Vietnam Corporate Income Tax 2026: Rates, Incentives and Filing for Foreign-Invested Companies

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Vietnam corporate income tax (CIT) is charged at a standard rate of 20% on taxable profit. Smaller companies can pay 15% or 17%, depending on the previous year's revenue. Qualifying investment projects can get lower rates and tax holidays. Foreign-invested companies are set up under Vietnamese law, so they file and pay CIT like any other Vietnamese company.

This guide explains the current rates, incentives, deductible costs, loss rules and filing deadlines under the 2025 CIT Law and its 2025–2026 guidance.

Key Takeaways

Rates: 20% standard; 15% for revenue up to VND 3 billion; 17% for revenue above VND 3 billion up to VND 50 billion.
Incentives: Qualifying new projects can get 10% or 17% for set periods, plus up to 4 years of exemption and up to 9 years at 50% off.
Deductions: Each purchase or payment of VND 5 million or more must be paid by non-cash means to be deductible.
Filing: Provisional CIT is paid quarterly; the four quarters must cover at least 80% of the final annual tax.

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The Legal Framework for CIT in 2026

Four documents matter most for a foreign-invested company today:

Law on Corporate Income Tax No. 67/2025/QH15: Effective 1 October 2025. It applies from the 2025 tax period and replaces the 2008 CIT Law.
Decree 320/2025/ND-CP: Guides the 2025 Law. Effective 15 December 2025.
Law on Tax Administration No. 108/2025/QH15: Effective 1 July 2026. It sets the filing and payment rules.
Decree 252/2026/ND-CP: Guides the Tax Administration Law. Effective 1 July 2026.

Your 2025 finalization was already prepared under the new CIT Law. Your 2026 return will be filed under the new tax administration rules too. For the procedural changes, see our guide to what Decree 252 changes.

Calculator and pen used to work out corporate income tax — Most foreign-invested companies in Vietnam pay CIT at 20%, with 15% or 17% for smaller companies. Source: Unsplash.

Vietnam Corporate Income Tax Rates in 2026

The 2025 Law sets these rates:

Standard rate: 20% of taxable income.
Revenue up to VND 3 billion: 15%.
Revenue above VND 3 billion up to VND 50 billion: 17%.
Oil and gas search, exploration and extraction: 25% to 50%, depending on the project.
Rare and precious resources: 50%, or 40% where at least 70% of the allocated mine area is in an especially disadvantaged area.

The 15% and 17% rates are tested on total revenue in the previous tax period. Decree 320 says this includes sales and service revenue, financial income and other income, as shown in the prior year's finalization return. A new company that expects revenue within the limits can use the lower rate for its quarterly payments, then confirm it at year-end.

There is one important exclusion for groups. The lower rates do not apply to a Vietnamese company that is a subsidiary or has a related-party relationship where the related company does not itself meet the conditions for these rates. In practice, a small Vietnamese subsidiary of a large foreign group should check this point carefully before using 15% or 17%. Guidance on related companies abroad is still being clarified, so confirm your position with your tax office or adviser.

The 30% CIT Reduction for 2026 and 2027

A new temporary relief applies on top of the rates above. Decree 398/2026/ND-CP, guiding National Assembly Resolution 43/2026/QH16, took effect on 29 October 2026.

Who: Enterprises established under Vietnamese law (and some other organisations) with annual revenue of no more than VND 10 billion.
What: A 30% reduction of CIT payable for the 2026 and 2027 tax periods.
How: The reduction is calculated on tax payable after any other incentive. Companies that expect to qualify can apply it in their quarterly provisional payments.
If revenue exceeds VND 10 billion: The company must recalculate and pay tax under the normal rules.

Check the detailed conditions before you rely on it, especially for group companies.

CIT Incentives: Preferential Rates and Tax Holidays

Incentives are mainly given to new investment projects in listed sectors or locations. The 2025 Law sets two main packages.

Package 1: 10% for 15 years. It applies to income from new projects in, for example:

Priority technology and infrastructure: Including software, semiconductors, AI data centres, renewable energy and major infrastructure.
High-tech and science-and-technology enterprises: As certified under the law.
Large manufacturing projects: Capital of at least VND 12,000 billion, disbursed within 5 years.
Special-incentive projects: As defined under the Investment Law.
Locations: Especially disadvantaged areas, high-tech zones, concentrated digital technology zones and qualifying economic zones.

These projects can also get a tax exemption for up to 4 years and a 50% reduction for up to the next 9 years.

Package 2: 17% for 10 years. It applies to new projects in listed manufacturing sectors and in disadvantaged areas, and to economic-zone projects outside the especially disadvantaged areas. These projects can get an exemption for up to 2 years and a 50% reduction for up to the next 4 years.

Other points to know:

Start date: Exemption and reduction periods generally run from the first year the project has taxable income.
Extensions: The Prime Minister may extend incentive periods for certain large or strategic projects.
Industrial parks: They are not a qualifying location on their own under these articles. The sector or project size has to qualify.
Not covered: Incentives and the 15%/17% rates do not apply to income from transferring capital or capital contribution rights.

Incentives are a major factor when you compare locations. Our Vietnam vs Singapore comparison covers this from an investor's view.

Deductible and Non-Deductible Expenses

An expense is deductible when it meets three tests:

Business purpose: It relates to your business and was actually incurred.
Documents: It has a valid invoice and supporting papers.
Payment method: Each purchase or payment of VND 5 million or more is paid by non-cash means. The old limit was VND 20 million.

The non-cash rule under Decree 320 has applied since 15 December 2025. It also covers salaries: a salary or wage payment of VND 5 million or more paid in cash is at risk. Several small purchases from one seller on the same day can add up to the limit.

Common non-deductible items include:

Fines: Administrative penalties and late-payment interest on tax.
Excess amounts: Costs above government caps, such as cost allocations from a foreign parent company and certain related-party interest.
Owner salaries: Certain salaries paid to company owners, as limited by the rules.
Unpaid or undocumented wages: Salaries not actually paid or not supported by contracts and records.
Over-limit provisions and depreciation: Amounts above the permitted rules.

Related-party charges get extra scrutiny. Read our guide to transfer pricing in Vietnam before you book group service fees or loan interest.

Losses, Capital Transfers and Global Minimum Tax

Loss carry-forward: A tax loss can be carried forward for up to 5 consecutive years, starting the year after the loss arises.

Capital transfers:

Foreign corporate seller: Under Decree 320, a foreign enterprise that sells capital in a Vietnamese company pays CIT at 2% of the gross proceeds. Some internal group restructurings that do not change the ultimate parent are excluded.
Who files: If the buyer is also foreign, the Vietnamese company whose capital is sold must declare and pay the tax.
Vietnamese corporate seller: The gain is treated as other income and taxed under the normal CIT rules.

See our guide to capital gains tax in Vietnam for worked examples.

Global Minimum Tax: Vietnam applies a top-up tax under Resolution 107/2023/QH15, guided by Decree 236/2025/ND-CP (effective 15 October 2025). It targets members of multinational groups whose ultimate parent has consolidated revenue of EUR 750 million or more in at least 2 of the 4 preceding years. The goal is an effective tax rate of at least 15% in Vietnam. If your group is in scope, incentives may not reduce your total tax as much as expected.

Filing and Payment Deadlines

Under Decree 252/2026/ND-CP, the main CIT deadlines are:

Quarterly provisional CIT: Pay by the last day of the first month of the next quarter. For example, Q1 tax is due by 30 April.
80% rule: The four quarterly payments together must equal at least 80% of the final annual CIT. If you pay less, late-payment interest applies on the shortfall.
Annual finalization: File by the last day of the third month after the financial year ends. For a calendar year, that is 31 March.

Payments to foreign suppliers are a separate obligation. See our guide to foreign contractor tax. For a full calendar of next year's dates, see Vietnam tax deadlines 2027.

After finalization, profits can be sent abroad once tax is settled. Our profit repatriation guide covers the steps.

Frequently Asked Questions

What is the Vietnam corporate income tax rate in 2026?

The standard rate is 20%. Companies with previous-year revenue up to VND 3 billion pay 15%, and those above VND 3 billion up to VND 50 billion pay 17%. Some subsidiaries and related companies cannot use the lower rates.

Do foreign-invested companies pay the same CIT as local companies?

Yes. A foreign-invested company set up in Vietnam is a Vietnamese taxpayer and uses the same rates and rules. Large multinational groups may also face a global minimum top-up tax.

How long can a company carry forward tax losses in Vietnam?

Up to 5 consecutive years, starting the year after the loss arises. Unused losses after that period expire.

Can a small foreign-invested company get the 30% CIT reduction?

It may. The reduction under Decree 398/2026/ND-CP covers enterprises established under Vietnamese law with annual revenue of no more than VND 10 billion for the 2026 and 2027 tax periods. Check the detailed conditions before applying it.

When is the annual CIT return due?

By the last day of the third month after the financial year ends. For a December year-end, that is 31 March of the next year.

Our Services

Get Your CIT Right With VINEX

VINEX helps foreign-invested companies in Ho Chi Minh City apply the right CIT rate, claim incentives and keep costs deductible. Our taxation services cover quarterly provisional payments, annual finalization and incentive reviews. Our accounting services keep your invoices, payment records and books ready for audit.

Contact VINEX for a free consultation on your CIT rate, incentive eligibility and 2026 finalization.

This article is general information as of 14 November 2026, not tax advice.