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.
