Does your business operate in the science and technology, innovation, or digital transformation sectors? Significant new policies are on the horizon: Law on Corporate Income Tax (CIT) No. 67/2025/QH15, effective from October 1, 2025, will introduce a series of unprecedented tax incentives. This is a strong initiative from the State to promote key economic sectors, especially high-tech and the green economy.
According to information from the Ho Chi Minh City Tax Department, this new tax law not only supports small and medium-sized enterprises but also provides a major stimulus for investment projects in high-tech, semiconductor chip manufacturing, AI, and clean energy.
Exceptional CIT Incentives for High-Tech and the Digital Economy
This is the sector group that will receive the highest level of preferential policies, designed to help Vietnam catch up with global development trends. Specifically, new investment projects will be entitled to:
A preferential tax rate of 10% for 15 years.
Full tax exemption for the first 4 years.
A 50% reduction in the tax payable for the subsequent 9 years.
The total incentive period extends up to 13 years. The applicable fields include:
High-tech and Innovation:
Application of high technology in production.
Venture capital for high-tech development.
High-tech business incubation.
Application of strategic technologies.
Digital Economy and Information Technology:
Software product manufacturing.
Cybersecurity products and services.
Key digital technology products and services.
Semiconductor Manufacturing and Artificial Intelligence (AI):
Research, design, manufacturing, packaging, and testing of semiconductor chips.
Construction and operation of data centers for AI.
Tax Incentives for High-Tech Agriculture and Other Essential Sectors
Beyond technology, Law No. 67/2025/QH15 also extends incentives to many other important sectors, contributing to sustainable economic development.
Agriculture, Forestry, Fisheries, and Salt Production
A 10% tax rate applies to cooperatives, unions of cooperatives, and enterprises engaged in:
Afforestation, forest care, and protection.
Breeding and cross-breeding of plant varieties and animal breeds.
Investment in post-harvest preservation of agricultural products, seafood, and food.
Salt production, extraction, and refinement.
A 15% tax rate applies to the processing of agricultural and aquatic products in areas not classified as having difficult socio-economic conditions.
High-tech agricultural enterprises are among the major beneficiaries. Photo: File
Manufacturing, Energy, and Environment
This sector group enjoys incentives similar to the high-tech sector (10% tax rate for 15 years; 4-year exemption, 9-year reduction) for new investment projects, including:
Supporting industries: Manufacturing products for the textile, footwear, electronics, and automotive industries.
Clean energy: Production of renewable energy, energy from waste incineration.
Environmental protection: Activities related to pollution treatment and recycling.
Separately, projects in high-grade steel production, energy-saving products, automobile manufacturing, and agricultural machinery will be subject to a 17% tax rate for 10 years, with a 2-year exemption and a 4-year 50% reduction.
Summary Table of Key CIT Incentives (Effective Oct 1, 2025)
Frequently Asked Questions (FAQ)
1. When does Law on CIT No. 67/2025/QH15 officially take effect? The law will officially come into force on October 1, 2025.
2. What are the main objectives of these new tax incentives? The main objectives are to strongly encourage investment in strategic sectors like high technology, innovation, the green economy, and fields with high social value, while also supporting the development of small and medium-sized enterprises.
3. If my company is already operating, can it benefit from incentives for a new investment project? Yes. These incentives primarily apply to new investment projects within the sectors and industries specified in the law.
Conclusion The issuance of Law on CIT No. 67/2025/QH15 is a significant step forward, demonstrating the Government’s vision and commitment to creating a favorable, competitive business environment and attracting high-quality investment. Enterprises, especially those in the science and technology sector, should promptly seize this opportunity to optimize costs and create momentum for breakthrough growth in the coming period.
