Vietnam

Corporate - Taxes on corporate income

Last reviewed - 26 March 2025

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.