Consolidated Document No. 113/VBHN-VPQH, dated 20 May 2026, issued by the National Assembly Office on the Corporate Income Tax Law, stipulating taxpayers, taxable income, tax-exempt income, tax calculation basis, tax calculation methods, and corporate income tax incentives as follows:

by KMC Consulting Company Limited

1. Taxpayers:

  • Enterprises established in accordance with the laws of Vietnam.
  • Foreign organizations conducting production and business activities in Vietnam or deriving income arising in Vietnam.
  • Taxation principles:
    • Vietnamese enterprises shall pay tax on income arising both within and outside Vietnam.
    • Foreign enterprises shall pay tax on income arising in Vietnam in accordance with the permanent establishment regulations.

2. Taxable Income and Tax-exempt Income:

  • All income derived from the production and trading of goods and services, and other income such as income from capital transfers, securities transfers, real estate transfers, investment project transfers, deposit interest, lending interest, foreign-sourced income, and other lawful income.
  • Certain income is exempt from tax to encourage the development of agriculture, scientific research, technological development, education, vocational training, and social activities in accordance with the law.

3. Tax Period:

  • The tax period shall be determined based on either the calendar year or the fiscal year selected by the enterprise, provided that prior notification is given to the directly managing tax authority.

4. Tax Calculation Basis and Method:

  • CIT payable = Taxable Income × CIT Rate
  • Taxable Income = Assessable Income - | Tax-exempt Income + Losses Carried Forward in accordance with regulations |
  • Assessable Income = Revenue - Deductible Expenses + Other Income (including income received outside Vietnam)
  • Revenue means the total proceeds from the sale of goods, provision of services, subsidies, surcharges, and additional charges to which the enterprise is entitled, regardless of whether payment has been received.
  • Deductible expenses are actual expenses related to production and business activities, supported by sufficient lawful invoices and documents, and satisfying the non-cash payment conditions as prescribed by law.

5. Tax Rates

  • The current standard tax rate is 20%.
  • Small enterprises meeting the prescribed revenue conditions may apply preferential tax rates of 15% or 17%.
  • Oil and gas activities and the exploitation of rare natural resources are subject to higher tax rates ranging from 25% to 50%, depending on each specific case.

6. Corporate Income Tax Incentives

  • The State applies preferential policies on tax rates, tax exemptions, or tax reductions for prioritized sectors such as high technology, innovation, research and development, education, healthcare, environmental protection, high-tech agriculture, and social housing; as well as investment projects located in areas with difficult or exceptionally difficult socio-economic conditions.

7. Loss Carryforward

  • Enterprises are entitled to carry forward the full amount of losses to the taxable income of subsequent years. Losses may be carried forward for a maximum period of 05 consecutive years from the year immediately following the year in which the loss arises.

8. Science and Technology Development Fund

  • Enterprises may establish a science and technology development fund from taxable income before calculating Corporate Income Tax, subject to the conditions prescribed by law.

For more detailed information about this or related Tax Advisory, please don't hesitate to contact us.
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