Corporate Income Tax Law 2025

Summary

The Corporate Income Tax Law 2025 (No. 67/2025/QH15) marks a significant milestone in Vietnam's tax system, aiming to adapt to the global digital economy trend and provide strong support for small and medium enterprises (SMEs).

One of the breakthrough changes is the expansion of taxable subjects to include cross-border e-commerce activities. Foreign digital platforms and suppliers without a permanent establishment in Vietnam are now required to pay CIT on income generated in Vietnam, ensuring a fair competitive environment.

Additionally, the Law introduces practical preferential tax rates. While the standard tax rate remains at 20%, enterprises with total annual revenue of less than 3 billion VND will enjoy a 15% rate. Enterprises with revenue between 3 billion VND and 50 billion VND will be subject to a 17% rate.

Furthermore, the new Law adjusts regulations on investment incentives, tightening measures against base erosion and profit shifting (BEPS), aligning with international practices and the Global Minimum Tax mechanism.