The New Corporate Income Tax Rates: Unveiling the Changes Effective from October 1st

The enterprise income tax rate is 20%, except for cases stipulated in Clauses 2, 3 and 4 of Article 10 of the Law on Enterprise Income Tax 2025 and subjects entitled to preferential tax rates as prescribed in Article 13 of the same Law.

A 15% tax rate shall be applied to enterprises with an annual total revenue of no more than VND 3 billion.

A 17% tax rate shall be applied to enterprises with an annual total revenue of over VND 3 billion but not exceeding VND 50 billion.

The revenue serving as the basis for determining the application of the 15% and 17% tax rates is the total revenue of the period for enterprise income tax calculation immediately preceding the current period.

Enterprise income tax rates for certain specific cases are prescribed as follows:

– For oil and gas exploration, exploitation, and development activities, the tax rate ranges from 25% to 50%. Based on the location, exploitation conditions, and reserves of the mine, the Prime Minister shall decide on the specific tax rate suitable for each petroleum contract.

– For exploration and exploitation activities of rare resources (including platinum, gold, silver, tin, tungsten, antimony, gemstones, rare earths, and other rare resources as prescribed by law) a 50% tax rate shall apply. In cases where mines have an area of 70% or more of the assigned area in particularly difficult socio-economic conditions, the tax rate shall be 40%.

Article 10 of Resolution No. 198/2025/QH15 on some mechanisms and policies to encourage the development of the private economy stipulates a six-year exemption and reduction of enterprise income tax (for the first six years) for innovative start-up enterprises, venture capital fund management companies, and innovation support intermediaries.

Specifically, Resolution No. 198 prescribes tax, fee, and charge incentives for the following eight cases:

1. Exemption from enterprise income tax for two years and a 50% reduction of payable tax for the following four years for income from innovative start-up activities of innovative start-up enterprises, venture capital fund management companies, and innovation support intermediaries. The determination of the period of exemption and reduction of taxes shall comply with the Law on Enterprise Income Tax.
2. Exemption from personal income tax and enterprise income tax for income from the transfer of shares, capital contributions, equity contributions, rights to purchase shares, and rights to purchase capital contributions in innovative start-up enterprises.
3. Exemption from personal income tax for two years and a 50% reduction of payable tax for the following four years for income from salaries and wages of experts and scientists received from innovative start-up enterprises, research and development centers, innovation centers, and innovation support intermediaries.
4. Exemption from enterprise income tax for small and medium-sized enterprises for three years from the date of the first business registration certificate issuance.
5. The training and retraining costs incurred by large enterprises for small and medium-sized enterprises participating in the chain shall be counted as deductible expenses for determining taxable income when calculating enterprise income tax.
6. From January 1, 2026, household and individual business households shall not apply the tax estimation method. Household and individual business households shall pay taxes in accordance with the law on tax administration.
7. Stop collecting business license fees from January 1, 2026.
8. Exempt fees and charges for organizations, individuals, and enterprises for the re-granting or changing of the type of papers if they are re-granted or changed due to the rearrangement and reorganization of the state apparatus in accordance with the law.