Corporation Income Tax In Vietnam

CIT is imposed at the national level and there is no local or provincial tax. The company will pay CIT in district tax department where the headquarter or branches have registered.

The CIT is the same for both domestic and foreign – invested companies and it is paid based on the money earned by enterprises (gross revenue minus expenses).  After deducting all expenses for business activities or production, CIT will be calculated on the profit.

For the tax incentive, enterprises which is established in specific sectors or areas, in high-tech zones, economic zones can exempt the tax for several years with the lower rate, for example: the enterprise the energy-saving area can receive the incentive tax: CIT exemption for up to 2 years and CIT rate of 17% for 10 years.

An enterprise that conducts multiple business activities that are the subject to different tax rates will calculate the income for each activity separately. And all income arising in Vietnam will be subject to CIT, including the profit from the foreign enterprise.

In addition to incentives, the companies can be reduced the tax if they hire the numerous female staff or ethnic minorities.

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