Vietnam

Inventory valuation

There is tax guidance for making provision for inventories and certain other provisions.

Asset revaluation

Gains from the revaluation of assets for the purposes of capital contribution or transfer upon division, de-merger, consolidation, merger, or conversion of business are subject to the standard CIT rate.

Capital gains

From 15 December 2025, generally, capital transfers by foreign corporate sellers (direct or indirect) could be subject to 2% CIT on sale proceeds, except for certain cases. This does not apply to internal group restructurings where the ultimate parent company of the Vietnamese subsidiary remains unchanged, and no gains arise.

Transfers of securities (bonds, shares of public joint stock companies, etc.) by a foreign entity are subject to CIT on a deemed basis at 0.1% of the total sales proceeds.

Gains derived by a resident entity from capital transfer or the transfer of securities, however, are taxed at 20%.

Dividend income

Dividends received from investments in other companies in Vietnam are not subject to CIT if they have been subject to CIT at the investee companies.

Interest income

Interest income is taxed at the standard CIT rate.

Certain types of interest income are entitled to tax incentives granted to the investment project, depending on the conditions on which tax incentives are granted.

Royalty income

Currently, royalty income is subject to tax at the standard CIT rate.

Other significant items

There are some types of income (e.g. income from transfer of the right to make capital contribution, income from transfer of immovable property [except for income from investment in social houses], income from transfer of investment projects) that are subject to the standard CIT rate as prescribed under the CIT regulations.

Foreign income

Foreign income, under the domestic tax law, is subject to the standard CIT rate with tax credits available (see Foreign tax credit in the Tax credits and incentives section).

Foreign income shall be taxed when earned. There are no provisions for tax deferral or preferential tax rates for foreign income.