Some new points of the regulations on Corporate Income Tax take effect from October 1, 2025 and apply from the 2025 Corporate Income Tax calculation period

On June 14, 2025, the National Assembly passed the Corporate Income Tax Law No. 67/2025/QH15. Accordingly, some notable new points are as follows:

1. TAXATION ON ALL INCOME IN VIETNAM OF FOREIGN ENTERPRISES

The Law on Corporate Income Tax 2025 expands the scope of regulation to foreign enterprises providing goods and services in Vietnam through e-commerce and digital technology platforms.

According to Point d, Clause 2, Article 2, foreign enterprises without a permanent establishment in Vietnam, including enterprises engaged in e-commerce and digital platform-based business (newly added content), must pay tax on taxable income arising in Vietnam.

Supplementing the principle of determining taxable income of foreign enterprises in Vietnam is income received originating from Vietnam, regardless of the location of business (according to Clause 3, Article 3).

2. REDUCING TAX EXEMPTION PERIOD FOR INCOME FROM SALE OF NEW TECHNOLOGY PRODUCTS

According to Clause 4, Article 4 of the Law on Corporate Income Tax 2025:

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.

Previously, the above income was exempt from tax for a maximum of 05 years.

3. EXPANDING TAX EXEMPTION OBJECTS

Some new types of income are added to the tax-exempt list in Clause 10, Article 4 of the Law on Corporate Income Tax 2025, including:

• Income from the first transfer of carbon credits after issuance;
• Income from interest and from the first transfer of green bonds after issuance.

4. LOSSES FROM REAL ESTATE TRANSFERS CAN BE OFFSET AGAINST TAXABLE INCOME

According to Article 7 of the Law on Corporate Income Tax 2025, in case there is a loss in production and business activities, the loss can be offset against the taxable income of production and business activities with income chosen by the enterprise (except for production and business activities that are enjoying tax incentives).

Previously, if income from real estate transfer was a loss, this loss was offset against profits from production and business activities.

The remaining income after offset is subject to the corporate income tax rate of the remaining production and business activities.

Note: 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.

5. AMENDMENTS TO REGULATIONS ON DEDUCTIBLE EXPENSES

Compared with previous regulations, Article 9 of the 2025 Law on Corporate Income Tax amends a number of regulations on deductible expenses when determining taxable income as follows:

5.1. Adding some deductible expenses when determining taxable income

– Actual expenses for seconded persons participating in the administration, management and control of specially controlled credit institutions and commercial banks that are subject to compulsory transfer under the provisions of the Law on Credit Institutions;

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

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

– 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;

– Some contributions to funds established under decisions of the Prime Minister and regulations of the Government.

5.2. Input VAT that has not been fully deducted but is not refunded is included in deductible expenses.

The value added tax (VAT) paid under the deduction method that is not included in deductible expenses does not include the VAT 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.

6. CASES ENJOYING TAX RATE OF 15% OR 17%

Article 10 of the Law on Corporate Income Tax 2025 stipulates the following tax rates:

– Total revenue under 3 billion VND/year: tax rate 15%;

– Total revenue from 3 billion to 50 billion VND/year: tax rate 17%;

– 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;

– 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) is 50%. In case mines with 70% or more of the assigned area located in areas with particularly difficult socio-economic conditions, the tax rate is 40%.

– Not in the above cases: tax rate 20%.

Previously, businesses were mainly subject to a tax rate of 20% (except for oil and gas exploitation activities, rare resources and cases with preferential tax rates). According to the new regulations, many businesses with income under 50 billion will be subject to a tax rate of 15% or 17%.

7. CHANGE OF PROFESSION ENJOYING PREFERENTIAL INCENTIVES

Pursuant to Article 13 of the Law on Corporate Income Tax, the industries enjoying preferential tax rates have some changes as follows:

– Eliminate some industries and occupations that enjoy incentives:

• Production projects with a minimum investment capital of 6,000 billion VND;
• Investment projects in industrial parks;

– Supplementing preferential industries and occupations that have been specifically regulated for preferential corporate income tax policies according to current regulations:

• Projects subject to special investment incentives and support as prescribed in Clause 2, Article 20 of the Investment Law 2020;
• Investing in technical facilities to support small and medium enterprises and incubators for small and medium enterprises; Investing in co-working spaces to support small and medium enterprises to start up and innovate according to the provisions of the Law on Support for Small and Medium Enterprises.

8. HIGH-TECH AGRICULTURAL ZONES WITH TAX INCENTIVES

According to Article 13 of the Law on Corporate Income Tax, locations with preferential corporate income tax include:

– Areas with particularly difficult socio-economic conditions;

– Areas with difficult socio-economic conditions;

– High-tech zones, economic zones, high-tech agricultural zones, concentrated digital technology zones.

Previously, high-tech agricultural zones were not listed in the group of tax-incentive areas.

9. ADJUSTING NEW INVESTMENT INTEREST RATES IN AUTOMOBILE PRODUCTION AND ASSEMBLY

According to Clause 4, Article 13 of the Law on Corporate Income Tax 2025, new investment projects in automobile manufacturing and assembly will enjoy a preferential interest rate of 17% for 10 years (previously, new investment projects in automobile manufacturing and assembly enjoyed a preferential tax rate of 10% for 15 years).

10. PROJECT TO SUPPORT SMALL AND MEDIUM ENTERPRISES WITH PREFERENTIAL INTEREST RATE OF 17% FOR 10 YEARS

Clause 4, Article 13 of the Law on Corporate Income Tax 2025 adds the following subjects that are entitled to the preferential interest rate of 17% for 10 years:

– Investment project on technical facilities to support small and medium enterprises and incubators for small and medium enterprises;

– Investment project to operate a co-working space to support small and medium-sized enterprises to start up and innovate according to the provisions of the Law on Support for Small and Medium Enterprises.

This Law takes effect from October 1, 2025 and applies from the 2025 corporate income tax period.

 

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