Corporate Tax Planning for Businesses in Vietnam in 2024

Published: March 2024

Vietnam has a highly competitive tax structure, which has attracted foreign investors across a spectrum of industries. In this tax report by Vietnam Briefing, we discuss the country’s Corporate Income Tax system, key incentives available, compliance obligations, and preparation for Global Minimum Tax regulations under the BEPS 2.0 Framework.

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Vietnam boasts a well-structured and transparent tax and accounting compliance framework, surpassing many comparable emerging markets. The nation regularly revises its policies to bolster economic and business growth. Corporate Income Tax (CIT) constitutes a primary levy on companies' profits, calculated as gross revenue minus expenses.

Most businesses in Vietnam face a standard CIT rate of 20 percent. This encompasses entities across all economic sectors, professional bodies, and foreign corporations engaged in production and trade within Vietnam.

Yet, Vietnam has enjoyed global investor favor because of its array of investment incentives, amidst which tax breaks are a key feature. These incentives target specific sectors, regions with varying socio-economic conditions, as well as high-tech and economic zones. Their aim is to stimulate economic, technological, and educational advancement within these areas. Now, to comply with the OECD’s global anti-base erosion (GloBE) Model Rules, Vietnam is set to apply a top-up corporate tax from 2024, affecting around 122 foreign companies per the government’s estimates.

This edition of the Vietnam Briefing magazine discusses Vietnam’s corporate tax structure for 2024, key changes, incentives available for businesses, and explains the new top-up tax framework. As the tax situation of each enterprise is unique and Vietnam’s regulatory environment is subject to change, it is advisable to seek professional tax advice specific to your business. For more information on tax, audit, transfer pricing, VAT, and tapping key incentives in Vietnam, feel free to contact our experts on the ground at vietnam@dezshira.com.

In this issue:

  • Corporate Taxes in Vietnam Pg 04
  • Vietnam’s Implementation of the Global Minimum Tax Pg 09
  • Tax Incentives for Business Enterprises in Vietnam Pg 14
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