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 32% to 50%, depending on each project.

The government has issued Decree 12/2023 on extension of deadlines for tax and land rental payments in 2023, which took effect from the signing date of 14 April 2023 to 31 Dec 2023.

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.

The Vietnamese government also has included a plan to review the impact of international tax reforms (e.g., Pillar 1 and Pillar 2) and amend or make changes to the domestic tax laws accordingly. With the policy relating to the global minimum tax rate, the application of tax incentives could be changed.

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.

Local income taxes

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