Corporate income tax 2025: Calculation and payment rates

Corporate income tax (profit tax) is a direct tax, calculated on the basis of taxable income in the period and tax rate. This is one of the most important sources of revenue for the state budget. In this article, let’s find out what is corporate tax vietnam.

1. Corporate income tax payers

When it comes to corporate income tax (CIT), most people know that taxpayers are enterprises. However, this is only the most general understanding, because in addition to enterprises being the main subjects, CIT taxpayers also include a number of other subjects.

Article 2 of the 2008 Law on Corporate Income Tax, amended and supplemented in 2013, stipulates that corporate income taxpayers include the following entities:

* Corporate income taxpayers are organizations engaged in production and business activities of goods and services with taxable income according to the provisions of the Law on corporate income tax vietnam
(hereinafter referred to as enterprises), including:

  • Enterprises established under the provisions of Vietnamese law.
  • Enterprises established under the provisions of foreign law (hereinafter referred to as foreign enterprises) with or without a permanent establishment in Vietnam.
  • Organizations established under the Law on Cooperatives.
  • Public service units established under the provisions of Vietnamese law.
  • Other organizations with production and business activities with income.

* Enterprises with taxable income must pay CIT as follows:

  • Enterprises established in accordance with the provisions of Vietnamese law pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam.
  • Foreign enterprises with permanent establishments in Vietnam pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam related to the activities of such permanent establishments.
  • Foreign enterprises with permanent establishments in Vietnam pay tax on taxable income arising in Vietnam that is not related to the activities of the permanent establishments.
  • Foreign enterprises without permanent establishments in Vietnam pay tax on taxable income arising in Vietnam.

* A permanent establishment of a foreign enterprise is a production and business establishment through which a foreign enterprise conducts part or all of its production and business activities in Vietnam, including:

  • Branches, executive offices, factories, workshops, means of transport, oil fields, gas fields, mines or other natural resource exploitation sites in Vietnam;
  • Construction sites, construction, installation and assembly works;
  • Service provision establishments, including consulting services through employees or other organizations and individuals;
  • Agents for foreign enterprises;
  • Representatives in Vietnam in the case of representatives with authority to sign contracts in the name of foreign enterprises or representatives without authority to sign contracts in the name of foreign enterprises but regularly delivering goods or providing services in Vietnam.

3. How is taxable revenue determined?

Pursuant to Article 8 of Decree 218/2013/ND-CP, the revenue for calculating corporate income tax vietnam 2025 is clearly stipulated as follows:

– Revenue for calculating taxable income is the total sales, processing fees, service provision fees including subsidies, surcharges, and extras that the enterprise enjoys, regardless of whether the money has been collected or not.

  • For enterprises declaring and paying value added tax according to the tax deduction method, the revenue for calculating corporate income tax is the revenue without value added tax.
  • For enterprises declaring and paying value added tax according to the direct method on added value, the revenue for calculating corporate income tax includes value added tax.

– The time for determining revenue for calculating taxable income for goods sold is the time of transferring ownership and right to use the goods to the buyer.
The vietnam corporate tax deadline 2025 is the time of completing the provision of services to the buyer or the time of issuing the service provision invoice.

– Revenue to calculate taxable income for some specific cases, see details in Clause 3, Article 8 of Decree 218/2013/ND-CP and Clause 3, Article 5 of Circular 78/2014/TT-BTC.

4. Deductible expenses when calculating tax

Pursuant to Article 4 of Circular 96/2015/TT-BTC, except for non-deductible expenses, enterprises are allowed to deduct all expenses if they meet the following conditions:

(1) Actual expenses arising in relation to the production and business activities of the enterprise.

(2) Expenses with sufficient legal invoices and documents according to the provisions of law.

(3) Expenses for which there is an invoice for each purchase of goods or services with a value of VND 20 million or more (prices including VAT) must have a non-cash payment document when paying.

If you want to know more about personal income tax vietnam, please do not hesitate to contact us.

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