Vietnam’s National Assembly has introduced two new tax policies designed to support small and medium-sized enterprises (SMEs). The first, Resolution 198/2025/QH15, passed on 17/5/2025, grants newly registered SMEs a three-year corporate income tax exemption. This measure aims to encourage startups, providing them with resources for reinvestment, expansion, and stability during their initial years.
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Tax officials. Photo: GDT |
Tax officials. Photo: GDT
The second policy, an amendment to the Corporate Income Tax Law passed on 14/6/2025 and effective from 1/10/2025, introduces tiered tax rates based on annual revenue. Businesses with annual revenue under 3 billion VND will be taxed at 15%, while those earning between 3 and 50 billion VND will have a 17% tax rate. This amendment, applicable for the 2025 tax year, marks the first time Vietnam has implemented such a tiered system for SMEs.
Together, these policies offer SMEs a comprehensive support package, including initial tax exemptions, long-term reduced rates, and the elimination of annual fees. This creates a more favorable business environment, encouraging SMEs to restructure, expand, and invest in promising sectors with clear support from national tax policy. This is considered an opportune moment for SMEs to capitalize on these benefits and contribute to Vietnam's economic growth.
Hai My
