Corporate income tax is an important source of revenue, accounting for 20.161 TP3T of total state budget revenue (including crude oil) in 2023, equivalent to 357.7 trillion VNDThis figure clearly demonstrates the importance of corporate income tax in the national budget structure and its significant role in national financial stability.
In particular, in the first 5 months of 2025, corporate income tax reached about 257.3 trillion dong, equivalent to 71% of the estimate and an increase of 23.6% over the same period last year, reflecting a strong recovery in corporate profits, especially from activities such as real estate transfers. This is convincing evidence that tax management efficiency has improved over the years.
What is corporate income tax?
Corporate income tax (CIT) is one of the most important taxes in the Vietnamese tax system. This is a direct tax, meaning that the State collects directly from the profits generated by enterprises after deducting reasonable and legal expenses.
Unlike indirect taxes such as value added tax (VAT), special consumption tax or import-export tax, corporate income tax clearly reflects the efficiency of business operations. The more profitable a business is, the more corporate income tax it must pay, thereby directly contributing to the state budget.
The role of corporate income tax is not only to generate revenue for the budget but also:
- Regulating income between businesses: businesses with high profits will pay more, contributing to balance with other economic sectors.
- Encourage investment in priority areas: through preferential policies and tax exemptions.
- Enhance transparency: because businesses want to be recognized as having valid costs, they must have standard accounting and financial management.
- In fact, corporate income tax accounts for about 20–221 TP3T of total annual state budget revenue (according to data from the Ministry of Finance). This shows the importance and great influence of this tax.
In the Vietnamese tax system, corporate income tax (CIT) is always considered one of the important pillars, both ensuring a stable source of revenue for the budget and creating an economic regulation tool. Not only is it collected directly from profits after deducting reasonable and valid expenses of enterprises, this tax also contributes to promoting financial transparency and investment orientation. In 2023, CIT revenue reached 357,682 billion VND, accounting for more than 201,300 billion VND of total state budget revenue., showing the key role of corporate income in the national financial balance.
Legal basis related to corporate income tax
The legal system on corporate income tax in Vietnam has been formed for many years and is continuously updated to suit the socio-economic context. When fulfilling tax obligations, enterprises need to understand the following documents:
| Legal documents | Main content | Effective Date/Applicable Period |
| Law on Corporate Income Tax No. 14/2008/QH12 | The original text regulating corporate income tax, laying the foundation for the current tax system. | Effective from 2009 |
| Law amending and supplementing the Law on Corporate Income Tax (2013, 2014) | Adjust and supplement some regulations to suit the actual situation and economic development policy. | Effective from 2013, 2014 |
| Decree No. 218/2013/ND-CP | Detailed instructions on the implementation of the Law on Corporate Income Tax, including tax bases, tax exemptions and incentives. | Issued in 2013 |
| Circular No. 78/2014/TT-BTC, Circular 96/2015/TT-BTC and related circulars | Guidance on the implementation of the Law on Corporate Income Tax and decrees, detailed regulations on eligible expenses, tax incentives, declaration and settlement. | Issued from 2014 - 2015, still in effect today |
| Decision 3078/QD-BTC dated September 3, 2025 | Announcement of 104 revised and supplemented tax administrative procedures, including declaration, settlement and refund of corporate income tax. | Effective from 03/09/2025 |
| Corporate Income Tax Law 2025 | Officially regulating new corporate income tax rates applicable from October 1, 2025; adding incentives for small and medium enterprises. | Effective from 01/10/2025 |
Thus, from 2025 onwards, when enterprises fulfill their tax obligations, in addition to the Law and Decree, Decision 3078/QD-BTC will be an important legal basis to refer to.
Latest regulations on corporate income tax in 2025
The year 2025 marks a remarkable shift in tax policy in Vietnam with the promulgation of the Corporate Income Tax Law 2025 and Decision 3078/QD-BTC. These new regulations bring about changes based on the principles of transparency, simplification and practical support for taxpayers.
Flexible tax rates according to revenue size
To help businesses and individuals better understand the new tax policy, the 2025 Corporate Income Tax Law has clearly defined the tax rates applicable to each group of subjects and revenue scale. This classification aims to create fairness, encourage small and medium-sized enterprises to develop, while still ensuring budget revenue from specific areas with high profits. The table below summarizes the rates corporate income tax rate 2025.
| Applicable objects | Corporate income tax rate |
| Regular business | 20% |
| Enterprises with total annual revenue of no more than 3 billion VND | 15% (offer) |
| Enterprises with total annual revenue of over 3 billion but not more than 50 billion VND | 17% (offer) |
| Special activities: exploitation of oil and gas, rare resources | 25% – 50% (depending on project) |
Standardize tax management administrative procedures
In parallel with adjusting tax rates, the Ministry of Finance also focuses on standardizing tax administrative procedures to reduce the burden on businesses and improve management efficiency. According to Decision 3078/QD-BTC issued on September 3, 2025, up to 104 administrative procedures in the field of tax management have been amended and supplemented. These improvements not only make tax declaration, settlement and refund clearer but also increase transparency and reduce errors. The table below summarizes some important improvements.
| Procedural field | Improved content |
| Corporate income tax declaration | More detailed regulations for cases of transfer of real estate, capital contributions or activities outside the main business line. |
| Tax settlement | Specify settlement procedures according to the revenue-cost method, suitable for each group of businesses. |
| Tax declaration, tax refund, tax exemption | Standardize and supplement instructions for cases such as declaration at business locations in other provinces, land rental tax declaration, making it easier to implement and control. |
Who pays corporate income tax?
According to current law, the scope corporate income tax (CIT) Not only limited to ordinary commercial enterprises but also extended to many other organizations and units with income-generating activities. Below are the main target groups:
Business established in Vietnam
Domestic enterprises are the most common group of entities that must pay corporate income tax. They include familiar types such as limited liability companies (LLCs), joint stock companies, private enterprises, cooperatives or partnerships. The common point of this group is that they are established and operate under Vietnamese law, have valid business registration and conduct profit-making activities.
For example, a joint stock company in the garment manufacturing sector in Ho Chi Minh City has a profit after deducting valid expenses of VND 10 billion, then the entire profit will be the basis for calculating corporate income tax. This regulation helps ensure that all businesses fulfill their fair obligations to the State, while transparently reflecting business results.
Business units with business activities
In addition to traditional enterprises, public or non-public service units are also subject to corporate income tax if they generate income from service activities. Service units are often established to perform public service, education, health or research tasks, but when participating in the business of goods and services, they still have to pay taxes like enterprises.
For example, a university offers a short-term course with tuition fees or a public hospital offers on-demand medical examination services outside the scope of health insurance. All of this income is considered business income and must be declared and paid for corporate income tax according to the law.
Foreign enterprises with permanent establishments in Vietnam
Foreign companies and corporations conducting business in Vietnam through a permanent establishment are also subject to corporate income tax. A “permanent establishment” can be understood as a representative office, branch, factory, construction site or fixed location where a foreign enterprise conducts all or part of its business activities.
For example, a foreign electronics corporation opens a factory in Binh Duong to produce components and export to other markets. Although the final profits may be transferred to the parent company, all income generated in Vietnam must still be declared and paid corporate income tax according to Vietnamese law.
Other organizations and units with production and business activities
In addition to enterprises and public service units, other organizations are also not outside the scope of the Law on Enterprise Income Tax. This includes professional associations, socio-political organizations or funds if they participate in production, business activities and make profits. The basic principle is that any organization that generates income must fulfill its tax obligations to the State.
For example, a trade association that provides professional consulting services for a fee or a non-governmental organization that sells goods to raise funds. When these activities generate profits, the organization must still pay corporate income tax, unless it is exempted or reduced under special regulations.
Summary of classification of corporate income tax payers
To help businesses and organizations more easily visualize the subjects that must pay corporate income tax, the table below summarizes the main groups according to current legal regulations. Each group has a specific scope of application and examples, from which businesses can clearly determine their tax obligations.
| Target group | Specific examples | Corporate income tax obligations |
| Business established in Vietnam | Limited liability company, joint stock company, private enterprise, cooperative, partnership | Must declare and pay tax on profits after deducting reasonable and valid expenses. |
| Business units with business activities | Universities offer short-term training courses for a fee; hospitals offer medical examination services outside of health insurance packages. | Pay corporate income tax on income arising from service business activities |
| Foreign enterprises with permanent establishments in Vietnam | Foreign corporation opens factory in Binh Duong; representative office generates revenue | Must pay corporate income tax on profits generated in Vietnam |
| Other organizations and units with production and business activities | Professional associations, socio-political organizations with income-generating activities | Pay corporate income tax according to regulations if profit arises from business activities. |
Basis for calculating corporate income tax
The basis for calculating the amount of corporate income tax (CIT) that an organization or enterprise must pay includes two main factors: taxable income and CIT rate. This is an important foundation for determining tax obligations, and at the same time reflects the efficiency of the enterprise's production and business activities.
The general formula for determining the amount of corporate income tax payable is as follows:
|
Corporate income tax payable = Taxable income × Corporate income tax rate |
Taxable income
Taxable income is the most important basis for calculating tax. It is determined based on the formula:
|
Taxable income = Revenue – Eligible expenses – Tax exemptions + Other income |
In there:
- Revenue: includes all the money that the enterprise receives from selling goods, providing services, processing, commissions, etc. during the tax period. In addition, revenue also includes surcharges and additional fees that the enterprise receives.
- Eligible expenses: are actual expenses that arise, have legal documents and directly serve production and business activities. For example: salary and social insurance costs for employees; costs of purchasing raw materials; depreciation costs of fixed assets; marketing and advertising costs and costs of outsourced services.
- Tax exemptions: according to regulations, some incomes are exempt from tax such as income from agricultural activities in difficult areas, or income from implementing socialized projects in education and health.
- Other income: is income that does not come from the main business activities but still has to be included in tax obligations. For example: income from capital transfer, real estate transfer, liquidation or sale of assets.
Corporate income tax rate
After determining taxable income, enterprises need to apply the correct tax rate according to the law to calculate the amount of tax payable.
| Applicable objects | Corporate income tax rate |
| Regular business | 20% |
| Enterprises with total annual revenue of no more than 3 billion VND | 15% (offer) |
| Enterprises with total annual revenue of over 3 billion but not more than 50 billion VND | 17% (offer) |
| Special activities: exploitation of oil and gas, rare resources | 25% – 50% (depending on project) |
Illustrative example
Suppose Company A operates in the trade and service sector, and in the last fiscal year achieved:
|
Based on the calculation formula:
|
Taxable income = Revenue – Eligible expenses – Tax exemptions + Other income = 50 – 42 + 1 = 9 billion VND Applying the common tax rate 20%: Corporate income tax payable = 9 × 20% = 1.8 billion VND |
Thus, Company A will have to pay 1.8 billion VND in corporate income tax for this fiscal year. This figure directly reflects business performance: the higher the profit of the enterprise, the greater the tax obligation to the State budget.
Deadline for declaring and settling corporate income tax in 2025
The deadline for declaring and settling corporate income tax is one of the important contents that businesses need to understand to ensure compliance with the law and avoid risks of administrative sanctions. Completing on time not only helps businesses be proactive in cash flow, but also demonstrates transparency and responsibility in business operations.
Quarterly declaration and provisional payment of corporate income tax
During the fiscal year, enterprises are obliged to declare and temporarily pay corporate income tax quarterly, based on actual business results. Dividing the payment obligation into quarterly amounts helps the State budget to ensure a stable source of revenue, and at the same time helps enterprises not to accumulate too much tax at the end of the year.
The deadline for payment is set on the 30th of the following quarter. Specifically, the first quarter must be paid by April 30th, the second quarter by July 30th, the third quarter by October 30th, and the fourth quarter by January 30th of the following year. If the enterprise temporarily pays less than 80% of the actual tax payable upon settlement, the difference will be charged a late payment fee, causing unnecessary costs.
Annual corporate income tax settlement
At the end of the fiscal year, businesses must prepare tax settlement records to determine their final tax obligations. Settlement is an important step to summarize all production and business results, and compare with the amount of tax provisionally paid during the year to determine whether the business still has to pay more or is entitled to a refund.
The final settlement dossier must be submitted within 90 days from the end of the fiscal year. For enterprises whose fiscal year coincides with the calendar year, the deadline is usually March 31 of the following year. Submitting on time not only avoids administrative penalties but also facilitates financial management and transparency with tax authorities.
Application form
Businesses can now choose between two forms of tax filing: online or in person. Online filing via the General Department of Taxation's Electronic Information Portal is increasingly popular because it saves time, makes it easy to store documents, and minimizes the risk of losing documents. This is also the current administrative reform direction aimed at digitizing all tax procedures.
In addition, in some special cases or upon request, businesses can still submit their documents directly to the tax authority. Although it takes more time, this form is still useful for businesses that need direct confirmation from tax officials. Diversifying the form of submission helps all businesses be more flexible in fulfilling their obligations.
Some notes on corporate income tax
In the process of fulfilling tax obligations, enterprises not only need to understand the legal regulations but also need to properly manage the stages of declaration, accounting and document storage. If there is negligence or error, the risk of collection, penalties and disputes is inevitable.
To minimize these risks and ensure compliance, businesses should pay special attention to the following key points:
Determine corporate income tax on valid expenses
Valid expenses are an important foundation for calculating taxable income accurately. All expenses are only recognized when there are full invoices, legal documents and must directly serve the business production activities of the enterprise. If there is a lack of documents or is not related to business activities, the expense will be excluded from the tax calculation.
In addition, businesses also need to pay attention to expenses that are controlled by regulations. For example, advertising, promotion or marketing expenses are often limited in percentage. If the expenses exceed the allowed amount, the excess will not be deducted when determining taxable income, increasing the amount of tax payable.
Declare corporate income tax on time
Compliance with the deadline for declaration and settlement is a mandatory principle to avoid legal risks. When a business is late in submitting documents or underpaying taxes, the management agency will apply administrative sanctions. Not only does this lose prestige, it also causes many inconveniences in the financial activities of the business.
In particular, the penalty can be up to 20% of the outstanding tax amount, along with the late payment fee calculated by day. This is a huge financial burden, especially for small and medium-sized enterprises. Therefore, closely monitoring the declaration and settlement timelines is a task that cannot be ignored.
Take advantage of corporate income tax incentives
The state has many policies. corporate income tax incentives 2025 to encourage businesses to invest in priority areas such as high technology, renewable energy or difficult areas. If they meet the conditions, businesses can be applied lower tax rates or be exempted for the first few years of operation.
To take advantage of these incentives, businesses need to proactively register investment projects and prepare clear supporting documents. Proper implementation of procedures not only helps save significant tax costs but also creates financial resources for reinvestment and business expansion.
Scientific accounting data storage
A transparent and scientifically organized accounting system will help businesses easily prepare reports and settle taxes. All documents and books must be kept completely and arranged properly to ensure the ability to explain when requested by the tax authorities.
In fact, many businesses have encountered problems when the tax authorities conducted inspections because they did not have valid documents to prove expenses. This can easily lead to additional collection and penalties. Therefore, building a habit of storing accounting records professionally is the key to limiting unwanted risks.
Corporate income tax support services from MAN
MAN – Master Accountant Network accompanies businesses in fulfilling tax obligations. Outstanding services include:
- Corporate income tax consulting: timely updates on the latest regulations in 2025.
- Tax declaration and settlement: perform accurately, on time, avoid penalty risk.
- Fast tax refund: prepare valid documents, shorten processing time.
- Professional accounting and auditing: transparent data, ensuring compliance with the law.
- Representative working with tax authorities: reducing pressure on businesses.
With a team of experienced experts, MAN helps businesses save costs, optimize tax obligations and develop sustainably.
FAQ – Frequently Asked Questions about Corporate Income Tax 2025
No, the general tax rate remains the same at 20%. Some sectors still enjoy the preferential rate of 10% or 17%.
Yes. However, if the business makes a loss or has low income, the tax payable will be low or zero.
In case the provisional payment is higher than the actual or there is an exemption, the enterprise will be refunded the difference.
Enterprises will be subject to administrative penalties, the penalty level depends on the length of delay and may be charged late payment fees.
Yes. MAN provides tax consulting and support services to both domestic and foreign invested enterprises. Will corporate income tax rates change in 2025?
Do micro enterprises have to pay corporate income tax?
When will businesses get a corporate income tax refund?
What if the settlement documents are submitted late?
Does MAN support FDI enterprises?
Conclude
Corporate income tax is an important tool in national financial management and is also a mandatory legal obligation of all businesses. New regulations in 2025, especially from Decision 3078/QD-BTC, not only help reduce procedural burdens but also create a more transparent and fair business environment.
If your business needs a companion to optimize tax and accounting obligations, please contact us. MAN – Master Accountant NetworkWe are committed to providing comprehensive solutions: consulting - declaration - settlement - tax refund - audit, helping you to confidently develop sustainable business.
Contact information for corporate income tax services at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
