Corporate income tax rate 2025 is one of the important information that every business in Vietnam needs to know to make financial plans, minimize risks and take advantage of tax incentives. In 2025, the Corporate Income Tax Law 2025 officially takes effect, bringing many changes in tax rates, calculation methods and incentives for businesses, especially for small and medium enterprises and new investment projects.
Understanding the 2025 corporate income tax, 2025 corporate income tax rates, 2025 corporate income tax calculation methods and 2025 corporate income tax incentives will help businesses proactively pay taxes on time, optimize costs and avoid legal risks. This article provides detailed information on common tax rates, tax by revenue, incentives, tax reductions, payment deadlines and international comparisons, helping businesses grasp all the necessary information.
What is corporate income tax?
Corporate income tax (Corporate Income Tax) is a tax levied directly on taxable profits of enterprises. This is an important source of revenue for the state budget and an economic regulation tool, helping enterprises to be transparent in financial declarations and comply with legal regulations.
According to the 2025 Corporate Income Tax Law, corporate income tax is calculated based on actual profits after deducting reasonable expenses and legal deductions. The law also clearly stipulates tax rates, calculation methods, incentives and payment deadlines, helping businesses take advantage of 2025 corporate income tax incentives and optimize tax costs.
Legal basis related to corporate income tax rate 2025
In order for businesses to correctly apply the 2025 CIT rate and 2025 CIT incentives, it is extremely important to have a clear understanding of the legal basis. Laws, decrees and guiding circulars not only stipulate tax rates, calculation methods and payment deadlines, but also determine the conditions for businesses to enjoy tax incentives and reductions.
Below is a summary of key legal documents related to corporate income tax rates in 2025.
| Legal basis | Main content related to Corporate Income Tax 2025 | Note |
| Tax Administration Law No. 38/2019/QH14 | General regulations on tax management, tax declaration and payment obligations of enterprises. | Applicable to all enterprises subject to corporate income tax. |
| Corporate Income Tax Law 2025 ( Law No. 67/2025/QH15) | Prescribes new corporate income tax rates, calculation methods, tax incentives and reduction policies. | Effective from October 1, 2025. |
| Decree No. 126/2020/ND-CP | Detailed instructions for implementing a number of articles of the Law on Tax Administration related to corporate income tax. | Including tax declaration and settlement procedures. |
| Circular No. 80/2021/TT-BTC | Guidance on implementation of regulations on declaration, payment and management of corporate income tax. | Details on tax calculation and corporate income tax incentives 2025. |
Subjects subject to corporate income tax
According to Article 3 and Article 4 of the 2025 Corporate Income Tax Law, organizations and enterprises with income arising in Vietnam are subject to corporate income tax. Taxable income is the total profit from production and business activities of goods and services, or other income that the law requires to be taxed.
| Subjects subject to corporate income tax | Detailed description |
| Domestic enterprises | Limited liability companies, joint stock companies, partnerships, private enterprises operating in Vietnam |
| Foreign Direct Investment (FDI) Enterprises | Foreign enterprises with income arising in Vietnam, with or without a permanent establishment |
| Branches and representative offices of foreign enterprises | Taxable on income arising from activities in Vietnam |
| Cooperatives, cooperative unions | Production and business activities with taxable income |
| Public service unit | Have business activities and taxable income |
| Other organizations with taxable income | Other organizations as prescribed by the Law generating taxable income |
Corporate income tax rate 2025 applicable to enterprises
The tax rate applicable to enterprises is important information to determine the 2025 corporate income tax liability. According to the 2025 Corporate Income Tax Law, tax rates are classified according to the type of enterprise, revenue scale and investment projects, and combined with the 2025 corporate income tax incentives for small and medium-sized enterprises or priority industries.
The table below summarizes specific tax rates for businesses to easily refer to and apply.
| Tax rate type | Applicable objects | Tax rate 2025 | Legal basis |
| Basic tax rate | Regular taxable business | 20% | Clause 1, Article 10 of the Law on Corporate Income Tax 2025 (Law No. 67/2025/QH15) |
| Preferential tax rate 15% | Enterprises with total annual revenue ≤ 3 billion VND | 15% | Clause 2, Article 10 of the 2025 Corporate Income Tax Law |
| Preferential tax rate 17% | Enterprises with total annual revenue > 3 billion VND to ≤ 50 billion VND | 17% | Clause 3, Article 10 of the Law on Corporate Income Tax 2025 |
| Special tax rates – oil and gas | Oil and gas exploration and exploitation activities | 25% – 50%, specific decision according to contract and mine location | Clause 4a, Article 10 of the Law on Corporate Income Tax 2025 |
| Special tax rates – rare resources | Exploration and exploitation of platinum, gold, silver, tin, tungsten, antimony, precious stones, rare earths and other rare resources | 50%; mines with area ≥70% in areas with special socio-economic difficulties: 40% | Clause 4b, Article 10 of the 2025 Corporate Income Tax Law |
How to calculate corporate income tax 2025
Determining how to calculate corporate income tax in 2025 is an important step to help businesses know exactly how much tax they have to pay and take advantage of incentives as prescribed. According to the Corporate Income Tax Law 2025, corporate income tax is calculated based on the taxable profit of the enterprise and the applicable tax rate, while considering reasonable expenses, legal deductions and tax incentives. The next section will guide the tax calculation formula and illustrate with specific examples for businesses to easily apply.
Corporate Income Tax Calculation Formula 2025
Corporate Income Tax 2025 is calculated based on the taxable profit of the enterprise and the applicable tax rate, as prescribed in the Corporate Income Tax Law 2025. The basic formula is as follows:
|
Corporate income tax payable = Taxable profit x Applicable corporate income tax rate |
In there:
- Taxable profit = Total revenue – Deductible reasonable expenses – Legal deductions according to the Corporate Income Tax Law 2025.
- Applicable corporate income tax rate: according to the common rate 20% or tax incentives for small and medium enterprises, revenue by scale or priority investment projects.
Example to illustrate how to calculate corporate income tax 2025
Enterprise A is a domestic manufacturing company with taxable profit of VND 2 billion in 2025. Since this company is not eligible for incentives, the common tax rate 20% under the Corporate Income Tax Law 2025 should be applied.
The amount of corporate income tax that an enterprise must pay is calculated as follows:
|
2 billion x 20% = 400 million VND |
Enterprise B is a small and medium-sized enterprise, operating in a priority sector and eligible for the 2025 corporate income tax reduction incentive of 50%. Enterprise B's taxable profit is also 2 billion VND. When applying the common tax rate of 20% and receiving a 50% reduction according to the incentive, the tax payable is only 200 million VND. Thus, the tax reduction policy helps Enterprise B significantly save tax costs and have more capital to invest in expanding production.
Enterprise C is a small company with revenue under 3 billion VND/year. According to the 2025 corporate income tax rate regulations for small enterprises based on revenue, this company only has to pay 10% tax on taxable profit. If Company C's taxable profit is 1.5 billion VND, the corporate income tax payable will be 150 million VND.
The above examples help to clearly illustrate how to apply the 2025 corporate income tax calculation, and show the difference when applying the common tax rate and incentives and reductions of 2025 corporate income tax. Enterprises can rely on these examples to calculate accurate tax costs, make financial plans and file taxes on time.
Corporate income tax incentives and reductions 2025
Enterprises in Vietnam can enjoy many incentives and reductions in corporate income tax 2025 depending on their scale, revenue, industry or investment location. According to the Corporate Income Tax Law 2025 and related resolutions, these policies help enterprises reduce tax costs, increase reinvestment capital and promote production and business development. The table below summarizes the details of incentives and tax reductions applicable to each type of enterprise and investment project.
| Subject / Type of Offer | Incentive Content / Tax Reduction | Legal Basis / Notes |
| Small and medium enterprises | Reduce 50% corporate income tax on tax payable on profit or revenue | Corporate Income Tax Law 2025, Article 10; applicable to small and medium enterprises as prescribed |
| Small businesses by revenue | Revenue < 3 billion VND/year: apply tax rate 10% Revenue 3 – 50 billion VND/year: apply tax rate 20% but with incentives if eligible | Corporate Income Tax Law 2025; Resolution 204/2025/QH15 |
| Priority industries | Fields such as agriculture, high technology, clean energy, IT: tax reduction of 10-20% depending on the project | Corporate Income Tax Law 2025; Resolution 204/2025/QH15 |
| Investment projects in difficult areas | Tax exemption for 2-4 years, tax reduction of 50% in subsequent years | Corporate Income Tax Law 2025; Resolution 204/2025/QH15 |
| Other special policies | Enterprises meeting the conditions for investment, job creation, and export: apply tax reduction according to regulations | Corporate Income Tax Law 2025; Resolution 204/2025/QH15 |
Corporate income tax payment deadline 2025
The deadline for paying corporate income tax in 2025 is stipulated to ensure that enterprises fulfill their tax obligations on time and avoid late payment penalties. According to the Corporate Income Tax Law 2025 and guiding documents, the tax payment deadline depends on the form of declaration and type of enterprise.
Pay provisional quarterly taxes
Enterprises must pay provisional corporate income tax quarterly, based on the business results of the previous quarter. The deadline for payment of provisional tax is the 30th month from the end of the quarter. For example, if the first quarter ends on March 31, the deadline for payment of provisional tax will be April 30.
Pay annual tax settlement
At the end of the year, enterprises make corporate income tax settlements based on the actual profits of the whole year. The deadline for submitting the 2025 corporate income tax settlement declaration is 90 days from the end of the fiscal year. The final corporate income tax payable is calculated by the whole year's corporate income tax minus the provisional tax paid during the year.
Comparison of Vietnamese and international corporate income tax rates
Comparing corporate income tax rates between Vietnam and other countries in the world helps businesses understand their current tax position and competitive opportunities when investing or expanding their business. According to the Corporate Income Tax Law 2025, Vietnam applies the general tax rate 20% with incentives for small and medium-sized enterprises, priority industries and specific investment projects. The table below summarizes corporate income tax rates in Vietnam and some typical countries, helping businesses have an intuitive and easy-to-compare view.
| Country / Region | Applicable corporate income tax rate | Notes / Offers |
| Vietnam | The common corporate income tax rate is 20%, small and medium enterprises are entitled to a reduction of 50% or apply a tax rate of 10-20% according to scale. | According to the Corporate Income Tax Law 2025; incentives for small and medium enterprises, priority industries and special investment projects |
| Singapore | Standard corporate income tax rate 17% | Small businesses get 75% tax rebate on first 10,000 SGD profit, encouraging investment and start-ups |
| USA | Federal corporate income tax rate 21%; plus state tax 0–12% depending on state | Effective corporate income tax rates range from 21–331 TP3T depending on the state; investment incentives and small business incentives available |
| Japan | Average corporate income tax rate is about 30% | Reduced corporate income tax rates for small businesses, incentives for investment in high technology and special areas |
| Virtue | Corporate income tax rate is about 15% + surcharges (about 7–8%) total ~22–23% | Incentives for small businesses and green, high-tech investment projects |
Advice and strategies to optimize corporate income tax rates in 2025 for businesses
To optimize tax obligations and take advantage of 2025 corporate income tax incentives, businesses need to build an effective tax management strategy and correctly apply the 2025 corporate income tax rate. Planning from the beginning of the year helps to estimate costs and accurately calculate the 2025 corporate income tax rate based on taxable profits and incentives.
Enterprises should take advantage of appropriate tax reduction policies to reduce corporate income tax obligations, and apply the 2025 corporate income tax rate correctly for each type and size of enterprise. Reasonable cost management also helps optimize the 2025 corporate income tax rate, because taxable profits are calculated after deducting legal expenses.
Using accounting software and professional consulting services helps to declare accurately, ensuring the application of the 2025 corporate income tax rate in accordance with the law. At the same time, monitoring tax changes helps businesses promptly update the new 2025 corporate income tax rate and accompanying incentives. These strategies not only help reduce tax obligations but also improve the financial efficiency and competitiveness of businesses in the long term.
Conclude
Understanding the 2025 corporate income tax rate, tax calculation method, incentives and tax payment deadlines is a key factor for businesses to optimize tax obligations, reduce costs and improve financial efficiency. Understanding these regulations helps businesses plan accurately and make the most of support policies from the State.
However, corporate income tax management is sometimes complicated, especially for small and medium-sized enterprises or special investment projects. Using professional services helps businesses declare on time, apply reasonable 2025 corporate income tax rates and ensure compliance with the law, avoiding the risk of being charged back or fined for late payment.
MAN – Master Accountant Network MAN is proud to provide reputable corporate income tax consulting and declaration services, supporting businesses from tax planning, tax optimization to timely tax declaration and payment. Contact MAN now to receive professional advice and make the most of corporate income tax incentives 2025, helping businesses save costs and develop sustainably.
Service contact information 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
