The 2026 regulations regarding the revocation of Work Permits (WP) and Temporary Residence Cards (TRC) constitute an updated legal framework designed to tighten the management of foreign nationals residing and working in Vietnam. In the context of Vietnam’s accelerated digital transformation, the revocation process is now integrated into the National Population Database.
Simply put, when the legal basis for a foreign national’s presence at an enterprise no longer exists (e.g., contract termination, company dissolution), the WP and TRC must be returned to the issuing authorities. Understanding these regulations is crucial for accounting and business consulting firms, as it directly impacts the validity of personnel costs and the legal compliance of FDI enterprises in 2026.
Mandatory Cases for Work Permit Revocation under 2026 Regulations
In 2026, there are three typical cases where enterprises must perform the WP revocation procedure immediately to avoid legal risks:
1. Termination of Labor Contract:
When a labor contract ends, the WP automatically expires. According to 2026 regulations, within 15 days from the termination date, the employer must collect and return the original WP to the Department of Labor, Invalids and Social Affairs (DOLISA). Any delay may result in salary and insurance expenses incurred after this point being disqualified as deductible expenses by tax authorities.
2. Expired Work Permit without Renewal:
Enterprises must apply for renewal at least 5 days but no more than 45 days before the expiry date. If not renewed, the old WP must be revoked. Employing foreign nationals with invalid permits will result in severe administrative fines.
3. Enterprise Dissolution or Revocation of Business License:
When an enterprise dissolves, its legal status ceases to exist, leading to the cancellation of sponsorship for foreign labor. Investors are advised to settle all foreign labor application documents before finalizing the legal steps of dissolution to avoid system “freezes.”
Detailed Application file and Procedure for Work Permit (WP) Revocation
The revocation of the Work Permit requires high documentary accuracy to provide a legal basis for the Accounting Department to finalize insurance records and tax duties.
1. Required Documents:
- Request for TRC cancellation (Form NA6 or explanatory letter).
- The original TRC (still within its validity period).
- A copy of the employee’s passport and current visa.
- Official confirmation of WP revocation.
- Other documents proving the reason for revocation (such as business dissolution documents
2. Submission Process:
- Location: Enterprises in Industrial Parks/Export Processing Zones submit to the Board of Management. Others submit to DOLISA.
- Method: Online or direct submission. The authority will collect the original WP and issue a receipt.
- Result: After 3-5 working days, the enterprise receives an Official Confirmation of Revocation, which is a vital document for tax auditing.
Procedure for Temporary Residence Card (TRC) Revocation
The Temporary Residence Card (TRC) is closely linked to the Work Permit (WP). When a Work Permit is revoked, the TRC must also be processed in accordance with the prescribed legal procedures.
1. Necessary documents to cancel TRC
- Official letter requesting cancellation of TRC (Form NA6 or explanatory letter).
- Original TRC still within the validity period.
- Copy of the worker’s passport and current visa.
- Confirmation document of WP revocation from the labor agency.
2. Working with the Immigration Management Agency
Businesses submit application documents to the Immigration Department. If everything is valid, the TRC will be canceled and the business can perform procedures for an Exit Visa (DX type) if the worker has not left Vietnam immediately.
Impact on FDI Accounting and HR Management
1. Risks regarding Tax and Salary costs
- Administrative fines: From 1,000,000 VND to 3,000,000 VND per case for not returning the WP on time.
- CIT Arrears (20%): If welfare costs (housing, cars…) are accounted for workers who have quit (but WP not yet revoked), the tax authority will disqualify these expenses. Example: A cost of 100 million VND/month will result in 20 million VND of tax arrears immediately.
- Late payment penalties: 0.03%/day on the late tax amount (approx. 11%/year).
- Penalties for unlicensed labor: Fines from 60,000,000 VND to 150,000,000 VND and potential suspension of operations for 1-3 months.
2. Importance of controlling application documents during business establishment
The new 2026 management system automatically links data between Ministries. Errors in revoking old personnel permits can stagnate new permit applications for other investors or experts.
Important Notes to Avoid Penalties in 2026
- Digitalize application documents: Monitor expiration dates on electronic systems.
- Early notification: Notify workers at least 30 days before termination.
- Professional coordination: Use specialized accounting services to ensure accuracy.
Conclusion
Compliance with the 2026 regulations is the benchmark of an FDI enterprise’s professionalism. Strict management not only protects financial interests but also creates a solid foundation for sustainable business in Vietnam.
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