According to Clause 1 and 2, Article 18 of the Law on Corporate Income Tax 2025, the conditions for applying corporate income tax incentives are as follows:
- Corporate income tax incentives specified in Articles 13, 14 and 15 of the 2025 Law on Corporate Income Tax apply to enterprises implementing accounting, invoice, document and tax payment regimes according to the declaration method.
Corporate income tax incentives under the new investment project category (including investment projects under Point g, Clause 2, Article 12 of the Law on Corporate Income Tax 2025) stipulated in Articles 13 and 14 of the Law on Corporate Income Tax 2025 do not apply to cases of merger, consolidation, division, ownership conversion, conversion of business types and other cases prescribed by the Government.
- Enterprises must account for income from production and business activities with tax incentives as prescribed in Articles 4, 13, 14 and 15 of the Law on Corporate Income Tax 2025 with income from production and business activities without tax incentives; In case the account cannot be accounted for separately, the income from production and business activities with tax incentives is determined according to the ratio between revenue or cost of production and business activities with tax incentives on the total revenue or total cost of the enterprise.
In addition, it is noted that the tax rate of 15% and 17% stipulated in Clause 2, Clause 3, Article 10 of the Law on Corporate Income Tax 2025 and the regulations on tax incentives in Articles 4, 13, 14 and 15 of the Law on Corporate Income Tax 2025 do not apply to:
+ Income from capital transfer, capital contribution rights transfer; income from real estate transfer, excluding income from social housing construction investment as prescribed in Point s, Clause 2, Article 12 of the Law on Corporate Income Tax 2025; income from investment project transfer (except for mineral processing project transfer), transfer of rights to participate in investment projects, transfer of rights to explore, exploit, and process minerals; income from production and business activities outside of Vietnam;
+ Income from oil and gas exploration and exploitation activities, other rare resources and income from mineral exploration and exploitation activities;
+ Income from the production and trading of online electronic games; income from the production and trading of goods and services subject to special consumption tax according to the provisions of the Law on Special Consumption Tax 2008, except for projects to produce and assemble cars, airplanes, helicopters, motorboats, yachts, and petrochemical refineries;
+ Special cases according to Government regulations.
- The tax rate of 15% and 17% prescribed in Clause 2, Clause 3, Article 10 of the Law on Corporate Income Tax 2025 does not apply to enterprises that are subsidiaries or associated companies and the enterprises in the associated relationship are not enterprises that meet the conditions for applying the tax rate prescribed in Clause 2, Clause 3, Article 10 of the Law on Corporate Income Tax 2025.
- In case the enterprise does not meet the tax incentive conditions, the competent authority will collect the tax and sanction the violation according to the provisions of law.
- The Government shall detail Clause 5, Article 18 of the Law on Corporate Income Tax 2025. The Ministry of Finance stipulates the procedures and dossiers for enjoying tax incentives as prescribed in Articles 4, 13, 14 and 15 of the Law on Corporate Income Tax 2025.
