Vietnam Amended Corporate Income Tax Law 2025

On June 14, 2025, the National Assembly officially passed the amended Law on Corporate Income Tax. The amended Law on Corporate Income Tax has just been passed with many tax incentives to support the development of scientific research, technology, innovation… which is a driving force to encourage businesses to invest in research and innovation. Below, Viet An Law will update the new regulations in the Vietnam amended Corporate Income Tax Law 2025.

Effectiveness of the Vietnam amended Corporate Income Tax Law 2025

On the morning of June 14, 2025, 452/453 National Assembly deputies participated in the vote in favor (accounting for 94.56% of the total number of National Assembly deputies), the National Assembly passed the Law on Corporate Income Tax (amended). This Law takes effect from October 1, 2025 and applies to the 2025 corporate income tax period.

This is an important legal adjustment step to improve tax policy, increase transparency and control risks in the modern business environment.

Preferential tax policy on corporate income tax from October 1, 2025

Pursuant to Article 10 of the Law on Corporate Income Tax amended in 2025, corporate income tax rates are prescribed as follows:

• General tax rate: 20%, applicable to most enterprises.
• Preferential tax rate of 15%: Applicable to enterprises with total annual revenue not exceeding 3 billion VND.
• Preferential tax rate of 17%: Applicable to enterprises with annual revenue over 3 billion but not exceeding 50 billion VND.

The revenue used as the basis for determining the preferential tax rate is the revenue of the previous tax year. For newly established enterprises, the Government will have separate regulations on how to determine it.

This adjustment clearly demonstrates the State’s orientation to support small and medium-sized enterprises, helping these enterprises reduce their tax burden and have more resources to invest in development. The regulation on the application of preferential tax rates based on revenue criteria is to suit reality, facilitate the implementation process and basically does not contradict the provisions of the Law provision of assistance for small and medium-sized enterprises.

However, to ensure transparency and avoid taking advantage of preferential policies, the tax rates of 15% and 17% will not apply to enterprises that are subsidiaries or affiliated companies where the affiliated enterprises do not meet the conditions for preferential application. This provision is to ensure that the preferential tax policy truly reaches small and medium-sized enterprises, avoiding the situation where large enterprises take advantage of this policy to evade tax obligations.

In addition, pursuant to Clause 3, Article 10 of the Law on Corporate Income Tax amended in 2025, a number of specific fields are subject to higher tax rates:

• Oil and gas exploration and exploitation: From 25% to 50%, depending on the conditions of each mine, as decided by the Prime Minister.
• Exploitation of rare resources such as gold, silver, rare earth, etc.: Tax rate of 50%; if the mine is located 70% or more of the area in a particularly difficult area, it will be reduced to 40%.

Extend the period of application of preferential corporate income tax rates

One of the highlights of the revised Law on Corporate Income Tax, effective from 2025, is the provision on applying a preferential tax rate of 10% for 15 years to the income of enterprises arising from the implementation of new investment projects in important infrastructure sectors such as: Bridges, roads, railways; airports, seaports, river ports; airports, stations and other particularly important infrastructure works decided by the Prime Minister.

• The Prime Minister is authorized to decide to extend the application period of the above preferential tax rates for a maximum of 15 years, for projects with a minimum investment capital of VND 6,000 billion, having a large socio-economic impact and needing special encouragement.
• The period of application of the preferential tax rate of 10% for income from the implementation of new investment projects of enterprises will be calculated from the first year the project has revenue.
• The amended law also includes new regulations to encourage enterprises in the fields of production, construction and transportation to employ more female workers. Accordingly, enterprises will receive a reduction in corporate income tax corresponding to the additional costs reserved for female workers. Details of tax reduction levels and accompanying conditions will be stipulated by the Government in sub-law guidance documents.

Adding more business lines to enjoy corporate income tax incentives from October 1, 2025

In addition to adjusting the subjects applying preferential tax rates, in Article 12 of the Vietnam amended Law on Corporate Income Tax 2025, the list of business lines enjoying corporate income tax incentives is expanded, including many areas promoting innovation and sustainable development:

• 50% reduction in CIT on income from technology transfer to organizations, individuals and public service units operating in areas with difficult conditions.
• Apply a tax rate of 10% for 15 years to corporate income from new investments in the following fields: high-tech applications, venture capital, supporting industries, renewable energy production, software production, etc.
• Apply a tax rate of 10% to press agencies (printed newspapers, electronic newspapers), reduced by half compared to the current rate. This preferential tax rate is applied from October 1, 2025.

The expansion of preferential industries demonstrates the state’s orientation towards developing the digital economy, innovation and supporting the startup ecosystem.

Amendment and supplement of regulations on exemption and reduction of corporate income tax

Article 14 of the Vietnam amended Law on Corporate Income Tax 2025 has comprehensively revised the provisions on exemption and reduction of corporate income tax, specifically:

Tax exemption for up to 4 years, 50% reduction for up to 9 subsequent years, applicable to:

• Enterprises subject to incentives in Clause 1, Article 13.

Enterprises subject to Point s, Clause 2, Article 12, in preferential areas (Points a, b, Clause 3, Article 12). If not in preferential areas: tax exemption for up to 4 years, 50% reduction for up to 5 subsequent years

Tax exemption for up to 2 years, 50% reduction for up to 4 subsequent years, applicable to enterprises in Clause 4, Article 13.

Special extension according to the Prime Minister’s decision: For some new investment projects under points h and i, Clause 2, Article 12, the Prime Minister may decide to extend the tax exemption and reduction period by no more than 1.5 times the prescribed period.

Note how to calculate tax exemption and reduction period:

• Calculated from the first year of taxable income.
• If there is no taxable income in the first 3 years from the date of revenue, then calculate from the 4th year.
• If the preferential certificate is issued after income is generated, the exemption or reduction period is calculated from the year the certificate is issued or from the first year of income generation, depending on the case.

Tax incentives for expansion investment projects

Pursuant to Clause 5 and Clause 6, Article 14 of the Law on Corporate Income Tax amended in 2025, incentives also apply to additional income from expansion investment projects in preferential business lines, and locations, provided that:

• No need to account separately if the project is still in operation and still has the incentive period.
• If the incentive period expires, additional income is exempted or reduced from tax as for new investment projects (but the preferential tax rate is not applied).

Enterprises need to separately account for the increased income. If this is not possible, the ratio will be applied based on the original cost of new fixed assets / total original cost of fixed assets. Incentives are not applied to expansion investment from enterprise mergers and acquisitions activities.

Conditions for applying expanded investment incentives must meet at least one of the following three criteria:

• Increase the original value of fixed assets to the minimum level prescribed by the Government.
• The original value of assets increases by at least 20% compared to the initial total assets.
• The designed capacity increases by at least 20% compared to before expansion.

Above is an update of the new regulations in the Vietnam Amended Corporate Income Tax Law 2025. If you have any related questions or need legal advice on tax, please contact Tax Agency – Viet An Law for the best advice and support!