Tiếng ViệtAs of June 1, 2025, a series of new tax and fee policies under Resolution No. 198/2025/QH15 officially take effect, introducing groundbreaking changes for both enterprises and household businesses. This is not merely another round of tax and fee adjustments — it represents a long-term strategic reform by the State to promote innovation, reduce operating costs, and enhance transparency in financial management.
If your business operates in the startup, manufacturing, technology, or small and medium-sized enterprise (SME) sector, understanding the 10 key tax policies of 2025 will be essential to maximize incentives and ensure effective legal compliance.
The following article provides a comprehensive overview of the 10 major tax policies introduced under Resolution No. 198/2025, along with concise and practical analyses to help businesses understand correctly, apply accurately, and capitalize effectively on the benefits of these new regulations.
1.Tax Policies on Corporate Income Tax Exemption and Reduction for Innovative Startups
Legal Basis: Clause 1, Article 10, Resolution No. 198/2025/QH15
Enterprises operating in the field of innovation and creative entrepreneurship are entitled to:
– 100% exemption from Corporate Income Tax (CIT) for the first 2 years;
– 50% reduction in CIT for the following 4 years, applicable to income derived from innovative startup activities.
Applicable to: Innovative startups as defined under Decree No. 80/2021/NĐ-CP.
This policy substantially reduces the financial burden on startups during their early “burn rate” stage. However, to qualify, enterprises must demonstrate clear innovation in technology, business model, or product development.
Compliance requirements:
– Clearly separate and record income from innovative activities in financial statements;
– Maintain documentation proving innovation, such as patents, proprietary software, or exclusive technologies.
2. Tax Policies on Exemption for Investors in Startups
Legal Basis: Clause 2, Article 10, Resolution No. 198/2025/QH15
Exemption from Personal Income Tax (PIT) and Corporate Income Tax (CIT) applies to income derived from:
– Transfer of shares;
– Capital contribution;
– Rights to contribute capital or purchase shares in innovative startups.
➡ Full exemption from PIT and CIT
This measure encourages domestic venture investment, particularly from angel investors and venture capital funds. However, the startup receiving investment must be legally recognized as an innovative enterprise for the investor to qualify for the tax exemption.
Notes for enterprises:
– Prepare documentation identifying the business as an innovative startup;
– Ensure investment and share transfer contracts clearly define the purpose and scope of investment;
– Avoid indirect investments through multiple intermediary entities, as this may invalidate tax incentives.
3.Tax Policies on Personal Income Tax Exemption for Experts and Scientists at Startups
Legal Basis: Clause 3, Article 10, Resolution No. 198/2025/QH15
Experts and scientists earning income from employment at innovative startups will be entitled to:
– 100% PIT exemption for the first 2 years;
– 50% PIT reduction for the next 4 years, applicable to income from salaries and wages.
This policy significantly enhances the attractiveness of startups to highly qualified professionals, particularly in technology and product research sectors.
Notes for enterprises:
– Proactively register eligible employees for the preferential scheme;
– Retain employment contracts, payroll records, and R&D reports as supporting evidence.
4. Three-Year Corporate Income Tax Exemption for Small and Medium-Sized Enterprises (SMEs)
Legal Basis: Clause 4, Article 10, Resolution No. 198/2025/QH15
Newly established small and medium-sized enterprises (SMEs) are entitled to a 100% Corporate Income Tax exemption for the first 3 years from the date of business registration.
This is a practical financial support measure, enabling SMEs to stabilize cash flow and maintain operations during the critical startup phase.
Notes for enterprises:
– Verify business size (revenue, number of employees) under the Law on SME Support;
– Avoid establishing subsidiaries or shell entities to repeatedly claim tax incentives, as this may result in tax clawback and penalties.
5. Training Expenses for Supporting SMEs Recognized as Deductible Business Expenses
Legal Basis: Clause 5, Article 10, Resolution No. 198/2025/QH15
Large enterprises that support small and medium-sized enterprises (SMEs) within their supply chain are permitted to include training and re-training costs as deductible expenses when determining taxable corporate income.
This policy encourages large corporations to “grow together” with SMEs, promoting collaboration through knowledge transfer, skill enhancement, and technology sharing — thereby fostering a cooperative and sustainable business ecosystem.
Implementation guidance:
– Sign a specific training support contract with the SME;
– Maintain valid invoices, training materials, and attendance or result reports.
Note:
To qualify for deduction, enterprises must have:
– A formal cooperation plan,
– Legitimate expense documentation, and
– Training content directly related to the SME’s production or business capabilities.
6. Abolition of the Lump-Sum (“Presumptive”) Tax Regime from January 1, 2026
Legal Basis: Clause 6, Article 10, Resolution No. 198/2025/QH15
Effective January 1, 2026, the presumptive tax method will no longer apply to household and individual businesses.
This marks a major milestone in Vietnam’s tax reform — promoting the transition of household businesses into corporate entities, increasing transparency, and modernizing the national tax administration system.
Practical implications:
– Household businesses must maintain accounting books, file periodic tax declarations, and issue electronic invoices;
– This transition opens access to credit, investment capital, and a more transparent business environment.
Compliance recommendations:
– Prepare early for electronic invoicing systems and accounting software;
– Seek tax advisory support to understand new obligations under the enterprise tax regime and avoid penalties.
7. Exemption from Business License Fee for Household Businesses from 2026
Legal Basis: Clause 7, Article 10, Resolution No. 198/2025/QH15
From 2026, household and individual businesses will be exempt from paying the annual business license fee.
Positive impacts:
– Reduces annual administrative and tax compliance costs for small business households;
– Encourages transition from household business models to registered enterprises, in line with the new e-invoicing and tax declaration framework.
Recommendation: Household businesses should take advantage of the period until the end of 2025 to standardize documentation and prepare for conversion into enterprise form, ensuring compliance once the new tax regime takes effect in 2026.
8. Waiver of Fees for Reissuance of Documents during Governmental Restructuring
Legal Basis: Clause 7, Article 10, Resolution No. 198/2025/QH15
Organizations, enterprises, and individuals will be fully exempted from fees and charges associated with reissuance or reissuance of official documents during the restructuring or reorganization of government administrative agencies.
Practical significance:
– Supports both state agencies and enterprises, especially those with state capital, in restructuring, mergers, or organizational separations;
– Reduces administrative costs during the reorganization process.
Implementation notes:
– Retain all legal records and corporate documents to facilitate the fee exemption process;
– Consider aligning corporate restructuring with this exemption period to optimize procedural efficiency.
9. Deduction for Establishing a Science and Technology Development Fund (Up to 20% of Taxable Income)
Legal Basis: Clause 1, Article 12, Resolution No. 198/2025/QH15
Enterprises may allocate up to 20% of annual taxable income to establish a Science and Technology Development Fund (R&D Fund).
This policy aims to encourage long-term investment in innovation, enhance enterprise competitiveness, and strengthen internal technological capacity.
Impact on businesses:
– Increases deductible expenses, thereby reducing taxable income;
– Provides a dedicated financial source for R&D, digital transformation, and new product development.
Conditions for application:
– The fund must be formally established and transparently managed;
– The fund must be used solely for R&D purposes — any misuse will result in tax recovery and penalties.
10. Double Deduction of R&D Expenses for Corporate Income Tax Calculation
Legal Basis: Clause 2, Article 12, Resolution No. 198/2025/QH15
Actual expenses incurred by an enterprise for research and development (R&D) activities may be deducted at twice their value when calculating taxable corporate income.
➡ For instance, if a company spends VND 1 billion on R&D, it may deduct VND 2 billion as allowable expenses — significantly reducing taxable profits and potentially saving hundreds of millions of dong in taxes.
Implementation recommendations:
– Develop a detailed R&D plan with defined project objectives and timelines;
– Maintain contracts, invoices, and supporting documentation to substantiate actual R&D activities;
– Integrate R&D as part of the medium- and long-term corporate development strategy to fully capitalize on this incentive.
Compliance notes:
– R&D expenses must meet the criteria under the Law on Corporate Income Tax and guidelines issued by the Ministry of Finance;
– The policy does not apply to regular operational costs or marketing and sales expenses.
With the above reforms, correctly understanding and implementing Vietnam’s new tax policies is not only a way to reduce operating costs, but also a reflection of financial professionalism and regulatory compliance.
Resolution No. 198/2025/QH15 represents a strong commitment from the Government to accompany the private sector toward sustainable development — from startup support and tax incentives to innovation and digital transformation.
Now is the ideal time for enterprises to review their tax and accounting strategies, optimize legitimate expenses, and proactively adapt to the new compliance landscape. Do not miss valuable incentives simply because of a lack of up-to-date legal information.
Contact the Financial and Tax Law team at LexConsult & Partners for tailored advisory services to help your business effectively leverage the 2025 tax incentives and strengthen its competitiveness in this era of transformation.
**Related Articles:**
-
[Transactions Under VND 5 Million: Are Bank Transfers Required? New VAT Deduction Conditions in 2025]
-
[Amended Special Consumption Tax Law 2025: Impacts and Strategic Solutions for Businesses]
-
[Foreign Contractor Tax (FCT) 2025: What Enterprises Should Know to Mitigate Risks and Optimize Costs]
📞 Hotline: +84 938 657 775
📧 Email: info@lexconsult.com.vn
