The 2025 Corporate Income Tax Reduction officially takes effect from October 1, 2025, opening up important opportunities to help businesses optimize tax costs and increase competitiveness in the market. The new policy clearly stipulates the tax reduction level, application period and specific conditions that businesses need to understand to enjoy incentives. This article will provide detailed information on tax reduction levels, tax exemption periods and application instructions, helping businesses proactively plan their finances, reduce risks and maximize benefits from the 2025 corporate income tax policy.
The role of corporate income tax
Corporate Income Tax is one of the important tools of the State in managing and regulating the economy. This is a tax levied directly on taxable income of enterprises, helping the Government ensure a stable source of revenue for the state budget. Corporate income tax is not only a source of financial revenue but also plays a role in orienting the development of priority industries and sectors.
For businesses, corporate income tax helps businesses determine financial obligations, thereby making reasonable production and business plans and optimizing profits. Compliance with legal tax obligations also helps improve reputation and transparency in financial management.
Besides, corporate income tax 2025 It is also a tool to encourage investment in priority areas such as high technology, renewable energy or strategic industries. At the same time, tax incentives, tax reductions or loss transfer regulations create opportunities for businesses to expand production and improve competitiveness in the market.
Legal basis for corporate income tax reduction in 2025
In order for businesses to have a firm grasp of the legal basis for corporate income tax reduction in 2025, it is necessary to refer to important documents issued by the National Assembly and the Government. These regulations clearly define the subjects of application, tax reduction levels, time and conditions for enjoying incentives. Correctly understanding legal documents helps businesses declare and pay taxes accurately, effectively take advantage of incentives, and reduce the risk of violating the law.
The summary table below presents relevant laws, decrees and resolutions that serve as the legal basis for the application of the 2025 CIT reduction.
| Text type | Document Name / Document Number | Main content / Meaning related to corporate income tax reduction 2025 |
| Law | Law on Corporate Income Tax 2025 (Law No. 67/2025/QH15) | Basic document regulating corporate income tax, including regulations on taxpayers, taxable income, tax-exempt income, tax bases, tax calculation methods, and tax incentives and reductions for businesses. Effective from October 1, 2025. |
| Decree | Decree No. 82/2025/ND-CP | Guidance on extending and reducing taxes in 2025, including corporate income tax and VAT, to support businesses facing difficulties due to epidemics and natural disasters, reduce financial pressure and maintain production and business. |
| Resolution | Resolution No. 68-NQ/TW of 2025 | Regulations on corporate income tax exemption for small and medium enterprises in the first 3 years of establishment, support for start-up businesses and encourage investment in priority sectors. |
Time to apply corporate income tax reduction 2025
The application period for the 2025 corporate income tax reduction is specified in detail in the 2025 Corporate Income Tax Law (Law No. 67/2025/QH15). Determining the exact tax exemption and tax reduction year helps organizations and investment projects to plan their finances effectively, take advantage of incentives legally and ensure compliance with current legal regulations. The application period is flexible depending on the type of project, the income generation situation and the incentive certificates granted to the enterprise.
Time of application for new investment projects
The tax exemption and reduction period is calculated from the first year the enterprise has taxable income from the investment project. If the project does not generate taxable income in the first three years, the tax exemption and reduction period will be calculated from the fourth year from the year the project commences operation.
Time of application for high-tech enterprises and special projects
For enterprises granted a Certificate of High-Tech Application Project, a Certificate of High-Tech Enterprise, a Certificate of High-Tech Agricultural Enterprise, or a Certificate of Science and Technology Enterprise, the tax exemption or reduction period is calculated from the year the certificate is granted or the first year of income generation, if the enterprise has no income at the time of certificate issuance.
Time applicable to expansion investment projects
For expansion investment projects, tax incentives are applied based on the remaining time of the operating project. If the additional income from the expansion project meets the conditions, the tax exemption and reduction period is equal to the time applied to the new project in the same industry, profession, and preferential location.
Corporate income tax reduction level 2025
The 2025 corporate income tax reduction is specified in detail in the 2025 Corporate Income Tax Law (Law No. 67/2025/QH15), including new investment projects, expansion projects and other special cases. Information on the number of tax exemption years, tax reduction period and applicable conditions helps businesses determine the right benefits, optimize tax obligations and plan financial effectively, while fully complying with current legal regulations.
| Category | Detailed content |
| Tax exemption and reduction for new projects |
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| Tax exemption and other project tax reduction |
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| Tax incentives for expansion investment projects |
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| Other tax exemptions and reductions |
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Subjects applying for corporate income tax reduction 2025
To correctly determine the rights and obligations regarding tax incentives, it is extremely important to clearly understand the subjects that are eligible for corporate income tax reduction in 2025. The table below summarizes in detail the groups of subjects according to the Corporate Income Tax Law 2025 (Law No. 67/2025/QH15), along with the time and form of incentives, helping organizations and businesses to make accurate financial plans, comply with legal regulations and optimize tax incentives.
| Applicable objects | Tax incentives | Time of application |
| Small and medium enterprises | Corporate income tax exemption | 02 consecutive years from the date of taxable income |
| Innovative startups | Exemption from corporate income tax and reduction of 50% in tax payable | Tax exemption for 02 years, tax reduction of 50% for the next 04 years |
| Enterprises converted from business households | Corporate income tax exemption | 02 consecutive years from the date of taxable income |
| Enterprises employing many female workers | Reduce corporate income tax by paying extra for female workers | Applicable to additional expenses during the tax year |
| Enterprises employing many ethnic minority workers | Reduce corporate income tax by paying extra for ethnic minority workers | Applicable to additional expenses during the tax year |
| Enterprises carry out technology transfer and provide public services in difficult areas. | Reduce 50% corporate income tax calculated on income from technology or service transfer | According to the income from technology transfer, public career services |
Impact of corporate income tax reduction 2025
The 2025 corporate income tax reduction will have many important impacts on businesses and the economy. Firstly, the tax reduction will help businesses improve cash flow, increase their ability to invest in production expansion, technological innovation and improve their competitiveness in the market. When tax costs are reduced, businesses can allocate capital to develop strategic projects and promote sustainable growth.
Second, the 2025 corporate income tax reduction creates incentives for small and medium-sized enterprises, innovative startups and investment projects in priority areas such as high technology, renewable energy or industries that need to be encouraged. This contributes to promoting innovation, increasing labor productivity and expanding employment opportunities for workers.
Third, the tax reduction policy also has a positive impact on the investment environment, attracting domestic and foreign capital, while improving transparency and stability in tax administration. Enterprises that clearly understand their rights and properly apply incentives will minimize the risk of errors, late payment and tax penalties, thereby ensuring effective compliance with the law.
Comparison of corporate income tax reduction in 2025 with previous years
Comparing the 2025 corporate income tax reduction with previous years helps businesses and accountants clearly understand the important changes in the subjects of application, exemption period, scope of incentives and how to calculate the application period. The table below summarizes in detail the differences between the 2008 Corporate Income Tax Law (Law No. 14/2008/QH12) and the 2025 Corporate Income Tax Law (Law No. 67/2025/QH15), helping to monitor and apply the new tax policy accurately, transparently and effectively.
| Comparison content | Previous regulations (Corporate Income Tax Law 2008) | Corporate Income Tax Reduction 2025 (Law No. 67/2025/QH15) |
| Applicable objects | Mainly small businesses, some industries, new investment projects | Expansion: small businesses, innovative startups, high tech, renewable energy, scale-up projects, capacity expansion |
| Tax-free period | 2 – 4 years | Maximum 4-year tax exemption, maximum 50% tax reduction for the next 9 years |
| Scope of offer | Industry and locality restrictions | Broader scope, including multiple priority areas and expansion projects |
| How to calculate the applicable time | Not detailed, easy to confuse | Clear instructions, calculated from the year of taxable income or from the year of issuance of the Certificate/Confirmation of Incentive |
| Impact | Help businesses reduce taxes but limit scale and field | Increase investment motivation, enhance competitiveness, improve cash flow, optimize business benefits |
Instructions for businesses to declare and apply corporate income tax reduction 2025
To make the most of the 2025 corporate income tax reduction policy, businesses need to follow the correct procedures from reviewing conditions, preparing documents to declaring and monitoring throughout the tax payment process. Properly applying corporate income tax reduction not only helps businesses save costs but also avoid legal risks.
Identify subjects and conditions for corporate income tax reduction
Enterprises need to determine whether they are eligible for incentives under the 2025 Corporate Income Tax Law (No. 67/2025/QH15). The basis for approval is based on the industry, field, area of operation as well as the scale of the project. If qualified, the enterprise is exempted from tax for up to 4 years and continues to enjoy the corporate income tax reduction policy 50% for the following 5-9 years. For expansion investment projects, separate accounting of additional income is a mandatory factor to apply corporate income tax reduction.
Prepare documents and records for corporate income tax reduction declaration
The dossier includes the new corporate income tax return form, financial statements and accompanying appendices. Enterprises need to supplement tax incentive certificates, such as high-tech certificates or investment in difficult areas, to apply for corporate income tax reduction. At the same time, documents proving expenses incurred related to incentives such as expenses for female workers, ethnic minority workers or technology transfer must also be fully retained.
Implement declaration to apply corporate income tax reduction
Enterprises can submit their applications online via the General Department of Taxation's electronic information portal or directly at the tax authority. The declaration must clearly show taxable income, pre-incentive tax amount, exempted tax amount and remaining tax amount. Transparent and accurate declaration is a condition for successful application of the 2025 corporate income tax reduction policy.
Timing of corporate income tax reduction application and monitoring
The corporate income tax exemption period is calculated from the first year of taxable income. If there is no income in the first three years, the calculation will be postponed to the fourth year from the time of revenue generation. Enterprises need to closely monitor this roadmap to ensure proper application of corporate income tax reduction policy. Annual financial planning should be linked to the exemption process to optimize efficiency and maximize benefits.
Frequently asked questions about corporate income tax reduction 2025
Which businesses are eligible for corporate income tax reduction in 2025?
According to the Corporate Income Tax Law 2025 (No. 67/2025/QH15), enterprises in preferential sectors, operating in economically disadvantaged areas or having new investment projects or expansion investments will be considered for corporate income tax reduction policies. In addition, enterprises employing many female workers, ethnic minority workers or carrying out technology transfer may also receive tax reductions.
How long does the 2025 corporate income tax exemption and reduction last?
Normally, enterprises are exempted from tax for up to 4 years and have their tax payable reduced by 50% for the next 5 to 9 years, depending on the investment sector and location. Some special cases can have the application period extended up to 1.5 times compared to the normal preferential level.
What is the specific corporate income tax reduction in 2025?
The common incentive level is to exempt all taxes in the initial period and then reduce 50% of the tax payable in the following years. For high-tech projects, high-tech agriculture or supporting industrial product manufacturing, the incentive level may be higher depending on the decision of the competent authority.
What documents do businesses need to prepare to receive corporate income tax reduction in 2025?
The dossier includes the new corporate income tax declaration form, financial statements, tax calculation appendix and documents proving the right to enjoy incentives such as investment certificates, high-tech certificates or confirmation of projects in difficult areas. Preparing complete dossiers is a mandatory condition to apply for corporate income tax reduction.
If a business does not generate taxable income in the first 3 years, will the corporate income tax reduction incentive be lost?
No. In this case, the tax exemption period will be calculated from the fourth year from the date of revenue generation. This provision helps ensure the rights of enterprises when the project needs time for investment and operation before generating profit.
Conclude
The 2025 corporate income tax reduction is not only a financial support policy for businesses, but also contributes to creating motivation for investment, technological innovation and production expansion. The correct and timely application of this policy helps businesses make the most of the benefits prescribed by law, while reducing the cost burden in a period of economic fluctuations.
However, to enjoy the 2025 corporate income tax reduction incentive, businesses need to clearly understand the conditions, prepare complete documents and declare correctly. This is an important step, because just a small error in declaration or accounting, businesses can be denied the policy or be subject to unnecessary administrative penalties.
With the complexity of the tax law system, it is important to work with professional consulting firms such as MAN – Master Accountant Network will help businesses feel more secure. MAN not only supports reviewing preferential conditions, preparing documents and accurate declarations, but also accompanies in building a long-term tax optimization strategy. Let MAN become a trusted partner, helping your business take full advantage of the benefits of the 2025 corporate income tax reduction policy.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
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- Email: man@man.net.vn
