Starting from October 1, 2025, the amended Law on Corporate Income Tax will officially come into effect, bringing notable changes to tax rates that all businesses operating in Vietnam need to pay attention to. This is a major policy shift aimed at creating a fairer tax environment while encouraging small enterprises and investments in priority sectors.

Base Tax Rate Remains Unchanged, But Preferential Rates Introduced Based on Business Size

According to the new law, the standard corporate income tax (CIT) rate remains at 20% for most businesses. However, a significant update is the introduction of preferential rates based on total revenue in the previous fiscal year:

Businesses with annual revenue ≤ VND 3 billion: 15% tax rate applies.
Businesses with annual revenue > VND 3 billion to ≤ VND 50 billion: 17% tax rate applies.
Businesses with annual revenue > VND 50 billion: standard 20% tax rate applies.

These two new preferential rates of 15% and 17% are expected to ease financial burdens for smaller businesses and promote the sustainable growth of the private sector.

High Tax Rates Maintained for Resource-Based Industries

For resource extraction sectors, the law maintains high tax rates to regulate windfall profits derived from national resources. Specifically:

Oil and gas operations: Tax rate ranges from 25% to 50%, depending on geographical location and reserve volume, as determined by the Prime Minister.
Rare and precious resource extraction (e.g., gold, silver, rare earth): 50% tax rate applies, reduced to 40% if operations are primarily located in areas with extreme socio-economic difficulties.

Preferential Tax Rates Based on Industry and Investment Location

The revised law also expands eligibility for preferential tax rates, especially for new investment projects in high-tech parks, IT-focused zones, and key economic areas:

10% tax rate for 15 years: Applies to large-scale, high-tech projects in prioritized industries or regions.
17% tax rate for 10 years: Applies to new investment projects in sectors listed for tax incentives or located in socio-economically disadvantaged areas.

These incentives are seen as new levers to attract high-quality investment capital and drive sustainable development in underutilized regions with strong potential.

Preferential Tax Rates Based on Industry and Investment Location

What Should Businesses Do to Prepare for the New Rates?

From now until the law takes effect, businesses should:

Review prior-year revenue to determine the correct applicable tax rate.
Prepare clear and complete financial documents to prove eligibility for preferential rates.
Reassess investment plans, expansion, or restructuring strategies to benefit from location- or industry-based tax incentives.

Strategic Tax Advisory with DEDICA

With years of experience advising hundreds of FDI and local enterprises, DEDICA’s team of tax lawyers and consultants is ready to support your business with:

Analysis of applicable tax rates
Strategic financial planning to maximize tax incentives
Review and preparation of compliant tax declaration documentation under the new regulations

Contact DEDICA Law Firm for expert legal consultation!

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Vietnam Corporate Income Tax 2025: Key Changes Every Business Should Know