Businesses "accuse" being guided by tax officials of causing disadvantages
Recently, representatives of Tu Charcoal Co., Ltd. sent a petition on the application of the corporate income tax exemption policy according to Resolution No. 198/2025/QH15. Although the company was established on July 22, 2025 and fully meets the standards for small and medium-sized enterprises, it faces major obstacles in determining the year to start enjoying incentives.
We believe that we are tax-exempt for 3 consecutive years from 2025. However, when contacting tax management officials in the area, they confirmed that it is only applied to income arising from 2026. If so, the business will lose all rights in the difficult first year of establishment," the company representative shared angrily.
Hanoi Tax clarifies tax exemption rights for private units
Before this reflection, Basic Tax 10 of Hanoi City gave an answer based on Resolution 198/2025/QH15 and Decree 20/2026/ND-CP of the Government. According to regulations, small and medium-sized enterprises are exempt from corporate income tax for 03 years from the date of being granted the first Business Registration Certificate.
Notably, the tax exemption period is calculated continuously from the first year the unit is licensed. Thus, in case the enterprise is licensed before Resolution 198 takes effect but still has preferential periods, it will enjoy the remaining period. For micro, small and medium-sized enterprises, the criteria determined are based on the average number of social insurance employees (no more than 200 people) and total revenue or capital according to the provisions of the Law on Support for Small and Medium Enterprises 2017.
Effectiveness and advice for taxpayers
The tax authority emphasized that Resolution 198/2025/QH15 takes effect immediately from the date it is passed by the National Assembly (May 17, 2025). This means that businesses established after this milestone have a complete legal basis to protect tax exemption rights right from fiscal year 2025 if they meet the strict conditions on scale.
The Tax Department requested Tu Charcoal Co., Ltd. to carefully compare the actual situation to carry out declarations in accordance with instructions.
