Running a business in Vietnam sounds exciting until tax rules start knocking like an uninvited auditor. You need clarity on the corporate tax rate in Vietnam, filing rules, and compliance steps before things get messy. Many companies struggle with changing regulations, multiple filings, and unclear incentives.
This guide explains how the corporate tax system in Vietnam works, including rates, deadlines, filings, and incentives. It also shows how you can stay compliant without burning hours on paperwork or risking penalties.
What Is the Corporate Tax Rate in Vietnam?
When you ask, “What is the corporate tax rate in Vietnam?”, the short answer is that the headline corporate income tax rate in Vietnam is 20% for most companies. This standard rate applies to resident enterprises and permanent establishments of foreign companies, except where preferential rates or special sector rates apply.
Under the new Corporate Income Tax Law 2025, microenterprises with annual revenues below VND 3 billion are subject to a 15% corporate tax rate. Those with revenue over the threshold and between VND 50 billion and 100 billion pay a slightly higher preference rate of 17%. Oil, gas, and certain mineral extraction projects face higher corporate income tax rates ranging from 25% to 50%, depending on the contract and resource.
Breakdown of Corporate Income Tax Components
At a high level, Vietnam’s corporate tax system is built around a single nationwide corporate income tax, supplemented by sector-specific rates, foreign contractor withholding, and indirect taxes such as VAT and environmental levies. You do not face separate city or provincial corporate income taxes, but you should factor in special rules if you operate in extractive industries or pay foreign contractors from Vietnam.
| Component | Key details | Impact on business |
| Corporate income tax (CIT) | National tax on profits of resident enterprises and permanent establishments; standard 20 percent, with 15 percent and 17 percent rates for smaller revenue bands under Law 67/2025/QH15. | The main driver of corporation tax in Vietnam, shaping after-tax profitability and investment planning. |
| Sector-specific CIT for oil, gas, minerals | CIT rates from 25 percent to 50 percent for petroleum and certain mineral exploration and exploitation projects. | Materially higher tax cost for extractive projects; demands careful contract and project modelling. |
| Foreign contractor tax (FCT) on services, interest, royalties | Withholding regime combining CIT and VAT on payments to foreign suppliers without a permanent establishment, with typical effective CIT withholding from 0.1% to 10% depending on activity. | Increases cost of cross-border services and financing; you must gross-up contracts or manage treaty relief. |
| Value-added tax (VAT) | Indirect tax on most goods and services; standard rate 10% (Currently reduced to 8% for certain services and goods until 31 December 2026) | Affects pricing and cash flow; input VAT credits depend on proper invoicing and timely filings. |
| Local fees and environmental taxes | Business license fees are scheduled to be abolished from January 1, 2026, while environmental protection taxes apply to specific products and activities. | Reduced fixed fee burden from 2026, but sector-specific levies still matter for fuel, plastics, and certain projects. |
Corporate Tax Filing Requirements in Vietnam
Corporate tax filing in Vietnam is now predominantly electronic, with companies required to register, file, and pay through the General Department of Taxation’s e-portal or authorized banking channels. For you, the practical challenge is less about understanding the headline corporate tax rate in Vietnam and more about keeping the right documents, filing on time, and aligning accounting and tax numbers.
Registration and ongoing profile
- Register for a tax code with the local tax office when establishing the company or permanent establishment.
- Update registration details when you change legal address, charter capital, or business lines.
- Maintain your chosen fiscal year consistently, whether you follow the calendar year or an approved alternative 12-month period.
Returns and documents
- File an annual CIT finalization return within 90 days of the end of your tax year, using Form 03/TNDN under Circular 80/2021/TT-BTC.
- Attach audited financial statements and detailed schedules of taxable income, adjustments, and carried-forward losses.
- Retain supporting invoices, contracts, and transfer pricing documentation as required, since tax audits in Vietnam are common and document-driven.
Payments, e-filing, and penalties
- Make provisional quarterly CIT payments and settle any remaining balance with your annual return; both filing and payment deadlines align.
- Use e-banking or integrated payment gateways linked to the tax e-portal; cash payments are now limited to special cases.
- Late filings can trigger administrative fines from about VND 8 million to VND 25 million, while late payments accrue daily interest at 0.03 percent.
A structured approach to company tax filing in Vietnam helps you avoid firefighting at year-end and reduces the risk of back-dated assessments or blocked profit remittances.
Tax Year and Payment Deadlines in Vietnam
Vietnam’s standard corporate tax year follows the calendar year from January 1 to December 31, but you can register an alternative 12-month fiscal year beginning on the first day of any quarter. Once chosen and approved, the fiscal year applies for both accounting and tax, and changes require fresh approval from the tax authorities.
- Provisional corporate income tax must be paid quarterly, no later than the 30th day of the first month of the following quarter.
- The total corporate income tax you provisionally pay over all four quarters must be at least 80% of the final annual corporate tax liability, or interest applies.
- The annual corporate tax return and any top-up payment are due by the last day of the third month after year-end, typically March 31 for calendar-year taxpayers.
- Dissolution, merger, or de-registration events trigger a shortened filing deadline, usually 45 days from the event date.
Managing corporate tax payment deadlines in Vietnam is a forecasting exercise: if profits jump late in the year and your provisional payments lag, you may face non-deductible interest even when you eventually pay in full.
Withholding Taxes and Other Business Taxes in Vietnam
If you make cross-border payments from Vietnam, you need to understand how withholding tax and foreign contractor tax affect interest, royalties, and service fees, since this often matters more than the basic corporate tax rate in Vietnam. For domestic transactions, your main additional exposure is VAT and, in some sectors, taxes on capital gains that are simply treated as regular corporate income.
| Tax type | Typical rate | Notes |
| Dividends | 0 percent WHT on dividends paid to corporate shareholders; 5 percent WHT for dividends paid to individuals. | Corporate dividends are usually free of withholding, but they come from after-tax profits on which corporate income tax has already been paid. |
| Interest | 5 percent WHT on interest paid to non-resident companies and individuals. | Often creditable under double tax treaties; foreign lenders factor this into pricing or request gross-up clauses. |
| Royalties | 10 percent WHT on royalties paid to non-resident companies; 5 percent for non-resident individuals. | Applies to IP licensing, software, and technical know-how; may be reduced under applicable DTTs. |
| Capital gains on shares and assets | Taxed as corporate income, typically at 20 percent on net gain for companies; 0.1 percent on gross for certain securities transfers. | You need to structure share deals carefully; in many cases, the Vietnamese buyer withholds and remits the tax on behalf of the seller. |
| Value-added tax (VAT) | 10 percent standard rate; 0 percent on eligible exports and international services; exemptions for selected activities. | VAT is not a profit tax but drives pricing, invoicing, and cash-flow timing, especially for exporters and capital-intensive projects. |
Corporate Tax Incentives, Deductions, and Exemptions
Vietnam uses corporate tax incentives to attract investment into high-tech, R&D, clean energy, and economically disadvantaged areas, which can significantly change your effective corporate income tax rate in Vietnam. If you work in these sectors, the question is not only “what is the corporate tax rate in Vietnam?” but also “which preferential regime can I qualify for?”
- Preferential rates of 10% for up to 15 years apply to high-tech, software, renewable energy, and certain large-scale manufacturing and infrastructure projects.
- Rates of 15% or 17% apply to qualifying projects in encouraged industries or locations, and to smaller enterprises meeting revenue thresholds.
- Many priority projects receive “tax holidays”, such as exemptions for 4 years, followed by 50% reductions for 9 years.
To make the most of Vietnam’s corporate tax incentives, you should secure your eligibility during the investment licensing phase and monitor whether your actual activities and headcount continue to meet the conditions each year.
International Tax Treaties and Double Taxation Avoidance
Vietnam has signed double taxation treaties with around 80 countries and territories, including Singapore, Hong Kong, most EU states, and many key investment partners. For you, these double tax treaties can reduce withholding tax on interest and royalties and help you avoid being taxed twice on the same income.
- Dividends usually receive no treaty reduction because Vietnam’s domestic law already applies a 0 percent withholding tax rate to corporate recipients.
- Relief from double taxation generally works through either the exemption of Vietnam-source income in the residence country or a foreign tax credit for Vietnam tax paid.
- Many Vietnam DTTs reduce interest withholding or even exempt certain government-related interest, while royalties are typically capped at reduced treaty rates.
- To apply treaty benefits, foreign recipients must provide a valid tax residence certificate and follow the procedural rules in Circular 80/2021/TT-BTC before the relevant tax payment deadlines.
Double tax treaties complement the domestic corporate tax system in Vietnam and can materially reduce your overall tax friction on cross-border payments and group structures.
How Commenda Supports Corporate Tax Compliance in Vietnam
Managing corporate tax payment deadlines Vietnam imposes, keeping track of incentives, and staying current with new laws like the 2025 Corporate Income Tax Law can stretch even experienced in-house teams. Commenda provides corporate tax compliance services that Vietnam businesses can plug into, covering registration, routine company tax filing in Vietnam, and coordination with your auditors and finance team. Beyond filings, Commenda can help you assess whether your projects qualify for preferential rates, manage foreign contractor tax exposure, and align structuring with Vietnam’s broad treaty network.
Ready to get expert help with tax compliance in Vietnam? Book a free demo with Commenda and see how one platform can centralize your registrations, filings, and monitoring across Vietnam and every market you operate in.
