Corporate income tax

Corporate Income Tax Law No. 67/2025/QH15

NATIONAL ASSEMBLY
_______

Law No.: 67/2025/QH15

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
_________________

  

LAW

CORPORATE INCOME TAX

 

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Corporate Income Tax.

 

Chapter I

GENERAL PROVISIONS

 

Article 1. Scope of regulation

This Law provides for taxpayers, taxable income, tax-exempt income, tax bases, tax calculation methods and corporate income tax incentives.

Article 2. Taxpayers

  1. Corporate income tax payers are organizations engaged in production and business of goods and services with taxable income according to the provisions of this Law (hereinafter referred to as enterprises), including:
  2. a) Enterprises established under the provisions of Vietnamese law;
  3. b) Enterprises established under the provisions of foreign law (hereinafter referred to as foreign enterprises) with or without a permanent establishment in Vietnam;
  4. c) Cooperatives and cooperative unions are established in accordance with the provisions of the Law on Cooperatives;
  5. d) Public service units established in accordance with the provisions of Vietnamese law; dd) Other organizations with income-generating production and business activities.
  6. Enterprises with taxable income as prescribed in Article 3 of this Law must pay corporate income tax as follows:
  7. a) Enterprises established in accordance with the provisions of Vietnamese law pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam; b) Foreign enterprises with permanent establishments in Vietnam pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam related to the activities of such permanent establishments;
  8. c) Foreign enterprises with permanent establishments in Vietnam pay tax on taxable income arising in Vietnam that is not related to the activities of the permanent establishment;
  9. d) Foreign enterprises without a permanent establishment in Vietnam, including enterprises engaged in e-commerce and digital platform-based businesses, pay tax on taxable income arising in Vietnam.
  10. A permanent establishment of a foreign enterprise is a production and business establishment through which the foreign enterprise conducts part or all of its production and business activities in Vietnam, including:
  11. a) Branches, executive offices, factories, workshops, means of transport, oil fields, gas fields, mines or other natural resource exploitation sites in Vietnam;
  12. b) Construction site, construction, installation and assembly works;
  13. c) Service providers, including consulting services through employees or other organizations or individuals;
  14. d) Agent for foreign enterprises;
  15. d) Representative in Vietnam in case of being a representative authorized to sign contracts in the name of a foreign enterprise or a representative not authorized to sign contracts in the name of a foreign enterprise but regularly delivering goods or providing services in Vietnam;
  16. e) E-commerce platforms, digital platforms through which foreign enterprises provide goods and services in Vietnam.
  17. The Government shall detail this Article.

Article 3. Taxable income

  1. Income subject to corporate income tax includes income from production and trading of goods and services and other income specified in Clause 2 of this Article.
  2. Other income includes:
  3. a) Income from capital transfer, capital contribution rights transfer, securities transfer;
  4. b) Income from real estate transfer, except income from real estate transfer of real estate business enterprises;
  5. c) Income from transfer of investment projects, transfer of rights to participate in investment projects, transfer of rights to explore, exploit and process minerals;
  6. d) Income from transfer, lease, liquidation of assets, including valuable papers, except real estate;
  7. d) Income from rights to use and ownership of assets, including income from intellectual property rights and technology transfer;
  8. e) Income from interest on deposits, interest on loans, sale of foreign currency, except income from credit activities of credit institutions;
  9. g) Amounts provisioned in advance for expenses but not used or not fully used and the enterprise does not adjust to reduce deductible expenses; bad debts that were written off but are now recovered; debts payable with unidentified creditors; business income from previous years that was overlooked but is now discovered;
  10. h) The difference between the revenue from fines, compensation for breach of economic contracts or bonuses for good performance of contractual commitments;
  11. i) Grants, donations in cash or in kind received;
  12. k) Differences due to revaluation of assets according to the provisions of law for capital contribution, transfer upon merger, consolidation, division, separation, change of ownership, or change of enterprise type;
  13. l) Income from business cooperation contracts;
  14. m) Income from production and business activities abroad;
  15. n) Income of public service units from public asset leasing activities;
  16. o) Other income, except for tax-exempt income specified in Article 4 of this Law.
  17. Taxable income arising in Vietnam of foreign enterprises specified in Point c and Point d, Clause 2, Article 2 of this Law is income received originating from Vietnam, regardless of the location of business.
  18. Vietnamese enterprises investing abroad that generate income from production and business activities abroad during the tax period may deduct the amount of corporate income tax payable according to the regulations of the investment-receiving country from the amount of corporate income tax payable in Vietnam, but must not exceed the amount of corporate income tax calculated according to the provisions of the law on corporate income tax of Vietnam.
  19. Enterprises that must pay additional corporate income tax on total minimum taxable income (IIR) as prescribed by law shall have the additional corporate income tax payable deducted from the corporate income tax payable in Vietnam as prescribed by this Law.
  20. The Government shall detail this Article.

Article 4. Tax-exempt income

  1. Income from fishing activities; income of enterprises from production of crop products, planted forests, livestock, aquaculture, processing of agricultural and aquatic products (including cases of purchasing agricultural and aquatic products for processing) in areas with particularly difficult socio-economic conditions; income of cooperatives and cooperative unions from production of crop products, planted forests, livestock, aquaculture, processing of agricultural and aquatic products (including cases of purchasing agricultural and aquatic products for processing), salt production.
  2. Income of cooperatives and cooperative unions operating in the fields of agriculture, forestry, fishery, and salt production in areas with difficult socio-economic conditions or in areas with especially difficult socio-economic conditions.
  3. Income from performing technical services directly serving agriculture.
  4. Income from the implementation of contracts for scientific research, technology development and innovation, digital transformation; income from the sale of products made from new technology applied for the first time in Vietnam; income from the sale of experimentally produced products during the experimental production period, including controlled experimental production according to the provisions of law. Income in this clause is exempt from tax for a maximum of 03 years.
  5. Income from production and trading of goods and services of enterprises with 30% or more of the average number of employees in the year being people with disabilities, people after drug rehabilitation, people infected with the virus causing acquired immunodeficiency syndrome (HIV/AIDS) and with an average number of employees in the year of 20 or more, excluding enterprises operating in the fields of finance and real estate business.
  6. Income from vocational education and training activities specifically for ethnic minorities, people with disabilities, children in special circumstances, and social evils.
  7. Income distributed from capital contribution, share purchase, joint venture, association with domestic enterprises, after paying corporate income tax according to the provisions of this Law, including cases where the capital recipient, share issuer, joint venture, or association enjoys corporate income tax incentives.
  8. Funding received for educational, cultural, artistic, charitable, humanitarian and other social activities in Vietnam; funding received from unaffiliated enterprises, domestic and foreign organizations and individuals for scientific research, technological development and innovation, digital transformation; direct support from the state budget and from the Investment Support Fund established by the Government; compensation from the State in accordance with the provisions of law.

In case the enterprise uses the funding received under this clause for purposes other than its intended purpose, it will be subject to tax collection and penalties for violations according to the provisions of law.

  1. Difference due to revaluation of assets according to law provisions for equitization and restructuring of enterprises in which the State holds 100% of charter capital.
  2. Income from the first transfer of emission reduction certificates and carbon credit transfers after issuance by enterprises granted emission reduction certificates and carbon credits; income from green bond interest; income from the first transfer of green bonds after issuance.
  3. Income (including interest on bank deposits, government bond interest, treasury bill interest) from performing State-assigned tasks in the following cases:
  4. a) Income of Vietnam Development Bank from development investment credit and export credit activities;
  5. b) Income of the Social Policy Bank from credit activities for the poor and other policy subjects;
  6. c) Income of the one-member limited liability company managing assets of Vietnamese credit institutions;
  7. d) Income from revenue-generating activities of state financial funds and other state funds and organizations operating not for profit as prescribed or decided by the Government or the Prime Minister.
  8. The undivided income of socialized establishments in the fields of education – training, health care and other socialized fields is left for investment in the development of that establishment to meet the minimum ratio prescribed by the Government; the income forming the undivided common fund, undivided common assets of cooperatives and cooperative unions established and operating in accordance with the provisions of the law on cooperatives.
  9. Income from technology transfer in priority areas of technology transfer to organizations and individuals in areas with particularly difficult socio-economic conditions.
  10. Income of public service units from providing public service, including:
  11. a) Basic and essential public career services on the list of public career services using the state budget issued by competent authorities;
  12. b) Public career services for which the State must support and ensure operating costs because service provision costs have not been fully included in service prices;
  13. c) Public career services in areas with particularly difficult socio-economic conditions.
  14. The Government shall detail this Article.

Article 5. Tax calculation period

  1. The corporate income tax period is determined according to the calendar year or the fiscal year chosen by the enterprise, except for the case specified in Clause 2 of this Article. In case the enterprise chooses a fiscal year other than the calendar year, it must notify the direct tax authority before implementation.
  2. The tax calculation period for enterprises specified in Point c and Point d, Clause 2, Article 2 of this Law shall comply with the provisions of the law on tax administration.

 

Chapter II

BASIS AND METHOD OF TAX CALCULATION

 

Article 6. Tax basis

The basis for calculating tax is taxable income and tax rate.

Article 7. Determination of taxable income

  1. Taxable income in the tax period is determined as follows:
  2. Taxable income specified in Clause 1 of this Article is determined as follows:
Taxable income = Revenue – Deductible expenses + Other income (including income received outside Vietnam)
  1. For enterprises with many production and business activities in a tax period, taxable income from production and business activities is the total income of all production and business activities. In case of a loss in production and business activities, the loss can be offset against the taxable income of the production and business activities with income chosen by the enterprise (except for income from real estate transfer, investment project transfer, transfer of rights to participate in investment projects, which is not offset against income from production and business activities currently enjoying tax incentives). The remaining income after offset is subject to the corporate income tax rate of production and business activities with income.
  2. Taxable income from the transfer of mineral exploration, exploitation and processing investment projects; transfer of rights to participate in mineral exploration, exploitation and processing investment projects; transfer of mineral exploration, exploitation and processing rights must be determined separately for tax declaration and payment. Losses and profits cannot be offset against production and business activities in the tax period.

Article 8. Revenue

  1. Revenue for calculating taxable income is the total amount of sales, processing fees, service provision fees including subsidies, surcharges, and extras that the enterprise receives, regardless of whether the money has been collected or not.
  2. The Government shall detail this Article.

Article 9. Deductible and non-deductible expenses when determining taxable income

  1. Except for the expenses specified in Clause 2 of this Article, enterprises are allowed to deduct expenses when determining taxable income if they meet the following conditions:
  2. a) Actual expenses incurred related to the production and business activities of the enterprise, including additional expenses deducted according to the percentage calculated on actual expenses incurred in the tax period related to the research and development activities of the enterprise;
  3. b) Other actual expenses incurred, including:

b1) Expenditures for performing national defense and security education tasks, training, activities of militia and self-defense forces and serving other national defense and security tasks as prescribed by law;

b2) Expenditure to support the activities of party organizations and socio-political organizations in enterprises;

b3) Expenditures for vocational education and training activities for employees according to the provisions of law;

b4) Actual expenses for HIV/AIDS prevention and control activities in the workplace of the enterprise;

b5) Funding for education, healthcare, culture; funding for prevention, control, and overcoming the consequences of natural disasters and epidemics, building solidarity houses, gratitude houses, and houses for policy beneficiaries according to the provisions of law; funding according to the provisions of the Government and the Prime Minister for localities in areas with particularly difficult socio-economic conditions; funding for scientific research, technology development and innovation, and digital transformation;

b6) Expenditure for scientific research, technology development and innovation, digital transformation;

b7) The value of losses due to natural disasters, epidemics and other force majeure events is not compensated;

b8) Actual expenses for seconded persons participating in the administration, management and control of specially controlled credit institutions and commercial banks that are compulsorily transferred according to the provisions of the Law on Credit Institutions;

b9) Some expenses for production and business of the enterprise but not corresponding to the revenue generated during the period according to Government regulations;

b10) Some expenses support the construction of public works, while also serving the production and business activities of enterprises;

b11) Costs related to reducing greenhouse gas emissions to achieve carbon neutrality and net zero, reducing environmental pollution, and related to the production and business activities of the enterprise;

b12) Some contributions to funds established under decisions of the Prime Minister and regulations of the Government;

  1. c) Expenses with sufficient invoices and non-cash payment documents as prescribed by law, except for special cases as prescribed by the Government.
  2. Expenses that are not deductible when determining taxable income include:
  3. a) Expenditure does not satisfy the conditions specified in Clause 1 of this Article;
  4. b) Fines for administrative violations;
  5. c) Expenses are offset by other funding sources;
  6. d) The portion of expenditure exceeding the level prescribed by the Government for: business management expenses allocated by foreign enterprises to permanent establishments in Vietnam; expenses for hiring managers for business activities of electronic games with prizes, casino business; interest payments on loans of enterprises with related transactions; expenses of a direct welfare nature for employees; contributions to supplementary pension insurance as prescribed by the Law on Social Insurance or funds of a social security nature, purchase of voluntary pension insurance, life insurance for employees;
  7. d) The provision is incorrect or exceeds the level prescribed by law on provision;
  8. e) Fixed asset depreciation is incorrect or exceeds the level prescribed by law;
  9. g) Advance deductions for expenses are not in accordance with the provisions of law;
  10. h) Salaries and wages of owners of private enterprises and owners of single-member limited liability companies owned by individuals; remuneration paid to enterprise founders who are not directly involved in production and business management; salaries, wages, and other accounting expenses to pay employees but not actually paid or without invoices or documents as prescribed by law;
  11. i) The interest payment portion of loans corresponding to the remaining charter capital; interest on loans during the investment process that have been recorded in the investment value; interest on loans to implement contracts for oil and gas exploration and exploitation; interest payment portion of loans for production and business capital of entities that are not credit institutions exceeding the level prescribed by the Civil Code;
  12. k) The portion of costs allowed to be recovered exceeds the rate specified in the approved petroleum contract; in case the petroleum contract does not stipulate the cost recovery rate, the portion of costs exceeding the level prescribed by the Government shall not be included in deductible costs;
  13. l) Deducted input value-added tax; value-added tax paid by deduction method; input value-added tax on the value of passenger cars with 09 seats or less exceeding the level prescribed by the Government; corporate income tax; other taxes, fees, charges and revenues not included in expenses according to the provisions of law and late payment fees according to the provisions of law on tax administration.

The value added tax payable under the deduction method prescribed in this point does not include the value added tax of input goods and services directly related to the production and business of the enterprise that has not been fully deducted but is not eligible for tax refund.

Input VAT, once included in deductible expenses, cannot be deducted from output VAT;

  1. m) Expenditures that do not correspond to taxable revenue, except for the expenditures specified in Point b, Clause 1 of this Article; expenditures that do not meet the expenditure conditions and expenditure contents as prescribed by specialized laws;
  2. n) Sponsorship, except for sponsorship specified in sub-point b5, point b, clause 1 of this Article;
  3. o) Expenses for basic construction investment during the investment phase to form fixed assets; expenses directly related to the increase or decrease of the enterprise’s equity;
  4. p) Expenses of business activities: banking, insurance, lottery, securities, BT, BOT, BTO contracts that are not in accordance with or exceed the legal regulations;
  5. q) Other expenses.
  6. The Government shall detail this Article, including the additional expenditure levels, conditions, time and scope of application for expenditures on research and development activities of enterprises specified in Point a, Clause 1 of this Article.

The Ministry of Finance shall prescribe the documents for expenses to be included in deductible expenses as prescribed in Point b and Point c, Clause 1 of this Article.

Article 10. Tax rates

  1. The corporate income tax rate is 20%, except for the cases specified in Clauses 2, 3 and 4 of this Article and the subjects entitled to tax rate incentives specified in Article 13 of this Law.
  2. The tax rate of 15% applies to enterprises with total annual revenue not exceeding 3 billion VND.
  3. The tax rate of 17% applies to enterprises with total annual revenue from over 3 billion VND to no more than 50 billion VND.

The revenue used as the basis for determining whether an enterprise is eligible for the 15% and 17% tax rates specified in Clause 2 and Clause 3 of this Article is the total revenue of the previous corporate income tax period. The determination of total revenue used as the basis for application shall be implemented in accordance with Government regulations.

  1. Corporate income tax rates for some other cases are prescribed as follows:
  2. a) For oil and gas exploration and exploitation activities from 25% to 50%. Based on the location, exploitation conditions and mine reserves, the Prime Minister decides on the specific tax rate suitable for each oil and gas contract;
  3. b) For exploration and exploitation of rare resources (including platinum, gold, silver, tin, tungsten, antimony, precious stones, rare earths and other rare resources as prescribed by law), the tax rate is 50%. In case mines with 70% or more of their assigned area located in areas with particularly difficult socio-economic conditions, the tax rate is 40%.

Article 11. Tax calculation method

  1. The amount of corporate income tax payable in the tax period is calculated by multiplying taxable income by the tax rate, except for the case specified in Clause 2 of this Article.
  2. The Government prescribes the amount of corporate income tax payable calculated as a percentage of revenue in the following cases:
  3. a) Enterprises specified in Point c and Point d, Clause 2, Article 2 of this Law; subjects performing the obligation to declare and pay taxes, time and method of determining revenue for calculating taxable income arising in Vietnam;
  4. b) Enterprises with total annual revenue not exceeding VND 3 billion as prescribed in Clause 2, Article 10 of this Law in cases where revenue can be determined but costs and income of production and business activities cannot be determined;
  5. c) Cooperatives, cooperative unions, public service units and other organizations specified in Points c, d and dd, Clause 1, Article 2 of this Law that have activities of production and trading of goods and services with income subject to corporate income tax (except for tax-exempt income specified in Article 4 of this Law) and these units can account for revenue but cannot determine the costs and income of production and business activities.

 

Chapter III

CORPORATE INCOME TAX INCENTIVES

 

Article 12. Principles and subjects of application of corporate income tax incentives

  1. Enterprises are entitled to corporate income tax incentives according to the industries, occupations and localities eligible for corporate income tax incentives as prescribed in this Article. The level of corporate income tax incentives shall be implemented in accordance with the provisions of Articles 13 and 14 of this Law.

In case another law has provisions on corporate income tax incentives different from the provisions of this Law, the provisions of this Law shall apply, except for the Law on the Capital and resolutions stipulating special and specific mechanisms and policies of the National Assembly.

At the same time, if an enterprise is entitled to different tax incentives according to the provisions of this Law for the same income, the enterprise may choose to apply the most favorable tax incentive.

  1. Industries and occupations with preferential corporate income tax include:
  2. a) Application of high technology, venture investment for high technology development in the list of high technologies prioritized for investment and development according to the provisions of the Law on High Technology; application of strategic technology according to the provisions of law; incubation of high technology, incubation of high-tech enterprises; investment in construction and business of high-tech incubation facilities, incubation of high-tech enterprises;
  3. b) Manufacturing software products; manufacturing network information security products and providing network information security services ensuring conditions according to regulations of law on network information security; manufacturing products, providing key digital technology services, manufacturing electronic equipment according to regulations of law on digital technology industry; researching and developing, designing, manufacturing, packaging, testing semiconductor chip products; building artificial intelligence data centers;
  4. c) Production of supporting industrial products in the List of supporting industrial products prioritized for development as prescribed by the Government that meet one of the following criteria:

c1) Industrial products supporting high technology as prescribed by the Law on High Technology;

c2) Industrial products supporting the production of products in the textile – garment, leather – footwear, electronics – information technology (including semiconductor design and production), automobile production and assembly, and mechanical engineering industries up to the effective date of this Law that cannot be produced domestically or can be produced but must meet the technical standards of the European Union or equivalent (if any) according to regulations of the Minister of Industry and Trade;

  1. d) Production of renewable energy, clean energy, energy from waste disposal; environmental protection; production of composite materials, light construction materials, rare materials; production of national defense, security and production of industrial mobilization products according to the provisions of law on national defense, security and industrial mobilization industry; production of key chemical industrial products and key mechanical products according to the provisions of law;
  2. d) Investment in the development of water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airfields, stations and other particularly important infrastructure works as decided by the Prime Minister;
  3. e) High-tech enterprises, high-tech agricultural enterprises as prescribed by the Law on High Technology; science and technology enterprises as prescribed by the Law on Science, Technology and Innovation;
  4. g) Investment projects in the manufacturing sector must meet the following conditions:

g1) Have a minimum investment capital scale of VND 12,000 billion and disburse the total registered investment capital within no more than 05 years from the date of investment permission according to the provisions of the law on investment;

g2) Use technology that meets the requirements prescribed by the Minister of Science and Technology;

  1. h) Investment projects subject to incentives and special investment support as prescribed in Clause 2, Article 20 of the Investment Law. The Government shall specify in detail the time for disbursement of total registered investment capital of projects specified in this point;
  2. i) Planting, tending and protecting forests; producing, propagating and crossbreeding plant and animal breeds; investing in post-harvest preservation of agricultural products, preservation of agricultural products, aquatic products and food; producing, exploiting and refining salt, except for salt production specified in Clause 1, Article 4 of this Law;
  3. k) Forestry;
  4. l) Products of crops, forests, livestock, aquaculture, agricultural and aquatic product processing.

Income from processing agricultural and aquatic products specified in this point must satisfy the conditions specified in Clause 1, Article 4 of this Law;

  1. m) Production of high-grade steel; production of energy-saving products; production of machinery and equipment for agricultural, forestry, fishery and salt production; production of irrigation equipment; production of animal feed, poultry and aquatic products;
  2. n) Automobile manufacturing and assembly; manufacturing of other digital technology products;
  3. o) Investing in technical facilities to support small and medium-sized enterprises and incubators for small and medium-sized enterprises; investing in co-working spaces to support small and medium-sized enterprises in starting up and innovating according to the provisions of the Law on Support for Small and Medium-sized Enterprises;
  4. p) People’s credit funds, microfinance institutions, cooperative banks;
  5. q) Cooperatives and cooperative unions operating in the fields of agriculture, forestry, fishery and salt production;
  6. r) Socialization in the fields of education – training, vocational training, healthcare, culture, sports, environment according to the List of types, scale criteria, and standards prescribed by the Prime Minister; judicial appraisal;
  7. s) Investing in the construction of social housing for sale, lease, or lease-purchase for beneficiaries of social housing support policies according to the provisions of the Housing Law;
  8. t) Publishing in accordance with the provisions of the Publishing Law;
  9. u) Press (including newspaper advertising) as prescribed by the Press Law.
  10. Preferential corporate income tax areas as prescribed by the Government include:
  11. a) Areas with particularly difficult socio-economic conditions;
  12. b) Areas with difficult socio-economic conditions;
  13. c) Economic zones, high-tech zones, high-tech agricultural zones, concentrated digital technology zones.
  14. The Government regulates the application of tax incentives in the following cases:
  15. a) Cases of applying tax incentives based on locality criteria;
  16. b) Tax incentives in the fields of agriculture, forestry, fishery and salt industry;
  17. c) In case there is revenue in the first tax period or income from an enterprise’s investment project (including new investment projects, expansion investment projects, high-tech enterprises, high-tech agricultural enterprises, science and technology enterprises) with a revenue generation period or income enjoying tax incentives of less than 12 months.
  18. Enterprises established or enterprises with investment projects from mergers, consolidations, divisions, separations, ownership conversions, and business type conversions are responsible for fulfilling their obligations to pay corporate income tax (including fines, if any), and at the same time, are entitled to inherit corporate income tax incentives (including uncashed losses) of the enterprise or investment project before the merger, consolidation, division, separation, or conversion if they continue to meet the conditions for corporate income tax incentives and loss transfer conditions as prescribed by law.

Article 13. Preferential tax rates

  1. Apply a tax rate of 10% for 15 years to:
  2. a) Income of enterprises from implementing new investment projects specified in Points a, b, c, d and dd, Clause 2, Article 12 of this Law; income of enterprises specified in Point e, Clause 2, Article 12 of this Law;
  3. b) Enterprise income from implementing investment projects specified in Point g and Point h, Clause 2, Article 12 of this Law;
  4. c) Enterprise income from implementing new investment projects in the areas specified in Point a, Clause 3, Article 12 of this Law;
  5. d) Income of enterprises from implementing new investment projects in high-tech zones, high-tech agricultural zones, concentrated digital technology zones; new investment projects in economic zones located in tax-incentive areas specified in Point a, Point b, Clause 3, Article 12 of this Law. In case an investment project in an economic zone is located in both tax-incentive areas and non-tax-incentive areas, the determination of tax incentives of the project shall be prescribed by the Government.
  6. Apply tax rate of 10% to:
  7. a) Income of enterprises from activities in industries and professions specified in Point k, Point 1, Clause 2, Article 12 of this Law in tax-incentive areas specified in Point b, Clause 3, Article 12 of this Law;
  8. b) Income of enterprises from activities in the industries and professions specified in points i, r and s, Clause 2, Article 12 of this Law;
  9. c) Income of publishers from activities in the industries and professions specified in Point t, Clause 2, Article 12 of this Law;
  10. d) Income of cooperatives and cooperative unions specified in Point q, Clause 2, Article 12 of this Law not located in the areas specified in Clause 3, Article 12 of this Law;
  11. d) Income of press agencies in the sectors and professions specified in Point u, Clause 2, Article 12 of this Law.
  12. Apply a tax rate of 15% to enterprise income from activities in the industries and professions specified in Point 1, Clause 2, Article 12 of this Law that are not located in the areas specified in Clause 3, Article 12 of this Law.
  13. Apply a tax rate of 17% for 10 years to:
  14. a) New investment projects in preferential industries and trades specified in points m, n and o, Clause 2, Article 12 of this Law;
  15. b) New investment projects implemented in the areas specified in Point b, Clause 3, Article 12 of this Law;
  16. c) New investment projects in economic zones not located in the areas specified in Point a and Point b, Clause 3, Article 12 of this Law.
  17. Apply a tax rate of 17% to the income of enterprises at Point p, Clause 2, Article 12 of this Law.
  18. The extension of time and application of preferential tax rates are stipulated as follows:
  19. a) The Prime Minister decides to extend the period of application of preferential tax rates for a maximum of 15 years for the following projects:

a1) New investment projects specified in Points a, b, d and dd, Clause 2, Article 12 of this Law, with a minimum investment capital scale of VND 6,000 billion, having a large socio-economic impact, need special encouragement;

a2) Investment projects specified in Point g, Clause 2, Article 12 of this Law must meet one of the following criteria:

– Producing globally competitive products, with revenue reaching over VND 20,000 billion/year within 5 years at the latest from the date of revenue from the investment project;

– Regularly employing over 6,000 workers as determined by labor law;

– Investment projects in the field of economic and technical infrastructure, including: Investment in the development of water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airports, stations, new energy, clean energy, energy-saving industry, petrochemical projects;

  1. b) For new investment projects specified in Point h, Clause 2, Article 12 of this Law, the Prime Minister shall decide on the application of a reduced tax rate of no more than 50% of the tax rate specified in Clause 1 of this Article; the period of application of the preferential tax rate shall not exceed 1.5 times the period of application of the preferential tax rate specified in Clause 1 of this Article and may be extended for no more than 15 years but shall not exceed the term of the investment project.
  2. The period of application of preferential tax rates to income from the implementation of new investment projects of enterprises specified in this Article (including projects specified in Point g, Clause 2, Article 12 of this Law) is calculated from the first year the new investment project of the enterprise has revenue.

In case an enterprise is granted a Certificate of High-Tech Enterprise, Certificate of High-Tech Agricultural Enterprise, Certificate of Science and Technology Enterprise, Certificate of High-Tech Application Project, or Certificate of Incentive for Supporting Industrial Product Manufacturing Project after the time of generating revenue, the period of application of preferential tax rates is calculated from the year of granting the Certificate or Certificate of Incentive.

Article 14. Tax exemption and reduction

  1. Tax exemption for up to 04 years and 50% reduction of tax payable for up to 09 subsequent years for:
  2. a) Enterprise income specified in Clause 1, Article 13 of this Law;
  3. b) Enterprise income specified in Point r, Clause 2, Article 12 of this Law located in the areas specified in Point a and Point b, Clause 3, Article 12 of this Law; in cases not located in the areas specified in Point a and Point b, Clause 3, Article 12 of this Law, tax exemption shall be granted for a maximum of 04 years and a 50% reduction in the amount of tax payable shall be granted for a maximum of 05 subsequent years.
  4. Tax exemption for up to 02 years and 50% reduction of payable tax for up to 04 subsequent years for enterprise income specified in Clause 4, Article 13 of this Law.
  5. For new investment projects specified in Point h, Clause 2, Article 12 of this Law, the Prime Minister shall decide to extend the tax exemption and reduction period to a maximum of no more than 1.5 times the tax exemption and reduction period specified in Clause 1 of this Article.
  6. The tax exemption and reduction period is calculated from the first year of taxable income from the investment project. In case there is no taxable income in the first 3 years, from the first year of revenue from the project, the tax exemption and reduction period is calculated from the 4th year.

In case an enterprise is granted a Certificate of high-tech application project, Certificate of high-tech enterprise, Certificate of high-tech agricultural enterprise, Certificate of science and technology enterprise, Certificate of incentive for supporting industrial product production project after the time of income generation, the tax exemption and tax reduction period shall be calculated from the year of issuance of the Certificate or Certificate of incentive. In case there is no income in the year of issuance of the Certificate or Certificate of incentive, the tax exemption and tax reduction period shall be calculated from the first year of income generation. If in the first 03 years from the year of issuance of the Certificate or Certificate of incentive, the enterprise has no taxable income, the tax exemption and tax reduction period shall be calculated from the 04th year from the year of issuance of the Certificate or Certificate of incentive.

  1. Tax incentives for expansion investment projects:
  2. a) Enterprises with investment projects in operation that expand scale, increase capacity, innovate technology, reduce pollution or improve the environment in industries, occupations and areas eligible for corporate income tax incentives specified in Article 12 of this Law (hereinafter referred to as expansion investment) shall enjoy tax incentives according to the operating project for the remaining period and do not have to account for the additional income from expansion investment separately from income from the operating project;
  3. b) In case the tax incentive period of an operating project has expired, the additional income from the expanded investment project that meets the criteria specified in Clause 6 of this Article shall be exempted from tax or reduced and shall not be entitled to tax rate incentives. The tax exemption or reduction period for additional income from expanded investment shall be equal to the tax exemption or reduction period applicable to new investment projects in the same industry, profession, or location with corporate income tax incentives and shall be calculated from the year the investment project completes the registered investment capital.

Enterprises must separately account for additional income from expansion investment to apply incentives. In case separate accounting is not possible, income from expansion investment activities is determined based on the ratio between the original cost of newly invested fixed assets put into use for production and business and the total original cost of fixed assets of the enterprise;

  1. c) Tax incentives prescribed in this clause do not apply to cases of expansion investment due to mergers or acquisitions of operating enterprises or investment projects.
  2. An expansion investment project that enjoys incentives specified in Point b, Clause 5 of this Article must meet one of the following criteria:
  3. a) The original value of fixed assets increases when the investment project completes the disbursement of the registered expansion investment capital reaching the minimum level prescribed by the Government corresponding to the cases of expansion investment projects in industries and trades with corporate income tax incentives, expansion investment projects implemented in areas with corporate income tax incentives;
  4. b) The proportion of original price of fixed assets when the investment project completes the disbursement of the registered additional expansion investment capital must reach at least 20% compared to the total original price of fixed assets before starting the expansion investment;
  5. c) The additional design capacity when the investment project completes the disbursement of the registered expansion investment capital is at least 20% higher than the design capacity before starting the expansion investment.

Article 15. Other cases of tax exemption and reduction

  1. Manufacturing, construction and transportation enterprises that employ many female workers are entitled to a reduction in corporate income tax equal to the additional expenses for female workers.
  2. Enterprises employing many ethnic minority workers are entitled to a reduction in corporate income tax equal to the additional expenses for ethnic minority workers.
  3. Enterprises that transfer technology in priority areas to organizations and individuals in areas with difficult socio-economic conditions, and public service units that provide public services in areas with difficult socio-economic conditions, are entitled to a 50% reduction in corporate income tax calculated on income from technology transfer and income from providing public services in areas with difficult socio-economic conditions.
  4. Enterprises specified in Clause 2 and Clause 3, Article 10 of this Law newly established from business households are exempted from corporate income tax for 02 consecutive years from the time of having taxable income.
  5. Public scientific and technological organizations and public higher education institutions operating on a non-profit basis are exempt from tax according to Government regulations.
  6. The Government shall detail this Article.

Article 16. Loss transfer

  1. Enterprises with losses may carry forward losses to the following year; this loss is deducted from taxable income. The period of loss carry forward shall not exceed 05 consecutive years, starting from the year following the year in which the loss arose.
  2. Enterprises that incur losses from the transfer of mineral exploration and exploitation projects; transfer of rights to participate in mineral exploration, exploitation and processing projects; transfer of rights to mineral exploration, exploitation and processing may transfer losses to the following year into the taxable income of such activities. The time for transferring losses is prescribed in Clause 1 of this Article.
  3. The Government shall detail this Article.

Article 17. Setting up of Science and Technology Development Fund

  1. Enterprises, organizations and public service units established in accordance with the provisions of Vietnamese law are allowed to allocate up to 20% of their annual taxable income to establish a Science and Technology Development Fund.
  2. Within 05 years from the date of establishment as prescribed in Clause 1 of this Article, if the Science and Technology Development Fund is not used or is not used up to 70% or is not used for the right purpose, the enterprise, organization or public service unit must pay to the state budget the corporate income tax calculated on the income that has been established for the fund but not used or not used for the right purpose and the interest arising from that corporate income tax.

The corporate income tax rate used to calculate the tax recovery is the tax rate applicable to enterprises, organizations, and public service units during the fund establishment period.

The interest rate for calculating interest on the recovered tax amount calculated on the unused fund portion is the interest rate of the 5-year or 10-year treasury bond (in case there is no 5-year term) issued closest to the time of recovery and the interest calculation period is 2 years.

The interest rate for calculating interest on the recovered tax amount calculated on the fund used for the wrong purpose is the rate for calculating late payment according to the provisions of the Law on Tax Administration and the interest calculation period is the period from the fund establishment to the recovery.

  1. Enterprises, organizations and public service units are not allowed to account for expenditures from the Science and Technology Development Fund as deductible expenses when determining taxable income in the tax period.
  2. The science and technology development fund is used in accordance with the provisions of law on science, technology and innovation.
  3. If an operating enterprise changes due to merger, consolidation, division, separation, change of ownership, or change of business type, the newly established enterprise or the enterprise receiving the merger from the merger, consolidation, division, separation, change of ownership, or change of business type shall inherit and be responsible for the management and use of the Science and Technology Development Fund of the enterprise before the merger, consolidation, division, separation, or change.

Article 18. Conditions for applying tax incentives

  1. Corporate income tax incentives prescribed in Articles 13, 14 and 15 of this Law apply to enterprises implementing accounting, invoice and voucher regimes and paying taxes according to the declaration method.

Corporate income tax incentives for new investment projects (including investment projects under Point g, Clause 2, Article 12 of this Law) prescribed in Articles 13 and 14 of this Law shall not apply to cases of merger, consolidation, division, separation, change of ownership, change of enterprise type and other cases prescribed by the Government.

  1. Enterprises must separately account for income from production and business activities eligible for tax incentives as prescribed in Articles 4, 13, 14 and 15 of this Law from income from production and business activities not eligible for tax incentives; in case separate accounting is not possible, income from production and business activities eligible for tax incentives shall be determined based on the ratio between revenue or expenses of production and business activities eligible for tax incentives and total revenue or total expenses of the enterprise.
  2. The tax rates of 15% and 17% prescribed in Clause 2 and Clause 3, Article 10 of this Law and the provisions on tax incentives in Articles 4, 13, 14 and 15 of this Law do not apply to:
  3. a) Income from capital transfer, transfer of capital contribution rights; income from real estate transfer, except for income from investment in social housing construction specified in Point s, Clause 2, Article 12 of this Law; income from transfer of investment projects (except for transfer of mineral processing projects), transfer of rights to participate in investment projects, transfer of rights to explore, exploit and process minerals; income from production and business activities outside Vietnam;
  4. b) Income from activities of searching, exploring and exploiting oil and gas, other rare resources and income from activities of exploring and exploiting minerals;
  5. c) Income from production and trading of online electronic games; income from production and trading of goods and services subject to special consumption tax according to the provisions of the Law on Special Consumption Tax, except for projects on production and assembly of automobiles, airplanes, helicopters, gliders, yachts, and petrochemical refining;
  6. d) Special cases as prescribed by the Government.
  7. The tax rates of 15% and 17% prescribed in Clause 2 and Clause 3, Article 10 of this Law shall not apply to enterprises that are subsidiaries or affiliated companies where the affiliated enterprise is not an enterprise that meets the conditions for applying the tax rates prescribed in Clause 2 and Clause 3, Article 10 of this Law.
  8. In case an enterprise does not meet the conditions for tax incentives, the competent authority shall collect tax arrears and impose penalties for violations according to the provisions of law.
  9. The Government shall detail Clause 5 of this Article. The Ministry of Finance shall prescribe the procedures and documents for enjoying tax incentives prescribed in Articles 4, 13, 14 and 15 of this Law.

 

Chapter IV

TERMS OF IMPLEMENTATION

 

Article 19. Entry into force

  1. This Law takes effect from October 1, 2025 and applies from the 2025 corporate income tax period.
  2. The Law on Corporate Income Tax No. 14/2008/QH12, as amended and supplemented by a number of articles under Law No. 32/2013/QH13, Law No. 71/2014/QH13, Law No. 61/2020/QH14, Law No. 12/2022/QH15 and Law No. 15/2023/QH15, ceases to be effective from the effective date of this Law.
  3. In case the Organization for Economic Cooperation and Development and the United Nations have more favorable regulations and guidelines on taxing rights for income source countries, including Vietnam, the Government shall issue specific regulations for implementation.

Article 20. Transitional provisions

  1. Enterprises with investment projects are entitled to corporate income tax incentives according to the provisions of the law on corporate income tax at the time of licensing or granting of an investment certificate or being permitted to invest according to the provisions of the law on investment. In case the law on corporate income tax is amended or supplemented and the enterprise meets the conditions for tax incentives according to the provisions of the newly amended or supplemented law, the enterprise has the right to choose to enjoy incentives on tax rates and tax exemption or reduction periods according to the provisions of the law at the time of licensing, granting of an investment certificate, being permitted to invest or according to the provisions of the newly amended or supplemented law for the remaining period.
  2. In case an enterprise has an investment project that is not eligible for incentives under the provisions of legal documents on corporate income tax before the effective date of this Law but is eligible for incentives under the provisions of this Law, the incentives under the provisions of this Law shall be applied for the remaining period from the tax period of 2025.

_______________________

This Law was passed by the 15th National Assembly of the Socialist Republic of Vietnam, 9th Session on June 14, 2025.

 CHAIRMAN OF THE NATIONAL ASSEMBLY

  

 

Tran Thanh Man

 

Leave a Reply

Your email address will not be published.

error: Content is protected!