Vietnam 2026 Tax Audits Target Loss-Making Firms

The Vietnamese Department of Taxation issued an official letter signaling a more aggressive and targeted enforcement approach for 2026. Through the letter, the Department specifically instructed local tax offices, the Large Enterprise Division, and the e-commerce unit to tighten oversight and carry out focused, or as stated in the document, “thematic” audits. 

The issuance of the letter was followed by the publication of a decision that formalizes the audit strategy for the year by approving a detailed plan and identifying a specific group of companies that will be subject to these specialized audits.

New Tax Audit Measures

The new tax audit measures are specifically targeting companies that consistently report losses over multiple years or operate with unusually low profit margins, as these profiles are often seen as higher risk for profit shifting, tax avoidance, or inaccurate reporting. Thus, it is clear that the measures are tailored to zero in on companies whose financial behavior appears inconsistent with industry norms. Moreover, the Department of Taxation identified 108 such companies that will undergo tax audits.

To fully operationalize tax audits, the Department of Taxation divided these businesses into two groups. The first group consists of companies that will be audited immediately in 2026, with inspections carried out directly at the companies’ premises. 

The second group includes very large enterprises, meaning those with annual revenue of at least VND 1 trillion (around USD 38 million), that reported consecutive losses in 2023 and 2024. Depending on the financial data from 2025, the Department of Taxation will make a decision on whether to include them in the audit program.

Throughout the tax audit process, the authority will focus on key areas where discrepancies often arise, such as whether revenues, costs, and profits are credibly aligned, how and when revenue and VAT obligations are recognized, and whether VAT filings, deductible expenses, and related-party transactions are properly reported. The tax audit program will begin in April 2026 and will continue until the end of 2026.

Conclusion

All measures introduced by the Vietnamese Department of Taxation signal a shift toward a more risk-based tax administration, in which auditors allocate resources to taxpayers who may be understating taxable income. The new, more data-driven, and narrowly scoped special tax audits should ultimately improve compliance and protect the tax base.

Source: KPMG