Readers said that they are currently business households operating normally with stable revenue of less than 1 billion VND/year and have plans to expand production and business scale by establishing a new business.
This person plans to contribute capital with some other members to establish a limited liability company of two or more members, meeting the criteria of small and medium-sized enterprises.
At the same time, this person will contribute capital and hold the position of legal representative of the new company.
For current business households, because there are still some economic contracts and business commitments being implemented, business households will continue to operate in parallel, without carrying out procedures for dissolution or termination of the validity of the tax code immediately after establishing the company.
From the above situation, the questioner requested the competent authority to clarify whether the newly established limited liability company is entitled to apply the corporate income tax exemption policy for a period of 3 years according to Clause 3, Article 7 of Decree No. 20/2026/ND-CP or not?
Answering this content, the Ministry of Finance cited the provisions of Clause 3, Article 7 of Decree No. 20/2026/ND-CP dated January 15, 2026 of the Government detailing and guiding the implementation of a number of articles of Resolution No. 198/2025/QH15 dated May 17, 2025 of the National Assembly on a number of special mechanisms and policies for private economic development.
According to regulations, small and medium-sized enterprises registering for the first time are exempt from corporate income tax for a period of 3 years from the date of being granted the first Business Registration Certificate.
The tax exemption period is calculated continuously from the first year of being granted the first Business Registration Certificate.
In case the business registration certificate is issued before the effective date of Resolution No. 198/2025/QH15 and there is still a time to apply incentives, the enterprise is entitled to continue to enjoy incentives for the remaining time.
However, this regulation does not apply to newly established enterprises due to merger, consolidation, division, separation, ownership transfer or enterprise type conversion.
In addition, incentives are also not applied to newly established enterprises where the legal representative with the highest contributed capital is operating or has been dissolved but not enough 12 months from the time of dissolution of the old enterprise.
The Ministry of Finance requests respondents to compare the above regulations for implementation. If there are still problems, taxpayers should contact the directly managing tax authority for guidance according to regulations based on dossiers and the actual situation of the unit.
