Pursuant to Clause 3, Article 7 of the Law on Corporate Income Tax 2025, it is stipulated as follows:
Enterprises with many production and business activities during the tax calculation period will have taxable income from production and business activities as the total income of all production and business activities. In case of loss in production and business activities, the loss to taxable income of production and business activities with income chosen by the enterprise (except for income from real estate transfer activities, investment project transfers, investment project transfer rights not offset with income from production and business activities that are enjoying tax incentives). The remaining income after offset will apply the corporate income tax rate for production and business activities with remaining income.
Accordingly, real estate businesses that suffer losses will be offset the losses from taxable income of business activities with income chosen by the business.
And the remaining income after offset will still apply the corporate income tax rate (CIT) for profitable activities. (The corporate income tax rate for real estate transfer activities is 22% according to Clause 2, Article 17 of Circular 78/2014/TT-BTC)
Thus, if a real estate business causes losses, it must still pay corporate income tax but will be offset for the losses in taxable income of business activities with income chosen by the business.
That is, although there are losses, if the enterprise has a taxable income, it will be forced to pay corporate income tax. On the contrary, if there is no taxable income, there will be no need to pay corporate income tax according to regulations
Note: losses from real estate transfer activities, investment project transfers, or transfer of rights to participate in investment projects are not compensated for on-income from activities enjoying tax incentives.
