Legal Update – New policies effective from January 2026
- Le Hoang Anh
- 3 days ago
- 4 min read
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January 2026 features several notable legal issues, including reforms of land administrative procedures related to the exclusion of mortgage information on Certificate of Land Use Rights (the “Certificate”), corporate income tax incentives for newly established small and medium-sized enterprises, and an increase in reduction based on family circumstances for taxpayers and their dependents. This article provides a concise overview to help readers promptly grasp these key issues.
A. NO RECORDING OF MORTGAGED LAND INFORMATION ON THE LAND USE RIGHT CERTIFICATE
Pursuant to Clause 2, Article 11 of Resolution No. 254/2025/QH15, effective from 01 January 2026, in cases of registration of mortgages over land use rights and land-attached assets, changes shall be updated in the land database without being certified on the issued Certificate.
Accordingly, on 05 January 2026, the Ministry of Justice issued Official Dispatch No. 02/CDK&BTNN-QLDKBPBD providing guidance to Land Registration Offices under the Departments of Agriculture and Environment of provinces and centrally run cities, stipulating that mortgage registration of land use rights and land-attached assets shall not be certified on the Certificate, but instead be updated in the land database.
This change is expected to simplify administrative procedures, reduce costs, and align with the State’s digitalization policy. However, it also raises certain legal risks for buyers regarding the legal status of the property, particularly issues concerning who has the right to access the land database, whether the database is easily accessible, and whether it is updated on a regular basis. These are the issues of greatest concern to buyers in relation to the current regulation on not recording mortgaged land information on the Certificate.
B. CORPORATE INCOME TAX EXEMPTION FOR THREE YEARS FOR NEWLY ESTABLISHED SMALL AND MEDIUM-SIZED ENTERPRISES
In order to encourage the development of the private sector, on 15 January 2026, the Government issued Decree No. 20/2026/ND-CP, stipulating that small and medium-sized enterprises registering for business for the first time shall be exempt from corporate income tax for a period of three years from the date of issuance of the initial Enterprise Registration Certificate.
In addition, small and medium-sized enterprises that were granted an Enterprise Registration Certificate prior to the effective date of this Decree and are still within the incentive period shall continue to enjoy such incentives for the remaining duration.
However, this incentive shall not apply to the following cases:
(1) Newly established enterprises formed as a result of merger, consolidation, division, split, conversion of ownership, or conversion of enterprise type;
(2) Newly established enterprises in which the legal representative, general partner, or the person holding the largest capital contribution has participated in business activities in the capacity of a legal representative, general partner, or the person holding the largest capital contribution in enterprises that are currently operating or have been dissolved, where a period of less than 12 months has elapsed from the date of dissolution of the former enterprise to the date of establishment of the new enterprise.
This is an attractive incentive that should not be overlooked by those intending to start a business, as corporate income tax represents a significant financial obligation, and the exemption from corporate income tax provides important financial support for newly established enterprises when entering today’s highly competitive market.
C. INCREASE IN REDUCTION BASED ON FAMILY CIRCUMSTANCES FOR TAXPAYERS AND DEPENDENTS
Previously, under Resolution No. 954/2020/UBTVQH14, the reduction based on family circumstances for taxpayers was VND 11 million per month (VND 132 million per year), and the reduction for each dependent was VND 4.4 million per month.
However, pursuant to Clause 1, Article 10 of the Law on Personal Income Tax 2025, the reduction based on family circumstances for taxpayers has been increased to VND 15.5 million per month (VND 186 million per year), and the reduction for each dependent to VND 6.2 million per month. The 2025 Law on Personal Income Tax will take effect from 01 July 2026.
Furthermore, Clause 2, Article 10 of this Law provides that, based on changes in prices and income levels, the Government shall submit to the Standing Committee of the National Assembly the appropriate adjustment of reduction based on family circumstances in line with socio-economic conditions in each period. This is a new provision compared to the Law on Personal Income Tax 2007, aimed at ensuring the stability and flexibility of the law in response to socio-economic developments.
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Disclaimer:
This article
reflects the author's subjective viewpoint on the main topic mentioned in this article, providing the best reference value at the time of publishing;
is not considered the viewpoint or opinion of any state agency in any case; and
does not constitute legal advice from Minh Thien Law and should not be applied to resolve any specific legal situation.
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