must e-invoices be registered?

Before selling goods or providing services. The enterprise registers for e-invoice use with the tax authority and may only issue invoices after approval.

What are digital signatures for?

They are used for electronic tax declarations, signing e-invoices, social insurance and customs transactions. Register one right after licensing.

What does the new Law on Tax Administration change?

The Law on Tax Administration 108/2025/QH15 (effective 01/7/2026, replacing Law 38/2019) will adjust many rules on registration, declarations and refunds. FDI companies should review their compliance processes before the new law takes effect.

When are a lawyer/tax accountant needed?

From the setup stage: choosing the tax calculation method, structuring invoices and declaration processes to fit the business model to avoid costly remediation later.