The following overview covers the key aspects of corporate tax for companies operating in Vietnam, including statutory rates and sector-specific surcharges that are relevant for 2025.
Corporate Tax Rate Regime in Vietnam
Vietnam employs a flat corporate income tax rate system, meaning that most businesses are taxed at the same standard rate regardless of income levels. In 2025, the main corporate tax rate is set at 20%. This rate is applicable to both domestic and foreign-invested enterprises, aligning Vietnam among moderate-tax jurisdictions in the region.
Corporate Income Tax Rates and Surtaxes (2025)
| Tax Category | Applicable Rate (%) | Conditions | Currency |
|---|---|---|---|
| Standard Corporate Income Tax | 20% | All corporate entities unless noted otherwise | VND |
| Oil and Gas Industry (Minimum Rate) | 25% | Applicable to enterprises in oil and gas; actual rate may be higher depending on the contract (up to 50%) | VND |
| Mineral Resource Projects (Minimum Rate) | 32% | Applicable to enterprises engaged in prospecting, exploration, and exploitation of certain mineral resources; rate can rise up to 50% depending on the project | VND |
| Oil, Gas & Certain Mineral Projects (Maximum Rate) | 50% | Maximum rate for specific contracts/projects in oil, gas, and mineral extraction | VND |
It’s important to note that there are no progressive tax brackets in the standard regime. Corporate tax in Vietnam is assessed on total corporate profits, with specific sectors (primarily oil, gas, and mineral exploitation) subject to higher rates through surtaxes.
Assessment Basis
Corporate tax is assessed based on corporate profits. Vietnam’s regime does not differentiate based on company size or other non-financial criteria under the general regime. Surtaxes apply largely by industry sector, primarily targeting extractive industries with a significant resource base.
Currency and Reporting
The currency used for tax reporting and settlement is the Vietnamese Dong (VND). When evaluating profitability or making cross-border comparisons, it is essential to consider the prevailing exchange rate. For reference, in early 2025, the rate is approximately 1 USD = 25,450 VND (source: Vietnam central bank), but always check live rates for precise conversion.
| Amount (VND) | Approximate USD Equivalent (USD) |
|---|---|
| 1,000,000 VND | $39.29 |
| 10,000,000 VND | $392.90 |
| 100,000,000 VND | $3,929.00 |
Holding Periods
Current regulations do not mandate a minimum or maximum holding period concerning corporate taxation as of 2025. Data on mandatory holding intervals is not publicly specified, which reflects Vietnam’s straightforward approach to corporate profit taxation in its base regime.
Pro Tips for Managing Corporate Tax in Vietnam (2025)
- Monitor Sector Classification Carefully: If your business is remotely connected to oil, gas, or mineral exploration, confirm which tax rate bracket applies under your contract or project to avoid unexpected assessments.
- Keep Currency Fluctuations in Mind: When calculating profits or dividend repatriations, use up-to-date exchange rates to minimize exposure to currency risk—especially given VND-USD volatility.
- Budget for Surtaxes Proactively: If entering extractive industries, your effective tax rate may be significantly higher than 20%. Run scenario analyses to estimate the impact of maximum rates on project cash flow.
- Verify Documentation Thoroughly: Ensure all company filings and payments reflect the correct sector-based rate and are denominated in VND for compliance with tax authority requirements.
Official Resources
For the most recent corporate tax information, company representatives should consult the official Vietnamese Ministry of Finance website: https://mof.gov.vn.
In summary, Vietnam’s corporate tax framework in 2025 is defined by a flat standard rate of 20%, with significant surcharges applicable to specific natural resource industries. There are no progressive brackets or holding period requirements in the base regime. Companies in high-surcharge sectors should closely scrutinize contract terms to determine actual tax liabilities. Pay careful attention to VND-based accounting and always refer to the Ministry of Finance for authoritative updates on tax changes.