Accounting & Tax, Lasted News

Accounting service for Chinese tech firms in Vietnam

Posted on 22/10/202513/04/2026 by ASS

Accounting services for Chinese tech companies in Vietnam

1. Fast-Growing Chinese Tech Firms Need Smarter Accounting Services in Vietnam

The wave of Chinese technology companies shifting production and investment to Vietnam is taking place strongly. From electronics, hardware, software companies to technology startups, Vietnam has become an attractive destination thanks to its competitive labor costs, preferential tax policies and strategic position in the regional supply chain.

However, along with that expansion speed are challenges in financial management. As the scale of operations increases rapidly, companies face the challenge of controlling cash flow, standardizing accounting processes, and ensuring compliance with Vietnamese regulations, which are significantly different from the Chinese system. A smart, automated and transparent accounting system is the foundation for Chinese technology companies to maintain stability during their development in Vietnam.

2. Bridging the Gap Between Tech Expansion and Accounting Readiness

Most Chinese technology companies, when first investing in Vietnam, focus on production or R&D, paying little attention to building an internal accounting team with a good understanding of local laws. This leads to a fragmented financial system that lacks standardization, making it difficult to prepare tax and financial reports according to Vietnamese regulations.

In addition, differences in language, forms, tax declaration procedures and accounting standards (VAS vs CAS) put many businesses at risk of compliance. Even small errors in declaration or late submission of reports can lead to administrative fines, affecting the reputation of the business and long-term investment projects. Clearly, to operate effectively, Chinese technology companies need a reliable accounting partner who understands both the business language and the laws of the two countries.

3. Why Accounting Outsourcing and Payroll Services Ensure Agility and Compliance

Accounting services is a popular trend among FDI companies in Vietnam, especially in the technology industry. Instead of recruiting, training and maintaining an accounting department, enterprises can use the services of a professional unit – helping to save up to 40-60% of operating costs, while eliminating human resource risks.

Units specializing in providing accounting services such as Vina TPT not only process books, prepare financial reports, declare and settle taxes, but also integrate China payroll services, ensuring that salary calculation, personal income tax and social insurance deductions are performed correctly, transparently and bilingually. This is especially important for Chinese companies with multinational staff, requiring a payroll and tax calculation system that is both accurate and easy to understand.

As a result, businesses can focus resources on core activities – product, technology and market development, while accounting, tax and human resources are guaranteed to operate smoothly and in compliance with the law.

GET ADVICE ON ACCOUNTING SERVICES IN VIETNAM

4. Modern Accounting Services for Business Growth in the Tech Industry

In the digital age, accounting is no longer a manual task, but an important part of the operational strategy. Modern accounting solutions today apply cloud computing (cloud accounting), automate reporting, and standardize financial data according to VAS – IFRS to increase processing speed and minimize errors.

For technology businesses, this is even more important when it comes to tracking R&D costs, depreciation of technology assets, or calculating cost of goods in the supply chain. Digital accounting systems help businesses access financial data in real time, make faster decisions, and coordinate easily between branches in Vietnam – China.

In addition, standardizing financial reports according to international standards also helps businesses easily mobilize capital, cooperate in investment or IPO in the future, when financial transparency becomes a key factor of market confidence.

5. From Data to Decision: Turning Accounting Insights into Business Advantage

A good accounting system not only reflects the past but also forecasts the future. When properly analyzed and presented, financial data will become a powerful tool to support leaders in making strategic decisions.

Through indicators of cash flow, personnel cost ratio, investment efficiency and gross profit, businesses can identify risks early, allocate budgets reasonably and optimize operations. This is especially important for technology businesses – where changes occur rapidly and every financial decision directly affects competitiveness.

Therefore, accounting is not just a compliance task, but a strategic foundation to help Chinese technology businesses develop sustainably in Vietnam.

6. Vina TPT Accounting Service – Trusted Partner for Chinese Tech Firms in Vietnam

With more than 10 years of experience serving FDI companies, Vina TPT Accounting Services has become a strategic partner of many Chinese, Korean and Singaporean technology companies operating in Vietnam. We have a team of bilingual English-Vietnamese, who are deeply trained in financial regulations, Vietnamese tax laws and international reporting standards.

Vina TPT experts not only perform accurate operations but also provide strategic consulting: building a standardized financial system, internal control, optimizing costs and supporting businesses in converting to a digital accounting model.

Vina TPT is committed to providing comprehensive, transparent and absolutely confidential accounting services, helping Chinese technology enterprises confidently develop in Vietnam without worrying about legal or operational barriers.

Vina TPT Accounting Service for business – a solid financial foundation for the sustainable growth of Chinese technology enterprises in Vietnam.

BOOK A FREE CONSULTATION

Business Knowledge, Company Formation, HR News, Labor & Insurance Knowledge, Lasted News

Payroll & workforce management for Chinese electronics companies

Posted on 22/10/202510/04/2026 by ASS

Vina TPT Payroll Service consulting outsource payroll for Chinese companies

1. Growing Presence of Chinese Electronics Companies in Vietnam

As global supply chains restructure, Vietnam has become a top destination for Chinese electronics manufacturers – offering both large-scale manufacturing capacity and tax advantages and a young workforce. As manufacturing costs in China continue to rise, many Chinese electronics corporations and businesses have chosen Vietnam as their next destination to expand their factories and optimize their supply chains. Vietnam not only has a strategic geographical location, close to China, but also possesses a young workforce, competitive labor costs and many attractive free trade agreements (FTAs).

However, this rapid expansion also brings with it many challenges in human resource management and payroll processing. Electronic businesses need professional payroll services and workforce management systems to ensure legal compliance, maintain productivity and manage costs effectively. This is what makes the demand for payroll partners in Vietnam increasingly strong in the Chinese business community.

2. Payroll Challenges for Foreign Manufacturing Businesses in Vietnam

Vietnam has a complex legal and labor tax system, especially for foreign enterprises. Requirements for personal income tax (PIT), social insurance (SI), health insurance (HI) declarations and periodic labor reports make payroll management a multi-layered process. Even small errors in tax declarations or insurance payments can lead to administrative violations and audit risks.

In addition to legal factors, the operation of a non-synchronous payroll system between departments or factories makes it difficult for many enterprises to ensure accuracy, transparency and data security. In this context, professional payroll processing services become an inevitable choice that help Chinese enterprises minimize errors, save resources and focus on production goals.

TALK TO A PAYROLL EXPERT IN VIETNAM

3. Why Outsourced Payroll Services is the Smart Move for Chinese Manufacturers

Outsourcing payroll brings clear benefits to Chinese electronics manufacturers in Vietnam. Instead of setting up a complex human resource accounting department, businesses can entrust the entire process of calculating salaries, deducting taxes, and preparing reports to a specialized unit. This not only helps save fixed costs but also eliminates the risk of legal violations when Vietnam’s regulations change frequently.

Moreover, outsourcing payroll services helps businesses be more flexible when expanding production. As the number of employees increases rapidly in each stage, the service provider can adjust the management process accordingly, ensuring accuracy and timeliness. As a result, businesses do not need to invest in additional software infrastructure or internal personnel, while still maintaining consistency in salary and benefits management.

4. Key Features of Professional Payroll Processing Services in Vietnam

An effective payroll services needs to ensure that the entire process chain is operated accurately and transparently:

Collect and process timekeeping data from different departments and shifts.
Calculate salaries, allowances and bonuses according to each level, position and performance.
Deduct and declare personal income tax (PIT), along with social insurance (SI) according to regulations.
Issue payroll and transfer automatically on time, ensuring confidentiality.
Prepare periodic human resource and financial reports, serving internal auditing and management.

All these steps are performed on a secure, automated software platform and have the ability to flexibly integrate with the enterprise’s existing human resource management system.

In addition, professional service providers also:

Support timely tax declaration and payment, timely update of new regulations from tax authorities.
Labor policy and benefits consulting for Vietnamese employees and foreign workers.
Help Chinese electronics enterprises reduce administrative burden, while ensuring all human resources activities run smoothly and legally.

Once the payroll process is automated and transparent, the next step is to optimize the entire HR management system to operate more efficiently.

5. Integrating Workforce Management with Payroll Services for Smooth Operations

When a business implements workforce management integrated with payroll services, the entire internal operating system is connected into a seamless chain: from timekeeping, shift assignment, performance tracking to payroll and HR reporting. Synchronizing data between departments not only helps managers accurately track productivity, turnover rates or HR costs, but also supports the leadership team in making strategic decisions quickly and based on real data.

In addition, an integrated HR management system also contributes to improving the employee experience. When factors such as salary, bonus, allowances, benefits or insurance are processed transparently, accurately and on time, employees will feel secure, thereby increasing engagement and reducing turnover.

Especially for large-scale Chinese electronics factories with many rotating shifts, applying payroll solutions combined with modern human resource management technology helps standardize operating processes, limit manual errors and ensure strict compliance with labor regulations in Vietnam. This is the foundation for businesses to operate stably, optimize costs and build a sustainable workforce in the long term.

6. Partnering with Vina TPT Payroll Service for Chinese Companies in Vietnam

Vina TPT Payroll Service is a leading partner in the field of payroll services and workforce management for foreign enterprises in Vietnam, especially Chinese electronics companies. With more than 15 years of experience working with large-scale manufacturing corporations, Vina TPT has built a team of experts including human resources specialists, tax accountants and corporate lawyers with in-depth expertise and understanding of the Vietnamese legal system.

Vina TPT experts not only support salary calculation, tax and insurance declaration but also advise on human resource management strategies, build a system of salary and welfare policies suitable for Chinese corporate culture. Thanks to the combination of consulting capacity and modern management technology, Vina TPT helps businesses operate effectively, minimize costs and ensure compliance with Vietnamese laws throughout the operation process.

Contact Vina TPT Payroll Service now to get advice on payroll outsourcing solutions in Vietnam that are suitable for your electronics factory model!

BOOK A FREE CONSULTATION

Accounting & Tax, Business Knowledge, Company Formation, Lasted News, Legal News, Tax Knowledge

Business Established in Vietnam for Korean Electronics Manufacturers

Posted on 22/10/202510/04/2026 by ASS

Korean investor receiving business license in Vietnam

1. Vietnam – The Next Hub for Korean Electronics Manufacturers

As Korean companies continue to look for new growth opportunities across Asia, Vietnam has become one of the most attractive destinations for manufacturing expansion. With a favorable investment climate and a streamlined business license in Vietnam process for foreign enterprises, Vietnam offers Korean electronics manufacturers an ideal entry point to establish long-term operations. Supported by government incentives and a robust supply chain ecosystem, the country is quickly evolving into a major production hub in the region.

Major corporations such as Samsung, LG, and Hanwha have established large-scale production complexes in Bac Ninh, Thai Nguyen, and Hai Phong, regions that are rapidly becoming Vietnam’s key electronics hubs, supported by modern logistics networks, seaports, and government investment incentives.

Moreover, Vietnam’s active participation in free trade agreements such as CPTPP and EVFTA has unlocked significant tariff advantages, enhancing its competitiveness in the global supply chain. A young, skilled workforce combined with the nation’s push for digital transformation positions Vietnam as the “new manufacturing base” for the global electronics industry, much like South Korea’s industrial rise in the 1990s.

For Korean investors, establishing a business in Vietnam not only optimizes production costs but also opens access to ASEAN, China, and India markets. By obtaining the appropriate business license in Vietnam and leveraging professional strategic consulting, Korean electronics enterprises can streamline the enterprise registration process and transform Vietnam into a sustainable hub for manufacturing and innovation in the region.

2. Strategic Considerations Before Enterprise Registration in Vietnam

Before starting the registration process, investors need to carefully consider strategic factors.

Location is key: Northern regions such as Bac Ninh, Hai Phong, Thai Nguyen currently have many Korean electronics factories, convenient for connecting and sharing the supply chain.

Legal form also directly affects the right to operate and tax obligations. Enterprises can choose to establish a 100% foreign-owned company, joint venture with a Vietnamese partner or open a representative office.

In addition, the domestic supply chain in Vietnam is expanding rapidly, providing components and logistics services suitable for electronics production. Understanding these factors helps Korean enterprises optimize costs and limit risks when entering new markets.

Book a Free Consultation on Your Business License

3. Understanding Business License in Vietnam and Compliance for Electronics Companies

After being granted the Investment Registration Certificate (IRC) and Enterprise Registration Certificate (ERC), the electronics enterprise needs to apply for a business license appropriate to the field of operation.

The electronics manufacturing industry has its own requirements on environmental safety, technology standards and fire prevention.

The estimated time for completion is:

Document preparation: 1-2 weeks, depending on the volume of documents and the level of complexity.

IRC appraisal: 20-45 working days.
ERC issuance: 10-20 working days after IRC (or similar if the enterprise is a domestic enterprise).

In fact, if the enterprise cooperates with a reputable company registration service, it will help the enterprise quickly handle the consular legalization, translation and submission of documents, shortening the time and increasing the possibility of being licensed the first time.

4. How to Establish Business in Vietnam and Maintain Legal Compliance

To successfully establish a business in Vietnam, investors need to take the following important steps:

Step 1: Complete the application and apply for Business License in Vietnam IRC, ERC.

If the project has FDI capital, IRC is the first license allowing the investor to implement the project in Vietnam.

The required documents usually include:

Application for investment project implementation and Project proposal: stating the objectives, scale, location, investment capital, progress.
Proof of the investor’s financial capacity: bank statement, credit contract or collateral.
Legal documents of the investor:
- Individual: Notarized passport, consular legalization.
- Organization: Business registration certificate or equivalent document, consular legalization.
Project location: lease contract or land/office use rights certificate.

After the IRC is granted (or for 100% domestic-owned enterprises), the investor applies for an ERC – an official license for the enterprise to operate, and also the tax code of the company.

The ERC dossier usually includes:

Application for enterprise registration.
Company Charter: stipulates the organizational structure, powers of members/shareholders, capital ratio and management method.
List of members/shareholders and legal representatives: clearly state information, ownership ratio, voting rights.
Appointment decision and authorization letter (if any).
Capital contribution plan & financial evidence: bank statement or credit contract (especially important for large capital projects).

Step 2: Open a bank account and contribute charter capital within 90 days from the date of issuance of ERC.

Step 3: Register a tax code and set up an accounting system according to Vietnamese standards.

Step 4: Sign a labor contract, pay social insurance and manage payroll according to regulations.

5. Vina TPT Company Registration – Partnering with Korean Electronics Manufacturers for a Sustainable Setup

With more than a decade of experience in investment consulting and business registration services, Vina TPT has successfully assisted hundreds of FDI enterprises, including a large number of Korean electronics manufacturers in establishing and expanding their operations in Vietnam.

Our comprehensive service scope covers every stage of the process — from investment model consulting and legal documentation, to business license application in Vietnam, business license renewal, and regulatory compliance. This integrated approach ensures a smooth and compliant market entry for Korean investors.

Backed by a team of seasoned professionals with in-depth knowledge of Vietnam’s business, tax, and labor laws, Vina TPT provides end-to-end business license advisory and compliance support, helping investors confidently execute their projects while focusing on production growth and long-term success.

Partnering with Vina TPT Business Advisory and Company Registration means more than saving time and costs. It’s about having a trusted local partner who truly understands how to help Korean investors establish, operate, and sustain successful ventures in Vietnam.

Contact Vina TPT for consultation and support on business registration in Vietnam quickly, legally and at optimal cost.

BOOK A FREE CONSULTATION

Accounting & Tax, Lasted News, Tax Knowledge, Tax News

VAT Refund in Vietnam 2025: Updated Conditions and Eligible Cases Explained

Posted on 21/10/202507/04/2026 by ASS

1.What is a VAT Refund and When is a Business Entitled to it?

Value-Added Tax (VAT) refund refers to the process by which the State reimburses the amount of VAT that a business has either paid into the State budget or has not yet been deducted. When a business meets specific VAT refund conditions, it will be entitled to receive back the paid tax amount. The purpose of this policy is to prevent double taxation and to support businesses in investment or export activities.

Businesses are eligible for VAT refunds when they fall under the cases stipulated by law and meet the specific refund conditions applicable to their business type. Detailed information will be provided by Vina TPT in this article.

2.Cases Eligible for VAT Refund Under the Latest Regulations

No.	Case eligible for VAT refund	Main conditions	Legal basis
1	Enterprises engaged in export activities	Exported goods and services are subject to a 0% VAT rateInput VAT not yet credited is ≥ VND 300 million Must have valid customs documents and bank payment records	Article 13, VAT Law 2024
2	Investment projects not yet in operation	The investment project has been duly registeredNo revenue has been generated Input VAT not yet credited is ≥ VND 300 million	Article 13, VAT Law 2024
3	Enterprise split, merger, consolidation, dissolution, or termination of operation	The enterprise no longer operates to deduct input VATRemaining input VAT has not yet been credited	Article 13, Amended VAT Law 2008
4	Foreign organizations and individuals not conducting business in Vietnam	Possess valid tax payment documentsDo not conduct regular business activities in Vietnam	Circular 219/2013/TT-BTC, Article 18
5	Non-refundable ODA projects	Not using the state budget to pay VATPossess valid confirmation from the donor	VAT Law 2024, Circular 219
6	Humanitarian aid and emergency relief	Must have a decision approving the receipt of aidMust provide valid documents related to goods and input invoices	Circular 219/2013/TT-BTC
7	Đối tượng ngoại giao (miễn trừ)	Must have confirmation from the State Protocol DepartmentApplied under international treaties	Decree 134/2016/NĐ-CP
8	Authorized banks refunding VAT to foreigners on exit	Must have a goods management systemMust prepare a tax refund list according to the prescribed form	Circular 92/2019/TT-BTC
9	Based on decisions of competent authorities	Must have an official document/decision on tax refundApplied in special cases, subject to post-refund inspection	Decree 49/2022/NĐ-CP
10	According to international treaties effective in Vietnam	Must fall under subjects clearly stated in the treatyMust provide complete dossiers and supporting documents	Law on International Treaties, Law on VAT
11	Enterprises applying only the 5% VAT rate but not yet fully credited	Input VAT not yet credited ≥ 300 million VNDAfter 12 months or 4 consecutive quarters – applicable from 01/07/2025	Amended VAT Law 2024

VAT 2025 Update:: The 2024 Value Added Tax (VAT) Law will officially take effect from July 1, 2025.

3. Conditions for VAT refund

Depending on the type of enterprise, the conditions for VAT refund may vary

3.1. For domestic enterprises

Undeducted input VAT of at least VND 300 million

Có Valid e-invoices andnon-cash payments for invoices from VND 20 million

Not under tax enforcement measures or committing tax violations

Proper and timely tax declaration

3.2. For exporting enterprises

Export contracts, customs declarations, and bank payment documents

Continuous undeducted VAT for 3 periods or at least VND 300 million in one period

Exported goods must be cleared through customs

No fraudulent invoice transactions

Note: From 2025, under the amended VAT Law, exporters with undeducted VAT over VND 100 million in a period may apply for refund earlier, reducing waiting time.

3.3. For investment projects

Must have an Investment Registration Certificate

No revenue generated, but large undeducted VAT incurred

Separate bank account for the project

Separate accounting for project expenses

3.4. For foreign organizations/individuals

Valid proof of VAT paid in Vietnam

Non-regular business activities
Full compliance with tax declaration and refund procedures

Explore Our Tax Services

4. Cases Not Eligible for VAT Refund

(According to Circular 219/2013/TT-BTC, amended by Circular 130/2016/TT-BTC)

Investment projects with insufficient charter capital contribution
If, by the time of filing the VAT refund application (from July 1, 2016 onwards), the enterprise has not contributed the full registered charter capital it will not be eligible for refund. Instead, the uncredited input VAT will only be carried forward to the next CIT period.

Conditional investment sectors not meeting requirements under the Law on Investment
This includes cases where the enterprise has not obtained the necessary license, certificate of eligibility, or written approval from the competent authority.

Violation of conditions during project implementation
If, during the implementation, the project has its license or certificate revoked, or is found no longer to meet conditional business requirements, VAT refund will be suspended from that point onward.

Projects involving natural resource/mineral exploitation or production with ≥ 51% cost structure derived from natural resources
Applicable to projects licensed from July 1, 2016. The determination of the resource ratio is guided under Clause 23, Article 4 of Circular 219.

Imported goods for export but not exported through the prescribed customs area
VAT refund is not eligible if export procedures are not carried out at the designated customs office.

Exported goods not completing customs procedures at the customs-controlled area
In this case, VAT refund is also not eligible.

5. Key Notes on VAT Refund for Businesses

Do not consolidate VAT refund applications across multiple periods unless specifically guided by regulations.

Carefully check the payment timeline and payment conditions of each invoice.

For exporting enterprises, clearly keep records of customs declarations, bills of lading, and payment documents.

Always review the validity of input invoices – especially those from new suppliers.

6. Simplify Your VAT Refund with Vina TPT’s Professional Support

Navigating the VAT refund process in Vietnam can be complex, especially with changing tax regulations and documentation requirements. Vina TPT offers professional support to help businesses simplify every step, from eligibility assessment to refund application and follow-up with tax authorities. With deep expertise in Vietnamese tax law, our team ensures accuracy, compliance, and maximum refund value for your company. Partnering with Vina TPT means saving time, avoiding costly errors, and gaining peace of mind knowing your VAT refund is handled by trusted professionals. Let Vina TPT streamline your refund process efficiently and transparently.

Contact Vina TPT today to simplify your VAT refund process!

Discuss Your Case with Our Specialists

Accounting & Tax, Lasted News

Tax Incentive in Vietnam 2025: Comprehensive Guide to Optimize Profits under New CIT Law

Posted on 20/10/202509/04/2026 by ASS

Overview of corporate tax incentives in Vietnam 2025 under the new CIT Law

Tax Incentive: Comprehensive Guide to Corporate Tax Incentives in Vietnam 2025 – Optimize Profits with New CIT Law

With Vietnam’s Corporate Income Tax (CIT) Law 2025 officially in force from October 1, 2025, investors and CFOs are reassessing how to leverage tax incentives to strengthen profitability and compliance.

From 10 – 17% preferential CIT rates to multi-year tax holidays, the new regime gives both domestic and foreign companies more tools to optimize profits but only if you understand the rules.

In this guide, you’ll learn:

What a tax incentive is and why it matters for 2025
The main types of corporate tax incentives available in Vietnam
Key eligibility requirements and risk management
How to prepare and apply effectively with professional support

I. What is a Tax Incentive and Why Do Businesses Need to Know in 2025?

A tax incentive is a government policy designed to reduce or exempt tax liabilities for businesses that invest in targeted sectors or locations, with the aim of encouraging sustainable growth, innovation, and foreign direct investment (FDI).

Under the CIT Law 2025, tax incentives in Vietnam have evolved to:

Support the digital economy and green/clean industries.
Attract FDI via extended tax breaks and preferential schemes.
Motivate companies to reinvest profits inside Vietnam rather than only extracting them.

In today’s competitive ASEAN environment, understanding tax incentives isn’t optional, it’s a survival and growth strategy.

The standard corporate income tax rate remains 20 %. However, preferential rates are flexibly applied:

15 % for enterprises with annual revenue ≤ VND 3 billion
17 % for enterprises with revenue over VND 3 billion up to VND 50 billion
In specific cases (e.g., foreign-owned enterprises, cooperatives…) where cost/expense determination is difficult, a direct tax rate on revenue may apply

II. Key 2025 Updates: Major Types of Corporate Tax Incentives in Vietnam

1. Expanded deductible expenses under the 2025 CIT Law

Enterprises are now allowed to deduct additional expenses related to scientific research, digital transformation, testing new technologies, emission reduction, and community activities. This aims to create favorable conditions for businesses to pursue sustainable growth and innovation.

2. Incentives by sector, location, and investment project

Investment projects in high-tech sectors such as semiconductor production, AI, data centers, automobile manufacturing, and electronic device production are eligible for a preferential tax rate of 10% for up to 15 years.
Expansion projects applying clean technologies or contributing to environmental improvements may also qualify for tax exemptions or reductions if they meet specific requirements.

3. Clear incentive rules to avoid overlapping

If an enterprise falls under multiple incentive categories, it has the right to choose the most favorable one.
In cases where preferential provisions exist under specialized laws, the 2025 CIT Law will take precedence, except for specially regulated circumstances.

4. Loss carry-forward and Science & Technology Development Fund

Enterprises are allowed to carry forward losses continuously for up to 5 years.
They may allocate up to 20% of annual taxable income to establish a Science & Technology Development Fund, provided it is used for the correct purposes.

To explore how our consulting team can help you secure and optimize CIT incentives effectively, visit our dedicated Tax Consulting Service page for more details.

Explore Tax Consulting Services

III. Common Mistakes and How to Avoid – Plus Profit Optimization

Even with the best intentions, many businesses still miss out on their tax incentive benefits due to simple yet costly mistakes. Below are the most common pitfalls and how to fix them effectively.

Late or incomplete applications: One of the most frequent issues arises from delayed or missing documentation.
How to avoid: Ensure all required forms and supporting evidence are submitted before your project begins generating income to maintain eligibility.
Ignoring Permanent Establishment (PE) rules: With the 2025 update redefining PE status, overlooking this change can lead to unexpected tax liabilities.
How to avoid: Reassess your operational and contractual structure under the new PE definition to avoid misclassification.
Overlooking Double Taxation Treaties (DTT): Many foreign investors fail to leverage DTT benefits, leading to duplicate tax payments.
How to avoid: Coordinate early with professional consultants to utilize DTT relief and minimize cross-border tax exposure.
Unclear bookkeeping and expense tracking: Incomplete financial records can weaken your eligibility for incentives and invite compliance risks.
How to avoid: Implement digital accounting and reporting systems to ensure transparency and traceability.
No profit optimization strategy: Securing an incentive is only the first step, maximizing its impact requires strategic planning.
How to avoid: Partner with Vina TPT’s tax consultants to align your incentive structure with long-term financial goals and ROI optimization.

IV. What Should Businesses Prepare to Seize Opportunities from the 2025 CIT Law?

To stay ahead of regulatory changes and fully capitalize on new incentives, businesses must prepare proactively and strategically:

Review and assess impact: Conduct a detailed analysis of current financial performance, income, expenses, and business operations. Identify any necessary adjustments to comply with the new Corporate Income Tax (CIT) Law.
Understand eligibility criteria for incentives: Study the specific requirements for benefiting from the 2025 CIT incentives. Ensure your business meets all conditions before submitting any application.
Update accounting and financial systems: Make sure your accounting software and bookkeeping procedures comply with new regulations on revenue and expense recognition.
Train internal teams: Equip your finance and accounting personnel with updated knowledge through training sessions or specialized CIT 2025 courses.
Seek expert consultation: Engaging professional tax advisors is a smart move to avoid compliance risks and legally optimize your tax obligations.

Instead of navigating complex tax regulations on your own, you can connect directly with VINA TPT – trusted partner specializing in tax, accounting, and financial consulting ready to support your business in maximizing benefits under the 2025 CIT Law.

Conclusion

Tax incentives in Vietnam are more than just government policy, they’re a strategic growth lever for businesses preparing to thrive in the 2025 landscape.

Key takeaways:

Vietnam offers preferential CIT rates of 10 – 17% for up to 30 years.
Incentives now extend to green, digital, and financial sectors.
Compliance and timing remain critical to securing approval.

V. Why Partnering with Vina TPT Is the Most Effective Way to Leverage Tax Incentives?

The 2025 CIT incentives offer substantial opportunities to reduce tax burdens and enhance profits, but leveraging them effectively isn’t always simple. Businesses must interpret complex eligibility criteria, prepare accurate documentation, and meet strict compliance deadlines. Without expert guidance, it’s easy to miss optimal incentive schemes or face regulatory risks. That’s why partnering with a professional tax consulting firm becomes a strategic advantage.

Vina TPT Tax Service is a trusted advisor to hundreds of FDI and domestic enterprises, including manufacturing, technology, and service companies across Vietnam. Our team consists of senior tax consultants and legal experts with over 15 years of experience in tax planning, accounting compliance, and investment incentives.

We provide end-to-end support, including:

Assessing eligibility for tax incentives under the 2025 CIT Law
Structuring incentive applications for maximum tax savings
Preparing and submitting exemption/reduction dossiers
Designing long-term tax strategies aligned with business growth objectives
Conducting compliance audits and managing tax risks

With Vina TPT Tax Service, businesses are not only compliant but also positioned to optimize costs and secure sustainable profitability through legally maximized tax benefits.

Contact Vina TPT today and ensure your business fully capitalizes on Vietnam’s 2025 tax incentive opportunities.

Contact Vina TPT for Consultation

Accounting & Tax, Lasted News, Legal News

Tax Breaks in Vietnam 2025 | Key CIT, VAT & PIT Updates

Posted on 20/10/202525/02/2026 by SEN

1/ Overview of Tax Breaks and Their Importance for FDI Businesses

Tax breaks, also known as tax incentives, are government measures that reduce or exempt taxes to support businesses and individuals. These aim to boost investment, drive economic growth, and ease financial burdens. In Vietnam, tax breaks typically include exemptions, reduced rates, or deductible expenses. They help companies lower operating costs, boost net profits, and expand operations—especially amid post-pandemic recovery and global competition.

For foreign direct investment (FDI) businesses, tax breaks serve as both financial tools and strategic advantages to attract capital. Under the 2025 Corporate Income Tax Law (No. 67/2025/QH15), these policies align with international commitments like the 15% global minimum tax. This creates competitive edges, encourages reinvestment, and generates jobs in Vietnam.

Here’s a summary of key benefits for FDI businesses:

Reduced operating costs: Save 10-15% on tax obligations, improving cash flow.

Increased profits: Support expansion in production and research and development (R&D).

Talent attraction: PIT tax breaks lower taxes for foreign experts.

Sustainability support: Promote investments in green sectors and high-tech industries.

Explore the common tax breaks available in Vietnam to maximize benefits for your FDI enterprise.

2/ Common Types of Tax Breaks Currently Available

Vietnam’s government is refining tax policies to aid businesses during economic recovery, focusing on priority sectors like technology, green manufacturing, and exports. Starting in 2025, incentives apply to key taxes: Corporate Income Tax (CIT), Value-Added Tax (VAT), and Personal Income Tax (PIT). Each targets different groups and goals, helping FDI businesses cut financial loads and enhance competitiveness. Below is a comparison table:

Tax Type	Main Incentives	Applicable Entities	Duration
CIT	Exemption for 2-4 years, 50% reduction thereafter	FDI businesses in priority sectors	6-15 years
VAT	Reduction from 10% to 8%	Goods and services (exclusions apply)	Until December 31, 2026
PIT	Family deduction of VND 11 million/month (rising to VND 15.5 million/month from 2026)	Individuals and foreign experts as residents	Annual

2.1 Corporate Income Tax (CIT) Incentives Effective from October 1, 2025

Corporate Income Tax (CIT) directly impacts FDI business profits. From October 1, 2025, the 2025 CIT Law (No. 67/2025/QH15) expands incentives to attract high-quality investments. FDI enterprises starting new projects in high-tech fields, disadvantaged areas, or economic zones qualify for CIT exemptions for 2-4 initial years and a 50% reduction for the next 4-9 years. Preferential rates can drop to 10% for specially prioritized projects, 15% for small and medium enterprises, or 17% for investments in favored locations.

Incentives are categorized by:

Sector: High-tech, education, healthcare—exemption for 4 years, 50% reduction for 9 years.

Location: Disadvantaged areas—10% rate for 15 years.

Investment scale: Projects over EUR 750 million apply the 15% global minimum tax.

Summary table:

Incentive Type	Conditions	Duration	Reduction Level
Exemption	High-tech projects	4 years	100%
Rate reduction	Favored locations	15 years	10-17%
50% reduction	New investment projects	4-9 years	50%

Impact on FDI businesses:

Cost savings up to 20-30%, boosting net profits and reinvestment.

Encourages production growth and local job creation.

Example: An FDI company investing USD 100 million in a high-tech zone could save tens of millions in taxes over the first 10 years.

FDI enterprises should consult tax experts early to ensure proper reporting, legal workforce use, and eligibility maintenance. Compliance from the start avoids audits, penalties, and maximizes legal tax breaks.

Maximize Your Tax Incentives Today

2.2 Value-Added Tax (VAT) Incentives Effective from July 1, 2025

From July 1, 2025, Decree 174/2025/ND-CP reduces Value-Added Tax (VAT) from 10% to 8% until December 31, 2026, to stimulate consumption and support business recovery. This applies to most goods and services, excluding telecommunications, finance, and real estate. For FDI businesses, VAT tax breaks lower input costs, enhance cash flow, and strengthen export competitiveness.

Specific benefits:

Lower production costs: Imported materials face reduced VAT.

Export support: Exported goods at 0% VAT, plus 8% reduction on related services.

Example: An FDI firm exporting high-tech software enjoys full VAT exemption, saving 8-10% on costs.

Key procedures:

Declare VAT using new forms and electronic invoices.

Collect valid documents for deductions or refunds.

Note: Does not apply to specially taxed imports.

2.3 Personal Income Tax (PIT) Incentives

Personal Income Tax (PIT) continues to directly impact the income of workers, especially foreign experts in FDI enterprises.

From 2026, the personal allowance has been adjusted upwards to VND 15.5 million/month for the taxpayer themselves and VND 6.2 million/month for each dependent. This increase in allowances helps reduce tax obligations, improve disposable income, and enhance the attractiveness of the Vietnamese labor market.

At the same time, the PIT tax schedule has been simplified, reduced from 7 brackets to 5, with progressive tax rates.

PIT tax breaks for FDI businesses:

Reduced taxes for foreign experts: Residents (present in Vietnam 183+ days/year) get deductions, cutting personnel costs.

Exemptions for certain income: Stock transfers (if qualified) and foreign allowances.

Notes:

Update income regularly to prevent back taxes.

From 2026, updated policies will help FDI firms attract top global talent more easily.

Download Vietnam Tax Handbook For Investor

3/ Key Benefits: How Tax Breaks Help Save Costs and Expand Business

Tax breaks directly cut tax liabilities, increasing net profits and providing capital for FDI businesses to reinvest. Experts estimate savings of 10-20% on overall costs, enabling scale-up and global competition.

Analysis from three angles:

Financial: CIT and VAT reductions improve cash flow and reduce quarterly tax debts.

Strategic: Encourage investments in priority areas like green technology, enhancing brand value.

Human resources: PIT incentives lower salary costs, aiding recruitment of international and local experts.

In summary, tax breaks not only save costs but also unlock business growth, allowing FDI enterprises to contribute sustainably to Vietnam’s economy.

4/ Leveraging Tax Breaks with Vina TPT Tax Services

To fully utilize tax breaks, FDI businesses need professional guidance from firms like Vina TPT—a Vietnam-based expert in tax and accounting. With experience supporting hundreds of FDI clients, Vina TPT identifies suitable incentives, prepares compliant files, and handles timely declarations to avoid audits.

Standout advantages:

Expertise across industries, from manufacturing to technology.

Team knowledgeable in Vietnamese and international tax laws, with multilingual support.

Transparent reporting and competitive fees for cost optimization.

Support process:

Assess your business and identify applicable incentives.

Recommend tax plans and prepare registration documents.

Implement declarations and monitor policy updates.

Conduct regular reviews for ongoing compliance.

Tax breaks are essential for FDI businesses in Vietnam to optimize costs, boost profits, and expand investments—especially with 2025 updates like the 8% VAT reduction and CIT incentives for priority sectors. These changes support economic recovery and position Vietnam as an attractive destination for foreign investment.

Has your business maximized current tax incentives? Contact Vina TPT Tax Services today for a detailed analysis and tailored tax solutions—ensuring compliance and maximum savings!

Talk to a Tax Specialist

Lasted News, Company Formation

Business advisory for Singaporean investors establishing real estate businesses in Vietnam

Posted on 17/10/202509/04/2026 by ASS

alt="Business advisory services for Singaporean investors entering Vietnam’s real estate market"

1. Vietnam Real Estate: The Next Strategic Move for Singapore Investors

Over the past decade, Vietnam has become one of the most dynamic real estate markets in Asia, with rapid urbanization, high housing demand and a boom in industrial zones. In particular, Singapore is a leading financial, investment and business advisory center in the region, is considering Vietnam as a new “profit drop point” in its strategy to expand in Southeast Asia.

Singaporean investors see in Vietnam not only high profit potential, but also an opportunity to participate in a market that is changing strongly in terms of infrastructure, urban planning and Foreign Direct Investment attraction policies. Vietnam, with its affordable land prices, youthful workforce, and fast-growing transport infrastructure including airports, seaports, and metro lines, is emerging as a promising mirror of Singapore in its early development phase.

However, to realize the opportunity, investors need to clearly understand Vietnam’s legal framework, licensing process and tax mechanism – factors that can directly impact the profitability and safety of the project.

2. Before you invest: Understanding Vietnam’s Real Estate Landscape

Real estate in Vietnam is divided into many different types, including: industrial park development, housing projects, offices, resorts, trade – services and logistics. However, not all segments are open to foreign investors.

According to current regulations, investors can:

Contribute capital or buy shares in Vietnamese enterprises with existing real estate projects.
Establish a 100% foreign-owned company to develop projects if granted appropriate investment licenses.
Lease or sublease land in industrial parks, export processing zones, high-tech zones.

However, direct ownership of land in Vietnam is not allowed, because land is owned by the entire people and managed by the State. Investors can only use land through leasing or joint ventures with domestic partners.

In addition, the tax and regulatory systems related to real estate (VAT, CIT, transfer tax, land fees) also have significant differences compared to Singapore. Lack of understanding or misapplication of investment structures can lead to legal risks or reduced profit efficiency.

At this stage, partnering with a professional business advisory firm becomes essential. A qualified advisory team can help Singaporean investors navigate Vietnam’s complex real estate regulations, review investment structures, and ensure full compliance with local laws. With expert guidance on legal, financial, and tax aspects, investors can make informed decisions and minimize potential risks from the very beginning. Business Advisory

3. From Licensing to Launch: Key Steps in Establishing a Real Estate Business

The process of setting up a real estate business in Vietnam usually includes four main stages, requiring close coordination between investors, lawyers and management agencies:

Stage 1: Investment strategy consulting: Business Advisory

Investors need to clearly define their goals (developing new projects, acquiring, cooperating or operating), assess the legal feasibility of the model and choose a locality with appropriate policies.

Stage 2: Applying for an Investment Registration Certificate (IRC):

This is the first license that allows foreign-invested enterprises to carry out projects in Vietnam.

Documents typically required for IRC application include:

Application for investment project implementation & Project proposal: Stating objectives, scope, scale, investment capital, location, and implementation schedule.
Proof of investor’s financial capacity: Bank statements, audited financial reports, credit contracts, or collateral documents.
Legal documents of the investor:
For individuals: Notarized passport, consular legalization.
For organizations: Business Registration Certificate or equivalent, consular legalization.
Evidence of project location: Office/land lease agreement or land use rights certificate.
Power of attorney/authorization letter (if the investor appoints a third party to handle procedures).

Stage 3: Enterprise Establishment (ERC):

After having IRC, investors register to establish an enterprise, determine the type of company (LLC, joint stock or joint venture). Choosing the right model will greatly affect the capital mechanism, voting rights and profit distribution.

Stage 4: Compliance and project implementation:

Enterprises must complete tax, insurance, financial and environmental procedures before officially starting operations. This is also the stage where business advisory services become especially important to ensure that all activities are legal and effective.

All foreign documents must be consular legalized and officially translated into Vietnamese before submission. This step often prolongs the preparation process, so it is recommended that investors cooperate with a reliable company registration service to ensure accuracy and save time.

4. Tax Business Advisory: Maximizing Profitability through Smart Structuring

In real estate investment, tax optimization and smart business structure are decisive factors for net profit. Vietnam applies corporate income tax (CIT) at 20%, but there are tax incentives for investment projects in industrial parks, economic zones or investment-encouraged sectors (logistics, infrastructure, social housing, etc.).

In addition, if investors know how to structure capital flows and divide profits reasonably, they can avoid double taxation between Vietnam and Singapore thanks to the Double Taxation Avoidance Agreement (DTA) signed by the two countries. This is a great advantage, but it can only be maximized when there is a business tax advisory team that understands both tax systems.

Vina TPT experts often advise Singaporean investors about business advisory on multi-level legal entity structure strategies, cash flow allocation and legal profit transfer, to ensure optimal profits while still strictly complying with regulations in Vietnam.

OPTIMIZE YOUR TAX STRUCTURE NOW

5. Common Mistakes Foreign Real Estate Investors Should Avoid

Despite the wide-open opportunities, many foreign investors including large corporations, have encountered trouble when investing in Vietnamese real estate due to common mistakes. Some typical mistakes include:

Choosing the wrong investment model (for example, registering a trading company instead of a project development company, leading to restrictions on land use).
Not updating legal changes related to land, environment and construction.
Delaying in contributing capital as committed, violating the terms of the investment license.
Choosing a local partner who lacks capacity or is not transparent, leading to disputes.

An excellent business advisory service will help investors avoid these mistakes right from the start, thanks to legal review, partner assessment and risk control throughout the investment process.

6. Why Partnering with Vina TPT Business Advisory Makes a Difference

With over 15 years of experience in advising companies, Vina TPT Business Advisory Service’s team of legal, accounting and tax experts has worked with hundreds of international enterprises in the real estate, infrastructure and manufacturing sectors.

We provide end-to-end solutions, from developing investment strategies, applying for IRC/ERC licenses, advising on tax structures, to compliance management and post-investment operational accounting. Vina TPT’s strength lies in combining a deep understanding of Vietnamese law with international operational standards, helping Singaporean investors ensure compliance while optimizing profits.

If you are looking for a business consulting partner with market knowledge and the ability to handle everything from legal to tax, Vina TPT Business Advisory is the reliable bridge between Singapore and Vietnam.

BOOK A FREE CONSULTATION

Labor & Insurance Knowledge, Lasted News

HR outsourcing for Singapore logistics businesses in Vietnam

Posted on 17/10/202517/04/2026 by ASS

HR outsourcing

1. The Growing Footprint of Singapore Logistics in Vietnam

In the regional investment landscape, Vietnam is becoming a strategic destination for many Singaporean logistics companies. Along with the boom in e-commerce, the demand for cold supply chains, distribution centers and cross-border transportation has led to an unprecedented wave of investment in Singapore’s industrial parks, seaports and logistics centers in Vietnam.

However, when businesses begin to expand their operations in Vietnam, one of the biggest challenges is not technology or infrastructure, but the human factor. The Vietnamese labor market is significantly different from Singapore’s – from human resource structure, working habits to legal regulations. This makes setting up an internal human resource system for foreign businesses complicated, especially in the early stages of investment or expansion.

2. The HR Puzzle in Vietnam’s Logistics Sector

Vietnam’s logistics industry is a dynamic sector, but also full of challenges in human resource management. The labor force is abundant but there is a shortage of specialized skills, especially in positions such as coordinators, warehouse operators, container drivers or refrigerated transport personnel. In addition, the nature of shift work and the requirement to operate 24/7 requires businesses to maintain a flexible staff while still ensuring compliance with regulations on working hours, leave, contracts and social insurance.

Not only that, the Vietnamese legal system on labor, personal income tax and compulsory insurance has detailed and regularly updated regulations. If foreign businesses do not fully understand, they can easily make administrative mistakes such as false declarations, late insurance payments or lack of valid documents. In addition, the high turnover rate among unskilled workers also causes businesses to spend a lot of money on recruitment and continuous training.

The cultural differences in management between Singapore, which emphasizes efficiency and discipline – and Vietnam, which emphasizes flexibility and humanity – also create a significant gap. That is why many Singaporean logistics enterprises choose HR outsourcing solutions to optimize processes and minimize operational risks.

3. How HR Outsourcing Simplifies Cross-Border Operations

HR outsourcing is becoming an inevitable trend for Singaporean businesses when expanding to Vietnam. Instead of establishing an internal HR department, businesses can entrust the entire recruitment process, contract management, timekeeping, payroll and insurance implementation to a professional unit.

This solution brings many obvious benefits. First of all, businesses significantly save fixed costs related to recruitment, training and maintaining the HR department. All operations are performed by experts with knowledge of Vietnamese law, ensuring absolute compliance with labor and tax regulations. Next, the payroll calculation and personnel records management process is fully automated and digitized, helping to eliminate manual errors and limit audit and reporting risks.

In particular, for logistics businesses operating in many provinces and cities, HR outsourcing helps synchronize the multi-location human resource management process, ensuring that all shifts, payrolls and contracts are centrally controlled. This not only saves management time but also increases overall operational efficiency.

SEE HOW IT WORKS

4. Tailored HR Solutions for Logistics Operations

Understanding the specifics of the logistics industry, Vina TPT HR Service has designed specialized HR outsourcing services packages to meet the actual needs of Singaporean businesses in Vietnam. Services include recruitment, initial training, signing and managing labor contracts, timekeeping, payroll calculation and personal income tax declaration for employees.

We especially focus on key positions such as drivers, coordinators, warehouse operators and shift supervisors, helping businesses maintain a stable team throughout the operation process. In addition, Vina TPT’s electronic payroll management system allows payroll processing at multiple branches at the same time, ensuring accuracy, transparency and timeliness.

In addition, the service also supports onboarding procedures for new employees, setting up welfare and social insurance regimes in accordance with regulations, as well as consulting on human resource strategies suitable for each expansion stage. Thanks to that, businesses can fully focus on core logistics activities – instead of being distracted by heavy administrative procedures.

5. Vina TPT: Local Expertise for Regional Expansion

With a team of Human Resource experts, lawyers and accountants with 10 to 20 years of experience, having worked with more than 200 FDI enterprises in Vietnam, Vina TPT HR Service is not only a service provider but also a strategic companion of Singaporean enterprises.

We understand the differences between the Vietnamese and Singaporean labor systems, thereby helping customers establish flexible human resource processes while still strictly complying with local laws. Our outsourced HR services ensure that businesses always operate stably, costs are optimized and legal risks are minimized.

In the context of Vietnam emerging as a new logistics hub of Southeast Asia, choosing a capable and experienced HR outsourcing partner like Vina TPT will be a solid foundation for Singaporean enterprises to accelerate sustainable development.

Vina TPT HR Service – Specialized human resource solutions, helping Singapore logistics businesses operate effectively and expand steadily in Vietnam.

BOOK A FREE CONSULTATION

Company Formation, HR News, Lasted News

Cost Comparison: In-House HR vs Outsourced Payroll for FDI in Vietnam

Posted on 09/10/202506/04/2026 by ASS

Vina TPT HR outsourcing Vietnam solution for foreign businesses

1. HR Management Challenges for FDI Companies in Vietnam

As FDI companies expand their operations and investments in Vietnam, HR Outsourcing Vietnam becomes an increasingly relevant solution as one of the biggest challenges is hiring employees and building an internal HR department. The labor system in Vietnam has many specific regulations such as social insurance, health insurance, personal income tax law and regulations on labor contracts. For newly established businesses in Vietnam, understanding this entire legal framework often takes a lot of time, resources and is prone to errors.

In addition, cultural differences and language barriers also create additional pressure when businesses want to recruit the right people, manage benefits and set up Human Resources Management Challenges for FDI Companies in Vietnam

As FDI companies expand their operations and investments in Vietnam, HR Outsourcing Vietnam becomes an increasingly relevant solution as one of the biggest challenges is hiring employees and building an internal Human Resources department. The labor system in Vietnam has many specific regulations such as social insurance, health insurance, personal income tax law and regulations on labor contracts. For newly established businesses in Vietnam, understanding this entire legal framework often takes a lot of time, resources and is prone to errors.

In addition, cultural differences and language barriers also create additional pressure when businesses want to recruit the right people, manage benefits and set up Hiring Relation systems. This is the reason why more and more FDI companies choose HR & payroll service as a safer, more economical and effective solution than building an in-house HR team from the beginning.

2. Understanding In-House HR Costs

When maintaining an in-house HR department, FDI enterprises must consider many hidden and fixed costs. First is the recruitment cost, including advertising, headhunter fees, interviews, and training. Next is the salary and benefits for the Human Resources team, which are often higher due to the demand for personnel with legal knowledge and bilingual skills. Moreover, for every in-house employee, enterprises must also pay compulsory social insurance, health insurance, and unemployment insurance, which together amount to approximately 20.5% of the employee’s monthly salary.

In addition, enterprises need to invest in HR & payroll software systems, employee records management, timekeeping, and payroll calculation. Operating costs such as office space, equipment, and the management time required from the board of directors also cannot be overlooked. Particularly for businesses in Vietnam during the early stages, this total cost structure can easily exceed the planned budget, creating financial pressure and reducing operational flexibility.

Therefore, outsourcing or applying HR & payroll service is becoming a more effective alternative, helping FDI enterprises balance finances and focus on business development.

DISCOVER HR OUTSOURCING VIETNAM BENEFITS

3. Breakdown of Outsourced HR & Payroll Service Expenses

When choosing HR & payroll service, businesses only need to pay service fee based on the number of employees, instead of bearing the entire fixed cost of in-house HR. HR outsourcing service usually includes many items: drafting labor contracts, registering for social insurance, managing employee records, processing monthly payroll, declaring and paying personal income tax. Some advanced packages also support legal advice, updating changes in labor laws, and providing periodic human resources reports. Compared to maintaining an entire HR department, outsourcing allows businesses to predict and control costs more clearly. Especially for companies that have just opened a business in Vietnam, Vina TPT Hiring Employees Service brings advantages thanks to its flexible model, all-inclusive services, and transparent costs, ensuring that businesses only pay for what is necessary without incurring unexpected fees.

4. Key Factors Beyond Cost

Although cost is an important factor, when comparing in-house HR and outsourced service, FDI enterprises need to consider more long-term values. One of them is compliance with Vietnamese labor laws, a factor that helps avoid legal risks and protect brand reputation. Next is flexibility, allowing enterprises to easily expand or reduce the size of their staff without having to recruit or fire them complicatedly. In addition, outsourcing also brings operational efficiency, helping the management focus resources on business development strategies in Vietnam instead of handling administrative procedures.

With HR & payroll service, enterprises have access to experts who understand the market, laws and local HR processes. This is a factor that Vina TPT Hiring Employees Service is providing outstandingly, bringing peace of mind to FDI when managing human resources in Vietnam.

5. Cost-Benefit Analysis: In-House vs Outsourcing

If analyzed as a whole, we can see a clear difference between maintaining an in-house HR department and using HR outsourcing combined with HR & payroll service:

HR in-house:

Enterprises have the ability to directly control their human resources and internal processes.
However, the costs of recruitment, training, salaries, benefits and maintaining the management system are very high.
The risk of errors in compliance with labor laws and tax regulations often occurs, especially for FDI enterprises that have just started doing business in Vietnam.

Outsourced HR & payroll service:

Provides a cost-saving solution, easily scalable according to the size of the workforce.
Reduces costs by 30–50% compared to maintaining in-house HR while still ensuring transparency and effective management.
Minimizes legal and administrative risks, while ensuring compliance with labor and tax regulations in Vietnam.
Creating transparent human resource data, supporting businesses in long-term development planning.

Looking at both costs and benefits, outsourcing HR is not only a short-term option but also an optimal strategy for FDI companies that want to develop sustainably in Vietnam.

6. Vina TPT Hiring Employees Service Advantage

Vina TPT Hiring Employees Service is specially designed for FDI enterprises that want to build and operate their business in Vietnam effectively. With a team of experts knowledgeable in labor, insurance and tax laws, Vina TPT provides a complete HR & payroll service solution including: recruitment, contract drafting, salary and bonus management, social insurance, and personal income tax declaration. The big difference of Vina TPT is the ability to advise on human resource strategies in parallel with legal compliance, ensuring that businesses both save costs and operate transparently. Instead of spending months building in-house HR, businesses can quickly deploy an optimal HR system in just a few days. This is the advantage that helps FDI companies confidently expand their scale, flexibly manage human resources and develop sustainably in the Vietnamese market.

Vina TPT’s HR & payroll service helps businesses save costs, reduce risks and focus on business development in Vietnam. Contact now!

BOOK A FREE CONSULTATION

Accounting & Tax, Lasted News

Updated 2025 | Corporate Income Tax Rates in Vietnam

Posted on 08/10/202521/01/2026 by ASS

Updated 2025 Corporate Income Tax Regulations in Vietnam

Since October 1, 2025, under the provisions of Law No. 67/2025/QH15, the Corporate Income Tax (CIT) rates will be officially adjusted and applied nationwide.

Businesses should pay attention to the changes in CIT rates, including the standard rate of 20%, higher tax rates for the natural resource extraction sector, and new CIT incentives for small and medium-sized enterprises (SMEs) as well as businesses operating in priority sectors.

The following article provides a comprehensive update on corporate income tax rates, eligible taxpayers, and major tax incentives applicable in 2025.

1. What is Corporate Income Tax (CIT)?

Corporate Income Tax (CIT) is a direct tax levied on the remaining profit after deducting all allowable expenses incurred during business operations.

It is a significant source of revenue for the state budget and serves as an indicator of a company’s operational efficiency during the accounting period.

2. Who is Subject to Corporate Income Tax (CIT)?

Corporate Income Tax (CIT) is a mandatory financial obligation for organizations engaged in profit-generating business activities.

Entities required to pay Corporate Income Tax include:

Enterprises established and operating in Vietnam
Foreign enterprises with a permanent establishment in Vietnam
Foreign enterprises without a permanent establishment in Vietnam but having income arising in Vietnam
Other enterprises established under Vietnamese law with business activities and income generation
Public service units with business activities
According to the 2025 CIT law effective from October 1, 2025, digital platforms and e-commerce entities without establishments in Vietnam but providing services domestically must also declare and pay CIT.

3. Corporate Income Tax Rates

According to current regulations, Corporate Income Tax (CIT) rates for 2025 are applied as follows:

3.1. Standard CIT Rate 20%

Applicable to most enterprises established under Vietnamese law, engaged in the production and business of goods and services.

This is the standard tax rate applied to most enterprises not eligible for tax incentives.

3.2. CIT Rate 32% – 50%

Tax rates from 32% to 50% apply to exploration and exploitation of oil and gas activities in Vietnam.

The specific tax rate will be determined based on:

Location of extraction
Extraction conditions
Reserve volume

3.3. CIT Rate 25% – 50%

Rates from 25% to 50% apply to oil and gas exploration, prospecting, and extraction (depending on location, extraction conditions, and reserve volume, rates will vary).

3.4. CIT Rate 50%

Applied to exploration and extraction of rare resources:

Platinum
Gold
Silver
Tin
Vonfram (wolfram)
Antimon
Gemstones
Rare earth
Other rare and precious resources as prescribed by law

3.5. CIT Rate 40%

Applied to mines with 70% or more of allocated area located in socio-economically difficult regions.

3.6. Preferential CIT Rates

Preferential rate 15%: applied to enterprises with annual total revenue not exceeding 3 billion VND.

Preferential rate 17%: applied to enterprises with annual total revenue over 3 billion VND up to 50 billion VND.

Revenue for eligibility determination is based on the total revenue of the immediately preceding CIT taxable period.

A 10% CIT rate for 10–15 years is for:

New investment projects in high-tech fields
Enterprises in socio-economically disadvantaged areas
Enterprises in high-tech zones and high-tech agricultural application zones

4. Partnering with Vina TPT for Reliable Accounting and Corporate Tax Consulting Services

With over 15 years of experience and deep expertise in Vietnamese accounting and tax regulations, Vina TPT is a trusted partner for businesses seeking reliable support in managing their Corporate Income Tax obligations. Our team of seasoned professionals provides end-to-end services covering both Quarterly Corporate Income Tax (CIT) reporting and Annual CIT Finalization, ensuring full compliance with current laws and minimizing the risk of penalties or reporting errors.

As Corporate Income Tax regulations in Vietnam continue to evolve, it is essential for companies to stay updated and implement accurate tax strategies. Vina TPT’s comprehensive approach includes document review, deadline tracking, and strategic consulting tailored to your business size and sector. Whether you are a local enterprise or a foreign-invested company, our services are designed to help your business navigates Vietnam’s tax environment with confidence, optimize tax efficiency, and support your long-term financial goals.

Contact Vina TPT today for trusted full-service accounting and tax solutions in Vietnam.

BOOK A FREE CONSULTATION