Vietnam

Standard rates

All taxes are imposed at the national level. The standard corporate income tax (CIT) rate is 20%. Enterprises operating in the oil and gas industry are subject to CIT rates ranging from 25% to 50%, depending on each contract. Enterprises engaging in prospecting, exploration, and exploitation of certain mineral resources are subject to CIT rates ranging from 40% to 50%, depending on each project.

There is no concept of tax residency for CIT. Business organisations established under the laws of Vietnam are subject to CIT and taxed on worldwide income. 20% CIT shall be applicable to foreign income. There are no provisions for tax incentives for such income.

Foreign organisations carrying out business in Vietnam without setting up a legal entity in Vietnam and/or having Vietnam-sourced income are considered foreign contractors, irrespective of whether the services are performed inside or outside Vietnam. Payments to foreign contractors are subject to Foreign Contractor Tax (FCT), which consists of value-added tax (VAT) and CIT elements. See the Withholding taxes section for more information.

Preferential rates

Preferential CIT rates of 10%, 15%, and 17% are available where certain criteria are met.

Special investment incentives are available for research and development (R&D) and large investment projects specified in the Law on Investment.

With the policy relating to the global minimum tax rate, the application of tax incentives could be changed.

In June 2025, the National Assembly has ratified a new Law on CIT, which will take effect from 1 October 2025 and apply for the tax year 2025 onwards. The new CIT Law introduces significant changes to existing incentive schemes in terms of incentivised sectors, locations, and the available CIT incentives.

Small and medium taxpayers can be entitled to lower tax rates.

See the Tax credits and incentives section for more information.

Calculation of taxable profit

Taxable profit is the difference between total revenue, whether domestic or foreign sourced, and deductible expenses (see the Deductions section), plus other assessable income.

Taxpayers are required to prepare an annual CIT return, which includes a section for making adjustments to accounting profit to arrive at taxable profit.

Pillar Two – Global Minimum Tax

On 29 November 2023, the Resolution on Global Minimum Tax policy in Vietnam (‘the Resolution‘) was approved by the National Assembly and came into effect from 1 January 2024.

The Resolution provides that Vietnam will adopt (i) the Qualified Domestic Minimum Top-Up Tax (QDMTT) rule and (ii) the Income Inclusion Rule (IIR). Both rules are intended to protect Vietnam’s tax revenue in the context of Pillar Two global implementation. The QDMTT rule targets foreign inbound investment while the IIR targets Vietnam’s outbound investment.

Following the Organisation for Economic Co-operation and Development’s (OECD’s) Global Anti-Base Erosion (GloBE) rules, the top-up tax will be paid to the central state budget, unlike CIT, which is shared between central and provincial state budgets.

Tax filing obligations:

• The submission deadlines are as follows:
  • For QDMTT: 12 months after the fiscal year-end.
  • For IIR: 18 months after the fiscal year-end for the first fiscal year in scope and 15 months for subsequent fiscal years in scope.
• The tax payment deadline is the same as the filing deadline.

Safe harbour and penalty relief: The Resolution introduces a transitional country-by-country (CbC) report safe harbour rule that is the same as that in the OECD’s GloBE rules.

The MoF released a decree on the global minimum tax, aligning with international efforts to create a fairer taxation system and address issues like base erosion and profit shifting (BEPS).

For more detailed information and the most recent updates, please visit PwC’s Pillar Two Country Tracker.

Local income taxes

There are no local, state, or provincial income taxes in Vietnam.