The 2025 corporate income tax incentive is an important policy to help businesses reduce tax burdens, optimize costs and promote investment in priority areas. According to the Ministry of Finance's report, in 2024, the reduction of VAT 2% according to Resolution No. 110/2023/QH15 in the first 5 months of 2024 has supported businesses and people by about 19,488 billion VND. Although there are no specific figures on the number of enterprises enjoying the corporate income tax reduction policy, this figure shows a large level of support from tax policy in 2024.
In 2025, with the newly issued policies, many businesses in high-tech industries, green manufacturing, clean agriculture... will enjoy a tax rate reduction from 20% to 10-15%, and will be exempted from tax in the first years of operation if they meet the conditions. This article will provide a detailed look at the 2025 corporate income tax incentive policies, conditions of application, tax calculation, tax payment deadline and points to note to help businesses maximize the benefits of this incentive.
What is corporate income tax incentive?
Corporate income tax incentives is a policy issued by the State to reduce the burden of corporate income tax for enterprises that meet certain conditions. The goal of these incentives is to encourage investment, promote the development of priority industries, improve technological capacity, protect the environment and support start-up businesses. Thereby, enterprises can save operating costs, optimize profits and increase competitiveness in domestic and international markets.
Offers corporate income tax This can take many different forms, including reducing tax rates for businesses in encouraged sectors, exempting taxes for the first few years of operation for new businesses, or applying tax incentives for specific projects such as clean agriculture, renewable energy, and scientific and technological research.
With these policies, the 2025 CIT incentives not only bring direct financial benefits but also play a strategic role in promoting sustainable business growth and contributing to the country's economic development.
Legal basis of corporate income tax incentives 2025
The 2025 Corporate Income Tax Incentive Policy has major changes, mainly based on the Law corporate income tax 2025 Newly issued. Below is a summary of legal documents that have come into effect or have been issued as a basis for applying the latest corporate income tax regulations and incentives:
| Text type | Document Name / Document Number | Main content / Meaning related to Corporate Income Tax 2025 |
| Law (New Basis) | Law on Corporate Income Tax 2025 (Law No. 67/2025/QH15) | Basic documents stipulate:
|
| Law (Old Base/Reference) | Law on Corporate Income Tax 2008 (Law No. 14/2008/QH12) and the amended Laws | Previous legal basis, used for reference, compared with changes in Law 2025 (e.g. previous basic tax rates, old regulations on incentives). |
| Circular (Reference) | Circular 96/2015/TT-BTC | Detailed guidance on accounting records, vouchers, invoices, cost determination, etc. of the previous period. General principles and regulations on records and procedures currently in use are still referenced until there is a Circular detailing the Law 2025. |
| Relevant Laws | Tax Administration Law No. 38/2019/QH14, Investment Law No. 61/2020/QH14 | Prescribes principles of tax management, declaration and payment (Tax Management Law) and the basis for determining projects, industries and locations eligible for investment incentives (Investment Law) as the basis for enjoying corporate income tax incentives. |
Corporate income tax incentives 2025
The 2025 Corporate Income Tax Incentive Policies are detailed in the 2025 Corporate Income Tax Law (Law No. 67/2025/QH15), marking groundbreaking changes to support small businesses, encourage investment in high technology, and promote sustainable development. Below is a summary of the outstanding 2025 Corporate Income Tax Incentive Policies:
2025 Corporate Income Tax Incentives with Tiered Tax Rates for Small and Medium Enterprises
The 2025 corporate income tax incentive based on tiered tax rates is an important new point in the 2025 Corporate Income Tax Law (Law No. 67/2025/QH15). This policy is designed to reduce tax obligations for small and medium-sized enterprises based on the scale of revenue in the previous year. Below is a detailed summary of preferential tax rates based on revenue:
| Preferential corporate income tax rate | Conditions apply to total Revenue of the previous year | Note |
| 15% | Total revenue of the previous year is not more than 3 billion VND | Special preferential tax rates for micro-enterprises. |
| 17% | Total revenue of consecutive years from over 3 billion VND to 50 billion VND | Preferential tax rates for small and medium enterprises. |
| 20% | Total revenue of consecutive years over 50 billion VND (or cases not eligible for incentives) | General tax rate. |
Corporate income tax incentives 2025 by sector and location
New investment projects in especially encouraged industries, occupations or locations will continue to enjoy 2025 Corporate Income Tax incentives in both tax rates and time:
- Preferential tax rate 10% applies for 15 years (can be extended to a maximum of 30 years) for income from projects in particularly difficult areas, economic zones, high-tech zones, or strategic high-tech industries.
- Tax exemption and reduction period: Apply corporate income tax exemption for up to 4 years and 50% reduction of payable tax for up to 9 subsequent years for new investment projects that meet incentive conditions.
2025 Corporate Income Tax Incentives for Strategic Technology and Innovation
The new law expands the scope of 2025 corporate income tax incentives to key digital economy and high-tech sectors:
- Additional incentives for income from research, development, design, production, packaging, testing of semiconductor chip products, construction of artificial intelligence (AI) data centers, and key digital technology products.
- Incentives include: Preferential tax rate of 10% for 15 years; At the same time, corporate income tax exemption for 4 years and reduction of 50% in tax payable for the next 9 years.
- Innovative startups are exempted from corporate income tax for 2 years and have a 50% reduction in tax payable for the next 4 years.
Green 2025 corporate income tax incentives and income tax exemption
The 2025 corporate income tax incentive policy strongly encourages investment in environmental protection and sustainable development by:
- Exemption from corporate income tax on income from the first transfer of emission reduction certificates (carbon credits) after issuance.
- Exemption from corporate income tax on income from interest and first transfer of green bonds after issuance.
How to calculate corporate income tax 2025 with incentives
Calculating corporate income tax 2025 to apply incentives must follow the correct steps from determining taxable income, taxable income to applying preferential tax rates. This guide will help tax declaration become accurate, while making the most of incentives according to legal regulations.
Corporate income tax calculation formula
Basic corporate income tax is calculated according to the formula:
|
Corporate income tax payable = Taxable income x Preferential tax rate |
In there:
- Taxable income: Is taxable income after deducting reasonable expenses, incentives and losses from previous years.
- Preferential tax rate: The applicable % tax rate is based on the industry, location or encouraged project, and may be lower than 20%.
- Corporate Income Tax Payable: The amount of corporate income tax payable to the tax authority after applying incentives.
Steps to calculate corporate income tax
To determine the amount of corporate income tax payable for 2025, businesses need to follow basic steps. This process helps businesses apply tax incentives correctly, ensuring accuracy and legality in declaration. Below are detailed step-by-step instructions from determining taxable income, calculating taxable income to applying preferential tax rates according to the provisions of the Corporate Income Tax Law 2025.
First, it is necessary to determine taxable income. This is the actual revenue in the tax period after deducting reasonable deductible expenses and non-taxable income.
Next, determine taxable income. This is the taxable income after deducting incentives, exemptions and losses carried forward from previous years, helping to accurately determine the basis for applying the tax rate.
Finally, preferential tax rates apply. The tax rate is determined based on the industry, investment location or project encouraged under the Corporate Income Tax Law 2025. In some special cases, enterprises may be subject to a lower tax rate than 15%.
Illustrative example of corporate income tax calculation
Suppose enterprise A operates in the high-tech sector, which is in the group of industries that enjoy tax incentives. This is a sector that the state encourages investment in, so the enterprise will be subject to preferential tax rates according to the provisions of the Corporate Income Tax Law 2025.
In 2025, the total revenue of the enterprise is 10 billion VND. From this total revenue, the enterprise is allowed to deduct reasonable expenses related to production and business activities, in this case 4 billion VND. After deducting expenses, the remaining pre-tax profit of the enterprise is 6 billion VND. This is the income that will be used as the basis for calculating taxes.
The entire profit of 6 billion VND is determined as preferential income, because the enterprise belongs to a preferential industry. The preferential tax rate applied in this case is 10%, lower than the standard tax rate of 20% for normal enterprises.
| Corporate income tax payable = taxable income X preferential tax rate = 6 billion VND X 10% = 600 million VND |
Thus, after applying tax incentives, enterprise A will have to pay VND 600 million in corporate income tax for 2025. This method helps enterprises take full advantage of the incentives allowed by law, while ensuring that tax obligations are performed correctly and legally.
Corporate income tax payment deadline 2025
In order for businesses to fulfill their corporate income tax obligations on time and avoid penalties, it is very important to clearly understand the tax payment deadlines for each quarter. The table below summarizes the details of the time when tax obligations arise and the deadline for paying corporate income tax in 2025, including cases of extension.
| Quarter | Time of tax liability | Tax payment deadline as prescribed | Tax payment deadline after extension (if any) |
| I | January, February, March | 30/4/2025 | 05/05/2025 (because April 30 is a holiday) |
| II | April, May, June | 30/7/2025 | December 31, 2025 (according to Decree 82/2025/ND-CP) |
| III | July, August, September | 30/10/2025 | No renewal |
| IV | October, November, December | 30/1/2026 | No renewal |
Points to note when applying corporate income tax incentives 2025
When applying corporate income tax incentives, businesses need to understand important regulations to ensure their rights and avoid the risk of tax arrears. The table below summarizes the points to note, including industry, location, types of income eligible for incentives, accounting methods and application time.
| Important content | Detailed explanation |
| Preferential industries | Only applicable to businesses operating in fields encouraged by the state, such as high technology, high-tech agriculture, education, healthcare, environment, renewable energy, etc. |
| Preferential location | Applicable to investment projects in difficult or particularly difficult socio-economic areas according to Government regulations. |
| New investment project | Income from new investment projects is eligible for tax incentives; old or transferred projects are not eligible. |
| Separate accounting | Enterprises must separately account for income and expenses of preferential activities to correctly determine taxable income. |
| Not applicable to some incomes | Income from the transfer of real estate, shares, securities, or financial income is not eligible for preferential treatment. |
| Time of application | Incentives are only applicable during the specified period for each industry or project; businesses need to monitor to ensure timely application. |
| Tax declaration and payment | Enterprises must declare and pay taxes fully and on time; otherwise, they will be subject to additional collection and penalties. |
Compare 2025 corporate income tax incentives with previous years
To help businesses clearly understand the differences between corporate income tax incentives in 2025 and previous years, the table below summarizes important changes in industries, tax rates, applicable locations, non-incentive income types and new incentive policies.
This is an important basis to help businesses plan taxes and make the most of legal incentives.
| Comparison content | Before 2025 | 2025 |
| Preferential industries | High technology, high-tech agriculture, healthcare, education, environment, renewable energy | Retain old industries, add innovation projects and green technology |
| Preferential tax rate | 10–17% depending on industry and location | 10–15% for encouraged occupations; some special projects may enjoy a lower rate than 10% |
| Applicable area | Difficult or especially difficult areas | Remain the same, some areas are expanded to encourage green investment and innovation |
| Promotion period | Maximum 15 years for new investment projects | Still keep the maximum of 15 years, add preferential regulations for innovation projects |
| Non-preferred income types | Transfer of real estate, shares, securities | Remain unchanged, financial income is still not eligible for incentives |
| Accounting conditions | Income and expenses for incentive activities must be accounted for separately. | Remain unchanged, requiring businesses to account separately to determine taxable income |
| New incentives | Do not have | Additional incentives for income from digital technology activities, innovation and green investment |
Conclude
The 2025 corporate income tax incentives offer great opportunities for businesses to reduce tax obligations, optimize cash flow and increase competitiveness in the market. Understanding the regulations, applicable conditions and tax calculation is an important step to make the most of these incentives.
However, to properly apply the 2025 CIT incentives and avoid the risk of being overcharged or fined, businesses need to have an accurate declaration and accounting strategy. This is the reason why many businesses choose to work with professional tax consulting services.
In MAN – Master Accountant Network, we are proud to be the leading prestigious unit in the field of corporate income tax declaration and consulting. We help businesses apply the 2025 corporate income tax incentives accurately, optimize benefits and save maximum costs. Come to MAN today for detailed advice and experience professional services, helping your business take advantage of every opportunity from the 2025 corporate income tax incentives.
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
