Maximum tax exemption is 4 years
According to Clause 1, Article 14 of the Law on Corporate Income Tax (CIT) 2025, a maximum of 4 years of tax exemption and a 50% reduction in the tax payable for the next 9 years for:
Income from new investment projects in special incentive cases (stipulated in Points a, b, c, d, dd, Clause 2, Article 12); projects in tax incentives, high-tech parks, digital technology parks, economic zones.
Income from socialization projects in the fields of education, vocational training, health, culture, sports, environment, judicial appraisal... according to the list of the Prime Minister.
If the socialized project is not located in a difficult or extremely difficult area, the 50% tax reduction will only be applied for a maximum of the next 5 years.
Maximum tax exemption for 2 years
According to Clause 2, Article 14, new investment projects under Clause 4, Article 13 of this Law are exempted from tax for a maximum of 2 years and have a 50% reduction in the tax payable for the next 4 years, including:
High-end steel production projects, energy-saving products, machinery - equipment for agricultural - forestry - fishery production, animal feed, irrigation equipment, cars, digital technology products;
Investment projects for small and medium-sized enterprise support facilities, startup nursery gardens, and general working areas according to the Law on Support for Small and Medium Enterprises;
Investment projects in disadvantaged areas, or economic zones not in particularly disadvantaged areas.
How to calculate the time for tax exemption and reduction
The tax exemption and reduction period is calculated from the first year of taxable income arising from investment projects. If in the first 3 years from the date of revenue, there is no taxable income, the time is calculated from the 4th year.
For projects granted a Certificate of High-tech Enterprise, High-tech Agriculture, Science and Technology or Supporting Industry projects after generating income, the tax exemption and reduction period is calculated from the year of issuance of the Certificate.
(According to Articles 13 and 14 of the Law on Corporate Income Tax 2025)
