Enterprises are not subject to a corporate income tax rate of 20% from October 2025

The Lao Dong Newspaper Legal Consulting Office replied:

Article 2 of the 2025 Law on Corporate Income Tax (effective from October 1, 2025) stipulates the tax rate as follows:

1. The corporate income tax rate is 20%, except for the cases specified in Clauses 2, 3 and 4 of this Article and the subjects entitled to preferential tax rates specified in Article 13 of this Law.

2. The 15% tax rate applies to enterprises with a total annual revenue of no more than 03 billion VND.

3. The 17% tax rate applies to enterprises with total annual revenue from over 03 billion VND to no more than 50 billion VND.

Revenue used as the basis for determining enterprises subject to the tax rate of 15% and 17% as prescribed in Clause 2 and Clause 3 of this Article is the total revenue of the previous corporate income tax calculation period. The determination of total revenue as a basis for application shall be implemented in accordance with Government regulations.

4. Corporate income tax rates for some other cases are regulated as follows:

a) 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 on specific tax rates suitable for each oil and gas contract;

b) For the exploration and exploitation of rare resources (including platinum, gold, silver, tin, wonfram, antimoan, precious stone, rare earth and other rare resources as prescribed by law) is 50%. In case the mines have 70% or more of the assigned area in an area with particularly difficult socio-economic conditions, the tax rate is 40%.

Thus, enterprises with a total annual revenue of no more than VND 50 billion are not subject to a corporate income tax rate of 20%.