How corporate tax works in Vietnam
Vietnam companies are generally subject to 20% corporate income tax on taxable profits. Vietnamese-incorporated business organisations are taxed on worldwide income, and foreign organisations earning Vietnam-sourced income without a local entity can be subject to foreign contractor tax.
The new CIT law applies from the 2025 tax year onward and introduces 15% and 17% rates for qualifying smaller enterprises, updates incentive rules and keeps higher rates for oil, gas and certain mineral resource projects. Vietnam also applies global minimum tax rules for large in-scope multinational groups.
Tax rates at a glance
- Standard CIT
- 20%Standard
- Qualifying small enterprises
- 15% / 17%
- Preferential CIT
- 10% / 15% / 17%
- Oil and gas CIT
- 25% - 50%
- Certain mineral resources
- 40% - 50%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
ManufacturersExport businessesRegional operatorsLocal foundersTechnology projects
Watch out for
- CIT finalisation is generally due by the last day of the third month after the financial year end, with quarterly provisional payments due by the 30th day of the next quarter.
- Foreign contractor tax can combine deemed CIT and VAT withholding on payments to non-residents, with rates depending on the type of payment.
- Vietnam transfer pricing, e-commerce, VAT, social insurance and global minimum tax rules can matter as much as the headline 20% CIT rate.
Frequently asked questions
What is the Vietnam corporate tax rate?
The standard Vietnam corporate income tax rate is 20%. Qualifying smaller enterprises may access 15% or 17% rates, while oil, gas and certain mineral resource projects can face higher rates.
Does Vietnam have tax incentives?
Yes. Preferential CIT rates, exemptions and reductions can apply to selected sectors, locations and investment projects, but the 2025 CIT law changed incentive scope and conditions.
Do foreign companies pay tax in Vietnam?
Foreign companies without a Vietnamese legal entity can still be taxed on Vietnam-sourced income through foreign contractor tax, which may include both CIT and VAT withholding components.