Construction and interiors: 30% tax relief and project revenue review

1. Build a project register before calculating relief

Assign each project an ID linked to its contracting taxpayer, client, initial value, amendments, acceptance milestones and invoices. Contractors also selling materials or design should distinguish activities so the accountant can apply the appropriate revenue and tax treatment.

The annual VND 10 billion ceiling is not a per-project allowance. A company must aggregate relevant revenue even when each individual project is below the ceiling. Household businesses use the PIT route; companies review CIT under Decree 398.

2. Distinguish advances, acceptance and warranty retention

Maintain separate columns for advances, accepted work, invoices, receivables and warranty retention. These are different views of the contract, not five revenue streams to add together. Determine recognition from applicable rules and actual records before assessing relief.

Unpaid or retained amounts are not automatically excluded from revenue, and cash received is not automatically all current-year revenue. Multi-year contracts require supported allocation under applicable rules, not arbitrary payment or acceptance timing to preserve eligibility.

3. Review year-end variations and calculate an example

Illustration: a company has VND 9.3 billion of properly determined eligibility revenue. A VND 0.8 billion variation belongs to the year only after recognition is reviewed. If all belongs to that year, revenue becomes VND 10.1 billion and eligibility must be reassessed. Contract face value or cash collection alone is insufficient.

Separate calculation: another company has VND 6.2 billion of eligible revenue and CIT before this relief, after any other incentives, of VND 120 million. If all conditions hold, relief is VND 36 million and tax remaining is VND 84 million. Do not multiply revenue by 30%; the tax amount is assumed, not a sector tax rate.

4. Choose the correct filing route and retain receipts

Business individuals review Form 01 with the applicable return. Withholding or filing agents use Form 02 for their responsibilities. Companies self-determine relief when making quarterly CIT payments; the individual’s Form 01 is not a company CIT-relief form.

Suggested workflow: close the period, assess eligibility, calculate tax before relief, calculate relief, check official forms, file through the applicable electronic tax channel, and retain signed files, acknowledgements and payment evidence. These are working steps, not universal portal button names. Review amendment rules for missed relief rather than arbitrarily deducting it from a later payment.

5. Monitor the ceiling and prepare the evidence pack

Individuals exceeding VND 10 billion actual annual revenue reverse relief using Form 03 with the filing for the threshold-crossing period. The specified late-payment exclusion ends at that period’s filing deadline. Companies pay the shortfall and follow Article 24(3) of Decree 252/2026/ND-CP rather than assuming the individual rule applies.

Assign someone to update monthly cumulative revenue and outstanding orders or contracts, with a review date. Retain source records, calculations and reconciliations for independent review. The following is a recommended internal evidence pack, not a universal mandatory attachment list.

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