Resolution 198/2025/QH15: 8 Breakthrough Tax Policies Supporting Vietnamese Businesses

Resolution 198/2025/QH15 of the National Assembly on the Socio-Economic Development Plan for 2026–2030 aims to foster the private economic sector as a key driver of the economy. In this context, tax policies are considered crucial tools to reduce cost burdens, boost investment, stimulate innovation, and support sustainable business development.

From Corporate Income Tax (CIT) exemptions for startups and reduced taxes for experts, to substantial incentives for Research and Development (R&D) expenses, Resolution 198 clearly demonstrates the State’s commitment to supporting businesses, especially small and medium-sized enterprises (SMEs) and innovative enterprises.

Here are 8 notable tax policies that businesses can leverage to gain a competitive edge in the coming period:

8 Key Tax Policies Under Resolution 198/2025/QH15

1. CIT Exemption and Reduction for Innovative Startups

Startups in innovative fields will receive a CIT exemption for the first two years they generate taxable income and a 50% reduction for the subsequent four years. This policy creates favorable conditions for startups to overcome their initial “cash-burn” phase, allowing them to focus resources on research, product development, and market expansion.

2. PIT and Corporate Tax Exemption for Startup Investors

To encourage investment in the startup ecosystem, the Resolution stipulates Personal Income Tax (PIT) and CIT exemptions on income derived from the transfer of shares or capital contributions in innovative startups. This enables more flexible mobilization of private capital, reduces risks for investors, and provides additional financial resources for nascent businesses.

3. PIT Incentives for Experts and Scientists

To attract high-quality human resources, the Resolution allows for a PIT exemption for the first two years for experts and scientists working at startup businesses. This is a significant step towards enhancing indigenous technological and innovation capabilities within the private sector.

4. 3-Year CIT Exemption for Small and Medium-sized Enterprises

For Small and Medium-sized Enterprises (SMEs) – which account for over 97% of all businesses nationwide – the policy of CIT exemption for the first three years of establishment will significantly reduce their operating costs. This enables new businesses to stabilize production, invest in infrastructure, develop their teams, and enhance their competitiveness.

5. Abolition of Business License Fees from 2026

Effective 2026, businesses will no longer be required to pay business license fees. This is a systemic change that contributes to improving the investment environment and reducing annual fixed costs, particularly benefiting business households considering conversion into enterprises.

6. Deduction of Training Costs in Large-Small Enterprise Linkages

Large enterprises that support human resource training for SMEs within their value chain will be allowed to include these costs as deductible expenses when determining taxable income. This policy fosters cooperation between businesses of different sizes, facilitating the transfer of skills and technology, and enhancing overall economic productivity.

7. Setting Aside Science and Technology Funds from Taxable Income

Businesses are permitted to set aside up to 20% of their taxable income to establish a science and technology development fund. The creation of this internal fund provides businesses with stable resources to proactively invest in research, process innovation, new technology application, and digital transformation.

8. Double Deduction for R&D Expenses

A particularly attractive policy allows businesses to deduct twice the actual costs incurred for Research and Development (R&D) activities when calculating CIT. This encourages private enterprises to intensify technological innovation, enhance added value, and strengthen long-term competitiveness.

Conclusion

The tax policies outlined in Resolution 198/2025/QH15 not only provide financial support to businesses but also contribute to driving the private sector towards a more innovative, modern, and sustainable direction. From innovative startups to SMEs, these incentives are fundamental in nature, helping to strengthen internal capacity, expand markets, and contribute positively to national economic growth.