Vietnam

Corporate - Taxes on corporate income

Last reviewed - 23 September 2026

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.

The new Law on CIT (apply for the tax year 2025 onward) introduced new tiered rates for smaller enterprises: 15% to 17% for small and medium enterprises (SMEs) that satisfy certain conditions.

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 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) unless such payments fall within the FCT exemption cases, 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 ratified a new Law on CIT, which took effect from 1 October 2025 and applies 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.

Key changes include the following:

Expanded incentivised sectors: certain digital technology products/services, AI data centres, automobile manufacturing and assembly, SME support services, etc.
Removal of incentives scheme applicable for companies located in industrial zones and new investment projects with investment capital of 6 trillion Vietnamese dong (VND) or more.
Reduction of incentives scheme applicable for the economic zones not located in designated difficult socioeconomic / especially difficult socioeconomic areas.

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.