Corporate income tax Corporate income tax (CIT) is one of the important financial obligations of all production and business organizations in Vietnam. Understanding the legal regulations on CIT not only helps businesses comply with the law but also optimizes costs and minimizes tax risks.
Specifically, from October 1st, 2025, Corporate Income Tax Law No. 67/2025/QH15 The new regulations will officially take effect with several important changes that directly impact how businesses calculate and declare their taxes. This article provides a comprehensive guide to the current corporate income tax and upcoming adjustments.
I. What is Corporate Income Tax?
Corporate income tax (CIT) is a type of tax. direct taxes, hit on the part taxable income of enterprises and economic organizations after deducting reasonable deductible expenses arising from the production and business activities of goods and services or from other legitimate sources of income as prescribed by law.
II. Who are the entities subject to Corporate Income Tax?
1. According to the old Corporate Income Tax Law of 2008
Base Article 2, According to the Corporate Income Tax Law of 2008, the taxpayers include:
- Business & Investment Established and operating in accordance with Vietnamese law;
- Businesses established and operating under foreign laws that generate income in Vietnam, with or without a permanent establishment in the country;
- The organization is established and operates in accordance with the Law on Cooperatives.;
- Public and private non-profit organizations that engage in production and business activities generating taxable income;
- Other organizations Taxable income is generated.
2. According to the Corporate Income Tax Law 2025 (effective from October 1, 2025)
Expand further Taxpayers:
- Many foreign businesses They do not have a permanent establishment in Vietnam but generate taxable income in Vietnam from their activities. doing business through digital platforms (e-commerce platforms, digital applications, etc.)
- E-commerce platforms and digital platforms through which foreign businesses provide goods and services in Vietnam are considered permanent establishments of businesses when determining their eligibility for corporate income tax.
III. How to calculate Corporate Income Tax
1. Calculation formula
The method for calculating corporate income tax is as follows:
📜 “The amount of corporate income tax payable during the tax period is calculated as taxable income multiplied by tax rate, except as provided in Clause 2 of this Article.”
– Clause 1, Article 11 of the Corporate Income Tax Law 2025
From that, we can derive the formula for calculating corporate income tax:
CIT = Taxable income for the period × Tax
In which:
- Taxable income for the period: This is the total revenue from the production and business activities of goods and services and other legitimate income during the tax period, after deducting deductible expenses as stipulated in the Corporate Income Tax Law and its implementing regulations, tax-exempt income, and losses carried forward from previous years.
- Tax rate: It is a percentage applied to taxable income to determine the amount of tax payable.
2. Determining Taxable Income
According to the Article 7 Corporate Income Tax Law 2025Taxable income is determined by the following formula:
Taxable income = (Revenue – Deductible expenses) + Other legitimate income – (Tax-exempt income + Losses carried forward from previous years)
In which:
a) Deductible expenses:
According to the Circular 96 / 2015 / TT-BTC According to the guidelines, deductible expenses must meet the following conditions:
- Not included in the list of prohibited expenses as stipulated in the same Article;
- These expenses arise in practice to support the business operations of the enterprise;
- There must be sufficient valid invoices and documents as required by law (in cases where invoices and documents are unavailable, a list of purchased goods and services must be prepared);
- Invoices with a value of 05 million VND or more (including VAT) must be supported by non-cash payment methods.
b) Non-deductible expenses:
Non-deductible expenses include:
- Expenses that do not meet the above-mentioned conditions for deduction;
- Administrative penalties for violations;
- Expenditures exceeding the prescribed limits;
- Other expenses.
👉 Refer to the detailed article: Deductible and non-deductible expenses when determining corporate income tax.
c) Other legitimate sources of income:
Other income These are incomes that do not arise directly from the registered main production and business activities but are still subject to corporate income tax. This group of income includes irregular income, income arising unexpectedly, or income originating from financial activities, investments, asset liquidation, etc.
Base Clause 2 Article 3 Corporate Income Tax Law 2025Other sources of income include:
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Income from the transfer of capital, equity rights, and securities;
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Income from the transfer of real estate (excluding real estate businesses);
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Income from the transfer of investment projects, rights to participate in projects, and rights to explore, exploit, and process minerals;
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Income from the transfer, lease, or liquidation of assets (including securities, excluding real estate);
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Income from the right to use and own property (including intellectual property and technology transfer);
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Income from interest on deposits, interest on loans, and the sale of foreign currency (excluding credit activities of credit institutions);
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Provisions for expenses that were not used or not fully used; bad debts that have been recovered; liabilities with unidentified creditors; business income from previous years that was omitted;
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The difference in revenue from fines, contract compensation, or performance-based bonuses;
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Donations and grants in the form of money or goods;
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Differences arising from asset revaluation during capital contributions, transfers, mergers, consolidations, divisions, separations, changes in ownership or business type;
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Income from business cooperation contracts;
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Income from production and business activities abroad;
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Income from leasing public assets of public non-profit organizations;
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Other income, excluding income exempt from tax under Article 4 of this Law.
d) Tax-exempt income:
According to the Article 4 According to the Corporate Income Tax Law 2025, some income is exempt from corporate income tax, including:
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Income from fishing; production and processing of agricultural products, aquatic products, and salt in particularly difficult areas; income of cooperatives and cooperative unions in these fields.
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Income of cooperatives and cooperative unions in agriculture, forestry, fisheries, and salt production in difficult or extremely difficult areas.
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Income from technical services directly related to agriculture.
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Income from contracts for scientific research, technological development, innovation, digital transformation; new technological products applied for the first time; and products manufactured on a trial basis (exempt for a maximum of 03 years).
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Income from businesses with ≥30% of their workforce being people with disabilities, recovering from drug addiction, or infected with HIV/AIDS, and with ≥20 employees, excluding financial and real estate businesses.
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Income from educational and vocational training activities for ethnic minorities, people with disabilities, children with special needs, and those involved in social vices.
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Income received from capital contributions, share purchases, joint ventures, and domestic partnerships, after corporate income tax has been paid.
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Funding for education, culture, arts, charity, humanitarian and social causes; funding for scientific research, innovation, and digital transformation; support from the state budget and government investment funds; and state compensation (misuse will result in recovery).
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Differences resulting from asset revaluation for the purpose of equitization and restructuring of 100% state-owned enterprises.
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Income from the first transfer of emission reduction certificates, carbon credits; interest, and the first transfer of green bonds.
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Income (including interest on deposits, government bonds, and treasury bills) from tasks assigned by the State.
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The undivided income of socialized institutions (education, healthcare, other socialized services) for reinvestment; the income that forms the undivided common fund and undivided common assets of cooperatives and cooperative unions.
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Income from technology transfer is prioritized in particularly disadvantaged areas.
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Income of public service units from public service activities.
👉 Refer to the detailed article: The latest list of income exempt from corporate income tax in 2025.
e) Losses carried forward:
According to the Article 16 Corporate Income Tax Law 2025:
- Businesses that incur losses may carry them forward to the following year; these losses are deducted from taxable income. The period for carrying forward losses shall not exceed 05 years, starting from the year following the year in which the loss was incurred.
- Enterprises incurring losses from the transfer of mineral exploration and exploitation projects; the transfer of the right to participate in mineral exploration, exploitation, and processing projects; and the transfer of the right to explore, exploit, and process minerals may carry forward these losses to the following year against the taxable income of that activity. The loss carryforward period is as stipulated in Clause 1 of this Article.
- The government shall provide detailed regulations for this Article.
3. Determine the corporate income tax rate.
a) According to the old regulations:
According to the Article 10 According to Consolidated Document No. 10/VBHN-BTC, the general corporate income tax rate currently applied for 2025 is 20%.
For oil and gas and rare earth resources, the tax rate ranges from 32% to 50%. Specifically:
- For oil and gas activities, based on established criteria, the Prime Minister decides on the specific tax rate appropriate for each project and business entity, upon the proposal of the Minister of Finance;
- Activities related to rare resources are subject to a tax rate of 50%. In cases where 70% or more of the mine's area is located in areas with particularly difficult socio-economic conditions, the tax rate is 40%.
Cases eligible for preferential tax rates, tax exemptions, or tax reductions for a certain period, as well as other tax reduction cases, are stipulated in Articles 15, 16, and 17 of Consolidated Document No. 10/VBHN-BTC of the Corporate Income Tax Law.
b) According to the new Corporate Income Tax Law 2025 (effective from October 1, 2025):
According to the Corporate Income Tax Law 2025, the general corporate income tax rate continues to be 20%.
The cases to which the new special tax rates apply include:
- The business has total annual revenue. not exceeding 03 billion apply tax rate 15%.
- Businesses with total annual revenue of over 03 billion to 50 billion apply tax rate 17%.
With oil and gas operations, tax rates range from 25% - 50% (32% – 50% according to the old regulations), the Prime Minister decides the specific tax rate appropriate for each contract.
With Activities related to the exploration and exploitation of rare resources. (including: platinum, gold, silver, tin, tungsten, antimony, precious stones, rare earth elements and other rare resources as prescribed by law) is 50%In cases where mines have 70% or more of their allocated area located in areas with particularly difficult socio-economic conditions, the tax rate is 40%.
Cases eligible for preferential tax rates, tax exemptions or reductions for a certain period, as well as other tax reduction cases, are stipulated in Articles 13, 14, and 15 of this Law.
👉 Refer to the detailed article: The latest cases eligible for preferential tax rates, tax exemptions, and tax reductions in 2025.
Corporate income tax is not only an obligation but also reflects the business performance and legal compliance of the enterprise. Get it right, thoroughly understand current regulations and keep up-to-date with any changes. Corporate Income Tax Law 2025 will help businesses Do it rightActively plan your finances, take advantage of legal incentives, and minimize tax risks.
Regularly review expenses, maintain valid documentation, and file tax returns and settlements on time to ensure legal security and financial stability for your business.