| GOVERMENT | SOCIAL REPUBLIC OF VIETNAM Independence - Freedom - Happiness |
| Number: 320 / 2025 / ND-CP | Hanoi, date 15 month 12 year 2025 |
DECREE
DETAILED REGULATIONS ON CERTAIN ARTICLES AND MEASURES FOR ORGANIZING AND GUIDING THE IMPLEMENTATION OF THE CORPORATE INCOME TAX LAW
Based on the Law on Organization of the Government No. 63/2025/QH15;
Based on the Corporate Income Tax Law No. 67/2025/QH15 (hereinafter referred to as the Corporate Income Tax Law);
Based on the Law on Promulgation of Legal Documents No. 64/2025/QH15 (amended and supplemented by Law No. 87/2025/QH15);
At the proposal of the Minister of Finance;
The government has issued a Decree detailing certain provisions and measures for organizing and guiding the implementation of the Corporate Income Tax Law.
Chapter I
GENERAL RULES
Article 1. Scope of adjustment and subject of application
1. Scope of application
a) Detailed regulations on several articles of the Corporate Income Tax Law, including: Article 2; Article 3; Article 4; Article 8; Article 9; Clause 3 of Article 10; Clause 2 of Article 11; Clauses 2, 3 and 4 of Article 12; Clause 1 of Article 13; Clause 6 of Article 14; Article 15; Article 16; Clauses 1, 3 and 5 of Article 18; Clause 3 of Article 19;
b) Stipulating measures to organize and guide the implementation of the Corporate Income Tax Law, including: Determining taxable income; basis for tax calculation; tax rates; tax calculation methods; principles and subjects of application of corporate income tax incentives; preferential tax rates; tax exemptions and reductions; conditions for applying tax incentives; establishment of the Enterprise Science and Technology Development Fund; effective date.
2. Scope of Application
This Decree applies to organizations and individuals involved within the scope of regulation specified in Clause 1 of this Article.
Article 2. Taxpayers
1. Taxpayers as defined in Clause 1, Article 2 of the Corporate Income Tax Law (hereinafter referred to as enterprises) include:
a) The enterprise is established and operates in accordance with the provisions of the Enterprise Law, the Investment Law, the Insurance Business Law, the Securities Law, the Oil and Gas Law, the Commercial Law, international treaties, and regulations in other legal documents;
b) Enterprises established under foreign law (hereinafter referred to as foreign enterprises) with or without a permanent establishment in Vietnam, including:
b1) Foreign enterprises with a permanent establishment in Vietnam shall pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam related to the activities of that permanent establishment;
b2) Foreign enterprises with a permanent establishment in Vietnam pay tax on taxable income arising in Vietnam that is not related to the activities of the permanent establishment;
b3) Foreign enterprises without a permanent establishment in Vietnam shall pay tax on taxable income arising in Vietnam;
b4) Foreign enterprises with a permanent establishment in Vietnam (excluding foreign enterprises specified in points b1 and b2 of this clause) providing goods and services in Vietnam through e-commerce or digital platform business forms shall pay tax on taxable income arising in Vietnam;
c) Public service units established in accordance with Vietnamese law;
d) Cooperatives and cooperative unions established in accordance with the provisions of the Law on Cooperatives;
d) Economic organizations established and operating in accordance with the provisions of the Law on Credit Institutions;
e) Other organizations besides those specified in points a, b, c, d, and e of this clause that engage in production and business activities with taxable income as prescribed in Article 3 of this Decree;
Enterprises established in accordance with Vietnamese law as stipulated in this clause shall pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam.
2. Organizations established and operating (or registered) in accordance with Vietnamese law (including organizations managing e-commerce trading platforms, organizations managing digital platforms) are taxpayers in cases where they pay taxes on behalf of foreign entities when a Vietnamese party purchases services (including services associated with goods, goods supplied and distributed in the form of on-site export or import or under international trade terms (Incoterms)), conducts e-commerce business, conducts business based on digital platforms, or receives capital transfers based on contracts with foreign enterprises as stipulated in points b2, b3, and b4 of Clause 1 of this Article; Securities investment fund management companies are taxpayers on behalf of investors when the Securities Investment Fund distributes dividends to investors as stipulated in Clause 3 of Article 14 and are taxpayers for income from the transfer and lease of real estate of real estate investment funds as stipulated in Clause 6 of Article 15 of this Decree; In cases where the transferee of capital from a foreign enterprise is a foreign organization or individual, the taxpayer is the enterprise established under Vietnamese law where the foreign organizations invest their capital.
3. The permanent establishment of a foreign enterprise as stipulated in point b, clause 1 of this Article is a production or business establishment through which the foreign enterprise conducts part or all of its production and business activities in Vietnam, including:
a) Branches, executive offices, factories, workshops, transport vehicles, oil fields, gas fields, mines or other natural resource exploitation sites in Vietnam;
b) Construction site, construction works, installation, and assembly;
c) Service providers, including those providing consulting services through employees or other organizations or individuals;
d) Acting as an agent for foreign businesses;
d) Representatives in Vietnam, whether authorized to sign contracts on behalf of foreign enterprises or representatives who are not authorized to sign contracts on behalf of foreign enterprises but regularly carry out the delivery of goods or provision of services in Vietnam;
e) E-commerce platforms, digital platforms through which foreign businesses provide goods and services in Vietnam.
The Minister of Finance shall provide detailed regulations for this Article.
Article 3. Taxable income
1. Income used to determine taxable income includes income from the production and business of goods and services as stipulated in Clause 2 and other income as stipulated in Clause 3 of this Article.
2. Income from the production and sale of goods and services includes:
a) Income of enterprises from registered business lines and professions, including those specified in Clause 2, Article 3 of the Corporate Income Tax Law;
b) Income from oil and gas activities and other income directly related to oil and gas activities arising during the tax period, determined according to each oil and gas contract, international treaty, and regulations in other legal documents.
3. Other income includes:
a) Income from the transfer of capital, securities, and capital contribution rights as stipulated in Articles 13 and 14 of this Decree, excluding: Income directly related to the issuance of shares and dividends (except dividends on shares classified as liabilities), the sale of treasury shares, repurchased shares of the enterprise itself, and other income directly related to the increase or decrease of the enterprise's equity;
b) Income from the transfer of real estate as stipulated in Articles 15, 16, and 17 of this Decree, excluding income from the transfer of real estate by real estate businesses;
c) Income from the transfer of investment projects, income from the transfer of the right to participate in investment projects, income from the transfer of the right to explore, exploit, and process minerals as prescribed by law;
d) Income from ownership and use rights of assets, including royalties in all forms paid for ownership and use rights of assets; income from intellectual property rights; income from technology transfer as prescribed by law.
Income from intellectual property rights and technology transfer is determined by the total amount received minus the cost of goods sold or the expenses incurred in creating the intellectual property rights or technology being transferred, the expenses for maintaining, renewing, modifying, upgrading, and developing the intellectual property rights or technology being transferred, and other deductible expenses related to intellectual property rights or technology transfer.
d) Income from renting property (excluding real estate) in any form.
Income from renting assets is determined by subtracting expenses from the revenue generated from renting assets: depreciation, maintenance, repair, and upkeep costs of assets; costs of subleasing assets (if any); and other deductible expenses related to asset rental.
e) Income from the transfer or liquidation of assets, excluding real estate.
Income from the transfer and liquidation of assets as stipulated in this point is determined by the revenue obtained from the transfer and liquidation of assets minus the remaining value of the transferred and liquidated assets at the time of transfer and liquidation, and deductible expenses related to the transfer and liquidation of assets;
g) Income from interest on deposits, interest on loans, and the sale of foreign currency (excluding income from credit granting, deposit, and foreign exchange trading activities of credit institutions), including:
g1) Interest on deposits at credit institutions, interest on loans in all forms as prescribed by law, including late payment interest, installment interest, credit guarantee fees and other fees in loan contracts;
g2) Income from foreign currency sales is determined by subtracting the total purchase price or total cost price of the foreign currency sold from the total amount received from selling foreign currency;
h) Income from exchange rate differences during the tax period includes exchange rate differences arising from the revaluation of foreign currency-denominated liabilities at the end of the tax period and exchange rate differences arising during the period, specifically as follows:
h1) Exchange rate differences arising during the period and exchange rate differences resulting from the revaluation of foreign currency liabilities at the end of the tax period that are directly related to the revenue and expenses of the enterprise's main production and business activities are included in the expenses or income of the enterprise's main production and business activities. Exchange rate differences arising during the period and exchange rate differences resulting from the revaluation of foreign currency liabilities at the end of the tax period that are not directly related to the revenue and expenses of the enterprise's main production and business activities, if an exchange rate loss arises, are included in financial expenses; if an exchange rate gain arises, it is included in other income when determining taxable income;
h2) Exchange rate differences of foreign currency-denominated items arising during the period that are included in income are the difference between the exchange rate at the time the foreign currency-denominated items arise and the exchange rate at the time of initial recognition;
h3) The exchange rate differences stipulated in this point do not include exchange rate differences arising from the revaluation of year-end balances of: cash, deposits, money in transit, and accounts receivable denominated in foreign currency;
i) Provisions for expenses that are not used or not fully used within the provision period, and which the enterprise does not account for as a reduction in expenses;
k) Bad debts that were written off but are now recoverable; debts payable with unidentified creditors; income from business activities in previous years that were overlooked but have been discovered;
l) The difference between revenue from fines, compensation for breach of economic contracts, or bonuses for fulfilling contractual commitments (excluding fines and compensation that reduce the value of the project during the investment phase or have reduced the value of purchased goods and services) minus penalties (excluding administrative fines as prescribed by law on handling administrative violations) and compensation for breach of contract as prescribed by law is included in other income. If a negative difference arises, it is deducted from other income; if no other income is generated during the year, it is deducted from income from production and business activities.
m) Gifts and presents in cash, in kind, or in the form of services or goods that do not require payment; income received in cash, in kind, or as gifts in the form of services from funding sources (excluding direct support from the state budget and from the Government-established Investment Support Fund as stipulated in Clause 8, Article 4 of this Decree); income received from marketing support, cost support, payment discounts, promotional bonuses, and other forms of support.
The value of income received in kind, gifts in the form of services or goods that do not require payment is determined by the value of similar or equivalent goods or services at the time of receipt;
n) Amounts of money, assets, and other material benefits received by the enterprise from organizations and individuals under agreements and contracts in accordance with civil law, resulting from the enterprise handing over the old land location for the relocation of its production and business facilities, after deducting related expenses such as relocation costs (transportation and installation costs), the remaining value of fixed assets, and other expenses (if any);
o) Differences arising from the revaluation of assets in accordance with the law for capital contribution, transfer during division, separation, merger, consolidation, or conversion of business type (except for cases specified in Clause 9, Article 4 of this Decree) shall be determined specifically as follows:
o1) The increase or decrease resulting from asset revaluation is the difference between the revalued value and the remaining value of the asset recorded in the accounting books, and is included once in other income (for an increase) or deducted from other income (for a decrease) in the tax period when determining taxable income for corporate income tax purposes at enterprises with revalued assets during division, separation, merger, consolidation, conversion of business type, or capital contribution;
o2) The increase or decrease in the value of land use rights resulting from the revaluation for: capital contribution (where the enterprise receiving the land use rights gradually allocates the land value to deductible expenses), transfer during division, separation, merger, acquisition, or conversion of enterprise type; capital contribution to investment projects for the construction of houses and infrastructure for sale, shall be included once in other income (for the increase) or deducted from other income (for the decrease) in the tax period when determining taxable corporate income.
Specifically, any increase resulting from the revaluation of land use rights contributed to a business to form fixed assets for production and business activities, where the business receiving the land use rights is not allowed to depreciate them and cannot gradually allocate the land value to deductible expenses, shall be gradually included in the other income of the business with the revalued land use rights for a maximum period of 10 years, starting from the year the land use rights were contributed. The business must notify the number of years for which it allocates the difference to other income when submitting its corporate income tax return for the year in which it begins declaring this income (the year in which the land use rights were revalued).
In cases where, after contributing capital, the enterprise continues to transfer the capital contribution in the form of land use rights (including cases of transferring capital contribution before the 10-year period), the income from the transfer of capital contribution in the form of land use rights must be calculated and declared for tax purposes according to the real estate transfer income tax rate.
o3) Enterprises receiving contributed assets or transferred assets during division, separation, merger, acquisition, or conversion of business type may depreciate or gradually allocate them to expenses based on their revalued value (except for the value of land use rights which are not eligible for depreciation or allocation to expenses as stipulated);
p) Income from a business cooperation contract (BCC) is determined by the total revenue under the BCC contract minus the total costs associated with generating that revenue.
p1) In cases where the parties to a BCC contract divide the business results based on revenue from the sale of goods and services, the taxable revenue is the revenue of each party as divided according to the contract;
p2) In cases where the parties to a BCC contract divide the business results in terms of products, the taxable revenue is the revenue from the products divided among each party according to the contract;
p3) In cases where the parties to a BCC contract divide business results based on pre-tax profit, the parties must appoint one party as a representative responsible for issuing invoices, recording revenue and expenses, and determining the pre-tax corporate income profit to be distributed to each party to the BCC contract. Each party to the BCC contract shall fulfill its own corporate income tax obligations according to regulations;
p4) In cases where the parties to a BCC contract divide business results based on after-tax corporate income profit, the parties to the BCC contract must appoint one party as a representative responsible for issuing invoices, recording revenue and expenses, and declaring and paying corporate income tax on behalf of the other parties to the BCC contract;
q) Income received from production and business activities abroad is the sum of income received before corporate income tax (or a tax of a similar nature to corporate income tax);
r) Income from the sale of scrap and waste materials, after deducting recovery and consumption costs, is determined as follows:
r1) In cases where a business generates income from the sale of scrap and waste materials created during the production of products belonging to industries, professions, or geographical areas that are enjoying corporate income tax incentives, this income is also entitled to corporate income tax incentives;
r2) In cases where a business generates income from the sale of scrap and waste materials created during the production of products not eligible for corporate income tax incentives, this income shall be included in other income;
s) Any refund of export or import taxes on goods actually exported or imported that arises in the same year as the corporate income tax settlement shall be deducted from expenses in that year. If the refund of export or import taxes on goods actually exported or imported arose in previous corporate income tax settlement years, it shall be included in other income of the year in which the refund arises;
t) Income from domestic capital contributions, share purchases, joint ventures, and partnerships that is distributed from income before corporate income tax is paid;
u) In cases where a business accepts new contributing members in accordance with the law, and the amount contributed by the new member exceeds the value of that member's share in the total charter capital of the business, the following procedures shall apply:
u1) If this higher difference is determined to be owned by the enterprise and added to its working capital, it will not be included in taxable income for the purpose of calculating corporate income tax for the enterprise receiving the capital contribution;
u2) If this higher difference is distributed to the old contributing members, then this difference is income for the old contributing members;
v) Other income as prescribed by law.
4. Taxable income arising in Vietnam of foreign enterprises as stipulated in points c and d of Clause 2, Article 2 of the Corporate Income Tax Law is income received originating from Vietnam from the provision of services, supply and distribution of goods (including the provision of goods and services through e-commerce and digital platform-based business activities), lending capital, royalties to Vietnamese organizations and individuals or to foreign organizations and individuals doing business in Vietnam, regardless of the location of business; income from the transfer of capital (directly or indirectly), investment projects, capital contribution rights, rights to participate in investment projects, exploration, exploitation and processing rights of minerals in Vietnam, regardless of the location of the transfer.
The Minister of Finance shall provide detailed regulations for point b, clause 2 and clause 4 of this Article.
Article 4. Tax-Exempt Income
Tax-exempt income is determined according to the provisions of Article 4 of the Corporate Income Tax Law, including:
1. Income from fishing activities; income of enterprises from the production of crops, planted forests, livestock, aquaculture, and processing of agricultural and aquatic products (including cases of purchasing agricultural and aquatic products for processing, outsourcing, or receiving processing contracts) in areas with particularly difficult socio-economic conditions; income of cooperatives and cooperative unions from the production of crops, planted forests, livestock, aquaculture, and processing of agricultural and aquatic products (including cases of purchasing agricultural and aquatic products for processing, outsourcing, or receiving processing contracts), and salt production.
a) Income from the production of agricultural products, planted forests, livestock, and aquaculture products by enterprises, cooperatives, and cooperative unions that is exempt from tax under the provisions of this Decree includes income from products grown, raised, or cultivated by the enterprises, cooperatives, and cooperative unions themselves, including income from the liquidation of agricultural products, planted forests, livestock, and aquaculture products, income from the sale of scrap and waste related to agricultural products, planted forests, livestock, and aquaculture products, or income from self-grown, raised, or cultivated products followed by ordinary preliminary processing.
Crop products, planted forests, livestock, and aquaculture products of cooperatives, cooperative unions, and enterprises are determined based on the level 1 economic sector code of agriculture, forestry, and fisheries as stipulated in the Vietnamese Economic Sector Classification System;
b) Income from products and goods processed from agricultural and aquatic products that are exempt from tax must simultaneously meet the following conditions:
b1) The ratio of the value of agricultural and aquatic raw materials to the cost of producing goods and products (product cost) is 30% or more.
The raw materials for agricultural and aquatic product processing must be agricultural and aquatic products that have not been processed into other products or have only undergone basic processing (including by-products of the basic processing of agricultural and aquatic products);
b2) Products and goods derived from the processing of agricultural and aquatic products are not subject to excise tax as stipulated in the Law on Excise Tax.
In the case of fresh and frozen products reaching a temperature of -18 degrees Celsius or higher (colder), processed products made from fresh products into cooked products, and processed products made from raw materials mixed with spices and additives to create value-added goods are also considered processed seafood products. Businesses must separately determine the income from processed agricultural and seafood products to be exempt from corporate income tax.
c) The determination of whether a product has undergone only ordinary preliminary processing as stipulated in this clause shall be carried out in accordance with the provisions of Decree No. 181/2025/ND-CP dated July 1, 2025 of the Government detailing the implementation of a number of articles of the Law on Value Added Tax.
2. Income of cooperatives and cooperative unions operating in the fields of agriculture, forestry, fisheries, and salt production in areas with difficult socio-economic conditions or areas with particularly difficult socio-economic conditions.
3. Income from providing technical services directly serving agriculture is exempt from tax, including: Income from services related to irrigation, drainage, flood control, flood prevention, tidal surge prevention, salinity control, leaching, acidity leaching, freshwater retention; plowing and harrowing; dredging of canals and ditches in the fields; pest and disease control services for crops and livestock; and agricultural product harvesting services.
The technical services specified in this clause are determined based on the first-level economic sector code of the agricultural sector as stipulated in the Vietnamese Economic Sector Classification System.
4. Income from the execution of contracts for scientific research, technological development and innovation, digital transformation; income from the sale of products made using new technologies applied for the first time in Vietnam; and income from the sale of products produced during the trial production period, including controlled trial production as prescribed by law, is exempt from tax for 03 years.
a) Income derived from the execution of scientific research, technology development, innovation, and digital transformation contracts as stipulated by the law on science, technology, and innovation, the law on the digital technology industry, and the law on digital transformation is exempt from tax for the duration of the contract, but for a maximum of 03 years from the date the income from the scientific research, technology development, innovation, and digital transformation contract is generated;
b) Income from the sale of products manufactured using new technologies applied for the first time in Vietnam is exempt from tax for 03 years from the date the income from the sale of the products is generated.
Products made using new technologies that are applied for the first time in Vietnam are exempt from tax, provided that the new technology being applied for the first time in Vietnam is confirmed by the competent authority;
c) Income from the sale of products produced during the trial production period, including controlled trial production as stipulated by the law on science, technology and innovation, is exempt from tax for 03 years from the date of income from the sale of the trial products.
Products manufactured for testing purposes that are exempt from tax must be certified by the competent authority.
5. Income from the production and business activities of enterprises with 30% or more of their average annual workforce being people with disabilities, people recovering from drug addiction, or people infected with the human immunodeficiency virus (HIV/AIDS), and with an average annual workforce of 20 or more people, excluding enterprises operating in the financial and real estate sectors.
a) Enterprises eligible for tax exemption under this clause must meet the following conditions:
a1) For businesses employing people with disabilities (including war invalids and sick soldiers) or people infected with HIV/AIDS, these employees must have confirmation from a competent health authority;
a2) For businesses employing individuals who have completed drug rehabilitation, these individuals must possess a certificate of completion of rehabilitation from a rehabilitation facility or confirmation from a relevant competent authority;
b) Income exempt from tax as stipulated in this clause does not include other income as stipulated in Clause 3, Article 3 of this Decree.
6. Income from vocational education and training activities specifically for ethnic minorities, people with disabilities, children in special circumstances, and victims of social vices, including:
a) Vocational education and training institutions exempt from tax under this clause are those established in accordance with the law on vocational education and training and that have a list of students who are ethnic minorities, people with disabilities, children with special circumstances, and victims of social vices;
b) In cases where vocational education and training institutions provide vocational education and training to other groups, the tax-exempt portion of income is determined by the ratio between the number of ethnic minorities, people with disabilities, children in special circumstances, and those involved in social vices, compared to the total number of students at the institution.
7. Income distributed from capital contributions, share purchases, joint ventures, and economic partnerships with domestic enterprises, after the recipient of the capital contribution, joint venture, or partnership has paid taxes in accordance with the Corporate Income Tax Law, including cases where the recipient of the capital contribution, the issuer of shares, or the joint venture/partner enjoys corporate income tax incentives.
8. Funding received for use in educational, cultural, artistic, charitable, humanitarian, and other social activities in Vietnam; funding received from unrelated enterprises, organizations, and individuals both domestically and internationally for use in scientific research, technological development, innovation, and digital transformation; direct support from the state budget and from the Government-established Investment Support Fund; and compensation from the State as prescribed by law.
a) The organization receiving funding as stipulated in this clause is an organization established and operating in accordance with the law.
Enterprises with related-party relationships as stipulated in this clause shall comply with the provisions of the law on tax administration;
b) Funding for scientific research, technological development and innovation, and digital transformation shall be implemented in accordance with the laws on science, technology and innovation, the laws on the digital technology industry, and the laws on digital transformation;
c) Direct support from the state budget refers to support from the state budget at all levels as prescribed by the law on the state budget;
d) The compensation provided by the State under this clause shall be determined in accordance with the law on the State's liability for compensation and the compensation provided by the State as prescribed by other laws;
d) The Investment Support Fund stipulated in this clause is a Fund established, managed, and used in accordance with the provisions of Government Decree No. 182/2024/ND-CP dated December 31, 2024, on the establishment, management, and use of the Investment Support Fund;
e) If the grant or support received under this clause is used by the enterprise for purposes other than those intended, the enterprise will be subject to tax recovery and penalties for violations in accordance with the law.
9. The difference resulting from the revaluation of assets in accordance with the law for the purpose of equitization and restructuring of enterprises where the state holds 100% of the charter capital.
a) Enterprises wholly owned by the State shall undergo equitization and restructuring in accordance with the law on the management and investment of state capital in enterprises;
b) The difference resulting from the revaluation of assets as stipulated in this clause shall be recorded as an increase in the State's capital in the enterprise;
c) After equitization and restructuring, enterprises are allowed to depreciate or gradually allocate costs based on their revalued price.
10. Income from the initial transfer of emission reduction certificates, the initial transfer of carbon credits by enterprises granted emission reduction certificates or carbon credits; income from interest on green bonds; income from the initial transfer of green bonds after issuance, including:
a) Income from the transfer of emission reduction certificates and carbon credits as stipulated in this clause is the income of the enterprise granted the emission reduction certificate or carbon credit;
b) Income from the initial transfer of green bonds after issuance as stipulated in this clause refers to income from the transfer of green bonds that the enterprise directly purchases from the green bond issuer.
11. Income (including interest on bank deposits, interest on government bonds, interest on treasury bills) from performing tasks assigned by the State in the following cases:
a) Income of the Vietnam Development Bank from investment and development credit activities and export credit, including: State-funded investment and export credit; credit guarantees and other credit facilities assigned by competent State agencies;
b) Income of the Social Policy Bank from lending activities to the poor and other policy beneficiaries;
c) Income of a limited liability company with one member managing the assets of Vietnamese credit institutions;
d) Income from revenue-generating activities of the Vietnam Social Insurance Fund, Deposit Insurance Organization, Health Insurance Fund, Vocational Training Support Fund, Overseas Employment Support Fund, Farmers Support Fund, Vietnam Legal Aid Fund, Public Telecommunications Fund, Local Development Investment Fund, Vietnam Environmental Protection Fund, Credit Guarantee Fund for Small and Medium-Sized Enterprises, Cooperative Development Support Fund, Fund for Poor Women, Fund for the Protection of Citizens and Legal Entities Abroad, Housing Development Fund, Small and Medium-Sized Enterprise Development Fund, Science and Technology Development Fund of ministries, ministerial-level agencies, government agencies, provinces, cities or Science, Technology and Innovation Development Fund of ministries, ministerial-level agencies, government agencies, other central agencies, provincial People's Committees, National Venture Capital Fund, Local Venture Capital Fund established according to the provisions of the Law on Science, Technology and Innovation, Capital Assistance Fund for Poor Workers Self-employment fund, land development fund, defense and security industry fund, defense foreign policy fund, investment support fund, policy and lawmaking support fund, and other state funds and organizations operating on a non-profit basis as prescribed or decided by the Government or the Prime Minister.
In cases where the aforementioned Funds and organizations generate other income besides the income from revenue-generating activities carried out in accordance with State-assigned tasks, they must calculate and pay taxes as prescribed by law.
12. The undistributed income of socialized institutions in the fields of education and training, healthcare, and other socialized sectors, retained for investment in the development of those institutions; the income forming the undistributed common fund and undistributed common assets of cooperatives and cooperative unions established and operating in accordance with the Law on Cooperatives.
a) The undistributed income of a socialized facility that is exempt from tax as stipulated in this clause must meet a minimum ratio of 25% of undistributed income to taxable income;
b) The basis for implementing socialization as stipulated in this clause includes:
b1) Non-public establishments that are established and meet the operating conditions as prescribed by competent authorities in the fields of socialized services;
b2) Enterprises established to operate in socialized sectors and meeting the operating requirements as stipulated by the competent authority;
b3) Public non-business units shall contribute capital, raise capital, enter into joint ventures and partnerships in accordance with the law to establish independent accounting entities or enterprises operating in socialized sectors as decided by competent authorities.
Socialized facilities must meet the categories, scale criteria, and standards as stipulated in the list prescribed by the Prime Minister;
c) In cases where the undistributed income retained as stipulated in this clause is distributed or spent for purposes other than those intended, the units will be subject to tax recovery and penalties for violations in accordance with the law.
13. Income from technology transfer in priority areas to organizations and individuals in areas with particularly difficult socio-economic conditions.
a) The regulations on technology transfer in this clause and Clause 3 of Article 21 of this Decree shall be implemented in accordance with the law on technology transfer and other relevant laws;
b) Priority areas for technology transfer are technologies included in the list of technologies encouraged for transfer as stipulated by the law on technology transfer;
c) Areas with particularly difficult socio-economic conditions as stipulated in point a, clause 3, Article 18 of this Decree.
14. Income of public service units from providing public services, including:
a) Basic and essential public service activities included in the list of public service activities using state budget funds;
b) Public service activities that the State must support and ensure funding for because the service provision costs are not fully included in the service price;
c) Public service activities in areas with particularly difficult socio-economic conditions;
d) The public non-business unit stipulated in this clause is an organization established by a decision of a competent authority;
d) Public service activities, basic and essential public service activities, and public service activities for which the State must support and ensure operating costs due to insufficient cost calculations as stipulated in this clause shall be determined according to Decree No. 60/2021/ND-CP dated June 21, 2021 of the Government regulating the financial autonomy mechanism of public service units (amended and supplemented by Decree No. 111/2025/ND-CP dated May 22, 2025 of the Government).
Chapter II
TAX BASIS AND METHODOLOGY
Article 5. Basis for tax calculation
1. The basis for calculating tax is taxable income during the tax period and the tax rate.
2. The tax period shall be determined in accordance with the provisions of Article 5 of the Corporate Income Tax Law and the regulations of tax administration law.
Article 6. Taxable income and offsetting of taxable income during the tax period
1. If a business has multiple production and business activities during the tax period, the taxable income from production and business activities is the total income from all production and business activities.
2. In cases where a business incurs losses from its production and business activities, the losses may be offset against the taxable income of other income-generating production and business activities at the business's discretion, except as stipulated in clauses 3 and 4 of this Article.
The remaining taxable income after offsetting will be subject to the corporate income tax rate applicable to the remaining income from production and business activities.
3. In cases where a business incurs losses from the transfer of real estate, investment projects, or the right to participate in investment projects, these losses cannot be offset against taxable income from production and business activities that are currently enjoying tax incentives.
4. Taxable income from the transfer of investment projects for mineral exploration, exploitation, and processing; the transfer of the right to participate in investment projects for mineral exploration, exploitation, and processing; and the transfer of the right to explore, exploit, and process minerals must be determined separately for tax declaration and payment, and cannot be offset against profits and losses from production and business activities in the tax period.
Article 7. Identification of Losses and Loss Carryforward
1. A loss incurred during a tax period is the negative difference in taxable income, excluding losses carried forward from previous years.
2. If a business incurs a loss after tax settlement, it must carry forward the entire loss continuously to taxable income in subsequent years. The loss carryforward period is calculated continuously for no more than 05 years, starting from the year following the year in which the loss occurred.
Businesses can temporarily carry forward losses to quarterly income when determining quarterly provisional tax payments and officially carry them forward to the annual tax year when filing the annual tax return. Loss carryforward is possible in some specific cases as follows:
a) Businesses that incur losses between quarters within the same year may offset the losses of the previous quarter against the losses of the following quarters of that year. When settling corporate income tax, the business determines the total loss for the year and continuously carries forward the entire loss to the taxable income of the years following the year in which the loss occurred, as stipulated above;
b) Enterprises shall determine the amount of losses to be deducted from taxable income in accordance with the provisions of this Decree. If further losses are incurred during the loss carryforward period, these newly incurred losses (excluding losses carried over from previous periods) shall be carried forward in full and continuously for no more than 05 years, starting from the year following the year in which the loss was incurred.
b1) In cases where the competent authority inspecting or auditing the corporate income tax settlement determines that the amount of losses the enterprise is allowed to carry forward differs from the amount of losses determined by the enterprise itself, the amount of losses to be carried forward shall be determined according to the conclusion of the inspection or auditing authority, but ensuring that the losses are carried forward in full and continuously for no more than 05 years, starting from the year following the year in which the loss occurred, as prescribed;
b2) If, after a period of 05 years from the year following the year in which the loss was incurred, the remaining loss has not been carried forward, it will not be allowed to be carried forward to the income of subsequent years.
3. 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 as taxable income from those activities. The loss carryforward period is continuous and does not exceed 05 years, starting from the year following the year in which the loss occurred.
4. Businesses that change their business type, ownership, merge, consolidate, split, or separate, after completing tax settlements as prescribed, and incur losses, must track these losses in detail by year and offset them against the income of the business in the same year after the change, merger, or consolidation, or continue to carry forward the losses to subsequent years of the business after the change, merger, or consolidation to ensure the principle of continuous loss carryforward for no more than 05 years, starting from the year following the year in which the loss occurred, as stipulated in Clause 4, Article 25 of this Decree.
Any losses incurred by a business before its division or separation into other businesses, and still within the prescribed loss carryforward period, will be allocated to the newly divided or separated businesses in proportion to the equity capital being divided or separated.
Article 8. Revenue
Revenue for calculating taxable income is determined according to the provisions of Article 8 of the Corporate Income Tax Law.
1. Revenue for calculating taxable income is the total amount of money from sales, processing fees, and service provision fees, including subsidies, surcharges, and additional fees that the enterprise receives, regardless of whether the money has been collected or not.
a) For businesses that declare and pay value-added tax using the tax deduction method, the revenue subject to corporate income tax is the revenue excluding value-added tax;
b) For businesses that declare and pay value-added tax using the direct method on value added, the revenue for calculating corporate income tax includes value-added tax.
2. Time of revenue recognition
a) For the sale of goods, it is the time when ownership and the right to use the goods are transferred to the buyer;
b) For service provision activities, the time of completion of the service provision or completion of each part of the service provision to the buyer is the time of completion, except as stated in Clause 3 of this Article;
c) The Minister of Finance shall prescribe the time of revenue determination in cases other than those specified in points a and b of this clause.
3. Revenue for calculating taxable income in certain cases is specifically defined as follows:
a) For goods processing activities, the revenue from the processing includes labor costs, fuel costs, power costs, auxiliary materials costs, and other costs incurred in processing the goods;
b) For goods and services sold on an installment or deferred payment basis, the payment is the one-time sale price of the goods or services, excluding installment interest or deferred payment interest;
c) For goods of units acting as agents and receiving agents under agency contracts, the commission is determined as follows:
c1) The business delivers goods to its agents (including multi-level marketing agents) based on the total amount of goods sold;
c2) The business acting as a sales agent pays a commission based on the agency contract, in accordance with the price stipulated by the principal business;
d) For goods and services used for internal exchange or consumption (excluding goods and services used to continue the enterprise's production and business process), the price is determined according to the selling price of similar or equivalent products, goods, and services on the market at the time of internal exchange or consumption;
d) For asset leasing activities, the revenue is the amount paid by the lessee in each period according to the lease contract. If the lessee pays in advance for several years, the enterprise, based on the accounting system, actual invoices and supporting documents, and the determination of expenses, may choose one of two methods to determine revenue for taxable income as follows: The amount of asset lease for each year is determined by dividing the advance payment by the number of years for which the advance payment was made, or the entire amount of asset lease for the number of years for which the advance payment was made.
In cases where a business is enjoying corporate income tax incentives and chooses to determine its taxable income based on the entire amount of rent paid in advance by the lessee for multiple years, the corporate income tax for each year/tax incentive period will be determined by dividing the total corporate income tax for the years for which the rent was paid in advance by the number of years for which the lessee paid in advance.
e) For golf course business operations, revenue from membership card sales, golf ticket sales, and other income during the tax period is determined as follows:
e1) For the sale of tickets and daily golf membership cards, the revenue from golf course operations used to determine taxable income for corporate income tax purposes is the amount received from the sale of tickets, membership cards, and other income generated during the tax period;
e2) For ticket sales and multi-year prepaid membership card sales, the revenue used to determine taxable income for corporate income tax purposes each year is the amount of money from card sales and other revenues actually collected divided by the number of years the card is valid, or determined based on the revenue from one-time payments;
g) For other service business activities where customers pay in advance for multiple years, the amount paid annually by the service buyer is the amount stipulated in the contract. If the service buyer pays in advance for multiple years, the revenue for calculating taxable income is allocated equally over the number of years for which the advance payment was made, or determined based on the lump-sum payment. If the enterprise is currently enjoying corporate income tax incentives, the amount of tax eligible for the incentive must be determined by dividing the total corporate income tax payable for the years for which the advance payment was made by the number of years for which the advance payment was made.
h) For banking, securities (including derivatives), and insurance activities, revenue determination shall be carried out in accordance with the provisions of the law on the financial regime of credit institutions, branches of foreign banks, securities law, and insurance law.
For financial derivative services, revenue determination shall be carried out in accordance with the provisions of accounting law and other relevant laws (if any);
i) For transportation activities, this includes all revenue from the transportation of passengers, goods, and luggage generated during the tax period;
k) For construction and installation activities, the value is the project value, the value of the project item, or the value of the volume of construction and installation work that has been accepted;
k1) In the case of construction and installation with the supply of materials, machinery, and equipment, the amount of money from the construction and installation activities includes the value of materials, machinery, and equipment;
k2) In the case of construction and installation not including the supply of materials, machinery, and equipment, the amount of money from construction and installation activities does not include the value of materials, machinery, and equipment;
l) For business activities conducted under a BCC contract, the amount is the sale price of goods or services as stipulated in the contract;
l1) In cases where the parties to a BCC contract divide the business results based on revenue from the sale of goods and services, the taxable revenue is the revenue of each party as divided according to the contract;
l2) In cases where the parties to a BCC contract divide the business results in terms of products, the taxable revenue is the revenue from the products divided among each party according to the contract;
m) For the exploration, prospecting, and production of crude oil and natural gas, the taxable value is the total value of the actual crude oil and natural gas output sold at the point of delivery specified in the oil and gas contract where ownership of the crude oil and natural gas is transferred to the parties involved in the oil and gas contract, according to the fair transaction of the crude oil and natural gas sales contract during the tax period (excluding value added tax).
m1) In cases where crude oil is sold through non-fair transactions, revenue from crude oil extraction is determined by multiplying the volume of crude oil by the average selling price of the same or equivalent crude oil on the international market during the month of export. The taxpayer is responsible for providing the tax authorities with information on the composition and quality of the crude oil being extracted. When necessary, the tax authorities may refer to selling prices on the US market (WTI), the UK market (Brent), or the Singapore market (Platt's), or consult with competent state agencies regarding the determination of the price of the crude oil being extracted by the taxpayer;
m2) Fair transactions conducted in accordance with the regulations of the oil and gas law;
n) For gambling businesses (casinos, electronic gambling games, betting businesses), the revenue from these activities includes excise tax minus the amount paid out as prizes to customers;
o) Other cases as directed by the Minister of Finance.
Article 9. Deductible expenses when determining taxable income
1. Except for non-deductible expenses as stipulated in Article 10 of this Decree, enterprises are allowed to deduct expenses when determining taxable income if they meet the conditions in points a, b, and c below:
a) Actual expenses incurred in connection with the enterprise's production and business activities, including additional expenses deductible as a percentage of actual expenses incurred during the tax period related to the enterprise's research and development activities;
a1) Expenses incurred during the tax period related to the enterprise's research and development activities are deductible up to a maximum of 200% of the actual costs for these activities (excluding expenses specified in Clause 3, Article 10 of this Decree) incurred during the tax period at the enterprise;
a2) Determining the deductible expenses for research and development activities as stipulated in this point must ensure that, after applying the additional expenses, the enterprise does not incur losses;
a3) The determination of actual expenses incurred during the tax period related to research and development activities as stipulated in this point shall be carried out in accordance with the provisions of the law on science, technology and innovation;
b) The expenditure is supported by invoices and documents as required by law.
For the following cases: Purchasing agricultural, forestry, and aquatic products from producers or fishermen who sell them directly; purchasing handicrafts made from jute, sedge, bamboo, reeds, leaves, rattan, straw, coconut shells, or recycled materials from agricultural products from handicraft producers who sell them directly; purchasing scrap materials from collectors; purchasing household goods and assets from individuals who sell them directly; purchasing goods and services from individuals or business households (excluding the cases mentioned above) with revenue below the value-added tax threshold, payment documents must be provided in accordance with the law on accounting, invoices, and receipts to the seller (for cases where the value of goods and services purchased on a given day by each household or individual is 05 million VND or more, payment must be made non-cash) and a list of purchased goods and services signed and vouched for by the legal representative or authorized person of the enterprise;
c) Non-cash payment receipts are required for purchases of goods, services, and other individual payments with a value of 05 million VND or more. Non-cash payment receipts must comply with the regulations of the law on value-added tax.
c1) In the case of purchasing goods or services from a seller with a value of less than 05 million VND but making multiple purchases on the same day with a total value of 05 million VND or more, the expenses can only be deducted if there is non-cash payment documentation;
c2) In cases where a business incurs expenses of VND 05 million or more due to the business authorizing/assigning employees to directly purchase goods and services to serve the business's production and business activities, and these expenses are paid by the employees using non-cash payment services, they are deductible expenses if they meet the following conditions: There are invoices and supporting documents in accordance with the law on accounting, invoices and supporting documents, and financial regulations or internal regulations or decisions of the business stipulating the authorization or permission for employees to pay for the purchase of goods and services to serve the business's production and business activities, and these expenses are subsequently reimbursed by the business to the employees;
c3) In cases where goods or services are purchased in individual transactions with a value of VND 05 million or more, and the business has not yet paid at the time of recording the expense, the business may include it as a deductible expense when determining taxable income. If the business does not have non-cash payment documentation when making the payment, the business must declare and adjust the expense downwards for the value of goods or services without non-cash payment documentation in the tax period in which the cash payment occurred (even if the tax authorities and other relevant agencies have already decided to audit or inspect the tax period in which this expense was incurred).
2. Businesses are allowed to include in deductible expenses when determining taxable income other actual expenses incurred that meet the conditions in points b and c of Clause 1 of this Article, including:
a) Expenditures for the implementation of national defense and security education tasks, training, operations of militia and self-defense forces, and serving other national defense and security tasks as prescribed by law;
b) Expenses for supporting the activities of Party organizations and socio-political organizations within enterprises;
c) Expenditures for vocational education and training for workers include: fees for instructors, learning materials, equipment used for vocational education activities, practical materials, and other costs supporting learners; training costs incurred by the enterprise for employees recruited to work at the enterprise; and training, retraining, and professional development costs for employees currently working at the enterprise.
The educational, training, retraining, and professional development activities for employees stipulated in this point must be specified in detail in one of the following documents: Employment contract, Collective labor agreement, or the enterprise's financial regulations;
d) Actual expenses for HIV/AIDS prevention and control activities in the workplace of the enterprise, including: Costs for training HIV/AIDS prevention and control staff of the enterprise; costs for organizing HIV/AIDS prevention and control communication for the enterprise's employees; fees for HIV/AIDS counseling, examination and testing; costs for supporting HIV/AIDS-infected employees of the enterprise;
d) Funding for education, health, culture, disaster prevention and mitigation, disease control, building solidarity houses, houses of compassion, and houses for policy beneficiaries as prescribed by law; funding as prescribed by the Government and the Prime Minister for localities in areas with particularly difficult socio-economic conditions; funding for scientific research, technological development and innovation, and digital transformation.
d1) The financial or in-kind donations for education stipulated in this point include: Donations to public, private, and independent schools within the national education system as prescribed by the law on education, provided that these donations are not for capital contributions or share purchases in these institutions; donations to facilities serving teaching, learning, and school activities; donations to the regular activities of schools; scholarships for students in general education institutions, vocational education institutions, and higher education institutions as prescribed by the Law on Education (direct donations to students or through educational institutions, or through agencies and organizations with the function of mobilizing donations as prescribed by law); donations to competitions in subjects taught in schools where the participants are students; donations to establish educational scholarship funds as prescribed by the law on education and training;
(d2) The financial or in-kind donations to healthcare stipulated in this point include: Donations to healthcare facilities established in accordance with the law on healthcare, provided that these donations are not for capital contribution or share purchase in those facilities; donations of medical equipment, instruments, and medicines; donations to the regular operations of organizations licensed to operate medical examination and treatment services in accordance with the law; donations to patients through an agency or organization authorized to mobilize donations in accordance with the law;
d3) Funding for culture in cash or in kind as stipulated in this section includes: Funding for museums and libraries established in accordance with the law on culture, provided that this funding is not for contributing capital or purchasing shares in those museums and libraries; direct funding for the regular activities of the Cultural Heritage Preservation Fund; funding for museums, libraries, and the Cultural Heritage Preservation Fund through an agency or organization with the function of mobilizing funding as prescribed by law;
d4) Funding for disaster prevention, control, and mitigation, in cash or in kind as stipulated in this point includes: Funding for disaster prevention, control, and mitigation directly to organizations established and operating in accordance with the law; funding for affected individuals through an agency or organization with the function of mobilizing funding in accordance with the law;
d5) Funding for the construction of solidarity houses, houses of compassion, or houses in cash or in kind for policy beneficiaries as stipulated in this point includes: Direct funding or funding through an agency or organization with the function of mobilizing funding according to the provisions of the law.
The policy beneficiaries stipulated in this clause include: People with meritorious service as prescribed by law on people with meritorious service; social welfare beneficiaries receiving subsidies from the state budget; people belonging to poor and near-poor households and other cases as prescribed by law;
d6) Financial or in-kind grants as stipulated by the Government or decided by the Prime Minister for localities in areas with particularly difficult socio-economic conditions are programs prescribed by the Government or the Prime Minister for implementation in localities in areas with particularly difficult socio-economic conditions (including corporate grants for the construction of infrastructure projects in areas with particularly difficult socio-economic conditions according to projects approved by competent authorities).
d7) Financial or in-kind grants for scientific research, technological development and innovation, and digital transformation for organizations and individuals. The recipients of grants specified in this point shall comply with the provisions of the law on science, technology and innovation, and the law on digital transformation;
e) Expenditures for scientific research, technological development and innovation, and digital transformation.
The determination of expenditures for scientific research, technological development and innovation, and digital transformation as stipulated in this point shall be carried out in accordance with the laws on science, technology and innovation, and the laws on digital transformation;
g) The portion of the value of losses due to natural disasters, epidemics, and other force majeure events that are not eligible for compensation.
g1) The portion of the loss due to natural disasters, epidemics, and other force majeure events that is not compensated is determined by subtracting the portion of the loss that the insurance company or other organization or individual is required to compensate according to the law from the total loss value;
g2) If the compensation received by the enterprise differs from the period in which the loss occurred, and the enterprise has not yet deducted this compensation from the loss value, the enterprise shall include the compensation in other income in the period in which the compensation occurred;
g3) The determination of other force majeure events as a basis for determining the deductible portion of the loss value stipulated in this point includes disasters, fires, unexpected accidents, and other cases carried out in accordance with the provisions of tax administration law;
h) Actual expenses for seconded personnel participating in the management, operation, and control of credit institutions under special supervision, and commercial banks that have been compulsorily transferred according to the provisions of the Law on Credit Institutions;
i) Certain expenses incurred by the enterprise for production and business activities but not corresponding to the revenue generated during the period, including:
i1) Costs incurred by a bidder for participating in the bidding process but failing to win the bid;
i2) Costs of market research, product and service research in preparation for the production of new products and services, and investment costs for new product and service development projects that were unsuccessful or discontinued.
Businesses are allowed to deduct the expenses specified in this point when calculating corporate income tax, provided they submit market development research reports or reports on the development of new products and services to relevant state management agencies as required by specialized laws. If specialized laws do not require the submission of such reports, the reports shall be stored within the business.
i3) Land lease fees and infrastructure management and maintenance costs paid to infrastructure businesses in economic zones, high-tech zones, high-tech agricultural zones, concentrated digital technology zones, industrial parks, industrial clusters; land lease fees paid to the State for land leased from the State, where this land and infrastructure must be the location or headquarters of the enterprise's production and business activities in cases where it has not yet participated in the enterprise's production and business activities;
i4) Depreciation or amortization costs as prescribed for leased assets during the period when there is no tenant.
In cases where a business has assets for lease but has not yet found a tenant, if the assets are legally owned or used by the business, the business is allowed to deduct expenses related to these assets during the period when there is no tenant.
i5) Costs of establishing a business or its branches, subsidiaries, or business locations; costs of restoration after temporary suspension of production or business operations (excluding investment expenditures for the construction of fixed assets); costs of restoring the original condition as per the contract before the termination of the business's production or business operations, or the termination of the operations of its branches, subsidiaries, or business locations;
i6) Costs of introducing/marketing products and services before sale.
Businesses are allowed to deduct the expenses specified in this point when calculating corporate income tax, provided they submit a report on their investment plan for the production of products and services to the relevant state management agency as prescribed by specialized laws. If specialized laws do not require the submission of such a report, the report shall be stored within the business.
i7) Costs of destroying damaged inventory due to natural biochemical changes, outdated fashion, outdated technology, obsolete goods, expired goods, goods with no usable value, goods that do not meet market circulation requirements as stipulated by specialized laws; costs of destroying raw materials, supplies, and components that are no longer needed. The cost of destroying goods at this point includes the value of the destroyed goods at cost (excluding any provision for impairment as stipulated, if any) and costs related to the destruction process;
i8) Costs of disposing of assets due to damage or loss of use. Costs of disposing of assets at this point include the remaining book value at the enterprise and costs related to the asset disposal process;
i9) Costs of disposing of scrap and waste materials generated during processing and production.
Businesses must retain and provide complete records related to the expenses mentioned in point i of this clause to facilitate inspections and audits as required by law;
k) Expenditures to support the construction of public works that simultaneously serve the production and business activities of enterprises.
The determination of public works as stipulated in this section shall be carried out in accordance with the provisions of Point 2, Section I, Section III and Section IV of Appendix I issued together with Government Decree No. 06/2021/ND-CP dated January 26, 2021, detailing some contents on quality management, construction and maintenance of construction works;
l) Costs related to reducing greenhouse gas emissions to achieve carbon neutrality and net zero, reduce environmental pollution, and related to the business operations of the enterprise;
m) Contributions to Funds established by decision of the Prime Minister and regulations of the Government, including: the Public Telecommunications Fund; the Tobacco Harm Prevention and Control Fund; the Vietnam Environmental Protection Fund; and other Funds established by decision of the Prime Minister and regulations of the Government. Contributions to these Funds, which are deductible expenses as stipulated in this point, are amounts that the enterprise is obligated to pay to these Funds as prescribed.
Article 10. Expenses not deductible when determining taxable income.
Expenses that are not deductible when determining taxable income are governed by the provisions of Clause 2, Article 9 of the Corporate Income Tax Law, specifically as follows:
1. Expenditures that do not meet the conditions stipulated in Clause 1, Article 9 of this Decree.
2. Fines for administrative violations include: violations of traffic laws, violations of business registration regulations, violations of accounting regulations, violations of tax laws including late payment penalties as stipulated in the Law on Tax Administration, and other administrative fines as prescribed by law.
3. Expenses reimbursed from other funding sources; expenses already disbursed from the enterprise's Science and Technology Development Fund, the enterprise's Science, Technology and Innovation Development Fund, and Digital Transformation Fund.
4. Excess spending beyond the prescribed limits for the following expenses:
a) The portion of business management expenses allocated by a foreign enterprise to its permanent establishment in Vietnam that exceeds the limit is calculated using the following formula:
b) The portion of expenses related to hiring management for the operation of electronic gaming with prizes and casino business that exceeds 4% of the revenue from the operation of electronic gaming with prizes and casino business;
c) Payment of interest on loans of enterprises with related-party transactions in accordance with the law on tax management for enterprises with related-party transactions;
d) The portion of expenses for welfare benefits directly for employees exceeding one month's average actual salary paid in the tax year, including: expenses for funerals and weddings of the employee and their family; vacation expenses; expenses for medical treatment and examination; expenses for supplementary education at educational institutions or vocational training centers; expenses for supporting employees' families affected by natural disasters, epidemics, accidents, or illness; expenses for rewarding employees' children with good academic achievements; expenses for supporting employees' travel costs during holidays and Tet (Lunar New Year). Expenses for accident insurance (excluding mandatory accident insurance as stipulated by specialized laws), health insurance, and other voluntary insurance for employees (excluding contributions to supplementary retirement insurance as stipulated by the Social Insurance Law, expenses for purchasing life insurance for employees, and voluntary retirement insurance for employees as guided in point d of this clause), and other welfare-related expenses, specifically as follows:
d1) The determination of the actual average monthly salary paid during the tax year of the enterprise is calculated by dividing the total salary fund paid during the year by 12 months. If the enterprise operates for less than 12 months, the determination of the actual average monthly salary paid during the tax year is calculated by dividing the total salary fund paid during the year by the actual number of months the enterprise operated during the year;
d2) The actual payroll fund is the total amount of actual salaries paid in that fiscal year up to the deadline for submitting the tax return as prescribed (excluding the amount of salary reserve fund from the previous year that was spent in the tax year);
d) The portion exceeding 05 million VND/month/person for contributions to supplementary retirement insurance under the Social Insurance Law or social security funds, voluntary retirement insurance, and life insurance for employees. The portion exceeding the limits stipulated by law on social insurance and health insurance is used to contribute to social security funds (social insurance, mandatory supplementary retirement insurance), the Health Insurance Fund, and the Unemployment Insurance Fund for employees, specifically as follows:
d1) Supplementary contributions to retirement insurance under the Social Insurance Law or social security funds, voluntary retirement insurance, and life insurance for employees are deductible expenses, provided they do not exceed the limits stipulated in this point. Furthermore, the conditions and benefit levels must be specifically stated in one of the following documents: Employment contract; Collective labor agreement; Financial regulations of the Company, Corporation, or Group; Bonus regulations stipulated by the Chairman of the Board of Directors, General Director, or Director in accordance with the financial regulations of the Company, Corporation, or Group;
(d2) Enterprises are not allowed to deduct as expenses the costs of participating in supplementary retirement insurance under the Social Insurance Law or social security funds, purchasing voluntary retirement insurance, or life insurance for employees if the enterprise does not fully fulfill its mandatory insurance obligations for employees (including cases of outstanding mandatory insurance payments).
5. Establishing and using provisions in violation of legal regulations on provision establishment: Provision for inventory devaluation, provision for losses on financial investments, provision for doubtful receivables, provision for product, goods, and construction warranty, and provision for professional risks of valuation firms and independent auditing service providers.
6. Depreciation expenses for fixed assets fall under one of the following cases:
a) Depreciation expense for fixed assets not used in the production or sale of goods or services.
Specifically, fixed assets serving employees working at the enterprise, including: rest areas during breaks, canteens during breaks, changing rooms, toilets, medical examination and treatment rooms or stations, training and vocational education facilities, libraries, kindergartens, sports areas and equipment and furniture that qualify as fixed assets installed in the above-mentioned facilities; clean water tanks, garages; vehicles for transporting employees, housing directly for employees; construction costs of facilities, costs of purchasing machinery and equipment that are fixed assets used to organize vocational education activities and assets used to directly serve employees in the enterprise, are subject to depreciation and included in deductible expenses when determining taxable income;
b) Depreciation expenses for fixed assets without documentation proving ownership by the enterprise (excluding fixed assets under financial lease);
c) Depreciation expenses for fixed assets that are not managed, monitored, or accounted for in the enterprise's accounting books according to the current fixed asset management and accounting regulations;
d) Depreciation deductions that are incorrect or exceed the current regulations of the Minister of Finance on the management, use, and depreciation of fixed assets, specifically as follows:
d1) Enterprises shall depreciate fixed assets in accordance with the regulations of the Minister of Finance on the management, use, and depreciation of fixed assets, including accelerated depreciation, but must meet the conditions of ensuring profitable business operations;
d2) For assets such as tools, equipment, and reusable packaging that do not meet the conditions for being classified as fixed assets according to regulations (including tools, equipment, and reusable packaging that do not meet the conditions for being classified as fixed assets used by employees as mentioned in point a of this clause), the cost of purchasing the above-mentioned assets shall be gradually allocated to the operating expenses of production and business activities during the period, but not exceeding 03 years;
d) Depreciation of fixed assets that have been fully depreciated, except in cases where the fixed assets are authorized for revaluation by a competent authority;
e) Some specific cases are identified as follows:
e1) The following are not deductible expenses when determining taxable income: Depreciation corresponding to the original cost exceeding VND 1,6 billion/vehicle for passenger cars with 9 seats or fewer (excluding cars used for passenger transport, tourism, and hotel businesses; cars used as models and for test drives in the automotive business); depreciation for fixed assets such as aircraft, helicopters, gliders, and yachts not used for transporting goods, passengers, tourism, or hotels. In cases where the enterprise transfers or liquidates a passenger car with 9 seats or fewer, the remaining value of the vehicle is determined by subtracting the accumulated depreciation of the fixed asset according to the management and depreciation regime up to the time of transfer or liquidation.
Passenger cars with 9 seats or fewer used for passenger transport, tourism, and hotel businesses are those registered under the name of a business whose business registration certificate or business license includes one of the following business lines: passenger transport, tourism, or hotel, and which is licensed to operate according to the regulations in the legal documents on transport, passenger, tourism, and hotel businesses. Airplanes, helicopters, gliders, and yachts not used for the purpose of transporting goods, passengers, or tourists are those owned by businesses that register and account for depreciation of fixed assets, but whose business registration certificate or business license does not include the business lines of goods transport, passenger transport, tourism, or hotel business;
e2) For structures on land used for both production and business purposes, depreciation shall not be deductible for the value of the structures on the land corresponding to the area not used for production and business activities or not used to serve employees working at the enterprise as stipulated in point a of this clause.
Businesses are allowed to deduct depreciation expenses when determining taxable income, in accordance with the depreciation rate and useful life of fixed assets as stipulated by the Minister of Finance, for structures on land such as office buildings, factories, and shops serving the business's production and trading activities, provided they meet the following conditions: They possess a land use right certificate in the name of the business (if the land is owned by the business) or a land lease or loan contract between the business and the landowner, with the business representative legally responsible for the accuracy of the contract (in the case of leased or borrowed land); they have invoices for the completed construction work, along with the construction contract, contract termination agreement (if any), and final settlement of the construction value, bearing the name, address, and tax code of the business; and the structures on the land are managed, monitored, and accounted for according to current regulations on fixed asset management.
e3) In cases where fixed assets owned by an enterprise are used for production and business but must be temporarily suspended due to seasonal production for a period of less than 09 months; or temporarily used for repairs, relocation, or periodic maintenance for a period of less than 12 months, and subsequently the fixed assets are put back into service for production and business activities, the enterprise is allowed to depreciate the assets during that suspension period, and the depreciation expense incurred during this period is deductible when determining taxable income.
Businesses must maintain and provide complete records, including the reasons for the temporary suspension of fixed assets, when requested by the tax authorities.
e4) Long-term land use rights are not subject to depreciation and allocation as deductible expenses when determining taxable income. Land use rights with a limited term, if supported by complete invoices and documents and in accordance with legal regulations, and involved in production and business activities, may be gradually allocated as deductible expenses over the permitted land use period stated in the Land Use Right Certificate or the land lease period stated in the land allocation/lease contract (including cases of new construction investment, cessation of operations for repairs, or new construction investment).
In cases where a business purchases tangible fixed assets such as buildings and structures attached to long-term land use rights, the value of the land use rights must be determined separately and recorded as intangible fixed assets; for tangible fixed assets such as buildings and structures, the original cost is the actual purchase price paid plus any costs directly related to putting the tangible fixed assets into use. The value of land use rights is determined according to the price stated in the real estate purchase contract, consistent with market prices, but not lower than the land price in the land price list stipulated by the People's Committee of the province or centrally-governed city at the time of purchase. If a business purchases tangible fixed assets such as buildings and structures attached to long-term land use rights and cannot separate the value of the land use rights, the value of the land use rights shall be determined according to the land price in the land price list stipulated by the People's Committee of the province or centrally-governed city at the time of purchase.
In cases where a business transfers a portion of its capital or the entire business to another entity in accordance with the law, if assets are transferred, the receiving business is only allowed to deduct depreciation of fixed assets as deductible expenses for those assets that meet the depreciation criteria based on their remaining book value at the transferring business.
7. Provisions for expenses made in advance for a specified period or cycle that remain unspent or partially spent at the end of the period or cycle, specifically as follows:
a) Provisions include: Provisions for major repairs of fixed assets as prescribed by accounting laws; provisions for activities that have generated revenue but still require continued fulfillment of contractual obligations (including cases where the enterprise leases assets or provides services over several years but receives advance payments from customers and has included the entire amount in the revenue of the year in which the payment was received); and other provisions.
b) In cases where a business has recorded taxable revenue but has not yet incurred all expenses, it may accrue expenses in advance as prescribed and include them as deductible expenses corresponding to the recorded revenue when determining taxable income. Upon completion of the contract, the business must accurately calculate the actual expenses based on legitimate invoices and supporting documents to adjust expenses upwards (if actual expenses incurred are greater than the amount accrued) or downwards (if actual expenses incurred are less than the amount accrued) in the tax period ending the contract.
8. Expenses for employees falling under one of the following categories:
a) Salaries, wages, and other payments to employees that the enterprise has accounted for as production and business expenses during the period but were not actually paid or for which there are no payment documents as required by law;
b) Salaries, wages, and bonuses for employees are not specifically stated with conditions and amounts in any of the following documents: Labor contracts or documents from foreign enterprises sending employees to work in Vietnam (for cases where foreigners are transferred or moved within the Group, between parent and subsidiary companies); Collective labor agreements; Financial regulations of the Company, Corporation, or Group; Bonus regulations stipulated by the Chairman of the Board of Directors, General Director, or Director in accordance with the financial regulations of the Company, Corporation, or Group.
b1) In cases where a business signs an employment contract with a foreigner that includes a provision for tuition fees for the foreigner's children studying in Vietnam from preschool to high school, and this payment is considered as salary or wages and is supported by complete invoices and documents as required, then it can be included as a deductible expense when determining taxable corporate income;
b2) In cases where a business signs an employment contract with an employee that includes a clause regarding housing allowance paid by the business to the employee, and this payment is considered as salary or wages and is supported by complete invoices and documents as required, then it can be included as a deductible expense when determining taxable income for corporate income tax purposes;
b3) In cases where a Vietnamese enterprise signs a contract with a foreign enterprise stating that the Vietnamese enterprise is responsible for the accommodation costs of foreign experts during their working period in Vietnam, the rent paid by the Vietnamese enterprise for the foreign experts working in Vietnam is deductible when determining taxable income for corporate income tax purposes;
c) Expenses for salaries, wages, and allowances payable to employees but not yet disbursed by the deadline for submitting the annual tax return; except in cases where the enterprise has established a reserve fund for salaries. The annual reserve amount is determined by the enterprise but shall not exceed 17% of the actual salary fund.
The allocation of a salary reserve fund must ensure that the enterprise does not incur losses after allocation. If the enterprise incurs losses, it is not allowed to allocate the full 17%. If, in the previous year, the enterprise allocated a salary reserve fund but after 6 months from the end of the tax period, the enterprise has not used or has not fully used the reserve fund, the enterprise must reduce the expenses of the following year;
d) Salaries and wages of owners of private enterprises and single-member limited liability companies owned by an individual; remuneration paid to founders, members of the board of members, and board of directors who do not directly participate in the management of production and business;
(d) Expenses for clothing provided in kind to employees without invoices or supporting documents. Expenses for clothing provided in cash to employees exceeding 05 million VND/person/year.
In cases where a business provides clothing allowances to employees in both cash and in kind to be considered a deductible expense, the maximum cash allowance must not exceed 05 million VND/person/year, and in-kind allowances must be supported by invoices and receipts.
e) Rewarding initiatives and improvements when the enterprise does not have specific regulations regarding the awarding of such rewards and does not have a council for evaluating initiatives and improvements;
g) Paying travel allowances for vacation leave that do not comply with the provisions of the Labor Code;
h) Allowances for employees on business trips, travel expenses, and accommodation costs for employees on business trips, if supported by complete invoices and documents, are deductible expenses when determining taxable income. If an enterprise sends an employee on a business trip (including domestic and international trips) and the expenses incurred are 05 million VND or more, and these expenses are paid by individuals using non-cash payment services, then this is considered a non-cash payment method for the enterprise and is deductible if the following conditions are met: There are invoices and documents in accordance with accounting laws and invoice laws issued by the supplier of goods or services; the enterprise has a decision or document authorizing the employee to go on the business trip; The company's financial regulations or internal rules allow employees to pay for business trip expenses and transportation tickets using cashless payment services, and these expenses are then reimbursed by the company to the employee.
If a business provides a fixed allowance for travel, accommodation, and other expenses for employees on business trips, and this is done in accordance with the company's financial regulations or internal regulations, then the fixed allowance for travel, accommodation, and other expenses can be included as deductible expenses.
i) The following expenses are deductible, but only if they are spent on the wrong recipient or for the wrong purpose:
i1) Additional expenses for female workers, including: Expenses for retraining female workers in cases where their old profession is no longer suitable and they need to switch to another profession according to the enterprise's development plan, including tuition fees (if any) plus the difference in salary grades (ensuring 100% salary for those attending training); salary and allowance costs (if any) for teachers teaching at nurseries and kindergartens organized and managed by the enterprise; expenses for organizing additional health check-ups during the year such as occupational disease, chronic disease, or gynecological examinations for female employees; compensation for female workers after childbirth; overtime allowance for female workers in cases where, for objective reasons, female workers do not take leave after childbirth or breastfeeding but remain working for the enterprise, paid according to current regulations, including cases where female workers are paid by piecework and continue working during periods not covered by leave regulations;
i2) Additional expenses for ethnic minority workers that are deductible include: Tuition fees (if any) plus the difference in salary grades (ensuring 100% salary for those studying); housing support, social insurance, and health insurance for ethnic minorities in cases where they have not received state support according to regulations;
k) Paying unemployment benefits, severance pay, compensation, and benefits for workers injured in work accidents or occupational diseases in a manner inconsistent with regulations;
l) Costs for purchasing golf club membership cards and golf playing fees.
9. Payment of interest on loans corresponding to the remaining registered capital (for private enterprises, this is investment capital) according to the capital contribution schedule stipulated in the enterprise's charter, but the maximum capital contribution schedule shall not exceed the capital contribution deadline prescribed by the Enterprise Law, even if the enterprise has commenced production and business; payment of interest on loans during the investment process that have been recorded in the value of assets and investment projects.
a) If a business has contributed its full charter capital and, during the course of its business, incurs interest payments on loans used to invest in other businesses, these payments are deductible expenses when determining taxable income;
b) Interest payments on loans corresponding to the remaining capital contribution according to the capital contribution schedule stipulated in the company's charter, but with the maximum capital contribution schedule not exceeding the capital contribution deadline prescribed by the Enterprise Law, are not deductible when determining taxable income and are determined as follows:
b1) If the loan amount is less than or equal to the remaining registered capital deficit, then all interest on the loan is a non-deductible expense;
b2) In cases where the loan amount exceeds the remaining charter capital according to the capital contribution schedule, the following calculation applies: If the enterprise incurs multiple loans, the interest payment on the loans cannot be deducted by multiplying the remaining charter capital by the total loan amount and the total interest; if the enterprise incurs only one loan, the interest payment on the loans cannot be deducted by multiplying the remaining charter capital by the loan interest rate and the remaining charter capital contribution period.
10. The portion of interest expense on loans for production and business activities of entities other than credit institutions that exceeds the limits stipulated in the Civil Code.
11. The portion of recoverable costs exceeding the rate stipulated in the approved oil and gas contract; if the oil and gas contract does not specify a recovery rate, the portion exceeding 35% shall not be included in deductible expenses; expenses not included in recoverable costs include:
a) Expenditures as stipulated in Article 10 of this Decree;
b) Costs incurred before the oil and gas contract comes into effect, except as agreed in the oil and gas contract or as decided by the Prime Minister;
c) Oil and gas commissions and other expenses not included in the contract recovery costs;
d) Interest payments on investments in the search, exploration, development, and exploitation of oil and gas;
d) Fines and compensation for damages;
e) Other expenses not included in recoverable costs under the Petroleum Law, agreements in petroleum contracts, and expenses exceeding the retention rate stipulated in international treaties.
The Minister of Finance shall specify the details of this provision.
12. Input value-added tax that has been deducted or refunded; value-added tax paid using the deduction method; input value-added tax on fixed assets such as automobiles with 9 seats or less exceeding the deductible limit as prescribed in the laws on value-added tax; corporate income tax, except in cases where the enterprise pays corporate income tax on behalf of a foreign enterprise and, according to the contract with the foreign enterprise, the revenue received by the foreign enterprise does not include corporate income tax; personal income tax, except in cases where the enterprise signs a labor contract stipulating that the salary or wages paid to the employee do not include personal income tax; late payment penalties as prescribed by the law on tax administration.
The value-added tax (VAT) paid using the deduction method as stipulated in this point does not include the output VAT on gifts and donations given free of charge as prescribed by VAT law for the production and business activities of enterprises; the VAT payable arising from goods and services used for sponsorship as prescribed in point d, clause 2, Article 9 of this Decree; and the VAT on input goods and services directly related to the production and business activities of enterprises that have not been fully deducted but are not eligible for refund. Input VAT that has been included in deductible expenses cannot be deducted against output VAT.
13. Contributions to the management budget for higher levels; and contributions to associations established under the provisions of Government Decree No. 126/2024/ND-CP dated October 8, 2024, exceeding the prescribed limits for each association.
14. Payment of electricity and water bills for contracts signed directly between the owner (organization, household, or individual) who leases the production or business premises and the electricity and water supply unit, without sufficient documentation, falls under one of the following cases:
a) In cases where a business rents a production or business location and directly pays for electricity and water to the electricity and water suppliers but does not have electricity and water payment invoices and a lease agreement for the production or business location;
b) In cases where a business renting a production or business location pays for electricity and water to the owner of the rental location but lacks payment receipts for electricity and water that correspond to the actual electricity and water consumption and the rental contract.
15. The portion of fixed asset lease costs exceeding the allocation based on the number of years for which the lessee pays in advance.
a) For repair and upgrade costs of leased fixed assets where the lease contract stipulates that the lessee is responsible for repairing and upgrading the asset during the lease period, these costs may be accounted for as expenses or amortized gradually over a maximum period of 03 years;
b) In cases where a business incurs expenses to acquire assets that are not fixed assets, such as expenses for purchasing and using technical documents, patents, technology transfer licenses, trademarks, business goodwill, and brand usage rights, these expenses shall be gradually allocated to business expenses, but not exceeding 03 years;
c) In cases where a business contributes capital in the form of business goodwill or the value of the right to use a trademark, the value of the contributed business goodwill or the value of the right to use a trademark is not included in deductible expenses when determining taxable income.
16. Exchange rate losses resulting from the revaluation of monetary items denominated in foreign currency at the end of the tax period, including exchange rate differences from the revaluation of year-end balances of cash, deposits, money in transit, and accounts receivable denominated in foreign currency (excluding exchange rate losses from the revaluation of accounts payable denominated in foreign currency at the end of the tax period).
a) During the production and business phase, including investment in construction to form fixed assets of an operating enterprise, exchange rate differences arising from foreign currency transactions of monetary items denominated in foreign currency shall be accounted for as financial operating revenue or financial expenses in the tax period;
b) For accounts receivable, loans, cash, deposits, and funds in transit denominated in foreign currency arising during the period, the exchange rate difference included in deductible expenses is the difference between the exchange rate at the time of occurrence and the exchange rate at the time of initial recognition.
17. Expenditures for sponsorship, support for local communities, support for associations and social organizations, and charitable expenditures, excluding sponsorship and support expenditures as stipulated in point d, clause 2, Article 9 of this Decree.
18. Expenditures on capital construction investment during the investment phase to form fixed assets.
a) When starting production and business operations, if an enterprise has not yet generated revenue but incurs regular expenses to maintain its production and business activities (excluding investment expenses for the construction of fixed assets) and these expenses meet the prescribed conditions, then these expenses are deductible when determining taxable income;
b) If, during the investment phase, the enterprise incurs loan repayments, these payments are included in the investment value. If, during the capital construction investment phase, the enterprise incurs both loan interest payments and interest income from deposits, these amounts are offset against each other. After offsetting, the remaining difference is recorded as a reduction in the investment value.
19. Expenses directly related to the issuance of shares (excluding shares classified as liabilities) and dividends on shares (excluding dividends on shares classified as liabilities), the purchase of treasury shares, repurchase of shares from the company itself, and other expenses directly related to increasing or decreasing the equity capital of the enterprise.
20. The amount of mineral exploitation rights granted exceeds the annual mineral exploitation fee payable as stipulated by the law on minerals.
a) When settling the amount of mineral exploitation rights fees in accordance with the law on minerals, if the amount already paid is less than the amount due after settlement, the additional mineral exploitation rights fee paid shall be included in deductible expenses in the tax period in which the additional payment is made by the mineral exploitation and recovery enterprise.
b) In cases where mining licenses or permits for mining and mineral recovery are still valid at the time this Decree takes effect, the mining rights fee included in deductible expenses shall be determined based on the remaining mining rights fee payable after final settlement as stipulated by the law on minerals, and allocated equally over the remaining years of mining and recovery.
c) For mineral exploitation fees that were already included in deductible expenses in tax periods prior to the effective date of this Decree, no adjustments will be made.
21. Expenditures from business activities: Banking, insurance, lottery, securities, BT, BOT, BTO contracts and some other specific business activities that are not in accordance with or exceed the regulations of the competent authority.
a) Regarding interest expenses on loans under BT, BOT, and BTO contracts:
a1) BT, BOT, and BTO enterprises are allowed to deduct interest payments on loans under BT, BOT, and BTO contracts based on actual expenses incurred during the period. If the enterprise chooses to allocate interest expenses on BT, BOT, and BTO contracts based on revenue, the interest expense for the period under BT, BOT, and BTO contracts is determined using the following formula:
a2) If the enterprise has chosen to apply the method of allocating interest expenses based on revenue, then the method of allocating interest expenses shall be applied throughout the duration of the BT, BOT, or BTO contract;
a3) The portion of interest expense actually incurred during the period for BT, BOT, and BTO contracts that exceeds the interest expense allocated based on revenue as stipulated in this point shall not be included in deductible expenses for the period but shall be carried forward to subsequent tax periods;
a4) If a business has related-party transactions during the tax period, it shall comply with the provisions of the law on tax management for businesses with related-party transactions.
b) Expenditures for banking, insurance, lottery, and securities business activities that are not in accordance with or exceed the prescribed limits as guided by the Minister of Finance.
22. Expenses not corresponding to taxable revenue, except for expenses specified in point i, clause 2, Article 9 of this Decree.
23. Expenditures that do not meet the conditions and content requirements stipulated by specialized laws, including: Expenditures for overtime work exceeding the time limits prescribed by labor laws; advertising expenditures in cases where the advertising of products, goods, or services is prohibited or where the advertising of products, goods, or services requires registration with the competent authority but the enterprise fails to register the advertising as required by law; expenditures for production and business activities that are incorrect or exceed the spending limits stipulated by specialized laws.
Article 11. Tax rate
1. The corporate income tax rate is 20%, except for the cases specified in Clauses 2, 3 and 5 of this Article and the entities entitled to preferential tax rates as stipulated in Article 19 of this Decree.
2. A tax rate of 15% applies to businesses with total annual revenue not exceeding 03 billion VND.
3. A tax rate of 17% applies to businesses with total annual revenue ranging from over 03 billion VND to no more than 50 billion VND.
4. The total revenue used to determine whether an enterprise is subject to the 15% and 17% tax rates stipulated in Clauses 2 and 3 of this Article is the total revenue from sales and service provision (excluding revenue deductions), revenue from financial activities, and other income as shown in the Appendix of business performance results attached to the corporate income tax return for the immediately preceding tax year.
a) In cases where a business has been operating for less than 12 months in the preceding tax year, the total revenue for the preceding tax year is determined by dividing the actual total revenue in that tax year by the number of months the business actually operated in production and business during that tax year, and multiplying by 12 months.
In the case of newly established businesses, businesses changing their business type, changing their ownership structure, merging, acquiring, splitting, or separating in any month of the immediately preceding tax year, the operating time is calculated in full months;
b) In the case of a newly established enterprise during the tax period, and with projected total revenue for the tax period not exceeding VND 03 billion or VND 50 billion, the enterprise shall determine the quarterly provisional tax payment accordingly at a tax rate of 15% or 17%.
At the end of the tax period, if the actual total revenue for the tax period is as projected as stipulated in this point, the enterprise shall declare and settle corporate income tax in accordance with regulations. If the actual total revenue does not meet the conditions to enjoy the corresponding tax rate as projected as stipulated in this point, resulting in underpayment of tax compared to the amount of provisional tax payable as prescribed, the enterprise shall pay the remaining tax amount and late payment penalties in accordance with the law on tax administration;
c) The 15% and 17% tax rates stipulated in this Article do not apply to enterprises established under Vietnamese law that are subsidiaries or affiliated companies where the affiliated enterprise does not meet the conditions for applying the tax rates stipulated in Clauses 2 and 3 of this Article.
5. The corporate income tax rates for certain other cases are stipulated as follows:
a) For oil and gas exploration and production activities, the tax rate ranges from 25% to 50%. Based on the location, production conditions, and reserves of the field, the Prime Minister shall decide on the specific tax rate appropriate for each oil and gas contract;
b) For exploration and exploitation of rare resources (including: platinum, gold, silver, tin, tungsten, antimony, gemstones, rare earth elements, and other rare resources as prescribed by law), the tax rate 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%.
Article 12. Method of tax calculation
1. The amount of corporate income tax payable during the tax period is calculated by multiplying taxable income by the tax rate, except as provided in Clauses 3, 4, and 5 of this Article.
2. Vietnamese enterprises investing abroad that generate income from production and business activities abroad during the tax period shall comply with the following procedures:
a) For countries with which Vietnam has signed Double Taxation Avoidance Agreements, the provisions of the Agreement shall apply;
b) For countries with which Vietnam has not signed a Double Taxation Avoidance Agreement, if the corporate income tax (or a tax of a similar nature to corporate income tax) in the country where the enterprise invests has a lower corporate income tax rate, the difference between the corporate income tax calculated according to Vietnam's Corporate Income Tax Law will be collected, specifically as follows:
b1) Vietnamese enterprises investing abroad that have income from production and business activities abroad shall declare and pay corporate income tax in accordance with the provisions of Vietnam's Corporate Income Tax Law, including cases where the enterprise is enjoying tax exemptions or reductions under the regulations of the country where the enterprise invests. The corporate income tax rate for calculating and declaring tax on income from abroad is 20%, and any preferential tax rates (if any) that the Vietnamese enterprise investing abroad is currently enjoying under Vietnam's Corporate Income Tax Law shall not apply;
b2) In cases where income from an overseas investment project has already been subject to corporate income tax in the foreign country, when calculating the corporate income tax payable in Vietnam, the Vietnamese enterprise investing abroad may deduct the amount of tax already paid abroad or paid on its behalf by the foreign partner, but the deductible amount shall not exceed the income tax calculated according to the provisions of Vietnam's Corporate Income Tax Law. The amount of corporate income tax that the Vietnamese enterprise investing abroad is exempt from or reduced on the profit earned from the overseas investment project according to the laws of the investing country shall also be deducted when determining the corporate income tax payable in Vietnam;
b3) In cases where, at the time of declaring and paying corporate income tax in accordance with the provisions of Vietnam's Corporate Income Tax Law, the income from an overseas investment project has not yet been subject to corporate income tax in the foreign country, after paying the tax abroad, the enterprise shall submit a supplementary tax return to adjust the amount of corporate income tax already paid in Vietnam (if any). If there is an overpayment of tax, the enterprise shall be entitled to a refund or carry it forward to the next period in accordance with the provisions of the law on tax administration;
b4) In cases where a Vietnamese enterprise investing abroad has income from an investment project abroad during the tax period but fails to declare and pay tax on this income, the tax authority shall determine the taxable income from production and business activities abroad in accordance with the provisions of the law on tax administration;
b5) Income from overseas investment projects shall be declared in the corporate income tax return of the tax period in which the corporate income tax payable abroad arises. Profits and losses arising from overseas investment projects shall not be deducted from the domestic profits and losses of the enterprise when calculating corporate income tax.
The Minister of Finance shall provide specific guidance on the declaration and payment of taxes by Vietnamese enterprises investing abroad regarding income from investment projects abroad as stipulated in this clause;
c) For enterprises that are parent companies with tax allocated from the supplementary tax of constituent units subject to low tax rates as stipulated in Clause 11, Article 5 of Resolution No. 107/2023/QH15 dated November 29, 2023, of the National Assembly on the application of supplementary corporate income tax under the global tax base erosion prevention provisions and guiding documents, the allocated tax amount shall be deducted from the corporate income tax payable under Vietnamese corporate income tax law, but the total tax deductible as stipulated in point b of this Clause and this point shall not exceed the income tax calculated according to the provisions of the Vietnamese Corporate Income Tax Law.
The offsetting stipulated in this point shall be carried out in the tax period in which the enterprise declares and pays taxes as prescribed in Resolution No. 107/2023/QH15.
3. The corporate income tax payable by foreign enterprises as stipulated in points b2, b3, and b4 of Clause 1, Article 2 of this Decree shall be calculated as a percentage of taxable revenue generated in Vietnam, specifically as follows:
a) Services: 5%, except for restaurant, hotel, and casino management services: 10%; if the service is associated with goods, the goods are calculated at 1%; if the value of the goods cannot be separated from the value of the service: 2%;
b) Supply and distribution of goods in Vietnam in the form of on-the-spot export and import or according to international trade terms (Incoterms): 1%; however, in cases where foreign enterprises sell goods that are raw materials, supplies, and components in bonded warehouses or free trade zones for import into Vietnam to serve the production of export goods or processing of export goods under contract, and foreign enterprises designate export processing enterprises to deliver goods that are raw materials, supplies, and components to other export processing enterprises to serve the production of export goods or processing of export goods under contract, they are not required to pay corporate income tax;
c) Royalties: 10%;
d) Leasing of aircraft, helicopters, gliders (including engines and spare parts), and ships: 2%;
d) Leasing of drilling rigs, machinery, equipment, and transport vehicles (except as stipulated in point d of this clause): 5%;
e) Interest rate on loan: 5%;
g) Transfer of securities; reinsurance abroad: 0,1%;
h) Derivative financial services: 2%;
i) Capital transfer (except for ownership restructuring transactions between companies within the group that do not change the ultimate parent company of the participating parties with direct or indirect ownership of businesses in Vietnam after restructuring and do not generate income): 2%;
k) Construction, transportation and other activities: 2%.
Taxable revenue is determined according to the provisions of Article 8 of this Decree. The Minister of Finance shall provide detailed regulations on this matter, including the determination of taxable revenue for corporate income tax in certain specific cases.
4. Enterprises with total annual revenue not exceeding 03 billion VND as stipulated in Article 11 of this Decree, in cases where the costs and income of production and business activities cannot be determined, shall declare and pay corporate income tax at a percentage (%) of revenue from the sale of goods and services, specifically as follows:
a) Distribution and supply of goods: 0,3%;
b) Production, transportation, services related to goods, and construction with material procurement included: 1,2%;
c) Services (including interest on deposits and loans), construction without material procurement: 1,5%. For property leasing, insurance agency, lottery agency, and multi-level marketing agency activities: 4%;
d) Activities providing digital information content products and services related to entertainment, video games, digital films, digital photos, digital music, and digital advertising: 4%;
d) Other activities: 0,5%.
5. Cooperatives, cooperative unions established under the Law on Cooperatives, public service units and other organizations specified in points c, d and e of Clause 1, Article 2 of this Decree that engage in the production and business of goods and services with taxable income subject to corporate income tax (except for tax-exempt income as stipulated in Article 4 of this Decree) and which can account for revenue but cannot determine the costs and income of their production and business activities, shall declare and pay corporate income tax calculated as a percentage of the revenue from the sale of goods and services, specifically as follows:
a) For services (including interest on deposits and loans): 5%. For services in the fields of education, healthcare, and performing arts: 2%;
b) For the production and trading of goods: 1%;
c) For other activities: 2%.
Chapter III
INCOME FROM THE TRANSFER OF CAPITAL AND SECURITIES
Article 13. Income from capital transfers
1. Income from the transfer of capital of an enterprise is income obtained from the transfer of part or all of the capital of the enterprise invested in one or more other organizations or individuals (including the sale of the enterprise, transfer of capital contribution rights, and other forms of capital transfer as prescribed by law), the transfer of shares of a company that is not a public company, and the transfer of shares of an organization that is not listed or registered for trading as prescribed by securities law.
The time of determining income from capital transfer is the time of transferring ownership of the capital.
a) In the case where a business sells its entire single-member limited liability company, which is owned by an organization, through a capital transfer involving real estate, it shall declare and pay corporate income tax based on the real estate transfer activity;
b) In cases where a business transfers capital not in cash but in the form of assets (including shares, fund certificates), or other material benefits that generate income, it is subject to corporate income tax. The value of the assets, shares, fund certificates, and other material benefits is determined according to the market selling price of the product at the time of receiving the assets;
c) If a business receives income from the transfer of capital, this income is classified as other income and declared as taxable income when calculating corporate income tax.
2. Determining taxable income from capital gains
Taxable income from capital gains is determined by subtracting the purchase price of the transferred capital and transfer costs from the transfer price.
a) The transfer price is determined as the total actual value received by the transferor under the transfer contract.
a1) In cases where the capital transfer contract stipulates payment in installments or deferred payments, the revenue from the transfer contract does not include interest on installments or deferred payments according to the terms specified in the contract;
a2) In cases where the transfer contract does not specify the payment price, or the tax authority has grounds to determine that the payment price is inconsistent with market value, the tax authority has the right to inspect and determine the transfer price. If a business transfers a portion of its capital contribution and the transfer price for this portion is inconsistent with market value, the tax authority may reassess the entire value of the business at the time of transfer to determine the transfer price corresponding to the percentage of capital contribution transferred;
a3) For businesses transferring capital to organizations or individuals, the portion of the capital transfer value specified in the transfer contract that is 05 million VND or more must be supported by non-cash payment documents. If the capital transfer lacks non-cash payment documentation, the tax authorities have the right to determine the transfer price.
The determination of transfer pricing as stipulated in this point shall be carried out in accordance with the provisions of the law on tax administration;
b) The purchase price of the transferred capital is determined for each case as follows:
b1) In the case of capital contribution for establishing a business, the purchase price is the value of the accumulated capital contribution up to the time of capital transfer based on accounting books, records, and documents, and confirmed by the parties participating in the capital investment or participating in the business cooperation contract, or the audit results of an independent auditing firm for a 100% foreign-owned enterprise;
b2) In the case of capital acquired through repurchase, the purchase price is the capital value at the time of purchase. The purchase price is determined based on the capital repurchase agreement and payment documents;
b3) In cases where an enterprise is eligible to use foreign currency for accounting and complies with the legal regulations on accounting procedures, and transfers capital contributions in foreign currency, the transfer price and the purchase price of the transferred capital shall be determined in foreign currency; in cases where an enterprise uses Vietnamese Dong for accounting and transfers capital contributions in foreign currency, the transfer price must be determined in Vietnamese Dong in accordance with the law on tax administration;
c) Transfer costs are actual expenses directly related to the transfer, supported by valid documents and invoices. Transfer costs include: costs for necessary legal procedures for the transfer; fees and charges payable during the transfer process; transaction costs, negotiation costs, contract signing costs, and other expenses supported by documentation.
If transfer fees are incurred abroad, the original documents must be certified by a notary or independent auditor in the country where the fees were incurred, and the documents must be translated into Vietnamese (certified by an authorized representative).
Article 14. Income from securities investments
1. Income from the transfer of securities by an enterprise is income obtained from the transfer of shares, share purchase rights of public companies, listed organizations, registered trading organizations, the transfer of bonds, treasury bills, fund certificates and other types of securities as prescribed by the law on securities.
a) In cases where a business issues additional shares to raise capital, the difference between the issue price and the par value is not included in taxable income for the purpose of calculating corporate income tax;
b) In cases where a business undergoes division, separation, merger, or acquisition and exchanges shares at the time of division, separation, merger, or acquisition, if income is generated, this income is subject to corporate income tax;
c) In cases where a business transfers securities and receives assets (including shares, fund certificates) or other material benefits that generate income instead of cash, it is subject to corporate income tax. The value of the assets, shares, fund certificates, and other material benefits is determined according to the market price of the product at the time of receiving the assets;
d) If a business has income from the transfer of securities, this income is classified as other income and declared as taxable income when calculating corporate income tax.
2. Determining taxable income from securities transfers
Taxable income from the transfer of securities during the period is determined by subtracting the purchase price of the transferred securities and related transfer costs from the selling price.
a) The selling price of securities is determined as follows:
a1) For listed securities and securities of unlisted public companies that register for trading at the Stock Exchange, the selling price of the securities is the actual selling price (the order matching price or the agreed price) as announced by the Stock Exchange;
a2) For securities of companies not falling under the above cases, the selling price of the securities is the transfer price recorded in the transfer contract;
b) The purchase price of the securities is determined as follows:
b1) For listed securities and securities of unlisted public companies that register for trading at the Stock Exchange, the purchase price of the securities is the actual purchase price (the order matching price or the agreed price) as announced by the Stock Exchange;
b2) For securities purchased through auction, the purchase price of the securities is the price stated on the notice of winning bid results of the share auction conducted by the organization conducting the share auction and the payment receipt;
b3) For securities not falling under the cases mentioned above, the purchase price of the securities is the transfer price recorded in the transfer contract;
c) Transfer costs are actual expenses directly related to the transfer, supported by legal documents and invoices, including: Costs for necessary legal procedures for the transfer; fees and charges as prescribed by law; transaction costs, negotiation costs, contract signing costs, and other expenses supported by documentation.
3. Securities investment funds (excluding securities investment companies) are not subject to corporate income tax. The securities investment fund management company deducts the corporate income tax payable by the investment organization (regardless of whether it is a domestic or foreign investment organization) when the securities investment fund distributes dividends to investors at a tax rate of 20%.
The taxable income specified in this clause does not include the portion of income that is exempt from tax or for which corporate income tax has already been paid in accordance with the law.
Chapter IV
INCOME FROM THE SALE OF REAL ESTATE
Article 15. Income from the transfer of real estate
Income from real estate transactions includes:
1. Income from the transfer of land use rights, transfer of land lease rights (including the transfer of projects associated with the transfer of land use rights, land lease rights as prescribed by law).
2. Income from leasing and subleasing land use rights by real estate businesses as stipulated by land law, regardless of whether or not there is infrastructure or architectural structures attached to the land.
Income from leasing and subleasing land use rights as stipulated in this clause does not include cases where enterprises lease houses, infrastructure, and architectural works on land but do not have the right to lease or sublease land use rights according to the provisions of land law.
3. Income from the transfer of houses and construction works attached to land, including assets attached to those houses and construction works, if the value of the assets is not separated at the time of transfer, regardless of whether or not the right to use the land is transferred or the right to lease the land is transferred.
4. Income from the transfer of assets attached to land.
5. Income from the transfer of ownership rights to houses, infrastructure, and architectural structures on land.
6. Income from the transfer and lease of real estate by the Real Estate Investment Fund as prescribed by law.
The securities investment fund management company shall declare and pay tax on income from the transfer and lease of real estate as stipulated in this clause.
Article 16. Basis for tax calculation
1. The basis for calculating income tax on real estate transfers is taxable income and the tax rate.
2. Taxable income is determined by subtracting any losses from the real estate transfer that are carried forward according to regulations (if any) from the taxable income from the transfer of real estate.
3. Taxable income from the transfer of real estate is determined by the revenue from the real estate transfer activity minus deductible expenses from the real estate transfer activity (including: the cost of the real estate and deductible expenses related to the real estate transfer activity) as stipulated in Article 17 of this Decree.
4. The corporate income tax rate for real estate transfer activities is 20%.
5. The corporate income tax payable for the tax period on real estate transfer activities is equal to the taxable income from the real estate transfer activity multiplied by the tax rate of 20%.
6. In cases where a credit institution or a state-owned organization established by the Government with the function of buying, selling, and handling debt receives real estate and other assets as collateral for loans to replace the fulfillment of secured obligations, the credit institution or state-owned organization established by the Government with the function of buying, selling, and handling debt, when permitted to transfer real estate and other assets according to the law, must declare and pay taxes from the transfer of real estate and other assets to the state budget. If the real estate and other assets used as collateral are auctioned, the proceeds shall be used for payments in accordance with the law on loan guarantees and shall be declared and taxed accordingly. After paying the above amounts, the remaining amount shall be returned to the business organizations that mortgaged the real estate and other assets to secure the loans.
In the case of credit institutions or organizations wholly owned by the State and established by the Government with the function of buying, selling, and handling debt, they are permitted to transfer real estate and other assets that have been mortgaged according to the law to recover capital. If the cost basis of the real estate and other assets cannot be determined, the cost basis shall be determined by the principal loan amount payable according to the mortgage contract plus unpaid interest expenses up to the time of foreclosure of the real estate and other assets mortgaged under the contract, and any expenses incurred in transferring the real estate and other assets if there are legitimate invoices and documents.
7. In cases where the enforcement agency or competent organization auctions off real estate or other assets that are collateral for the enforcement of a judgment, the proceeds shall be handled in accordance with the law on seizure and auction to secure the enforcement of a judgment. The organization conducting the auction of real estate or other assets shall declare and deduct the transfer tax on real estate or other assets and pay it into the state budget.. The documents clearly state the declaration and payment of taxes on the sale of assets pledged as collateral for the enforcement of a judgment.
In cases where the enforcement agency or competent organization transfers real estate or other assets that are collateral for enforcement, if the cost basis of the real estate or other assets cannot be determined, the cost basis shall be determined by the amount of debt to be repaid according to the decision of the Court or competent authority for enforcement, plus any expenses incurred in transferring the real estate or other assets, if supported by legitimate invoices and documents.
Article 17. Revenue and expenses deductible from real estate transfer activities
1. Revenue from real estate transfer activities
a) Revenue from real estate transfer activities is determined based on the actual transfer price of the real estate as stipulated in the real estate transfer and sale contract in accordance with legal regulations (including any surcharges and additional fees, if any).
In cases where the land transfer price as stipulated in the real estate transfer or sale contract is lower than the land price in the land price list prescribed by the People's Committee of the province or centrally-governed city at the time of signing the real estate transfer contract, the land price prescribed by the People's Committee of the province or centrally-governed city at the time of signing the real estate transfer contract shall be used for calculation.
b) The time of determining taxable revenue is the time when the seller hands over the real estate to the buyer, regardless of whether the buyer has registered ownership of the property, land use rights, or established land use rights at the competent state agency;
c) In cases where a business implements an infrastructure investment project, or a house for transfer or lease, and receives advance payments from customers in any form according to the progress schedule, the time of determining taxable revenue for provisional corporate income tax payment is the time of receiving the money from the customer, specifically:
c1) In cases where a business receives payment from customers and can determine the corresponding expenses associated with the recorded revenue (including any provision for the unfinished portion of the project budget corresponding to the recorded revenue), the business shall declare and pay corporate income tax based on revenue minus expenses;
c2) In cases where a business receives payment from customers but has not yet determined the corresponding costs, the business shall declare and make provisional corporate income tax payments at a rate of 1% on the revenue received (excluding value-added tax), and this revenue shall not be included in the taxable revenue for corporate income tax purposes in the year;
c3) When transferring real estate, the enterprise must settle corporate income tax and re-settle the amount of corporate income tax payable. If the amount of corporate income tax already paid provisionally is lower than the amount of corporate income tax payable, the enterprise must pay the remaining amount to the state budget. If the amount of corporate income tax already paid provisionally is greater than the amount of tax payable, the enterprise may deduct the excess tax paid from the corporate income tax payable in the next period or be refunded the excess tax paid;
c4) For real estate businesses that collect advance payments from customers according to the progress of the project and declare provisional tax payments at a percentage rate on the revenue collected, this revenue is not yet included in the taxable revenue for corporate income tax purposes in the year. Simultaneously, if advertising, marketing, promotion, and brokerage commission expenses are incurred at the start of sales in the year the revenue collected according to the progress of the project is generated, these expenses are not included in the year in which they are incurred. These advertising, marketing, promotion, and brokerage commission expenses are deductible expenses in the first year of project handover and the generation of taxable revenue for corporate income tax purposes.
d) Revenue for calculating taxable income in certain cases is determined as follows:
d1) In cases where a business subleases land, the revenue used to calculate taxable income is the amount paid by the lessee in each period according to the lease contract. If the lessee pays rent in advance for several years, the revenue used to calculate taxable income is either allocated equally over the years for which the payment was made in advance or determined as a lump-sum payment. The choice of lump-sum payment is only made when the business has ensured the fulfillment of its financial responsibilities to the State and its obligations to the sublessees for the entire lease term.
In cases where a business is currently enjoying corporate income tax incentives and chooses to determine revenue for taxable income as the entire amount of rent paid in advance by the lessee for multiple years, the determination of the corporate income tax exemption or reduction for each year is based on the total corporate income tax for the years for which the rent was paid in advance divided by the number of years for which the lessee paid in advance.
d2) In cases where a credit institution receives the value of land use rights as collateral for a loan to replace the fulfillment of the secured obligation, if the land use rights that are mortgaged as collateral for the loan are transferred, the revenue for calculating taxable income is the transfer price of the land use rights agreed upon by the parties;
d3) In cases where the transfer of land use rights is an asset seized to secure the enforcement of a judgment, the revenue used to calculate taxable income is the transfer price of the land use rights agreed upon by the parties involved or the price determined by the Valuation Council.
The determination of revenue for the cases mentioned in point d must ensure compliance with the principles stated in points a, b, and c of this clause.
2. Deductible expenses from real estate transfer activities.
Deductible expenses for determining taxable income from real estate transfer activities during the tax period must correspond to the revenue used to calculate taxable income and must meet the conditions for deductible expenses as stipulated in Article 9 of this Decree, and must not be among the non-deductible expenses stipulated in Article 10 of this Decree. Deductible real estate transfer expenses include:
a) The cost basis of the transferred land is determined in accordance with the origin of the land use rights, specifically as follows:
a1) For land allocated by the State with land use fees or land lease fees collected, the cost basis is the amount of land use fees or land lease fees actually paid to the state budget;
a2) For land acquired from other organizations or individuals, the cost basis shall be the contract and legal payment documents issued upon acquisition of land use rights or land lease rights; in cases where there is no contract and legal payment documents, the cost basis shall be calculated according to the land price in the land price table stipulated by the Provincial People's Committee (before January 1, 2026) or decided by the Provincial People's Council (from January 1, 2026) at the time the enterprise acquires the real estate.
a3) In cases where the enterprise's land was inherited, given, or donated before 1994, the cost basis shall be determined according to the land prices decided by the People's Committee of the province or centrally-administered city in 1994, based on the land price framework table stipulated in Government Decree No. 87-CP dated August 17, 1994;
a4) For land acquired through capital contribution, the cost basis is the value of the land use rights or land lease rights as recorded in the asset valuation report at the time of capital contribution;
a5) In cases where enterprises exchange state-owned construction projects for state-owned land, the cost basis shall be determined according to the value of the exchanged construction project, except in cases where separate regulations of competent state agencies are applied;
a6) The winning bid price in the case of auctioning land use rights or land lease rights;
a7) For land owned by enterprises that originates from inheritance under civil law, or from gifts or donations where the cost basis cannot be determined, the land price shall be calculated according to the land price table stipulated by the Provincial People's Committee (before January 1, 2026) or decided by the Provincial People's Council (from January 1, 2026) at the time of inheritance, gift, or donation;
a8) For land mortgaged as collateral for loans, or land seized to secure the enforcement of judgments, the cost basis of the land shall be determined on a case-by-case basis according to the guidelines mentioned above.
For cases stipulated in point a of this clause, if the competent state agency permits the change of land use purpose in accordance with the law on land, the cost basis includes the amount of land use fees and land lease fees paid to the state budget in accordance with the law on land when changing the land use purpose;
b) Compensation, support, and resettlement costs are voluntarily advanced by the enterprise according to the compensation and resettlement plan approved by the competent state agency in accordance with the law on land.
The records and documents for compensation, support, and resettlement expenses shall comply with the provisions of land law;
c) Fees and charges as prescribed by law related to granting land use rights;
d) Costs of land improvement and leveling;
d) Costs of investing in infrastructure construction such as roads, electricity, water supply, drainage, and postal and telecommunications services;
e) The value of infrastructure and architectural structures on the land;
g) Other expenses related to the transferred property;
h) In cases where a business engages in both real estate business activities and business activities eligible for tax incentives, the expenses must be accounted for separately. If the expenses of each activity cannot be accounted for separately, the general expenses shall be allocated proportionally to the ratio of revenue from real estate transfers to the total revenue of the business;
i) Expenses already paid by the State or from other sources of funds shall not be included in the cost of real estate transfer.
3. In cases where an investment project is completed in stages and gradually transferred according to the completion progress, the general expenses used for the project and the direct expenses used for the completed part of the project shall be allocated according to the following rates:2 Land transfer fees are used to determine taxable income from the transferred land area, including: costs of internal roads; green spaces; costs of investing in the construction of water supply and drainage systems; electrical substations; compensation costs for assets on the land; compensation, support, resettlement costs and the remaining costs of organizing the implementation of compensation and land clearance approved by competent authorities that have not been deducted from land use fees or land lease fees as prescribed; and other investment costs on the land related to the transfer of land use rights or land lease rights.
a) The allocation of these costs is done according to the following formula:
b) If a portion of the project's non-transferable area is used for other business activities, the aforementioned general expenses shall also be allocated to this area for tracking, accounting, and declaration of corporate income tax for those other business activities;
c) In cases where an enterprise has infrastructure construction investment activities spanning many years and only settles the value of the infrastructure when all work is completed, when aggregating the costs of real estate transfer for the transferred land area, the enterprise may temporarily allocate the actual infrastructure investment costs incurred proportionally to the transferred land area according to the formula specified in point a of this clause and make provisions for infrastructure construction investment costs corresponding to the revenue recorded when determining taxable income. After the completion of the construction investment process, the enterprise shall calculate and adjust the temporarily allocated and provisioned infrastructure investment costs for the transferred land area to match the total value of the infrastructure. If the adjustment results in an overpayment of tax compared to the income tax from real estate transfer payable, the enterprise may deduct the overpayment from the tax payable in the next tax period or receive a refund as prescribed; If the amount of tax already paid is insufficient, the business is responsible for paying the remaining amount as required by law.
Chapter V
CORPORATE INCOME TAX INCENTIVES
Article 18. Principles and scope of application corporate income tax incentives
1. Enterprises are entitled to corporate income tax incentives based on the tax-incentive sectors, professions, and geographical areas specified in this Article. The level of corporate income tax incentives shall be implemented in accordance with the provisions of Articles 19 and 20 of this Decree.
In cases where other Government Decrees provide for corporate income tax incentives that differ from those in this Decree, the provisions of this Decree shall prevail, except for the Decree detailing the Law on the Capital City, Decrees issued in accordance with point c, clause 1, Article 14 of the Law on the Promulgation of Legal Normative Documents and point h, clause 8, Article 10 of the Law on the Organization of the Government, guiding documents for Resolutions stipulating special and specific mechanisms and policies of the National Assembly, and Resolutions of the Government and Resolutions of the Standing Committee of the National Assembly stipulating the cases in clauses 2 and 3, Article 4 of Resolution No. 206/2025/QH15 dated June 24, 2025 of the National Assembly on special mechanisms for handling difficulties and obstacles caused by legal provisions.
2. The following sectors and professions are eligible for corporate income tax incentives:
a) Applying high technology, investing in venture capital for the development of high technology belonging to the list of high technologies prioritized for investment and development as stipulated in the Law on High Technology; applying strategic technologies as stipulated in the law on science, technology and innovation; incubating high technology, incubating high-tech enterprises; investing in the construction and operation of high-tech incubation facilities, incubating high-tech enterprises;
b) Producing software products; producing cybersecurity products and providing cybersecurity services in accordance with the law on cybersecurity; producing key digital technology products and providing electronic equipment in accordance with the law on the digital technology industry; researching and developing, designing, manufacturing, packaging, and testing semiconductor chip products; building artificial intelligence data centers in accordance with the law on the digital technology industry;
c) Production of supporting industrial products included in the List of Priority Supporting Industrial Products for Development as prescribed by the Government, meeting one of the following criteria:
c1) Industrial products that support high technology as stipulated in the High Technology Law;
c2) Industrial products supporting the production of products in the textile, garment, leather, footwear, electronics, and information technology (including semiconductor design and manufacturing), automobile assembly, and mechanical engineering sectors up to the effective date of the Corporate Income Tax Law (October 1, 2025) that are not yet produced domestically or are produced but must meet the technical standards of the European Union or equivalent (if any) as guided by the Minister of Industry and Trade;
d) Production of renewable energy, clean energy, and energy from waste disposal; environmental protection; production of composite materials, lightweight building materials, and rare materials; production for national defense and security, and production of industrial mobilization products as prescribed by the law on national defense, security, and industrial mobilization; production of key chemical industrial products and key mechanical products as prescribed by the law on chemicals and the law on mechanical engineering;
d) Investing in the development of water treatment plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airfields, train stations and other particularly important infrastructure projects as decided by the Prime Minister;
e) High-tech enterprises, high-tech agricultural enterprises as defined by the Law on High Technology; science and technology enterprises as defined by the Law on Science, Technology and Innovation;
g) Investment projects in the manufacturing sector that meet the following conditions:
g1) Having a minimum investment capital of VND 12.000 billion and disbursing the total registered investment capital within no more than 05 years from the date of investment approval as prescribed by investment law;
g2) Utilize technology that meets the requirements stipulated by the Minister of Science and Technology;
h) Investment projects that are eligible for special investment incentives and support as stipulated in Clause 2, Article 20 of the Investment Law.
The disbursement period for the total investment capital of the projects specified in this point shall not exceed 10 years from the date of issuance of the Investment Certificate or approval of investment in accordance with the law on investment;
i) Planting, caring for, and protecting forests; producing, propagating, and breeding plant and animal varieties; investing in post-harvest preservation of agricultural products, preservation of agricultural products, aquatic products, and food; producing, extracting, and refining salt, except for salt production as stipulated in Clause 1, Article 4 of this Decree;
k) Cultivation of forest products;
l) Products of crops, planted forests, livestock, aquaculture, and processed agricultural and aquatic products.
Income from processing agricultural and aquatic products as stipulated in this point must meet the conditions specified in points b1 and b2 of Clause 1, Article 4 of this Decree;
m) Production of high-grade steel; production of energy-saving products; production of machinery and equipment for agriculture, forestry, fisheries, and salt production; production of irrigation equipment; production of animal feed, poultry feed, and aquatic feed;
n) Manufacturing and assembling automobiles; manufacturing other digital technology products;
o) Investing in and operating technical facilities to support small and medium-sized enterprises (SMEs), and SME incubation centers; investing in and operating co-working spaces to support innovative start-up SMEs in accordance with the Law on Supporting Small and Medium-Sized Enterprises;
p) People's credit funds, microfinance institutions, cooperative banks;
q) Cooperatives and cooperative unions operating in the fields of agriculture, forestry, fisheries, and salt production;
r) Socialization in the fields of education and training, vocational training, health, culture, sports, and environment according to the list of types, scale criteria, and standards prescribed by the Prime Minister; and forensic examination;
s) Investing in the construction of social housing for sale, rent, or lease-purchase to eligible individuals as stipulated in the Housing Law;
t) Published in accordance with the Law on Publishing;
u) The press (including advertising in newspapers) as regulated by the Press Law.
3. Areas eligible for corporate income tax incentives include:
a) Areas with particularly difficult socio-economic conditions as prescribed by investment law, excluding areas with particularly difficult socio-economic conditions specified in item 55 of Appendix III of the list of investment incentive areas issued together with Government Decree No. 31/2021/ND-CP dated March 26, 2021 (amended and supplemented by Clause 37, Article 1 of Government Decree No. 239/2025/ND-CP dated September 3, 2025);
b) Areas with difficult socio-economic conditions as prescribed by investment law, excluding areas with difficult socio-economic conditions specified in item 55 of Appendix III of the list of investment incentive areas issued together with Government Decree No. 31/2021/ND-CP dated March 26, 2021 (amended and supplemented by Clause 37, Article 1 of Government Decree No. 239/2025/ND-CP dated September 3, 2025);
c) Economic zones, high-tech zones, high-tech agricultural zones, and concentrated digital technology zones.
Article 19. Preferential tax rates
1. Apply a 10% tax rate for 15 years to:
a) Income of enterprises from implementing new investment projects as stipulated in points a, b, c, d and e of Clause 2, Article 18; income of enterprises as stipulated in point e of Clause 2, Article 18 of this Decree;
b) Income of enterprises from implementing investment projects as stipulated in points g and h of Clause 2, Article 18 of this Decree;
c) Income of enterprises from implementing new investment projects in the areas specified in point a, clause 3, Article 18 of this Decree;
d) Income of enterprises from implementing new investment projects in high-tech zones, high-tech agricultural zones, concentrated digital technology zones; new investment projects in economic zones located in tax-incentive areas as stipulated in points a and b of Clause 3, Article 18 of this Decree, including cases where more than 50% of the area of a new investment project in an economic zone is located in a tax-incentive area as stipulated in points a and b of Clause 3, Article 18 of this Decree.
2. A tax rate of 10% will be applied throughout the operating period to:
a) Income of enterprises in tax-incentive areas as stipulated in point b, clause 3, Article 18 of this Decree from activities in the industries and professions specified in points k and l, clause 2, Article 18 of this Decree;
b) Income of enterprises from activities in the sectors and professions specified in points i, r, and s of Clause 2, Article 18 of this Decree;
c) Income of the publishing house from activities in the sectors and professions specified in point t, clause 2, Article 18 of this Decree;
d) Income of cooperatives and cooperative unions specified in point q, clause 2, Article 18 of this Decree that do not fall within the geographical area specified in clause 3, Article 18 of this Decree;
d) Income of press agencies belonging to the sectors and professions specified in point u, clause 2, Article 18 of this Decree.
3. A tax rate of 15% shall be applied throughout the operating period to the income of enterprises not located in the areas specified in Clause 3, Article 18 of this Decree, from activities in the industries and professions specified in Point l, Clause 2, Article 18 of this Decree.
4. Apply a tax rate of 17% for a period of 10 years to:
a) New investment projects belonging to the prioritized sectors and professions specified in points m, n, and o of Clause 2, Article 18 of this Decree;
b) New investment projects implemented in the areas specified in point b, clause 3, Article 18 of this Decree;
c) New investment projects in economic zones not located in the areas specified in points a and b of Clause 3, Article 18 of this Decree, including cases where a new investment project of an enterprise is implemented in an economic zone and more than 50% of the project's area is located in an area that is not a tax-incentive area as specified in points a and b of Clause 3, Article 18 of this Decree.
5. A tax rate of 17% shall be applied throughout the operating period to the income of the enterprise as stipulated in point p, clause 2, Article 18 of this Decree.
6. Extending the duration and applying preferential tax rates.
a) The Prime Minister shall decide on extending the application period of preferential tax rates for a maximum of 15 years for the cases specified in points b and c of this clause;
b) New investment projects as stipulated in points a, b, d, and e of Clause 2, Article 18 of this Decree, with a minimum investment capital of VND 6.000 billion, and having a significant socio-economic impact, should be especially encouraged;
c) Investment projects specified in point g, clause 2, Article 18 of this Decree meet one of the following criteria:
c1) Producing goods with global competitiveness, achieving revenue exceeding VND 20.000 billion/year no later than 05 years after generating revenue from the investment project;
c2) Regularly employing more than 6.000 workers as defined by labor laws;
c3) Investment projects in the field of economic and technical infrastructure, including: Investment in the development of water treatment plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airfields, train stations, new energy, clean energy, energy-saving industries, and petrochemical projects;
d) For new investment projects as stipulated in point h, clause 2, Article 18 of this Decree, the Prime Minister shall decide on the application of a reduced tax rate not exceeding 50% of the tax rate stipulated in clause 1 of this Article; the period of application of the preferential tax rate shall not exceed 1,5 times the period of application of the preferential tax rate stipulated in clause 1 of this Article and may be extended for no more than 15 years, but not exceeding the term of the investment project.
7. The period for applying preferential tax rates to income from the implementation of new investment projects of enterprises as stipulated in this Article (including projects mentioned in point g, clause 2, Article 18 of this Decree) shall be calculated from the first year the new investment project of the enterprise generates revenue.
In cases where an enterprise is granted a Certificate of High-Tech Enterprise, a Certificate of High-Tech Agricultural Enterprise, a Certificate of Science and Technology Enterprise, a Certificate of High-Tech Application Project, or a Confirmation of Preferential Treatment for a Supporting Industrial Product Production Project after the time revenue is generated, the period for applying the preferential tax rate is calculated from the year the Certificate or Confirmation of Preferential Treatment was granted.
Article 20. Tax Exemptions and Reductions
1. Tax exemption for 04 years and a 50% reduction in tax payable for the following 09 years for:
a) Income of enterprises as stipulated in Clause 1, Article 19 of this Law;
b) The income of enterprises specified in point r, clause 2, Article 18 of this Decree is located in the areas specified in points a and b, clause 3, Article 18 of this Decree; in cases where the income of enterprises specified in point r, clause 2, Article 18 of this Decree is not located in the areas specified in points a and b, clause 3, Article 18 of this Decree, they are exempt from tax for a maximum of 04 years and receive a 50% reduction in the tax payable for a maximum of 05 subsequent years.
2. Exemption from tax for 02 years and a 50% reduction in tax payable for the following 4 years for the income of enterprises as stipulated in Clause 04, Article 19 of this Decree.
3. For new investment projects as stipulated in point h, clause 2, Article 18 of this Decree, the Prime Minister shall decide to extend the tax exemption and reduction period for a maximum of 1,5 times the tax exemption and reduction period stipulated in clause 1 of this Article and not exceeding the term of the investment project.
4. The tax exemption and reduction period is calculated from the first year in which the investment project generates taxable income. If there is no taxable income in the first three years from the first year of revenue generation from the project, the tax exemption and reduction period will be calculated from the fourth year.
In cases where an enterprise is granted a Certificate of High-Tech Application Project, Certificate of High-Tech Enterprise, Certificate of High-Tech Agricultural Enterprise, Certificate of Science and Technology Enterprise, or Confirmation of Incentives for Industrial Support Product Production Projects after the time income is generated, the tax exemption and reduction period is calculated from the year the Certificate or Confirmation of Incentives is granted. If, in the year the Certificate or Confirmation of Incentives is granted, there is no income, the tax exemption and reduction period is calculated from the first year of income generation. If, in the first three years from the year the Certificate or Confirmation of Incentives is granted, the tax exemption and reduction period is calculated from the fourth year from the year the Certificate or Confirmation of Incentives is granted.
5. Tax incentives for expansion investment projects:
a) Enterprises with ongoing investment projects that expand scale, increase capacity, innovate technology, reduce pollution, or improve the environment within industries, professions, and geographical areas eligible for corporate income tax incentives as stipulated in Article 18 of this Decree (hereinafter referred to as expansion investment) shall enjoy tax incentives for the additional income from the expansion investment for the remaining period of the ongoing project and shall not be required to separately account for the additional income from the expansion investment from the income from the ongoing project;
b) In cases where an operating project has exhausted its tax incentive period, the additional income from the expanded investment project that meets the criteria specified in Clause 6 of this Article shall be exempt from tax, subject to tax reduction, and shall not be entitled to preferential tax rates. The tax exemption and reduction period for additional income from expanded investment shall be equal to the tax exemption and reduction period applied to new investment projects in the same industry, profession, and geographical area eligible for corporate income tax incentives, and shall be calculated from the year the investment project completes its registered investment capital.
b1) Enterprises must separately account for the additional income from expansion investments in order to apply the incentives. If separate accounting is not possible, the income from expansion investment activities shall be determined according to the ratio between the original cost of newly invested fixed assets put into use for production and business and the total original cost of fixed assets of the enterprise;
b2) In cases where, during the tax period, the enterprise cannot separately calculate the additional income resulting from investment expansion, the additional income resulting from investment expansion shall be subject to the following corporate income tax incentives:
b3) The total original cost of the enterprise's fixed assets includes: the original cost of fixed assets invested in expansion and put into use for production and business, and the original cost of existing fixed assets currently used for production and business, based on the end-of-period figures in the Balance Sheet (Statement of Financial Position) for the year;
c) The tax incentives stipulated in this clause do not apply to cases of investment expansion resulting from mergers, acquisitions of businesses, or existing investment projects.
6. Investment projects for expansion that are eligible for incentives as stipulated in point b, clause 5 of this Article must meet one of the following criteria:
a) The original cost of fixed assets increases when the investment project completes the disbursement of the registered expansion investment capital reaching a minimum of VND 40 billion for expansion investment projects in industries and professions enjoying corporate income tax incentives as prescribed in this Decree, or VND 20 billion for expansion investment projects implemented in the areas specified in points a and b of Clause 3, Article 18 of this Decree;
b) The proportion of the original cost of fixed assets when the investment project completes the disbursement of the additional registered expansion investment capital must reach at least 20% compared to the total original cost of fixed assets before the start of the expansion investment;
c) The design capacity increases when the investment project completes the disbursement of at least 20% of the registered expansion investment capital compared to the design capacity before the start of the expansion investment.
The tax exemption and reduction period stipulated in this clause is calculated from the year the expanded investment project completes the registered investment capital and generates income; in cases where there is no taxable income in the first three years, starting from the first year of completing the registered investment capital from the expanded investment project, the tax exemption and reduction period is calculated from the fourth year the expanded investment project completes the registered investment capital. The amount of registered investment capital that has been disbursed is determined by the difference between the original cost of total fixed assets on the Balance Sheet (Statement of Financial Position) of the enterprise at the time the enterprise completes the expanded investment project and the time before the expansion investment is implemented. During the period when the enterprise has not yet completed the disbursement of the registered investment capital, the enterprise is not entitled to tax incentives for the expanded investment project.
The Minister of Finance provides guidance on registering the investment capital for the implementation of enterprise expansion projects.
Article 21. Other cases of tax exemption and reduction
1. Manufacturing, construction, and transportation businesses (excluding non-profit organizations and offices of corporations and conglomerates that do not directly engage in production or business) employing between 10 and 100 female workers, where the number of female workers accounts for over 50% of the total regularly employed workforce, or employing over 100 female workers where the number of female workers accounts for over 30% of the total regularly employed workforce, are entitled to a reduction in corporate income tax equal to the additional expenses incurred for female workers, including:
a) Expenses for vocational retraining;
b) Salary and allowance costs (if any) for teachers working in nurseries and kindergartens organized and managed by the enterprise;
c) Additional health check-up expenses during the year;
d) Compensation for female workers after childbirth, according to specific rates stipulated by the competent authority;
d) Salary and allowances paid for the time female employees are on leave after childbirth or breastfeeding, but still work.
The additional expenses for female workers that are eligible for corporate income tax reduction as stipulated in this clause must meet the conditions regarding invoices and non-cash payment documents as prescribed in Clause 1, Article 9 of this Decree.
2. Businesses employing ethnic minority workers are entitled to a reduction in corporate income tax equal to the additional expenses incurred for ethnic minority workers, including: vocational training expenses, housing support, social insurance, and health insurance for ethnic minorities in cases where they have not already received state support under prescribed regulations.
The additional expenses for ethnic minority workers eligible for corporate income tax reduction as stipulated in this clause must meet the conditions regarding invoices and non-cash payment documents as prescribed in Clause 1, Article 9 of this Decree.
3. Enterprises that transfer technology in priority areas to organizations and individuals in economically and socially disadvantaged areas, and public service units providing public services in economically and socially disadvantaged areas, are entitled to a 50% reduction in corporate income tax calculated on the income from technology transfer and income from providing public services in economically and socially disadvantaged areas.
Areas with difficult socio-economic conditions as defined in point b, clause 3, Article 18 of this Decree.
4. Enterprises specified in Clauses 2 and 3 of Article 11 of this Decree that are newly established from household businesses (including individuals converting to enterprises) are exempt from corporate income tax for two consecutive years from the date they generate taxable income.
a) The tax exemption period stipulated in this clause is calculated continuously from the first year the enterprise has taxable income. In cases where there is no taxable income in the first three years, starting from the first year with revenue, the tax exemption period is calculated from the fourth year.
In cases where a business's production and business activities are exempt from tax for less than 12 months during its first tax period, the business may choose to enjoy the tax exemption immediately in that tax period or register with the tax authorities to begin the tax exemption from the next tax period. If the business registers for the tax exemption in the next tax period, it must determine the amount of tax payable for the first tax period and pay it to the state budget as prescribed.
b) After the tax exemption period stipulated in this clause, if the enterprise implements an investment project in an industry, profession, or geographical area eligible for tax incentives as stipulated in Article 18 of this Decree, it shall continue to enjoy the corresponding preferential tax rates and tax exemptions/reductions as prescribed in Articles 19 and 20 of this Decree.
Upon the expiration of the tax exemption period and any tax incentives (if applicable) stipulated in this clause, the enterprise shall apply the corporate income tax rate as prescribed in clauses 2 and 3 of Article 11 of this Decree;
c) Household businesses and individual businesses as stipulated in this clause must meet the conditions of being registered and operating in accordance with the law, and must have had continuous production and business activities for at least 12 months up to the date of initial issuance of the Business Registration Certificate;
d) Newly established enterprises eligible for tax exemption or tax incentives under this clause are those registering for the first time, excluding cases where the legal representative (except in cases where the legal representative is not a contributing member), general partner, or the person with the highest capital contribution has previously participated in business activities as the legal representative, general partner, or person with the highest capital contribution in existing or dissolved enterprises, but less than 12 months have passed from the date of dissolution of the old enterprise to the date of establishment of the new enterprise..
5. Public science and technology organizations and public higher education institutions operating on a non-profit basis are exempt from taxes as follows:
a) Public science and technology organizations operating on a non-profit basis, as defined by the law on science, technology, and innovation, are exempt from tax on income derived from conducting scientific research, technological development, and providing science, technology, and innovation services;
b) Public higher education institutions operating on a non-profit basis as defined by the Law on Higher Education are exempt from tax on the revenue stipulated in Article 64 of the 2012 Law on Higher Education (amended and supplemented by Clause 32, Article 1 of the Law amending and supplementing a number of articles of the Law on Higher Education in 2018).
Article 22. Establishment of the Enterprise Science and Technology Development Fund
1. The establishment of a Science and Technology Development Fund by enterprises is carried out in accordance with the provisions of Article 17 of the Corporate Income Tax Law.
2. The interest rate for calculating interest on the recovered tax amount on the unused portion of the Fund as stipulated in Clause 2, Article 17 of the Corporate Income Tax Law is the interest rate of treasury bonds with a 05-year or 10-year term (in the case where there is no 05-year term) issued closest to the time of recovery, and the interest calculation period is 02 years, including cases where the enterprise repays the Fund before the 05-year period.
3. Annually, enterprises shall independently determine the amount to be allocated to the Science and Technology Development Fund in accordance with regulations and prepare a Report on the allocation and use of the Science and Technology Development Fund along with the corporate income tax return.
In cases where a business has chosen to establish a Science, Technology and Innovation Development and Digital Transformation Fund as stipulated in Resolution No. 198/2025/QH15 dated May 17, 2025, of the National Assembly on some special mechanisms and policies for the development of the private economy, it is not required to establish a Science and Technology Development Fund as stipulated in the Corporate Income Tax Law.
4. The Minister of Finance shall prescribe the tax obligations in cases where fixed assets formed from the Fund for scientific and technological research activities have not yet been fully depreciated and are transferred by the enterprise to serve the enterprise's production and business activities, and the mẫu Report on the establishment and use of the Enterprise's Science and Technology Development Fund.
Article 23. Conditions for applying corporate income tax incentives
The conditions for applying for corporate income tax incentives are implemented according to the provisions of Article 18 of the Corporate Income Tax Law.
1. During the period of enjoying corporate income tax incentives, if an enterprise carries out multiple production and business activities, the enterprise must separately account for income from production and business activities eligible for tax incentives as stipulated in Articles 4, 19, 20, and 21 of this Decree from income from production and business activities not eligible for tax incentives.
a) In cases where, during the tax period, the enterprise does not separately account for income from production and business activities eligible for tax incentives and income from production and business activities not eligible for tax incentives, the portion of income from production and business activities eligible for tax incentives shall be determined by multiplying the total taxable income by the percentage (%) of revenue or deductible expenses of the production and business activities eligible for tax incentives compared to the total revenue or total deductible expenses of the enterprise during the tax period;
b) In cases where there are deductible revenues or expenses that cannot be accounted for separately, such deductible revenues or expenses shall be determined according to the ratio between the deductible revenues or expenses of the production and business activities enjoying tax incentives and the total deductible revenues or expenses of the enterprise.
2. If, at the same time, a business is entitled to multiple different tax incentives for the same income, the business may choose to apply the most advantageous tax incentive:
a) If a business is currently enjoying corporate income tax incentives and chooses to switch to applying tax incentives based on other criteria with more favorable rates, it must deduct the period of incentive (number of years already granted tax exemptions, reductions, and preferential tax rates);
b) In cases where an enterprise has exhausted its corporate income tax incentives as stipulated in legal documents on corporate income tax, and is granted a Certificate of High-Tech Enterprise, Certificate of High-Tech Agricultural Enterprise, Certificate of Science and Technology Enterprise, Certificate of High-Tech Application Project, or Confirmation of Incentives for Industrial Support Product Manufacturing Projects, it is entitled to the remaining incentive period. The remaining incentive period is determined by subtracting the previously enjoyed incentive period (number of years of tax exemption, reduction, and preferential tax rate) from the applicable incentive level for high-tech enterprises, high-tech agricultural enterprises, science and technology enterprises, high-tech application projects, and industrial support product manufacturing projects.
c) In cases where an enterprise has income in the fields of agriculture, forestry, fisheries, and salt production, and also meets the conditions for other tax-incentive sectors or preferential geographical areas, and the enterprise chooses to enjoy tax incentives under other tax-incentive sectors or preferential geographical areas, then after the expiration of the tax incentive period under other tax-incentive sectors or preferential geographical areas (including tax exemption, tax reduction, and preferential tax rates), it may switch to applying the preferential tax rate or tax exemption applicable to the fields of agriculture, forestry, fisheries, and salt production as stipulated in this Decree;
d) If an enterprise has chosen to receive incentives as stipulated in points a, b, and c of this clause, the chosen incentive level shall apply for the entire remaining incentive period; after making the choice, the enterprise may not switch to applying incentives based on other criteria.
3. Applying corporate income tax incentives based on criteria for areas eligible for corporate income tax incentives:
a) Enterprises with investment projects for production that enjoy tax incentives based on the criteria of tax-incentive areas for corporate income tax, and which generate income from supplying products and goods produced by the project to areas outside the investment project's implementation location, are also entitled to tax incentives for this income;
b) Investment projects in the trade and service sectors in areas eligible for corporate income tax incentives (including economic zones, high-tech zones, high-tech agricultural zones, and concentrated digital technology zones) are only entitled to incentives for the income generated by the investment project within the area where the investment project is implemented.
Businesses with investment projects in the transportation sector that meet the geographical location requirements are entitled to corporate income tax incentives on income from transportation services based on the geographical location where the investment project is established, provided that the project's origin or destination is also located within the geographical area where the investment project is established.
4. Enterprises with investment projects are entitled to corporate income tax incentives as prescribed by the law on corporate income tax at the time of licensing or issuance of the Investment Registration Certificate, or as permitted to invest according to the law on investment. If the law on corporate income tax changes and the enterprise meets the conditions for tax incentives as prescribed by the newly amended law, the enterprise may choose to enjoy the tax rate and the period of tax exemption or reduction as prescribed by the law at the time of licensing, issuance of the Investment Registration Certificate, or as permitted to invest, or as prescribed by the newly amended law for the remaining period from the tax year 2025.
In cases where an enterprise has an investment project that is not eligible for incentives under the provisions of legal documents on corporate income tax prior to the effective date of this Decree, but is eligible for incentives under the provisions of this Decree, it shall be entitled to the incentives under the provisions of this Decree for the remaining period from the tax year 2025.
5. Income exempt from or eligible for tax incentives in the fields of agriculture, forestry, fisheries, and salt production under this Decree includes income from the liquidation of assets that are agricultural, forestry, fishery, and salt production products, and income from the sale of scrap and waste products that are agricultural, forestry, fishery, and salt production products.
6. In cases where a new investment project of an enterprise generates revenue and income in its first year and is eligible for tax incentives for a period of less than 12 months, the enterprise may choose to enjoy the tax incentives (tax rate, tax exemption period, tax reduction) for the investment project from the tax period in which the revenue and income are generated, or register with the tax authority to begin enjoying the tax incentives from the next tax period. If the enterprise registers to apply the tax incentives for the new investment project to the next tax period, it must determine the amount of tax payable from this investment project for the first year in which the revenue and income are generated and pay it into the state budget as prescribed.
a) In the case of high-tech enterprises, high-tech agricultural enterprises, and science and technology enterprises that generate revenue or income in their first tax period and have a tax incentive period of less than 12 months, the enterprise may choose to enjoy the tax incentive (tax rate, tax exemption period, tax reduction) from that first tax period or register with the tax authority to begin enjoying the tax incentive from the next tax period. If the enterprise registers for the tax incentive period in the next tax period, it must determine the amount of tax payable for the first tax period and pay it into the state budget as prescribed.
b) In cases where a business changes its corporate income tax period (including changing from a calendar year to a fiscal year or vice versa), the corporate income tax period for the year of change shall not exceed 12 months. If a business is currently enjoying corporate income tax incentives and changes its tax period, it may choose to either continue enjoying the incentives in the year of change or pay tax at the non-incentive rate for the year of change and continue enjoying the tax incentives in the following year.
7. Enterprises established or enterprises with investment projects resulting from mergers, consolidations, divisions, separations, changes in ownership, or changes in business type are responsible for fulfilling their corporate income tax obligations (including penalties, if any), and are entitled to inherit corporate income tax incentives (including uncashed losses) from the enterprise or investment project before the transformation, division, separation, merger, or consolidation, provided they continue to meet the conditions for corporate income tax incentives and loss carryforward as prescribed.
8. Corporate income tax incentives for new investment projects:
a) New investment projects eligible for corporate income tax incentives as stipulated in Articles 19 and 20 of this Decree must be granted an Investment Registration Certificate by a competent State agency, or have their investment policy approved in accordance with the law on investment, or be permitted to invest in accordance with specialized laws.
For investment projects that are not subject to the issuance of an Investment Registration Certificate, approval of investment policy as prescribed by investment law, or investment permit as prescribed by specialized laws, the determination of a new investment project is based on the Investment Project Implementation Report of the enterprise as prescribed by investment law and submitted to the investment registration authority;
b) New investment projects eligible for corporate income tax incentives under the new investment category do not include the following cases:
b1) Investment projects formed from: Mergers, consolidations, divisions, separations, or conversions of business types in accordance with the law.
b2) Investment projects formed from the transfer of ownership (including cases where a new investment project is implemented but still inherits the assets, business location, and business lines of the old enterprise to continue production and business activities; or the acquisition of an operating investment project);
c) For businesses currently enjoying corporate income tax incentives as newly established businesses from investment projects, the tax incentives only apply to income from production and business activities that meet the investment incentive conditions stated in the business registration certificate or the initial investment certificate of the business. For businesses already operating, if there is a change in the business registration certificate or investment certificate but such change does not alter the fulfillment of the tax incentive conditions of that project as prescribed, the business will continue to enjoy the tax incentives for the remaining period or incentives under the expanded investment category if it meets the incentive conditions as prescribed;
d) For investment projects granted an Investment Registration Certificate or investment permit in accordance with investment law, where the initial investment registration dossier submitted to the licensing authority registered the investment capital, investment phasing, and investment implementation schedule, if subsequent phases are actually implemented, they are considered component projects of the initially licensed investment project if implemented according to schedule (except in cases of force majeure, difficulties due to objective reasons in land clearance, handling administrative procedures of State agencies, natural disasters, fires, or other difficulties or force majeure). In such cases, the component projects of the initial investment project are entitled to tax incentives for the remaining period of the initial investment project, calculated from the time the component project generates income eligible for incentives.
During the implementation of the component projects in the aforementioned phases, if the investor is granted an extension by the State investment management agency in accordance with the law on investment and the enterprise implements the project within the extended timeframe, it will also be entitled to tax incentives as stipulated above.
9. The tax rates of 15% and 17% stipulated in Clauses 2 and 3 of Article 11 and the tax incentives stipulated in Articles 4, 19, 20 and 21 of this Decree do not apply to:
a) Income from the transfer of capital, transfer of capital contribution rights; income from the transfer of real estate, excluding income from investment in the construction of social housing as stipulated in point s, clause 2, Article 18 of this Decree; income from the transfer of investment projects (excluding the transfer of mineral processing projects), transfer of the right to participate in investment projects, transfer of the right to explore, exploit, and process minerals; income from production and business activities outside Vietnam;
b) Income from the search, exploration and exploitation of oil and gas, other rare resources and income from the exploration and exploitation of minerals;
c) Income from the production and business of online video games; income from the production and business of goods and services subject to excise tax as prescribed by the Law on Excise Tax, excluding projects for the production and assembly of automobiles, aircraft, helicopters, gliders, yachts, and petrochemical refining;
d) Other income specified in Clause 3, Article 3 of this Decree that is not related to production and business activities is eligible for tax incentives.
The provisions in this point apply to both cases where investment projects meet the preferential conditions regarding industries and professions specified in Clause 2 and the preferential conditions regarding investment-incentive areas specified in Clause 3 of Article 18 of this Decree;
e) Other cases as directed by the Minister of Finance.
10. During the period of corporate income tax incentives, if, in a tax period, the enterprise fails to meet one of the tax incentive conditions stipulated in Clauses 1, 3, 4, 5, 6, 8, 12 and 14 of Article 4, Clauses 2 and 3 of Article 11, Articles 18, 19, 20, 21 and the provisions of this Article, then that tax period will not be eligible for tax incentives and the enterprise must pay tax at a rate of 20% (for cases already enjoying incentives under the conditions of industry, occupation, and geographical area specified in Articles 18, 19 and 20 of this Decree, that year will also be included in the incentive period for which the enterprise is registered).
For investment projects stipulated in points g and h of Clause 1, Article 18, and points c and d of Clause 6, Article 19 of this Decree, if after 03 years (05 years for investment projects stipulated in point g) from the date of investment license issuance (excluding delays due to objective reasons in land clearance, administrative procedures of state agencies, or due to natural disasters, war, fire, or other difficulties and force majeure events, and as approved by the investment certificate issuing authority and reported to the Prime Minister for approval) or the 04th year from the year of revenue generation (6th year for investment projects stipulated in point g), the enterprise's investment project does not meet the conditions stated in points g and h of Clause 1, Article 18, and points c and d of Clause 06, Article 19 of this Decree, it will not be entitled to corporate income tax incentives, and the enterprise must declare and pay the corporate income tax amount. The enterprise has declared and received tax incentives in previous years (if any) in accordance with the law and is not considered to have made false declarations according to the law on tax administration. During the period of enjoying corporate income tax incentives, if in any tax year the enterprise does not meet one of the tax incentive conditions specified in points g and h of Clause 1, Article 18 of this Decree, then in that year the enterprise will not be entitled to corporate income tax incentives.
11. High-tech enterprises, high-tech agricultural enterprises, and science and technology enterprises are entitled to corporate income tax incentives on income from high-tech activities, high-tech applications, scientific research and technological development results, and other income directly related to high-tech activities, high-tech applications, scientific research and technological development results.
Chapter VI
TERMS ENFORCEMENT
Article 24. Enforcement
1. This Decree takes effect from the date of signing and issuance and applies from the corporate income tax period of 2025. The determination of the application period in some specific cases is as follows:
a) Enterprises may choose to apply the regulations on revenue, expenses, tax incentives, tax exemptions, tax reductions, and loss carryforward in this Decree from the beginning of the 2025 tax year, or from the effective date of the Corporate Income Tax Law, or from the effective date of this Decree; if the enterprise's 2025 tax year begins after the effective date of the Corporate Income Tax Law, then the regulations shall apply from the effective date of the Corporate Income Tax Law or from the effective date of this Decree;
b) The regulations on non-cash payment documents at point c, clause 1, Article 9 and the regulations on capital transfer at point i, clause 3, Article 12 of this Decree shall apply from the date this Decree comes into effect.
2. This Decree replaces:
a) Government Decree No. 218/2013/ND-CP dated December 26, 2013, detailing and guiding the implementation of a number of articles of the Corporate Income Tax Law;
b) Government Decree No. 91/2014/ND-CP dated October 1, 2014, amending and supplementing a number of articles in the Decrees on taxation;
c) Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law amending and supplementing a number of articles of the Laws on taxation and amending and supplementing a number of articles of the Decrees on taxation;
d) Government Decree No. 57/2021/ND-CP dated June 4, 2021, supplementing point g, clause 2, Article 20 of Decree No. 218/2013/ND-CP on corporate income tax incentives for projects producing supporting industrial products.
3. In case the legal documents cited in this Decree are amended, supplemented, or replaced, the amended, supplemented, or replaced documents shall be followed.
Article 25. Transitional provisions
1. Enterprises with new investment projects prior to the effective date of the Corporate Income Tax Law that are still enjoying corporate income tax incentives, including cases where the new investment project has not yet received incentives under the provisions of legal documents on corporate income tax before the effective date of this Decree, shall enjoy incentives for the remaining period as prescribed by the legal documents at the time of issuance of the Investment Registration Certificate or approval of the investment policy under the law on investment or permission to invest under the provisions of specialized laws; if the incentive level under this Decree is higher than the current incentive level, the remaining period shall be applied under the incentives under this Decree. The remaining period specified in this point shall be calculated from the tax period of 2025.
2. Enterprises with expansion investment projects that have been granted or amended Investment Registration Certificates or approved investment policies or submitted Investment Project Implementation Reports in accordance with investment laws to the investment registration authority or permitted to invest in accordance with specialized laws (hereinafter referred to as permitted to invest) before the effective date of the Corporate Income Tax Law, and are still within the period of enjoying corporate income tax incentives, including cases where the expansion investment project has been granted or amended Investment Registration Certificates or permitted to invest but has not yet enjoyed incentives as prescribed by legal documents on corporate income tax before the effective date of this Decree, shall enjoy incentives for the remaining period as prescribed by legal documents at the time of granting or amending the Investment Registration Certificate or permitted to invest; If the preferential treatment under this Decree is higher than the current preferential treatment (including cases where the beneficiary is eligible but has not yet received it), the preferential treatment under this Decree may be applied for the remaining period. The remaining period specified in this point shall be calculated from the 2025 tax year.
In cases where a business has an expansion investment project that has been granted or amended an Investment Registration Certificate, approved an investment policy, or permitted to invest before the Corporate Income Tax Law comes into effect, the determination of incentives and the timing of enjoying tax incentives for the expansion investment shall be carried out according to the provisions of the document in effect at the time of granting or amending the Investment Registration Certificate, approving the investment policy, or permitting the investment.
3. Enterprises with income from activities eligible for tax incentives under the provisions of the Corporate Income Tax Law prior to the effective date of the Corporate Income Tax Law (excluding investment projects specified in Clauses 1 and 2 of this Article), but whose income is not eligible for tax incentives under the Corporate Income Tax Law, shall not be entitled to tax incentives from the effective date of the Corporate Income Tax Law.
4. Enterprises that incurred losses before the effective date of this Decree (including losses from real estate transfers, investment project transfers, and transfers of investment project participation rights) but are still within the prescribed loss carryforward period may continue to carry forward losses for the remaining period as stipulated in this Decree. Losses from real estate transfers, investment project transfers, and transfers of investment project participation rights from previous periods shall not be carried forward to profits from production and business activities eligible for tax incentives.
Article 26. Responsible for implementing
1. The Minister of Finance shall specify the details of the Articles and Clauses assigned in this Decree and provide guidance on the implementation of this Decree in accordance with his/her functions and duties, ensuring effective management.
2. Minister of Science and Technology: Develop legal documents to be submitted to competent authorities or issued within their authority to serve as the basis for implementing policies on tax exemptions and tax incentives stipulated in Clause 4, Article 4 of this Decree and related contents according to their functions and duties.
3. Minister of Industry and Trade: Develop legal documents to be submitted to competent authorities or issue, within his/her authority, guiding documents on supporting industrial products as stipulated in point c, clause 2, Article 18 of this Decree.
4. Ministers, heads of ministerial-level agencies, heads of government agencies, chairpersons of provincial and centrally-administered city People's Committees, and relevant organizations and individuals are responsible for implementing this Decree.