Vietnam — Tax: Corporate Tax

Why this matters

Vietnam actively courts foreign investment with tax incentives, but they are not automatic — they must be applied for and locked in through the Investment Registration Certificate (IRC) process, and reduced rates are usually paired with strict conditions (minimum capital, location, sector) that can be clawed back if breached.

Key facts

• Combined statutory corporate income tax rate (national plus sub-national): 20% (2026)
• Central government rate: 20% (2026)

Steps

1. Confirm your CIT rate and any incentives — Check whether your business sector, location, or investment size qualifies for preferential CIT rates or a tax holiday under the Investment Law and Decree 218/2013 (as amended). Incentives are usually confirmed at the Investment Registration Certificate stage.
2. Register for tax and obtain a tax code — Once the Enterprise Registration Certificate is issued, the company's tax code (same as the enterprise ID number) becomes active with the tax authority, and you must register e-invoicing and a company tax accounting method.
3. File quarterly provisional CIT — Estimate and pay CIT quarterly based on projected annual profit; underpayment beyond a threshold versus the final liability can trigger late-payment interest.
4. Annual CIT finalization — File the annual CIT finalization return within 90 days of fiscal year-end, reconciling actual taxable profit, applying any incentive rates, and settling any balance due or claiming overpayment.
5. Maintain transfer pricing documentation — Companies with related-party transactions above statutory thresholds must prepare contemporaneous transfer pricing documentation and file Form 01 with the CIT return.

Costs

• Standard CIT rate: 20% of net taxable profit
• Preferential rate (encouraged sectors/locations): 10% or 17%, for 10-15 years, often with an initial tax holiday
• Oil & gas / resource extraction CIT: 32%-50%
• Late CIT payment interest: 0.03%/day on the outstanding amount

Timelines

• Quarterly provisional CIT payment: Due by the 30th day of the month following each quarter
• Annual CIT finalization deadline: Within 90 days of fiscal year-end
• Tax incentive approval (as part of IRC): Typically 15-35 working days as part of the investment registration process

Required documents

• Enterprise Registration Certificate and tax code
• Investment Registration Certificate (for foreign-invested projects, especially those claiming incentives)
• Audited annual financial statements
• Quarterly and annual CIT return forms
• Transfer pricing documentation (if related-party transactions exceed thresholds)

Common mistakes

• Assuming a preferential CIT rate applies automatically without formally qualifying and documenting the incentive at the IRC stage.
• Under-paying quarterly provisional CIT by more than the statutory tolerance (historically 20%) versus final liability, which triggers retroactive late-payment interest.
• Overlooking foreign contractor tax (FCT) obligations when paying an overseas parent or affiliate for services, software licenses, or royalties.
• Missing transfer pricing documentation deadlines for related-party transactions, a frequent target of GDT audits on foreign-invested enterprises.

What this figure does not cover

This is the headline statutory rate. Deductions, reduced rates for particular sectors or regions, minimum taxes, local business taxes, withholding taxes and registration or filing procedures are not covered here. Check the national tax authority for your situation.

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