On 17 May 2025, the National Assembly of Vietnam officially enacted Resolution No. 198/2025/QH15, introducing a range of special mechanisms and policies designed to promote the growth and competitiveness of the private sector. This Resolution takes effect from the date of its approval by the National Assembly. This resolution took effect immediately upon its approval by the National Assembly.
Below are the key highlights of this resolution:
Tax incentives
a. Tax incentives for innovative startups
As per Article 10 of this Resolution, Innovative start-ups, venture capital fund management companies, and intermediary organizations supporting innovative entrepreneurship are eligible for the following tax incentives:
- Corporate Income Tax (CIT) Incentives: A 2-year exemption from corporate income tax, followed by a 50% reduction for the subsequent 4 years, applicable to income derived from innovative start-up activities.
- PIT incentives for Experts and Scientists: A 2-year exemption from personal income tax, followed by a 50% reduction for the next 4 years, applicable to income from salaries and wages received by experts and scientists working at innovative start-up enterprises.
- Tax Exemption on Capital Transactions: Full exemption from both PIT and CIT on income generated from the transfer of shares, capital contributions, capital contribution rights, rights to purchase shares, rights to purchase capital contributions in innovative start-up enterprises.
b. CIT exemption for Small and medium-sized enterprises (SMEs)
SMEs are exempt from CIT for the first three years after receiving their enterprise registration certificate.
c. Business license fee
Clause 7, Article 10 of Resolution No. 198/2025/QH15 stipulates that the collection and payment of business license fees will officially cease as of 1 January 2026
Household businesses and individual businesses
According to Clause 6, Article 10 of Resolution No. 198/2025/QH15, Fixed Tax Regime for business households and individual business owners will be officially abolished starting January 1, 2026. From this date onward, these entities will be required to comply with the tax payment procedures outlined in the Law on Tax Administration.
To continue operating legally, they must choose one of the following two options:
- Switch to the Declaration Method
- Establish a Business Entity
Interest rate support for Green and ESG projects
According to Article 9, mechanisms have been introduced to provide interest rate support and to encourage credit institutions to reduce lending rates for private enterprises as follows:
- Beneficiaries: Private businesses, business households, and individuals.
- Support: 2% annual interest subsidy.
- Purpose: For loans funding green, circular economy projects or ESG standard adoption.
Land rental fee support
- Eligible Entities: High-tech private enterprises, SMEs, and innovative start-ups.
- Support: Minimum 30% reduction in land rental fees for the first 5 years.
- Scope: Applies to leases in industrial parks, clusters, and tech incubators.
Inspection and examination frequency
Each business entity shall be subject to no more than one inspection or examination per year, unless there are clear signs of legal violations.
Support for R&D, innovation, and digital transformation
- Enterprise Fund: Businesses may allocate up to 20% of taxable income to a fund for science, technology, innovation, and digital transformation.
- R&D Tax Deduction: Enterprises are permitted to deduct R&D expenses at a rate of 200% of actual costs when calculating CIT, in accordance with Government regulations
- State Support: The government will provide free digital platforms and accounting software for small and micro enterprises, business households, and individuals.
If you need assistance, RBA WTS Vietnam is ready to provide expert guidance to meet your needs. Please contact us for support or a personalized consultation.
