On May 24, 2025, the National Assembly passed Law No. 67/2025/QH15 – Corporate Income Tax Law 2025, which stipulates the new corporate income tax (CIT) rates effective from October 1, 2025. This is one of the most significant changes directly impacting businesses in Vietnam.

1. Corporate Income Tax Rates under the 2025 CIT Law

According to Article 10 of the 2025 CIT Law, the specific tax rates are as follows:

(1) Standard rate

• General CIT rate: 20%
• Applicable to all enterprises, except those regulated under Clauses 2, 3, 4 of Article 10 and entities entitled to preferential rates under Article 13.

(2) Preferential rates by annual revenue

• 15%: applied to enterprises with annual revenue ≤ VND 3 billion.
• 17%: applied to enterprises with annual revenue > VND 3 billion up to VND 50 billion.

The revenue base is determined according to the total revenue of the preceding tax year, with further guidance provided by the Government.

(3) Special rates

• Oil and gas exploration and exploitation: 25% – 50%, depending on location, conditions, and reserves. The specific rate is decided by the Prime Minister for each contract.
• Exploration and exploitation of rare and precious resources (platinum, gold, silver, tin, tungsten, antimony, gemstones, rare earth, etc.): 50%. If 70% or more of the mine’s area is located in a region with extremely difficult socio-economic conditions, the applicable rate is 40%.

2. Types of Enterprises in Vietnam

Under the Law on Enterprises 2020, there are five main types of enterprises currently operating in Vietnam:

1. Private enterprise – owned by one individual, personally liable for all obligations.
2. Joint-stock company – charter capital divided into shares; can issue stocks on the securities market.
3. Single-member limited liability company (LLC) – owned by one individual/organization; liability limited to charter capital.
4. Multi-member limited liability company (LLC) – from 2 to 50 members contributing capital; liability limited to contributed capital.
5. Partnership – at least 2 general partners with unlimited liability; may also include capital-contributing members.

3. CIT Exemptions and Reductions for 6 Consecutive Years under Resolution 198/2025/QH15

On May 17, 2025, the National Assembly adopted Resolution 198/2025/QH15 on special mechanisms and policies for developing the private sector.

(1) Beneficiaries

• Start-up innovative enterprises
• Venture capital management companies
• Intermediary organizations supporting start-up innovation

(2) CIT incentives

• Full CIT exemption for the first 2 years
• 50% CIT reduction for the following 4 years

Total preferential period: 6 consecutive years from the time the enterprise generates taxable income from innovative start-up activities.

Additional policies:

• 3-year CIT exemption for small and medium-sized enterprises (SMEs).
• CIT and PIT exemption on income from transferring capital contributions, shares, and capital purchase rights in start-up enterprises.
• Abolition of business license fee from January 1, 2026.

4. Conclusion

From October 1, 2025, the new CIT rates officially take effect, classified by business size and sector. At the same time, start-up enterprises enjoy CIT exemptions and reductions for 6 consecutive years, fostering innovation and private sector development.