According to Resolution No.198/2025/QH15 adopted by the National Assembly of Vietnam on 17 May 2025, the corporate income tax (CIT) for newly established small and medium-sized enterprises shall be exempted for 3 years from the date of issuance of the first enterprise registration certificate, starting from 17 May 2025. Small and medium-sized enterprises refer to enterprises with an average annual participation of no more than 200 employees in social insurance and meeting one of the following two criteria:
(1) The total assets not exceeding VND100 billion;
(2) The total revenue of the previous year not exceeding VND300 billion.
In addition, according to the revised Law on Corporate Income Tax of Vietnam, which will come into effect on 1 October 2025, small enterprises shall be subject to different preferential tax rates based on their total annual revenue, the details are as follows:
(1) Enterprises with total annual revenue not exceeding VND3 billion shall be subject to a 15% corporate income tax rate.
(2) Enterprises with total annual revenue exceeding VND3 billion to VND50 billion shall be subject to a corporate income tax rate of 17%.
The total annual revenue stated above refers to the total revenue for the preceding corporate income tax period. The above reduced corporate income tax rates do not apply to small enterprises affiliated with large enterprises that do not qualified, and incomes from transfer of capital, incomes from transfer of real estate, incomes from business operations outside Vietnam and etc. The said preferential corporate income tax policy will come into force from 1 October 2025 and shall apply from the tax year of 2025.
Note: The standard corporate income tax rate in Vietnam is 20%.
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According to Resolution No.198/2025/QH15 adopted by the National Assembly of Vietnam on 17 May 2025, the corporate income tax (CIT) for newly established small and medium-sized enterprises shall be exempted for 3 years from the date of issuance of the first enterprise registration certificate, starting from 17 May 2025.
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