As a small business operating in the commercial sector in Hanoi with an annual revenue of about 10 billion VND, Mr. N.V.H said that after learning about the new regulations, he realized that the 2025 Enterprise Income Tax Law has added preferential tax rates based on revenue, including 15% and 17% for small and medium-sized enterprises.
I am confused whether with revenue of about 10 billion VND/year, my business will apply a tax rate of 17% or still have to bear the common tax rate of 20%. In addition, what year's revenue is used as a basis for determining the tax rate, and what is the specific calculation method" - Mr. H wondered.
Regarding the above case, the Tax Department - Ministry of Finance answers as follows:
According to Article 10 of the 2025 Enterprise Income Tax Law, the tax rate is as follows:
The corporate income tax rate is 20%, except for cases specified in Clauses 2, 3 and 4 of this Article and subjects entitled to tax incentives specified in Article 13 of this Law.
A tax rate of 15% applies to enterprises with a total annual revenue of no more than 3 billion VND.
The tax rate of 17% applies to enterprises with total annual revenue from over 3 billion VND to no more than 50 billion VND.
Revenue as a basis for determining that enterprises are subject to tax rates of 15% and 17% specified in Clause 2, Clause 3 of this Article is the total revenue of the previous corporate income tax period. The determination of total revenue as a basis for application is carried out according to the Government's regulations.
Corporate income tax rates for some other cases are regulated as follows:
For oil and gas exploration and exploitation activities from 25% to 50%. Based on the location, exploitation conditions and mine reserves, the Prime Minister decides the specific tax rate suitable for each oil and gas contract;
For exploration and exploitation of rare and precious resources (including: platinum, gold, silver, tin, wonfram, antimony, precious stones, rare earths and other rare and precious resources as prescribed by law) is 50%. In case mines have 70% or more of the allocated area in areas with particularly difficult socio-economic conditions, the tax rate is 40%.
Accordingly, the tax rate of 17% applies to enterprises with total annual revenue from over 3 billion VND to no more than 50 billion VND.
Revenue as a basis for determining that a business is subject to a tax rate of 17% is the total revenue of the pre-immediate corporate income tax period specified in Clause 4, Article 10 of the 2025 Corporate Income Tax Law.
