Corporate Income Tax Rates in Vietnam from 2025

Under the impact of new tax policies, corporate income tax rates in Vietnam in 2025 are expected to undergo several adjustments with a view to promoting economic development, supporting enterprises, and attracting investment. In the following article, Viet An Law will provide a detailed presentation of these tax rates.

What is the Corporate Income Tax Rate?

Corporate Income Tax (CIT) is a direct tax imposed on a company’s taxable income after deducting reasonable expenses. It is one of the key sources of state budget revenue and serves as an instrument for regulating economic activities. CIT is calculated using the formula: CIT payable = Taxable income × Tax rate.

The Corporate Income Tax rate (CIT rate) is the percentage applied to a company’s taxable income to determine the amount of tax payable. Currently, the standard CIT rate is 20%; however, higher rates may apply to certain specific sectors such as oil and gas exploration or the exploitation of rare natural resources.

Corporate Income Tax Rates in Vietnam in 2025

Pursuant to the Law on Corporate Income Tax effective from October 1, 2025, the corporate income tax rates applicable in 2025 are as follows:

Standard Tax Rate 20%

• Legal basis: Pursuant to Clause 1, Article 10 of the amended Law on Corporate Income Tax effective from October 1, 2025, the standard tax rate applicable to most enterprises engaged in production and business activities is 20%.
• Conditions of application: This is the common tax rate applied to enterprises not eligible for preferential or special tax treatment. This rate is intended to maintain state budget revenue while facilitating normal business operations and ensuring fair competition.

Tax Rate 15%

• Legal basis: Clause 2, Article 10 of the Law on Corporate Income Tax 2025
• Conditions of application: Applicable to enterprises with total annual revenue not exceeding VND 3 billion.

Tax Rate 17%

• Legal basis: Clause 3, Article 10 of the Law on Corporate Income Tax 2025
• Conditions of application: Applicable to enterprises with total annual revenue of more than VND 3 billion but not exceeding VND 50 billion.

Note: The revenue used to determine whether an enterprise is eligible for the 15% or 17% tax rate under Clauses 2 and 3 of this Article is the total revenue of the immediately preceding corporate income tax period. In the case of newly established enterprises, the Government shall provide detailed guidance on how to determine total revenue for the purpose of applying the relevant tax rate.

Corporate income tax rates for other cases

Pursuant to Clause 4, Article 10 of the Law, corporate income tax rates applicable in 2025 for cases other than those mentioned above include:

• Oil and gas exploration and exploitation activities: For activities related to the exploration, prospecting, and exploitation of oil and gas: the applicable tax rate ranges from 25% to 50%. Based on the location, exploitation conditions, and the reserve volume of each oil and gas field, the Prime Minister shall determine the specific tax rate applicable to each petroleum contract.
• Exploration and exploitation of rare and precious natural resources: For activities related to the exploration and exploitation of rare and precious natural resources (including platinum, gold, silver, tin, tungsten, antimony, gemstones, rare earth elements, and other rare and precious resources as prescribed by law): the applicable tax rate is 50%. In cases where at least 70% of the allocated mining area is in areas with extremely difficult socio-economic conditions, the applicable tax rate is 40%.

Cases not eligible for the 2025 corporate income tax rates

For the 15% and 17% tax rates

• Income from capital transfers, transfers of capital contribution rights; income from real estate transfers, excluding social housing as specified at point t, Clause 2, Article 12 of this Law; income from transfers of investment projects (excluding mineral processing projects), transfers of rights to participate in investment projects, and transfers of rights to explore, exploit, and process minerals; income from business activities conducted outside the territory of Vietnam.
• Income from oil and gas exploration, prospecting, and exploitation, exploitation of rare and precious natural resources, and income from mineral exploration and exploitation.
• Income from the production and trading of goods and services subject to special consumption tax under the Law on Special Consumption Tax, excluding projects involving the production and assembly of automobiles, aircraft, yachts, and petrochemical refining.
• Enterprises that are subsidiaries or related-party enterprises, in cases where a party in the related relationship does not meet the conditions for applying the above preferential tax rates

Tax calculation method

Pursuant to Article 11 of the Law on Corporate Income Tax 2025, the method for calculating corporate income tax is prescribed as follows:

“1. The amount of corporate income tax payable in a tax period shall be calculated by multiplying taxable income by the applicable tax rate, except for the cases specified in Clause 2 of this Article.

…2. The Government shall provide regulations on the method of determining the amount of corporate income tax payable as a percentage (%) of revenue in the following cases:

…a) Enterprises specified at Points c and d, Clause 2, Article 2 of this Law; the entities responsible for tax declaration and payment, the timing, and the method for determining taxable revenue arising in Vietnam.

…b) Enterprises with total annual revenue not exceeding VND 3 billion as provided in Clause 2, Article 10 of this Law, in cases where revenue can be determined but expenses and income from production and business activities cannot be identified.

…c) Organizations established under the Law on Cooperatives, public service units, and other organizations as specified at Points c and d, Clause 1, Article 2 of this Law, which engage in production and trading of goods or services that generate taxable corporate income (excluding tax-exempt income as provided in Article 4 of this Law), and are able to determine revenue but not the expenses and income from such production and business activities.”

Effective date of application of corporate income tax rates in 2025

Pursuant to Article 16 of the Law on Corporate Income Tax 2025, the provisions on the effective date for the application of the new tax rates shall take effect from 1st October 2025. This allows enterprises to update and adjust their accounting policies and tax declarations appropriately.

Understanding the applicable tax rates not only ensures compliance with the law but also enables businesses to optimize their financial strategies and promote sustainable growth in a volatile economic environment. Viet An Law has provided a detailed overview of the corporate income tax rates in Vietnam from 2025 in the above article. Should you have any questions, please feel free to contact us for further assistance!