Conditions for enjoying corporate income tax incentives from October 1, 2025 are stipulated in the Law on Corporate Income Tax. No. 67/2025/QH15 strict regulations: enterprises must fully implement the accounting regime, invoices, documents, and tax declaration according to the declaration method; separate (account separately) income from preferential activities from non-preferred income; preferential tax rates of 15 % or 17 % only apply to enterprises that meet the conditions on preferential industries and locations, and do not include income from capital transfers, real estate, or production of online electronic games...
Specifically, the low tax rate incentive of 10 % for 15 years is applied to new investment projects in priority industries in preferential locations. For example, in the case of renewable energy production, supporting industrial products, high technology, etc.
If the enterprise does not meet the conditions for preferential treatment corporate income tax As above, the tax authority has the right to collect taxes, revoke incentives and handle violations according to the law.
What is corporate income tax incentive?
Corporate income tax incentives are government policies that allow businesses to apply lower tax rates, or be exempted or reduced from corporate income tax for a certain period of time, in order to encourage investment and economic development.
The main objective of corporate income tax incentives is to promote businesses to invest in priority sectors (high technology, high-tech agriculture, renewable energy, etc.), encourage operations in difficult areas, and at the same time enhance the competitiveness of the economy.
Legal basis for corporate income tax incentives
To understand and correctly apply the conditions for enjoying corporate income tax incentives, enterprises need to master the current legal system. Regulations on tax incentives are not only contained in the Law on Corporate Income Tax but are also specified in decrees, guiding circulars and specialized resolutions. The table below summarizes important legal documents related to corporate income tax incentives that enterprises need to refer to:
| Legal documents | Main content related to corporate income tax incentives | Applicable |
| Corporate Income Tax Law 2008 (amended in 2013, 2014, 2020) | Lay the foundation for tax rates, tax exemptions, loss carryforwards and basic incentives. | From January 1, 2009, amended and supplemented over the years. |
| Corporate Income Tax Law No. 67/2025/QH15 | Detailed regulations on conditions for enjoying corporate income tax incentives from October 1, 2025; additional priority industries and locations, and regulations on excluding certain incomes (real estate, capital transfers, etc.). | Effective from October 1, 2025. |
| Decree 218/2013/ND-CP (Guidelines for Corporate Income Tax Law) | Specific instructions on cases of applying tax incentives and tax exemptions. | From 2014 to present (some terms have expired). |
| Decree 126/2020/ND-CP | Regulations on tax administration, including declaration, settlement and determination of conditions for applying corporate income tax incentives. | Effective from December 5, 2020. |
| Circular 96/2015/TT-BTC | Guidance on the implementation of the Law on Corporate Income Tax on taxable income, deductible expenses, and incentives. | From 06/08/2015, still in effect (with adjustments). |
| Circular 78/2025/TT-BTC | Latest guidance on corporate income tax incentives under Law 67/2025, details on declaration procedures and documents. | Effective in parallel with Law 67/2025 from October 1, 2025. |
| Resolution 198/2025/QH15 | Special policies for private economic development, with mechanisms for corporate income tax exemption and reduction for new investment enterprises in priority sectors. | Through 2025, applicable from 2026 onwards. |
Current corporate income tax incentives
In the context of increasingly fierce integration and competition, policy corporate income tax incentives 2025 become an important tool for the State to encourage enterprises to invest, especially in priority areas and difficult areas. According to the Law on Corporate Income Tax No. 67/2025/QH15 and guiding documents, there are three main groups of incentives: tax rate incentives, tax exemption incentives, and other specific incentives.
Tax incentives
The current common tax rate for enterprises is 20%, but for investment projects eligible for corporate income tax incentives, the State applies lower rates:
| Preferential tax rates | Time of application | Applicable Objects/Projects |
| 10% | 15 years (can be up to 30 years for large, national key projects) | Projects in the fields of high technology, renewable energy, scientific research, education and training; or investment in areas with particularly difficult socio-economic conditions. |
| 15% | No fixed term (depending on each project's regulations) | Enterprises operating in high-tech agriculture and manufacturing supporting industrial products are on the priority development list. |
| 17% | 10 years | Enterprises investing in areas with difficult socio-economic conditions or operating in fields encouraged for development but not subject to level 10%. |
To be eligible for the above preferential tax rates, enterprises must prove that their investment projects are in the list of encouraged industries, occupations or areas. This is one of the important conditions for enjoying corporate income tax incentives that enterprises cannot ignore.
Tax exemption and reduction incentives
In addition to tax reduction, businesses can also enjoy tax exemption and reduction policies for a certain period of time. The common levels currently include:
| Preferential form | Time of application | Applicable content | Beneficiaries |
| Tax Free | The first 2–4 years, from when the business begins to have taxable income | Enterprises are exempted from all corporate income tax payable during this period. | Projects in preferential industries and locations according to law |
| Reduce 50% tax | 4–9 years following the tax-free period | Enterprises only have to pay 50% of corporate income tax calculated on taxable income. | Depending on the field of operation, investment scale and project implementation location |
For example, a software company located in a high-tech zone can be exempted from tax for the first 4 years and reduced by 50% for the next 9 years, in addition to applying the preferential tax rate of 10%. To enjoy this policy, the company must have documents and vouchers proving that its investment activities are in the right priority areas and fully comply with the accounting regime. If it does not meet the conditions for enjoying preferential corporate income tax, the exemption and reduction will be revoked by the tax authority.
Other offers
In addition to the two common forms above, the law also provides many additional incentives to support businesses during their operations:
| Preferential form | Applicable content | Beneficiary/Project |
| R&D expense deduction | Enterprises are allowed to calculate all expenses for research and development activities into reasonable expenses when determining taxable income. | Businesses invest in research, technological innovation, and new product development. |
| Loss transfer | Losses in the production and business process are allowed to be continuously transferred to taxable income for up to 5 subsequent years. | All businesses are loss-making, as long as they meet tax management and transparent declaration conditions. |
| Special incentives for key projects | Enjoy special preferential mechanisms on tax rates, exemptions or preferential periods according to the decision of the Prime Minister. | Large-scale investment projects with spillover effects make important contributions to national economic growth. |
These incentives are often linked to the requirement of transparency in financial management and performance reporting. Enterprises can only take full advantage if they fully meet the conditions for enjoying CIT incentives in terms of documents, records and legal compliance.
Contact directly for conditions to enjoy corporate income tax incentives
The common point of all types of corporate income tax incentives is that enterprises can only apply when they can prove that they meet the criteria: priority industry, encouraged area, investment scale or transparent accounting records. If one of these criteria is violated, the incentive can be revoked. Therefore, understanding and understanding the conditions for enjoying corporate income tax incentives not only helps enterprises reduce their tax burden, but also avoid legal risks in the long term.
Conditions for enjoying corporate income tax incentives
In the context of sustainable economic development, the State has issued many preferential corporate income tax policies to encourage businesses to invest in strategic areas and difficult locations, as well as promote projects with large scale and large socio-economic impact.
However, not all businesses are eligible for this policy; the benefits depend on many specific conditions related to the field of operation, investment location, project scale and actual performance. Understanding these conditions helps businesses be proactive in making investment plans, optimizing tax benefits and ensuring compliance with the law.
Preferential conditions for corporate income tax by sector and industry
Enterprises are only entitled to incentives if they operate in industries that the State encourages and prioritizes for development. These areas are often linked to the national development strategy, including scientific research, high technology, innovation, and manufacturing of products in supporting industries and key mechanical engineering.
In addition, essential service sectors such as education, health, culture, sports, and environmental protection are also prioritized. High-tech agricultural projects and agricultural, forestry, and fishery processing projects are included in the preferential list. The list of preferential industries is announced and periodically updated by the Government. Enterprises need to base on official documents to determine suitability.
Conditions for enjoying corporate income tax incentives by locality
Projects implemented in areas with difficult or especially difficult socio-economic conditions will enjoy higher incentives to encourage investment in areas with limited infrastructure and resources. In addition, high-tech zones, economic zones and industrial zones (except industrial zones in favorable areas) are also eligible for incentives. To be eligible, enterprises must properly register their investments and maintain operations in that area throughout the incentive period.
Conditions for enjoying corporate income tax incentives according to scale and investment capital
The State applies special incentives to large-scale capital projects, usually from VND6,000 billion or more, and disbursed within the prescribed time limit. In addition to capital, the project must use advanced, environmentally friendly technology, have spillover effects and the ability to connect to the global production chain. Some cases also require a minimum number of workers, for example from 500 to 3,000 workers, depending on the industry and investment location.
Conditions for corporate income tax incentives based on actual activities
Tax incentives are only applied to income generated from actual activities that meet the above conditions. Enterprises must maintain the correct implementation of registered project objectives, have valid accounting, invoices, and documents, and declare and pay taxes in accordance with regulations. Using incentives for the wrong purpose, violating tax laws, or ceasing operations will result in the loss of incentives.
Cases not eligible for corporate income tax incentives
Although the State applies many preferential corporate income tax policies to encourage investment in strategic sectors, locations and projects, not all enterprises have this right. Failure to fully meet legal conditions or to implement project objectives incorrectly will prevent enterprises from enjoying corporate income tax incentives. Clearly recognizing these cases helps enterprises to be proactive in investment planning, avoid the risk of violations and optimize the application of tax policies.
| STT | Cases where incentives are not available | Detailed explanation |
| 1 | Activities outside the priority industry list | Enterprises operating in fields not on the Government's priority list will not be eligible for incentives, even if they meet other conditions. |
| 2 | Projects in areas not eligible for incentives | If the project is located in a socio-economically favorable area or is not located in high-tech zones, economic zones, or priority industrial zones, tax incentives do not apply. |
| 3 | Failure to meet project objectives | Enterprises that change their business purposes, exploit incentives for the wrong purposes, or do not operate in the right priority areas will lose their right to enjoy incentives. |
| 4 | Violation of tax laws | Acts of fraudulent declaration, failure to present valid invoices or documents, late tax payment or violation of tax laws will result in loss of preferential rights. |
| 5 | Discontinue or discontinue the project | The incentive only applies when the enterprise maintains production and business activities according to the project. Suspending or dissolving the project before the deadline will terminate the benefits. |
Process and procedures for applying conditions for enjoying corporate income tax incentives
For businesses to enjoy corporate income tax incentives, compliance with the correct processes and procedures is mandatory. This process not only helps to accurately determine the applicable conditions but also ensures legal rights and avoids risks when the tax authority inspects. Below are the basic steps that businesses need to take:
Determine conditions for enjoying corporate income tax incentives
To enjoy corporate income tax incentives, businesses need to check the conditions for enjoying corporate income tax incentives. Including business type, industry, key projects and operating area. Accurate determination helps businesses apply the correct corporate income tax incentives by industry and avoid legal risks.
Prepare corporate income tax incentive documents
Enterprises need to prepare a complete dossier for corporate income tax incentives, including business registration certificate, project report, contract, invoice and related documents. Complete and accurate dossier is the basis for tax authorities to review and confirm benefits.
Submit application and assessment
The dossier is submitted to the directly managing tax authority or via the electronic information portal of the General Department of Taxation. The tax authority will appraise and check the validity of the dossier and confirm if the enterprise meets the conditions for enjoying corporate income tax incentives.
Apply preferential tax rates
Once approved, the enterprise will apply the preferential corporate income tax rate during the tax declaration process. Correctly declaring corporate income tax helps enterprises optimize benefits while still complying with the law.
Record keeping and retention of benefits
Enterprises need to keep relevant records to prove their eligibility for corporate income tax incentives when tax authorities conduct audits. Understanding the corporate income tax incentive process helps ensure long-term benefits and avoid legal disputes.
Illustrative example of conditions for enjoying corporate income tax incentives
Suppose ABC Company Limited was established in 2025, specializing in high-tech activities and implementing projects in Hoa Lac High-Tech Park, Hanoi. According to the provisions of the Law on Corporate Income Tax 2008 (amended and supplemented in 2020) and related guiding documents, this enterprise is eligible to meet many important conditions for enjoying preferential corporate income tax in order to enjoy preferential policies.
High-tech industries are on the State's priority list, ensuring that businesses meet the conditions for enjoying corporate income tax incentives for industries. The project is implemented in the High-Tech Park, where many investment incentive policies are concentrated, helping businesses meet the conditions for enjoying regional corporate income tax incentives. The project's capital scale and license are complete, completing the conditions for enjoying corporate income tax incentives in terms of documents and procedures, ensuring that businesses apply tax incentives in accordance with regulations.
On that basis, ABC Company Limited will be applied a preferential tax rate of 10% for 15 years, instead of the normal tax rate of 20%. In addition, in the initial phase, the enterprise will also enjoy a corporate income tax exemption policy for the first 4 years, followed by a 50% reduction in the tax payable for the next 9 years. This is a huge financial benefit, helping the company save costs, focus on reinvestment and improve competitiveness, while effectively taking advantage of the conditions for enjoying corporate income tax incentives prescribed by law.
This example shows that to enjoy CIT incentives, enterprises need to satisfy three factors at the same time: priority industry, project location and valid legal documents. If one factor is missing, such as locating the factory in an area that is not eligible for incentives or operating outside the encouraged industry, the benefits of CIT incentives will not apply. Therefore, carefully studying the legal framework and planning the investment from the beginning is key to optimizing tax costs and effectively taking advantage of CIT incentives.
Benefits of meeting the conditions for enjoying corporate income tax incentives
In order for businesses to make the most of preferential corporate income tax policies, it is important to clearly understand the benefits of meeting the conditions for enjoying preferential corporate income tax. This section will analyze in detail the practical benefits, from cost savings, enhancing reputation, limiting legal risks to supporting sustainable development strategies, helping businesses both optimize finances and strengthen their position in the market.
Reduce financial burden
When businesses meet the conditions for corporate income tax incentives and are eligible for corporate income tax exemption, reduction or preferential tax rates, they will save a significant amount of money. This is especially important in the initial investment phase, when capital outlay is large but profits are not yet stable. Excess financial resources from tax incentives can be reinvested in production, research and development, or business expansion.
Enhance prestige and position
Meeting the conditions for corporate income tax incentives helps businesses enjoy preferential policies, and at the same time affirms that they are operating in fields, locations or projects that the State encourages. This not only enhances reputation, increases competitiveness and consolidates position in the market, but also creates opportunities to access other supports such as incentives on land, credit or policies to encourage research and development.
Limit legal risks
When businesses fully meet the conditions for enjoying CIT incentives and their records are assessed by the tax authorities, they have a clear legal basis to prove the validity throughout the declaration and settlement process. As a result, the risk of being charged back or having disputes with the tax authorities will be minimized, creating peace of mind and stability in financial management.
Support sustainable development strategy
Enterprises that qualify for CIT incentives not only benefit from short-term financial benefits but also receive important support for their sustainable development strategy. Cash flow saved from tax incentives can be invested in technological innovation, improving product quality and expanding international markets. As a result, production and business activities become more efficient and at the same time in line with the country's long-term economic development orientation.
Risks and notes when applying conditions for enjoying corporate income tax incentives
When businesses apply for CIT incentives, they should pay special attention to the risks that may arise if they do not comply with legal regulations. Inadequacies in the dossier or incorrect determination of CIT incentives by industry, location or project scale may lead to the tax authority refusing to apply the incentives, causing significant financial losses.
In addition, applying for preferential corporate income tax conditions without clearly understanding the regulations on tax exemption and reduction periods or preferential tax rates may cause enterprises to make incorrect declarations, leading to the risk of being charged or fined for violations. Therefore, enterprises need to ensure complete legal documents and regularly update guidance documents related to preferential conditions. corporate income tax 2025 to avoid mistakes.
Another important note is that if businesses do not check carefully before investing, the application of CIT incentives may be affected by policy changes or new criteria issued by state agencies. Therefore, careful research and coordination with tax experts are necessary to maximize the benefits from the CIT incentives prescribed by law.
Conclude
Conditions for enjoying corporate income tax incentives play an important role in helping businesses optimize costs, improve competitiveness and consolidate their position in the market. Businesses that fully meet the conditions on industry, location and project not only enjoy tax exemption, reduction or incentives but also receive important support for long-term development strategies, including technology investment, product quality improvement and market expansion.
However, to effectively take advantage of the conditions for enjoying CIT incentives, enterprises need to fully comply with legal procedures, ensure transparent records and continuously update new regulations from tax authorities. This helps to minimize legal risks, avoid disputes and ensure long-term benefits.
For detailed instructions and fastest updates on conditions for enjoying corporate income tax incentives, businesses should follow and connect with MAN – Master Accountant NetworkWe provide in-depth knowledge, legal advice and tax optimization strategies, accompanying businesses in effectively applying tax incentives and sustainable development.
Contact information for corporate income tax services at MAN – Master Accountant Network
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