Corporate income tax (CIT)

The normal CIT is 20%. CIT incentives shall be applied to areas and sectors where the investment is encouraged. 

Investment projects in geographical areas with extremely difficult socio-economic conditions, economic zones, hi-tech parks, in sectors with special investment encouragement such as high-tech application, infrastructure development, environment, software production, renewable energy and biotechnology development, etc. shall be entitled to the CIT rate of 10% for 15 years (During this period, the CIT shall also be exempted for up to 4 years and reduced by 50% for up to 9 subsequent years).

Investment projects in the fields of agricultural and aquacultural product processing in areas with difficult socio-economic conditions, preservation of agricultural and aquacultural products and foods, etc. shall be entitled the CIT rate of 10% for the entire project term.

In addition, the preferential CIT rates of 15% and 17% shall be applicable to projects of investment encouragement and projects in areas with difficult socio-economic conditions. They shall also be entitled to the CIT exemption for 2 to 4 years and 50% reduction in 4 subsequent years.

Carrying losses forward: Loss-suffering enterprises may carry forward their losses to the subsequent year; those losses may be included in taxed income. The time limit for carrying forward losses is five years, counting from the year following the year the losses arise.

Vietnam maps showing administrative units, sources of critical raw materials and industrial zones locations.