Breaking News for Eco-Businesses: NEW Environmental Tax Breaks 2025 - [Decree 05/2025/ND-CP]

Is your business committed to environmental protection? Are you aware that the Vietnamese government has just issued Decree 05/2025/ND-CP with significant revisions to tax, fee, and charge incentives related to environmental initiatives? This is a golden opportunity for businesses to reduce cost burdens, boost profits, and accelerate their journey towards sustainable development. Let TPM guide you through these attractive environmental tax incentives!

Decree 05/2025/ND-CP: Your Comprehensive Guide to Environmental Tax and Fee Incentives

Revising Decree 08/2022/ND-CP – Expanding Incentives, Fostering Green Growth

Decree No. 05/2025/ND-CP, recently issued by the government, officially revises and supplements several articles of Decree 08/2022/ND-CP, which details certain provisions of the Law on Environmental Protection. Notably, the policy on tax, fee, and charge incentives for environmental protection activities has been adjusted and expanded, offering tangible benefits to businesses. This move is considered a catalyst to encourage businesses to invest more robustly in green projects, contributing to environmental protection and sustainable economic growth.

 “Unlocking” Valuable Tax Incentives Your Business Shouldn’t Miss

Corporate Income Tax (CIT) Incentives – Easing Your Cost Concerns

According to Decree 05/2025/ND-CP, businesses undertaking investment projects listed in the Directory of Environmentally Friendly Activities will be eligible for corporate income tax incentives. Specifically, projects within industries and trades involved in collecting, treating, recycling, or reusing waste, and businesses producing and supplying technologies, equipment, products, and services for environmental protection all qualify for these incentives. This presents an excellent opportunity for businesses to optimize costs, increase profits, and reinvest in environmental protection initiatives.

Export Tax Incentives – “Greenlighting” Recycled Products to the Global Market

Good news for businesses manufacturing products from recycling and waste treatment activities! Decree 05/2025/ND-CP clearly states that products manufactured from recycling and waste treatment activities listed in the Directory of Environmentally Friendly Activities will be exempt from export tax. The condition is that the product must meet product quality standards and the following four crucial criteria:

• Criterion 1: Produced from recycling and waste treatment activities of the project or facility itself (excluding products made from recycled materials sourced from external entities).
• Criterion 2: Meet export goods quality standards as stipulated by law.
• Criterion 3: Production activities align with registered business lines and project objectives.
• Criterion 4: Utilize waste as the primary raw material, not using imported scrap or recycled materials from other organizations or individuals.

Calculating Export Tax Exemption Volume – Ensuring Transparency and Clarity

The volume of products eligible for export tax exemption will be calculated based on the volume derived from recycling and waste treatment activities contained within the product (excluding additives, imported scrap, and recycled materials from external sources). Businesses must accurately declare the volume of products proposed for export tax exemption and are legally responsible for the accuracy of the information provided.

Reporting and Inspection – Enhancing Management and Preventing Fraud

Before March 31st each year, customs authorities will report information on businesses granted export tax exemptions and the volume and types of exported goods to the environmental permitting agencies. This strengthens management and inspection of businesses’ recycling and waste treatment activities, ensuring compliance with legal regulations. Tax inspections and audits will be conducted in accordance with tax management laws. Businesses are also required to report export tax exemption results in their periodic environmental protection reports.

Import Tax Incentives – “Fueling” Investment in Green Technologies

Import Tax Exemption for Specialized Equipment and Machinery – Modernizing Waste Treatment Facilities

Decree 05/2025/ND-CP continues to provide import tax incentives for specialized machinery, equipment, vehicles, tools, and supplies used in waste treatment and environmental protection facilities. To qualify for this incentive, imported goods must meet the following 4 criteria:

• Criterion 1: Used in waste treatment and environmental protection facilities for projects and facilities providing centralized domestic solid waste collection, transportation, and treatment services and centralized domestic wastewater treatment services (already approved).
• Criterion 2: Specifically listed in the feasibility study report or equivalent documents of the investment project.
• Criterion 3: The investment project or facility has received approval for the environmental impact assessment report or has been granted an environmental permit.
• Criterion 4: Not included in the List of domestically producible machinery, equipment, spare parts, specialized transport vehicles, raw materials, materials, and semi-finished products issued by the Ministry of Planning and Investment.

Incentives Specifically for Centralized Domestic Waste Treatment Projects and Facilities

Important Note: This import tax exemption incentive only applies when businesses import machinery, equipment, etc., for projects and facilities providing centralized domestic solid waste and wastewater collection, transportation, and treatment services.

Businesses Responsible for Accurate Information Declaration

Businesses are legally responsible for the accuracy of declared information regarding the types and quantities of imported goods and supporting documents proving compliance with the stipulated criteria. Customs authorities will review and process tax exemptions based on the information provided by businesses. Other tax, fee, and charge incentives will be implemented in accordance with current legal regulations.

Decree 05/2025/ND-CP – A Significant Step Forward for Green Development

Boosting Green Investment – Towards Sustainable Growth

The revision and supplementation of regulations on tax, fee, and charge incentives in Decree 05/2025/ND-CP demonstrate the government’s strong commitment to encouraging and facilitating businesses to invest in environmental protection. This incentive policy is expected to promote the development of the environmental industry, enhance waste treatment efficiency, minimize environmental pollution, and move towards sustainable green growth.

Seize the Golden Opportunity – Invest Green, Grow Sustainably with Decree 05/2025/ND-CP

Decree 05/2025/ND-CP opens up significant opportunities for businesses operating in the environmental protection sector. Take advantage of these attractive tax, fee, and charge incentives to invest more aggressively in green technologies, expand production scale, enhance competitiveness, and contribute to building a green, clean, and beautiful Vietnam.

If your business has any questions regarding the new environmental tax incentive regulations or needs more detailed consultation, please contact TPM immediately via our website or hotline (+84) 28 3505 1800 for dedicated support!