Corporate Income Tax in 2026: Will Technology Companies Still Benefit as Before?

For many years, foreign-invested technology companies have been among the groups receiving strong tax incentives from Vietnam’s corporate income tax (CIT) policy. Preferential tax rates of 10%, extended tax exemption and reduction periods, together with various investment support policies, have helped position Vietnam as an attractive destination for global technology capital.

However, as 2026 approaches, the CIT landscape for the foreign-invested technology sector is undergoing notable changes. What was once a discussion focused primarily on domestic tax incentives is now expanding to encompass global tax standards, posing new challenges for both businesses and policymakers.

Tax incentives remain, but are no longer an “absolute lever”

It is undeniable that Vietnam continues to maintain preferential CIT policies for the information technology sector, particularly for software projects, high-tech activities, research and development (R&D), artificial intelligence and semiconductors. These incentives still help keep corporate tax costs below the standard rate of 20%.

Yet in the new context, tax incentives are no longer the sole decisive factor for multinational technology groups. The tax burden recorded in Vietnam must now be viewed within the broader framework of a group’s overall global tax obligations.

Global minimum tax: New pressure on foreign-invested technology companies

One of the most “hot-button” issues in Vietnam’s CIT policy in 2026 is the country’s gradual implementation of the global minimum tax in line with OECD standards. Under this framework, multinational enterprises with consolidated global revenues of at least EUR 750 million are required to ensure a minimum effective tax rate of 15%.

This means that even when foreign-invested technology companies enjoy CIT incentives in Vietnam, the actual benefits may be reduced if their effective tax rate falls below the global minimum threshold. Any shortfall may be subject to a top-up tax under international tax mechanisms.

CIT is no longer a purely “domestic” issue

A fundamental shift is that, from 2026 onward, the CIT obligations of technology companies operating in Vietnam will no longer be confined to the domestic market. Determining the effective tax rate, allocating profits and calculating any additional tax liabilities will require close coordination between Vietnamese entities and their overseas parent companies.

Concepts such as effective tax rate (ETR), top-up tax and tax governance in line with BEPS standards are becoming increasingly familiar elements in the financial strategies of cross-border technology enterprises.

From “maximising incentives” to “tax governance”

If in the past many companies focused on maximising CIT incentives, the emphasis is now shifting toward long-term tax governance. Businesses are no longer considering only the amount of tax payable in Vietnam, but also assessing how domestic tax policies affect their global tax obligations.

This shift requires foreign technology investors in Vietnam to view CIT as an integral part of their overall business strategy, rather than merely a compliance cost.

Corporate income tax in 2026: A new benchmark for the investment environment

From a broader perspective, CIT policy for the technology sector in 2026 is not merely a corporate issue. It also reflects Vietnam’s efforts to strike a balance between attracting high-tech investment and aligning with international tax standards.

In this context, corporate income tax is gradually becoming an important benchmark of the investment environment—where incentives alone are no longer sufficient, and stability, transparency and adaptability to global trends are the key factors that foreign-invested technology companies value most.