On December 15, 2025, the Government issued Decree No. 320/2025/ND-CP detailing a number of articles and measures for the implementation of the Law on Corporate Income Tax (CIT). Key highlights include:
1. Corporate Income Tax (CIT) Rates:
- The standard CIT rate is 20%, except for specific cases and cases eligible for the preferential rates below;
- A tax rate of 15% applies to enterprises with a total revenue in the preceding year of not more than VND 03 billion.
- A tax rate of 17% applies to enterprises with a total revenue in the preceding year of over VND 03 billion but not more than VND 50 billion.
Total revenue used as the basis for determining eligibility for the 15% and 17% tax rates mentioned above includes: total revenue from sales of goods and provision of services (excluding revenue deductions), financial revenue, and other income as per the enterprise’s Income Statement (Statement of Profit or Loss).
2. Deductible Expenses when Determining Taxable Income:
- Expenses for the purchase of goods, services, and other payments of VND 5 million or more per transaction must be supported by non-cash payment vouchers;
- Interest expenses on loans for production and business purposes from entities that are not credit institutions must NOT exceed the limit prescribed in the Civil Code (20%);
- Disposal/destruction costs for raw materials, supplies, and components no longer needed; disposal costs for assets no longer needed; and disposal costs for scrap and spoiled products generated during production are recognized as deductible expenses. Disposal costs include the remaining book value of the items and expenses related to the disposal activity;
- Research and development costs (market research, product/service research for new development); investment costs for new product/service development projects that are unsuccessful or suspended; and costs incurred by bidders for unsuccessful bidding activities are recognized as deductible expenses;
- Output VAT on goods given as gifts to customers without charge is recognized as a deductible expense, etc.
