Vietnam Corporate Tax Guide (Thuế TNDN)

Vietnam's Corporate Income Tax (Thuế Thu Nhập Doanh Nghiệp) is set at a standard rate of 20%. Preferential rates of 10-15% apply to high-tech zones and industrial parks. Small enterprises with revenue under VND 20 billion pay 17%. Generous incentives include 4-year tax exemptions and 50% reductions for up to 9 years in priority sectors. All amounts in VND.

Vietnam's Thuế Thu Nhập Doanh Nghiệp (Corporate Income Tax, CIT) is governed by the Law on Corporate Income Tax (Luật Thuế TNDN). For related guidance, see our VAT Guide → and Personal Income Tax Guide →.

Standard Corporate Tax Rate

Standard rate: 20% on taxable income for all enterprises, effective since 2016. This applies to domestic companies and foreign-invested enterprises (FIEs) operating under normal conditions.
Small enterprise rate: 17% for enterprises with annual revenue below VND 20,000,000,000 (VND 20 billion) and with fewer than 200 employees, provided they are not benefiting from other CIT incentives.
Taxable income: Gross revenue less allowable expenses (cost of goods sold, operating expenses, depreciation, interest, salaries) plus non-deductible adjustments. Losses can be carried forward up to 5 consecutive years.

Preferential Rates for High-Tech Zones & Industrial Parks

10% rate: Applies to enterprises in high-tech zones (Khu Công Nghệ Cao), special economic zones, and those engaged in software production, renewable energy, and scientific research. The 10% rate may apply for 15 years.
15% rate: Applies to enterprises in industrial parks (Khu Công Nghiệp) and export processing zones that do not qualify for the 10% rate. This rate typically applies for 10 years.
Conditions: Preferential rates require meeting criteria on technology use, environmental standards, investment capital thresholds (typically VND 6 trillion or more for large projects), and employment creation.

R&D Incentives

R&D expense deduction: Enterprises may deduct actual R&D expenditures up to a certain limit. For enterprises in priority sectors, R&D costs can be deducted at up to 150% of actual expenses under specific incentive programmes.
Technology funds: Enterprises may set up technology development funds (Quỹ Phát Triển Khoa Học Công Nghệ) where contributions are deductible up to 10% of annual taxable income.

Tax Holidays — Exemption and Reduction

4-year exemption + 9-year 50% reduction: Available for new investment projects in eligible sectors (high technology, software, renewable energy, infrastructure, education, healthcare).
2-year exemption + 4-year 50% reduction: Available for smaller projects in industrial parks and export processing zones.
Large-scale projects: For investment projects with capital of VND 6 trillion or more, extended incentive periods may apply under special investment certificates.
Timing: Exemption and reduction periods begin from the first year the enterprise generates taxable income (or from the fourth year of revenue if no taxable income arises earlier).

Withholding Tax Rates

Foreign Contractor Withholding Tax (FCWT): Payments to foreign contractors for services rendered in Vietnam are subject to combined CIT and VAT withholding, typically ranging from 0.1% to 10% depending on the nature of the service (royalties, interest, technical services, etc.).
Dividends: Dividends paid by a Vietnamese company to foreign shareholders are subject to 0% CIT withholding (exempt).
Interest: Interest paid to foreign lenders is subject to 5% withholding tax (unless reduced by a tax treaty).

Filing and Compliance

Quarterly provisional returns: Filed within 30 days after the end of each quarter.
Annual finalisation: Filed within 90 days after the end of the fiscal year (by 31 March for calendar-year companies).
Transfer pricing: Vietnam has comprehensive transfer pricing rules requiring documentation for related-party transactions exceeding thresholds. The arm's length principle applies.