Notes on Corporate Income Tax in Vietnam

Notes on Corporate Income Tax in Vietnam. Profit tax is a direct tax, collected based on the final results of production and business activities of an organization or enterprise.

  • Corporate income tax law
  • Decree 218/2013/ND-CP
  • Circular No. 78/2014/TT-BTC
  • Circular No. 151/2014/TT-BTC
  • Circular No. 119/2014/TT-BTC
  • Circular No. 96/2015/TT-BTC
  • Circular No. 25/2018/TT-BTC
  • Resolution 116/2020/QH14

Tax rate – Corporate Income Tax in Vietnam

Article 11, Circular 78/2014/TT-BTC stipulates the tax rate is 20%. From January 1, 2016 up to now, all businesses will apply the tax rate of 20%.

Except for some special cases such as oil and gas exploitation (~ 32-50%); Exploiting rare and precious resources (~ 50%) …

Tax incentives – Corporate Income Tax in Vietnam

Article 19, Circular No. 78/2014/TT-BTC amended and supplemented by Clause 1, Article 11, Circular No. 96/2015/TT-BTC provides for the preferential tax rates as follows:

Enjoy the 10% rate for 15 years applied to:

  • Income of enterprise from implementing new investment projects is in accordance with Decree 218/2013/ND-CP
  • Income of enterprise from implementing new investment projects in some fields such as: scientific research; technological development…
  • Income of the enterprise from implementing new investment projects in the field of environmental protection
  • High-tech enterprises and high-tech enterprises in accordance with the Law on High Technologies.
  • Income of enterprise from implementing new investment projects in the manufacturing sector is specified in Article 1, Decision 2465/QD-BTC in 2015.
  • Income of enterprise from implementing investment projects in manufacturing sector with minimum size of 12 trillion VND … disbursing total registered investment capital no more than 5 years from the date of investment license in accordance with the regulations of the Investment Law.
  • Income of enterprise from performing new investment projects to manufacture products on the list of supporting industrial products prioritized for development.

Enjoy the 10% rate during the entire operation period applied to:

  • The corporate income from socialization
  • Income from publishing activities of the publisher (Regulated under the Publishing Law)
  • Income from printing press activities of press agencies (regulated under the Press Law)
  • Income of enterprise from implementing investment projects – social housing business (Article 53, Housing Law)
  • Enterprise income from planting, tending and protecting forests;…
  • The income of the cooperatives operating in the fields of agriculture, forestry, fishery… is not in difficult socio-economic areas and extremely difficult.

Enjoy the 20% rate during 10 years of operation and apply with:

  • Income of enterprise from implementing new investment projects is prescribed in Decree 218/2013/ND-CP.
  • Income of the enterprise from performing new investment projects on high-grade steel production; machinery and equipment for agricultural, forestry and fishery production …
    • From January 1, 2016, this tax rate is only 17%.

Enjoy the 20% rate during the entire operation period applied to:

  • People’s Credit Fund
  • Cooperative Bank
  • Microfinance organization
    • From January 1, 2016, this tax rate is only 17%.