Law on Enterprise Income Tax, No. 67/2025/QH15

LAW

On Enterprise Income Tax

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Enterprise Income Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides for enterprise income taxpayers, taxable incomes, tax-exempt incomes, tax bases, tax calculation methods, and tax incentives.

Article 2. Taxpayers

1. Taxpayers are goods and service production and business organizations which have taxable incomes under the provisions of this Law (below referred to as enterprises), including:

a) Enterprises established under Vietnamese law;

b) Enterprises established under foreign laws (below referred to as foreign enterprises) with or without Vietnam-based permanent establishments;

c) Cooperatives and unions of cooperatives established under the Law on Cooperatives;

d) Non-business units established under Vietnamese law;

dd) Other organizations engaged in income-generating production and business activities.

2. Enterprises having taxable incomes under Article 3 of this Law shall pay enterprise income tax as follows:

a) Enterprises established under Vietnamese law shall pay tax on taxable incomes generated in and outside Vietnam;

b) Foreign enterprises with Vietnam-based permanent establishments shall pay tax on taxable incomes generated in Vietnam and taxable incomes generated outside Vietnam which are related to the operation of such establishments;

c) Foreign enterprises with Vietnam-based permanent establishments shall pay tax on taxable incomes generated in Vietnam which are not related to the operation of such permanent establishments;

d) Foreign enterprises without Vietnam-based permanent establishments, including enterprises conducting e-commerce and digital platform-based business, shall pay tax on taxable incomes generated in Vietnam.

3. Foreign enterprises’ permanent establishments are production and business establishment through which foreign enterprises conduct some or all production and business activities in Vietnam, including:

a) Branches, executive offices, factories, workshops, means of transport, mines, oil and gas fields, or other places of extraction of natural resources in Vietnam;

b) Construction sites, construction works, installation and assembly projects;

c) Establishments providing services, including consultancy services through employees or other organizations or individuals;

d) Agents for foreign enterprises;

dd) Vietnam-based representatives, in case of representatives which are competent to conclude contracts in the name of foreign enterprises or representatives which are incompetent to conclude contracts in the name of foreign enterprises but regularly deliver goods or provide services in Vietnam;

e) E-commerce platforms and digital platforms through which the foreign enterprise supplies goods and services in Vietnam.

4. The Government shall detail this Article.

Article 3. Taxable incomes

1. Taxable enterprise incomes include income from goods and service production and business activities and other incomes specified in Clause 2 of this Article.

2. Other incomes cover:

a) Income from the transfer of capital, capital contribution rights or securities;

b) Income from the transfer of real estate, excluding incomes from real estate transfers by real estate enterprises;

c) Income from the transfer of investment projects, transfer of rights to participate in investment projects, or transfer of rights to exploration, exploitation, and processing of minerals;

d) Income from the transfer, lease or liquidation of assets, including valuable papers, except for real estate;

dd) Income from the right to own or use assets, including income from intellectual property rights and technology transfers;

e) Income from interests, loans or foreign currency sales, excluding incomes from credit activities of credit institutions;

g) Provisions previously accounted into expenses but unused or not fully used without being adjusted for deductible expenses; recovery of bad debts already written off; collection of payable debts of unidentifiable creditors; omitted income from previous years’ business activities but later detected;

h) Differences from penalties, compensation amounts due to violations of economic contracts, or bonuses for good performance of contractual commitments;

i) Donations and aid received in cash or in kind;

k) Differences arising from the revaluation of assets in accordance with the law for capital contributions, transfer upon merger, consolidation, division, separation, conversion of ownership, or conversion of enterprise types;

l) Income from business cooperation contracts;

m) Income from production and business activities conducted abroad;

n) Income of public non-business units derived from leasing out public assets;

o) Other incomes, excluding incomes exempted from tax as prescribed in Article 4 of this Law.

3. Taxable incomes arising in Vietnam of foreign enterprises specified at Points c and d, Clause 2, Article 2 of this Law are incomes derived from Vietnamese sources, regardless of the place where business is conducted.

4. Vietnamese enterprises engaged in offshore investment activities that generate incomes from overseas production and business activities in a tax period shall be entitled to a deduction for the amount of enterprise income tax payable under the law of the host country from the amount of enterprise income tax payable in Vietnam, provided that such deduction does not exceed the amount of enterprise income tax calculated in accordance with Vietnam's law on enterprise income tax.

5. Enterprises that are liable to top-up tax regarding the income inclusion rule (IIR) as prescribed by law may deduct such top-up tax payable from the amount of enterprise income tax payable in Vietnam in accordance with this Law.

6. The Government shall detail this Article.

Article 4. Tax-exempt incomes

1. Incomes from offshore fishing activities; incomes of enterprises derived from the production of plant-based products, planted forests, animal husbandry, aquaculture, and the processing of agricultural and aquatic products (including the case of purchasing agricultural and aquatic products for processing) in areas with extremely difficult socio-economic conditions; incomes of cooperatives and unions of cooperatives derived from the production of plant-based products, planted forests, animal husbandry, aquaculture, the processing of agricultural and aquatic products (including the case of purchasing agricultural and aquatic products for processing), and salt production.

2. Incomes of cooperatives and unions of cooperatives operating in the fields of agriculture, forestry, fishery, and salt production in areas with difficult or extremely difficult socio-economic conditions.

3. Incomes from the application of technical services directly for agriculture.

4. Incomes from the performance of contracts on scientific research, technological development, and innovation, digital transformation; incomes from the sale of products created from newly introduced technologies applied for the first time in Vietnam; incomes derived from the sale of trial production products during the trial production period, including controlled trial production in accordance with law. Incomes under this Clause shall be exempted from tax for a maximum period of 03 years.

5. Incomes from production and business activities of goods and services of enterprises in which 30% or more of the average number of employees in the year are persons with disabilities, detoxified or HIV-infected persons, and which have an average number of employees of 20 persons or more per year, excluding enterprises operating in the fields of finance and real estate business.

6. Incomes from vocational education and vocational training activities exclusively reserved for ethnic minority people, persons with disabilities, children in special circumstances and persons involved in social evils.

7. Incomes divided for capital contribution, share purchase, joint venture, or association with domestic enterprises, after enterprise income tax has been paid in accordance with this Law, including cases where the transferee of capital contribution, share issuer, joint venture, or related party enjoys enterprise income tax incentives.

8. Received financial supports used for educational, cultural, artistic, charitable, humanitarian and other social activities in Vietnam; received financial supports from enterprises without related-party relationships, organizations, or individuals inside or outside Vietnam for use in scientific research, technological development, innovation, and digital transformation activities; direct support from the state budget and from investment support funds established by the Government; compensation amounts paid by the State in accordance with law.

In cases where the donations received under this Clause are not used for proper purposes, the enterprise shall be subject to tax collection and sanction in accordance with law.

9. Differences arising from the revaluation of assets in accordance with law for the purpose of equitization or restructuring of wholly state-owned enterprises.

10. Incomes from the transfer of emission reduction certificates, the first-time transfer of carbon credits after issuance by enterprises that have been granted emission reduction certificates or carbon credits; incomes from interest on green bonds; incomes from the first-time transfer of green bonds after issuance.

11. Incomes (including interest on bank deposits, interest on government bonds, and interest on treasury bills) from the performance of State-assigned tasks in the following cases:

a) Incomes of the Vietnam Development Bank from development investment credit and export credit activities;

b) Incomes of the Vietnam Bank for Social Policies from credit activities for the poor and other policy beneficiaries;

c) Incomes of the single-member limited liability company for asset management of Vietnamese credit institutions;

d) Incomes from revenue-generating activities of state financial funds and other non-profit state funds and organizations as regulated or decided by the Government or the Prime Minister.

12. Retained earnings not distributed by socialized establishments operating in the fields of education and training, healthcare, and other socialized sectors, used for reinvestment in such establishments in compliance with the minimum ratio prescribed by the Government; undivided common funds and undivided common assets of cooperatives and unions of cooperatives established and operating in accordance with the law on cooperatives.

13. Incomes from the transfer of technologies on the list of prioritized technologies for transfer to organizations and individuals in areas with extremely difficult socio-economic conditions.

14. Incomes of public non-business units from the provision of public non-business services, including:

a) Basic and essential public non-business services on the list of public non-business services funded by the state budget as promulgated by competent agencies;

b) Public non-business services for which the State must subsidize or ensure funding due to incomplete cost calculation in service prices;

c) Public non-business services provided in areas with extremely difficult socio-economic conditions.

15. The Government shall detail this Article.

Article 5. Tax period

1. An enterprise income tax period is the calendar year or fiscal year as selected by the enterprise, except the cases defined in Clause 2 of this Article. In case the enterprise selects a fiscal year different from the calendar year, it must notify the directly managing tax office before implementation.

2. The tax period applicable to enterprises specified at Points c and d, Clause 2, Article 2 of this Law shall comply with the law on tax administration.

Chapter II

TAX BASES AND TAX CALCULATION METHODS

Article 6. Tax bases

Tax bases include taxed income and tax rate.

Article 7. Determination of taxed income

1. Taxable income in a tax period shall be determined as follows:

2. The taxable income specified in Clause 1 of this Article shall be determined as follows:

3. If an enterprise engages in multiple production and business activities during the tax period, the taxable income from production and business activities shall be the total income from all production and business activities. In case any production and business activity incurs a loss, the enterprise may offset such loss against taxable income from income-generating production and business activities at its own discretion (excluding income from real estate transfer, transfer of investment projects, and transfer of rights to participate in investment projects, which shall not be offset against incomes from production and business activities currently enjoying tax incentives). The remaining income after offsetting shall be subject to the enterprise income tax rate applicable to income-generating production and business activities.

4. Taxable income from the transfer of investment projects for exploration, mining, and processing of minerals; transfer of rights to participate in investment projects for exploration, mining, and processing of minerals; and transfer of rights to exploration, mining, and processing of minerals must be separately determined for tax declaration and payment, and shall not be offset against profits or losses from other production and business activities during the tax period.

Article 8. Turnover

1. Turnover for determining taxable enterprise income means the total proceeds from the sale of goods, processing, and provision of services, including subsidies, surcharges, and additional charges to which the enterprise is entitled, regardless of whether the amounts have been collected or not.

2. The Government shall detail this Article.

Article 9. Deductible and non-deductible expenses upon determination of taxable incomes

1. Except the expenses specified in Clause 2 of this Article, upon determining taxable incomes, enterprises are entitled to deduction of the expenses which fully meet the following conditions:

a) They are actually paid expenses related to production and business activities, including deductible additional expenses calculated as a percentage of actual expenses incurred during the tax period related to the enterprise’s research and development activities;

b) Other actual expenses incurred, including:

b1) Expenses for performing national defense and security education tasks, training, operation of the militia and self-defense force, and other national defense and security tasks as prescribed by law;

b2) Expenses for supporting the operation of Party organizations and socio-political organizations within the enterprise;

b3) Expenses for vocational education and vocational training for employees in accordance with the law;

b4) Actual expenses for HIV/AIDS prevention and control activities at the workplace of the enterprise;

b5) Donations for education, healthcare, culture; donations for disaster and epidemic prevention, response, and recovery; donations for building Great Solidarity Houses, houses of gratitude, and houses for policy beneficiaries in accordance with the law; donations under the regulations of the Government or the Prime Minister for localities in areas with extremely difficult socio-economic conditions; donations for scientific research, technological development, innovation, and digital transformation;

b6) Expenses for scientific research, technology development, and innovation;

b7) The value of uncompensated value of losses caused by natural disasters, epidemics or other force majeure circumstances;

b8) Actual expenses for seconded individuals participating in the management, administration, and supervision of credit institutions under special control and commercial banks subject to compulsory transfer in accordance with the Law on Credit Institutions;

b9) Certain expenses serving the enterprise’s production and business activities that do not correspond to revenues arising in the same period, as prescribed by the Government;

b10) Certain expenses for supporting the construction of public infrastructure works that also serve the enterprise’s production and business activities;

b11) Expenses related to greenhouse gas emission reduction for the purpose of carbon neutrality and net-zero targets, and environmental pollution reduction, provided such expenses relate to the enterprise’s production and business activities;

b12) Certain contributions to funds established under the decisions of the Prime Minister and the provisions of the Government;

c) Expenses must be accompanied by sufficient invoices and documents, and be paid via non-cash payment methods in accordance with the law, except for specific cases as prescribed by the Government.

2. Non-deductible expenses upon determination of taxable incomes include:

a) Expense not fully satisfying the conditions specified in Clause 1 of this Article;

b) Fine for administrative violations;

c) Expense already covered by other funding sources;

d) Expense in excess of the norm prescribed by the Government, for: Business administration expenses allocated by foreign enterprises to their permanent establishments in Vietnam; expenses for hiring managers to operate prize-winning electronic game and casino businesses; interest payments on loans of enterprises having related-party transactions; welfare-type expenses directly provided for employees; contributions to supplementary retirement insurance in accordance with the Law on Social Insurance or to funds of a social security nature, purchase of voluntary retirement insurance or life insurance for employees;

dd) Provisions that are set up improperly or in excess of the law-prescribed norm for the deduction and setting up of provisions;

e) Depreciation of fixed assets that is inconsistent with or exceeds the limits prescribed by law;

g) Expenses advanced in contravention of law;

h) Salaries and wages of owners of private enterprises, owners of single-member limited liability companies owned by individuals; remuneration paid to enterprise founders who do not personally administer production and business activities; salaries, wages and other accounted amounts payable to laborers which have actually not been paid to them or paid without invoices or documents as prescribed by law;

i) Loan interests paid corresponding to the insufficient amount of the charter capital; loan interest during the investment phase that has been recorded into the investment value; loan interest for implementing contracts for oil and gas exploration and exploitation; interest expenses on production and business loans from entities other than credit institutions in excess of the limit prescribed by the Civil Code;

k) Recoverable cost portions exceeding the percentage specified in approved oil and gas contracts; in case such contracts do not specify a recoverable cost percentage, expenses exceeding the limit prescribed by the Government shall not be deductible;

l) Input value-added tax that has been credited; value-added tax payable under the credit method; input value-added tax of the value of passenger cars with up to 9 seats exceeding the limit prescribed by the Government; enterprise income tax; and other taxes, charges, fees, and amounts not allowed to be included in deductible expenses as prescribed by law, and late payment interest as prescribed by the law on tax administration.

The input value-added tax paid under the credit method mentioned in this Point does not include input value-added tax related directly to production and business activities that has not yet been fully credited but does not fall under refundable cases.

Where input value-added tax has been included in deductible expenses, it shall not be credited against output value-added tax;

m) Expenses not corresponding to taxable revenue, except for those specified at Point b, Clause 1 of this Article; expenses not meeting conditions or spending contents as prescribed by specialized laws;

n) Donations, except for those specified in Item b5, Point b, Clause 1 of this Article;

o) Expenses for basic construction investment during the investment phase for forming fixed assets; expenses directly related to increases or decreases in the enterprise’s owner’s equity;

p) Expenses incurred in business activities in the banking, insurance, lottery, securities, BT, BOT, and BTO contracts that are non-compliant or in excess of the levels prescribed by law;

q) Other expenses.

3. The Government shall detail this Article, including the amount of additional expenses, conditions, duration, and scope of application with respect to expenses for research and development activities of enterprises as specified at Point a, Clause 1 of this Article.

The Ministry of Finance shall stipulate the dossiers required for deductible expenses specified at Points b and c, Clause 1 of this Article.

Article 10. Tax rate

1. The enterprise income tax rate is 20%, except the cases specified in Clauses 2, 3 and 4 of this Article, entities eligible for preferential tax rates as prescribed in Article 13 of this Law.

2. A tax rate of 15% shall apply to enterprises with total annual turnover not exceeding VND 3 billion.

3. A tax rate of 17% shall apply to enterprises with total annual turnover of more than VND 3 billion but not exceeding VND 50 billion.

The turnover used as the basis for determining whether an enterprise is eligible for the 15% or 17% tax rate as prescribed in Clauses 2 and 3 of this Article shall be the total turnover of the preceding enterprise income tax period. The determination of total turnover as the basis for application shall be specified by the Government.

4. Enterprise income tax rates for certain other cases are prescribed as follows:

a) The enterprise income tax rate applicable to activities of prospecting, exploring and exploiting oil and gas is between 25% and 50%. Based on the location, extraction conditions, and reserve volume of the oil field, the Prime Minister shall determine the specific applicable tax rate in conformity with each oil and gas contract;

b) The enterprise income tax rate applicable to activities of exploring and exploiting precious and rare natural resources (including platinum, gold, silver, tin, tungsten, antimony, gemstones, rare earths, and other precious and rare resources as prescribed by law) is 50%. In case 70% or more of the licensed mining area is located in areas with extremely difficult socio-economic conditions, the applicable tax rate shall be 40%.

Article 11. Tax calculation method

1. An enterprise income tax amount payable in a tax period is the taxed income multiplied by the tax rate; except for the cases specified in Clause 2 of this Article.

2. The Government shall regulate the enterprise income tax amount payable calculated as a percentage (%) of turnover in the following cases:

a) Enterprises specified at Points c and d, Clause 2, Article 2 of this Law; entities responsible for fulfilling tax declaration and payment obligations, the timing, and the method for determining turnover used to calculate taxable income arising in Vietnam;

b) Enterprises with total annual turnover not exceeding VND 3 billion as prescribed in Clause 2, Article 10 of this Law, in cases where turnover can be determined but costs and income from production and business activities cannot be determined;

c) Cooperatives, unions of cooperatives, non-business units, and other organizations specified at Points c, d, and dd, Clause 1, Article 2 of this Law that have production and business activities in goods and services generating taxable enterprise income (excluding tax-exempt incomes prescribed in Article 4 of this Law), where these entities can determine turnover but cannot determine costs and income from such production and business activities.

Chapter III

ENTERPRISE INCOME TAX INCENTIVES

Article 12. Principles and entities eligible for enterprise income tax incentives

1. Enterprises shall be entitled to enterprise income tax incentives based on the business sectors and localities eligible for such incentives as prescribed in this Article. The preferential enterprise income tax rates shall be implemented in accordance with Articles 13 and 14 of this Law.

In case another law provides for enterprise income tax incentives different from the provisions of this Law, the provisions of this Law shall prevail, except for the Law on the Capital and resolutions of the National Assembly stipulating special and specific mechanisms and policies.

In the same period, where an enterprise is eligible for multiple tax incentives for the same income under this Law, the enterprise may opt for the most favorable incentive rate.

2. Business sectors eligible for enterprise income tax incentives include:

a) Application of high technologies, venture capital investment for the development of high technologies on the list of prioritized high technologies as prescribed in the Law on High Technologies; application of strategic technologies as prescribed by law; incubation of high technologies and incubation of high-tech enterprises; investment in construction and operation of high-tech incubators and incubators for high-tech enterprises;

b) Production of software products; production of cybersecurity products and provision of cybersecurity services meeting the conditions prescribed by the law on cybersecurity; production and provision of key digital technology products and services, production of electronic equipment in accordance with the law on the digital technology industry; research and development, design, manufacturing, packaging, and testing of semiconductor chip products; development of artificial intelligence data centers;

c) Production of supporting industry products on the List of prioritized supporting industry products for development as prescribed by the Government, which satisfy one of the following criteria:

c1) Supporting industry products for high technologies as prescribed in the Law on High Technologies;

c2) Supporting industry products for manufacturing in the textiles, garments, leather, footwear, electronics, and informatics industries (including design and production of semiconductors), automobile manufacturing and assembly, mechanical engineering sectors, which, as of the effective date of this Law, have not yet been domestically manufactured or are manufactured but must meet European Union technical standards or equivalent (if any), as prescribed by the Minister of Industry and Trade;

d) Production of renewable energy, clean energy, energy generated from waste disposal; environmental protection; production of composite materials, lightweight construction materials, and rare materials; defense and security production and production of products for industrial mobilization as prescribed by the law on defense, security, and industrial mobilization; production of key chemical and key mechanical industry products in accordance with the law;

dd) Investment in water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airfields, terminals and other especially important infrastructure facilities under the Prime Minister’s decisions;

e) High-tech enterprises and high-tech agricultural enterprises as prescribed in the Law on High Technologies; science and technology enterprises in accordance with the Law on Science, Technology and Innovation;

g) Investment projects in the manufacturing sector that meet the following conditions:

g1) Having a minimum total investment capital of VND 12,000 billion and disbursing the registered total investment capital within no more than 05 years from the date of investment approval in accordance with the law on investment;

g2) Applying technology that meets the requirements as prescribed by the Minister of Science and Technology;

h) Investment projects eligible for special investment incentives and support as prescribed in Clause 2, Article 20 of the Law on Investment. The Government shall provide detailed regulations on the disbursement timeline for the registered total investment capital of projects specified in this Point;

i) Afforestation, forest care and protection; production, breeding, and crossbreeding of plant varieties and livestock breeds; investment in post-harvest preservation of agricultural products, preservation of agricultural products, aquatic products, and food; production, exploitation, and refining of salt, excluding salt production specified in Clause 1, Article 4 of this Law;

k) Forestry cultivation;

l) Plant-based products, planted forests, animal husbandry, aquaculture, and the processing of agricultural and aquatic products.

Incomes from processing of agricultural and aquatic products as prescribed in this Point must meet the conditions provided in Clause 1, Article 4 of this Law;

m) Production of high-grade steel; production of energy-saving products; manufacture of machinery and equipment serving agriculture, forestry, fishery, and salt production; manufacture of irrigation equipment; production of animal feed and aquaculture feed;

n) Production and assembly of automobiles; production of other digital technology products;

o) Business investment in technical establishments in support of small- and medium-sized enterprises, and small- and medium-sized enterprise incubators; and business investment in co-working space in support of small- and medium-sized innovative startup enterprises in accordance with the law on support for small- and medium-sized enterprises;

p) People's credit funds, microfinance institutions, cooperative banks;

q) Cooperatives and unions of cooperatives operating in the fields of agriculture, forestry, fishery, and salt production;

r) Socialization activities in the fields of education and training, vocational training, healthcare, culture, sports, and environment as prescribed in the list of types, scale criteria, and standards issued by the Prime Minister; forensic assessment activities;

s) Investment in the construction of social houses for sale, lease, or lease-purchase to beneficiaries of social housing policies as prescribed in the Housing Law;

t) Publishing activities in accordance with the Publication Law;

u) Press activities (including advertising in the press) as prescribed by the Press Law.

3. Geographical areas eligible for enterprise income tax incentives shall be prescribed by the Government, including:

a) Areas with extremely difficult socio-economic conditions;

b) Areas with difficult socio-economic conditions;

c) Economic zones, hi-tech parks, agricultural zones applying high technologies, and concentrated digital technology zones.

4. The Government shall provide regulations on the application of tax incentives in the following cases:

a) Cases of applying tax incentives based on geographical criteria;

b) Cases of tax incentives in the fields of agriculture, forestry, fishery, and salt production;

c) Cases where, in the first tax period in which turnover is generated or in the first tax period in which income is generated from the investment project of the enterprise (including new investment projects, expanded investment projects, high-tech enterprises, agricultural enterprises applying high technologies, and science and technology enterprises), the duration of turnover or income generation eligible for tax incentives is less than 12 months.

5. Enterprises established or enterprises with investment projects arising from merger, consolidation, division, separation, change of ownership, or conversion of the type of enterprise shall be responsible for fulfilling their obligations to pay enterprise income tax (including any fines, if applicable), and at the same time shall be entitled to inherit the enterprise income tax incentives (including any losses not yet carried forward) of the enterprise or investment project prior to the merger, consolidation, division, separation, or conversion, provided that the conditions for enterprise income tax incentives and conditions for loss carry-forward as prescribed by law continue to be satisfied.

Article 13. Preferential tax rates

1. The tax rate of 10% for a period of 15 years shall be applied to:

a) Income of enterprises from the implementation of new investment projects specified at Points a, b, c, d, and dd, Clause 2, Article 12 of this Law; income of enterprises specified at Point e, Clause 2, Article 12 of this Law;

b) Income of enterprises from the implementation of investment projects specified at Points g and h, Clause 2, Article 12 of this Law;

c) Income of enterprises from the implementation of new investment projects located in the geographical areas specified at Point a, Clause 3, Article 12 of this Law;

d) Income of enterprises from the implementation of new investment projects in hi-tech parks, agricultural zones applying high technologies, and concentrated digital technology zones; new investment projects in economic zones located within the tax incentive areas specified at Points a and b, Clause 3, Article 12 of this Law. In case an investment project is implemented in an economic zone where the project site spans both a tax-incentive geographical area and a non-tax-incentive geographical area, the determination of tax incentives applicable to such project shall be prescribed by the Government.

2. The tax rate of 10% shall be applied to:

a) Income of enterprises from activities in the sectors and trades specified at Points k and l, Clause 2, Article 12 of this Law, within the tax-incentive geographical areas specified at Point b, Clause 3, Article 12 of this Law;

b) Income of enterprises from activities in the sectors and trades specified at Points i, r, and s, Clause 2, Article 12 of this Law;

c) Income of publishing houses from activities in the sectors and trades specified at Point t, Clause 2, Article 12 of this Law;

d) Income of cooperatives and unions of cooperatives specified at Point q, Clause 2, Article 12 of this Law, which are not located within the geographical areas specified in Clause 3, Article 12 of this Law;

dd) Income of press agencies operating in the sector and trade specified at Point u, Clause 2, Article 12 of this Law.

3. The tax rate of 15% shall be applied to the income of enterprises from activities in the sectors and trades specified at Point l, Clause 2, Article 12 of this Law, which are not located within the geographical areas specified in Clause 3, Article 12 of this Law.

4. The tax rate of 17% for a period of 10 years shall be applied to:

a) New investment projects in the preferential sectors and trades specified at Points m, n, and o, Clause 2, Article 12 of this Law;

b) New investment projects implemented in the geographical areas specified at Point b, Clause 3, Article 12 of this Law;

c) New investment projects in economic zones not located within the areas specified at Points a and b, Clause 3, Article 12 of this Law.

5. The tax rate of 17% shall be applied to the income of enterprises specified at Point p, Clause 2, Article 12 of this Law.

6. The extension of the duration and the application of preferential tax rates shall be provided as follows:

a) The Prime Minister shall decide on the extension of the preferential tax rate application period for an additional duration not exceeding 15 years for the following projects:

a1) New investment projects specified at Points a, b, d, and dd, Clause 2, Article 12 of this Law, with a minimum investment capital of VND 6,000 billion, which have significant socio-economic impact and require special encouragement;

a2) Investment projects specified at Point g, Clause 2, Article 12 of this Law that meet one of the following criteria:

- Manufacture of goods and products with global competitiveness, with annual turnover reaching over VND 20,000 billion at the latest after 05 years from the time turnover is first generated from the investment project;

- Regular employment of more than 6,000 workers as determined in accordance with the labor laws;

- Investment projects in the field of technical and economic infrastructure, including: Investment and development of water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, terminals, new energy, clean energy, energy-saving industries, and petrochemical refinery projects;

b) For new investment projects specified at Point h, Clause 2, Article 12 of this Law, the Prime Minister shall decide on the application of a tax rate reduced by no more than 50% of the tax rate specified in Clause 1 of this Article; the preferential tax rate application period shall not exceed 1.5 times the duration specified in Clause 1 of this Article and may be extended for no more than 15 years but must not exceed the term of the investment project.

7. The period of application of the preferential tax rate for income derived from the implementation of new investment projects of enterprises as prescribed in this Article (including projects specified at Point g, Clause 2, Article 12 of this Law) shall be calculated from the first year in which the enterprise's new investment project generates revenue.

In cases where the enterprise is granted a Certificate of High-Tech Enterprise, Certificate of Agricultural Enterprise Applying High Technologies, Certificate of Science and Technology Enterprise, Certificate of High-Tech Application Project, or Certification of Incentives for Supporting Industry Product Manufacturing Projects after the point in time revenue arises, the period of application of the preferential tax rate shall be calculated from the year in which such Certificate or Certification of Incentives is granted.

Article 14. Tax exemption and reduction

1. A tax exemption for a maximum period of 04 years and a 50% reduction of the payable tax amount for a maximum period of 09 subsequent years shall be applied to:

a) Income of enterprises specified in Clause 1, Article 13 of this Law;

b) Income of enterprises specified at Point r, Clause 2, Article 12 of this Law located in the geographical areas specified at Points a and b, Clause 3, Article 12 of this Law; in case they are not located in the geographical areas specified at Points a and b, Clause 3, Article 12 of this Law, they shall be entitled to a tax exemption for a maximum period of 04 years and a 50% reduction of the payable tax amount for a maximum period of 05 subsequent years.

2. A tax exemption for a maximum period of 02 years and a 50% reduction of the payable tax amount for a maximum period of 04 subsequent years shall be applied to the income of enterprises specified in Clause 4, Article 13 of this Law.

3. For new investment projects specified at Point h, Clause 2, Article 12 of this Law, the Prime Minister shall decide on an extension of the period of tax exemption and reduction for no more than 1.5 times the tax exemption and reduction period specified in Clause 1 of this Article.

4. The tax exemption or reduction period is counted from the first year an enterprise has taxable income from the investment project; in case an enterprise has no taxable income for the first three years from the first year it has turnover from the project, the tax exemption or reduction period is counted from the fourth year.

In cases where the enterprise is granted a Certificate of High-Tech Application Project, Certificate of High-Tech Enterprise, Certificate of Agricultural Enterprise Applying High Technologies, Certificate of Science and Technology Enterprise, or Certification of Incentives for Supporting Industry Product Manufacturing Projects after the point in time revenue arises, the tax exemption or reduction period shall be calculated from the year in which such Certificate or Certification of Incentives is granted. In case there is no income in the year the Certificate or Certification of Incentives is granted, the tax exemption and reduction period shall be calculated from the first year in which income is generated. If, within 03 years from the year the Certificate or Certification of Incentives is granted, the enterprise does not generate taxable income, the tax exemption and reduction period shall be calculated from the 4^th year from the year of grant of such Certificate or Certification of Incentives.

5. Tax incentives for expanded investment projects:

a) In case an enterprise has an operating investment project that expands its scale, increases capacity, renovates technology, reduces pollution, or improves the environment in a sector, trade, or geographical area eligible for enterprise income tax incentives as prescribed in Article 12 of this Law (hereinafter referred to as “expansion investment”), the additional income derived from such expanded investment shall be entitled to the same tax incentives as the operating project for the remaining incentive period, and shall not be accounted separately from the income of the operating project;

b) Where the operating project has already expired 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 eligible for tax exemption and reduction, but shall not be entitled to preferential tax rates. The tax exemption and reduction period for the additional income derived from the expansion investment shall be equivalent to the tax exemption and reduction period applicable to new investment projects in the same sector, trade, and geographical area eligible for enterprise income tax incentives, and shall be calculated from the year in which the registered investment capital of the investment project is completed.

The enterprise must account separately for the additional income derived from the expansion investment to apply the tax incentives. Where separate accounting is not feasible, the income from expansion investment activities shall be determined based on the ratio between the original cost of newly invested fixed assets put into use for production and business activities and the total original cost of the enterprise’s fixed assets;

c) The tax incentives provided under this Clause shall not apply to expansion investments arising from mergers, acquisitions of enterprises, or acquisitions of operating investment projects.

6. An expanded investment project eligible for the incentives provided in Point b, Clause 5 of this Article must satisfy one of the following criteria:

a) The additional original cost of fixed assets upon completion of disbursement of the registered expansion investment capital reaches the minimum threshold prescribed by the Government, corresponding to the cases where the expanded investment project belongs to sectors and trades eligible for enterprise income tax incentives, or is implemented in geographical areas eligible for enterprise income tax incentives;

b) The proportion of the original cost of fixed assets upon completion of disbursement of the registered expansion investment capital increases by at least 20% compared to the total original cost of fixed assets prior to the commencement of the expansion investment;

c) The designed capacity increases by at least 20% upon completion of disbursement of the registered expansion investment capital compared to the designed capacity prior to the commencement of the expansion investment.

Article 15. Other cases eligible for tax exemption or reduction

1. Production, construction or transport enterprises which employ many female laborers are entitled to reduction of enterprise income tax amounts equal to additional expenses for female laborers.

2. Enterprises which employ many ethnic minority laborers are entitled to reduction of enterprise income tax amounts equal to additional expenses for ethnic minority laborers.

3. Enterprises that transfer technologies in prioritized fields to organizations or individuals located in areas with difficult socio-economic conditions, or to public non-business units providing public services in areas with difficult socio-economic conditions, are entitled to a 50% reduction of enterprise income tax calculated on the income derived from technology transfer and income from the provision of public services in such areas.

4. Enterprises specified in Clauses 2 and 3, Article 10 of this Law that are newly established from household businesses shall be exempted from enterprise income tax for 02 consecutive years from the time taxable income arises.

5. Public scientific and technological organizations and public higher education institutions operating on a not-for-profit basis shall be exempted from tax in accordance with the Government’s regulations.

6. The Government shall detail this Article.

Article 16. Carrying forward of losses

1. Loss-suffering enterprises may carry forward their losses to the subsequent year; those losses may be included in taxable income. The time limit for continuously carrying forward losses is five years, counting from the year following the year the losses arise.

2. Enterprises suffering losses from the transfer of exploration and mining projects; transfer of rights to participate in exploration, mining, and processing of minerals; or transfer of rights to explore, mine, and process minerals may carry forward such losses to subsequent years to be offset against the taxable income of such activities. The loss carry-forward period shall comply with Clause 1 of this Article.

3. The Government shall detail this Article.

Article 17. Deduction for setting up of scientific and technological development funds

1. Enterprises, organizations and non-business units established and operating under Vietnamese law may deduct up to 20% of taxed income for setting up their scientific and technological development funds.

2. Within five years after being set up under Clause 1 of this Article, if a scientific and technological development fund is not used, has been used below 70% or used for improper purposes, the enterprise, organization or non-business unit shall remit into the state budget the enterprise income tax amount calculated on the income already deducted for setting up the fund but not used or used for improper purposes and the interest on that enterprise income tax amount.

The enterprise income tax rate used for calculating the to-be-recovered tax amount is the tax rate applicable to the enterprise, organization or non-business unit during the time of operating the fund.

The interest rate for calculating the interest on the to-be- recovered tax amount calculated on the unused fund amount is the interest rate for five-year term treasury bonds or, if unavailable, ten-year term treasury bonds most recently issued prior to the time of recovery, and the interest payment period is two years.

The interest rate for calculating the interest on the to-be- recovered tax amount calculated on the fund amount used for improper purposes is the rate applicable to late payment interest under the provisions of the Tax Administration Law, and the interest payment period is counted from the time a fund is set up to the time of recovery.

3. Enterprises, organizations and non-business units may not account expenses covered by their scientific and technological development funds as deductible ones upon the determination of taxable incomes in a tax period.

4. The scientific and technological development funds shall be used in accordance with the laws on science, technology, and innovation.

5. In cases where an operating enterprise undergoes changes due to merger, consolidation, division, separation, change of ownership, or conversion of enterprise type, the newly established enterprise or the enterprise formed after such merger, consolidation, division, separation, change of ownership, or conversion shall inherit and be responsible for the management and use of the scientific and technological development fund of the enterprise prior to such merger, consolidation, division, separation, or conversion.

Article 18. Conditions for application of tax incentives

1. Enterprise income tax incentives specified in Articles 13, 14, and 15 of this Law apply to enterprises which implement regulations on accounting, invoices and documents and pay tax according to declaration method.

Enterprise income tax incentives applicable to new investment projects (including investment projects specified at Point g, Clause 2, Article 12 of this Law) as provided in Articles 13 and 14 of this Law shall not apply in cases of merger, consolidation, division, separation, change of ownership, conversion of enterprise type, and other cases as prescribed by the Government.

2. Enterprises shall account separately income from production and business activities eligible for tax incentives specified in Articles 4, 13, 14 and 15 of this Law from income from production and business activities ineligible for tax incentives; if those incomes cannot be separately accounted, income from production and business activities eligible for tax incentives shall be determined based on the ratio between turnover or expenses of the production and business activities eligible for tax incentives and total turnover or total expenses of enterprises.

3. The tax rates of 15% and 17% specified in Clauses 2 and 3 Article 10 of this Law, and the tax incentives specified in Articles 4, 13, 14, and 15 of this Law shall not apply to:

a) Income from capital transfer, transfer of capital contribution rights; income from real estate transfer, except for income from investment in social housing construction as specified at Point s, Clause 2, Article 12 of this Law; income from the transfer of investment projects (excluding mineral processing projects), transfer of rights to participate in investment projects, transfer of rights to explore, exploit, and process minerals; income from production and business activities outside Vietnam;

b) Income from activities of searching for, exploring, and exploiting oil and gas and other precious and rare natural resources, and income from mineral exploration and exploitation activities;

c) Income from the production and trading of online games; income from the production and trading of goods and services subject to excise tax under the Law on Excise Tax, except for projects producing or assembling automobiles, aircraft, helicopters, gliders, yachts, and oil refining and petrochemical projects;

d) Special cases as prescribed by the Government.

4. The tax rates of 15% and 17% specified in Clauses 2 and 3, Article 10 of this Law shall not apply to enterprises that are subsidiaries or related companies where any enterprise within the related-party relationship fails to meet the conditions for application of the tax rates specified in Clauses 2 and 3, Article 10 of this Law.

5. In case an enterprise fails to satisfy the conditions for tax incentives, the competent agency shall recover the tax and impose sanctions in accordance with the law.

6. The Government shall detail Clause 5 of this Article. The Ministry of Finance shall stipulate procedures and dossiers for entitlement to tax incentives provided in Articles 4, 13, 14, and 15 of this Law.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 19. Effect

1. This Law takes effect from October 1, 2025, and applies for the enterprise income tax periods of 2025.

2. The Law on Enterprise Income Tax No. 14/2008/QH12, which had a number of articles amended and supplemented under Law No. 32/2013/QH14, Law No. 71/2014/QH14, Law No. 61/2020/QH14, Law No. 12/2022/QH15 and Law No. 15/2023/QH14 cease to have effect from the effective date of this Law.

3. In cases where the Organization for Economic Cooperation and Development (OECD) or the United Nations provides more favorable provisions or guidelines regarding the taxing rights of source countries, including Vietnam, the Government shall provide specific regulations for implementation.

Article 20. Transitional provisions

1. Enterprises with investment projects entitled to enterprise income tax incentives under the enterprise income tax law at the time of licensing, issuance of the investment certificate, or approval for investment under the investment law, in the event the enterprise income tax law is amended or supplemented and such enterprises meet the conditions for tax incentives under the newly amended and supplemented law, may choose to apply the preferential tax rate and the tax exemption and reduction period either under the legal provisions at the time of licensing, investment certificate issuance, investment approval, or under the provisions of the newly amended and supplemented law for the remaining incentive period.

2. In cases where enterprises have investment projects that were not eligible for incentives under the legal documents on enterprise income tax prior to the effective date of this Law, but are eligible under the provisions of this Law, such enterprises shall be entitled to apply the incentives in accordance with this Law for the remaining period starting from the 2025 tax period.

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This Law was passed on June 14, 2025, by the XV^th National Assembly of the Socialist Republic of Vietnam at its 9^th session.

Chairman of the National Assembly

TRAN THANH MAN