[LATEST] Decree 320/2025/ND-CP Guiding the Implementation of the 2025 Corporate Income Tax Law

The Government has officially issued Decree 320/2025/ND-CP, a document detailing and guiding the implementation of the Corporate Income Tax Law for 2025. This decree clarifies how to determine taxable income, tax calculation methods, tax rates, as well as corporate income tax incentive policies.

This is an important legal basis, directly affecting the tax declaration and settlement activities of enterprises from the 2025 tax period. Therefore, organizations, business households converting to enterprises, and operating enterprises need to proactively update to apply the regulations correctly and minimize tax risks.

Overview of Decree 320/2025/ND-CP

On 15/12/2025, the Government issued Decree 320/2025/ND-CP to detail some articles and organizational measures for implementing the Corporate Income Tax Law.

The decree consists of 6 chapters, 26 articles, with specific content:

Chapter I - General Provisions

Includes 4 articles (Articles 1 to 4)

Chapter II - Basis and Method of Tax Calculation

Includes 7 articles (Articles 5 to 12)

Chapter III - Income from Capital Transfer and Securities Transfer

Includes 2 articles (Articles 13, 14)

Chapter IV - Income from Real Estate Transfer

Includes 3 articles (Articles 15 to 17)

Chapter V - Corporate Income Tax Incentives

Includes 6 articles (Articles 18 to 23)

Chapter VI - Implementation Provisions

Includes 3 articles (Articles 24 to 26)

View the full text of Decree 320/2025/ND-CP

Scope of Regulation and Applicable Subjects

The decree details the implementation of the Corporate Income Tax Law, including:

• Determination of taxable income
• Basis for tax calculation
• Tax rates
• Tax calculation methods
• Principles and conditions for enjoying tax incentives

Applicable subjects are organizations and individuals related to the above contents.

Corporate income tax payers include:

• Enterprises established and operating under Vietnamese law
• Foreign enterprises with or without a permanent establishment in Vietnam
• Non-business units, cooperatives, and cooperative unions
• Credit institutions and other economic organizations with taxable income

Determination of Taxable Income for Corporate Income Tax

Taxable Income for Corporate Income Tax

According to Decree 320/2025/ND-CP, taxable income for corporate income tax includes:

• Income from the production and business of goods and services
• Other income as stipulated by tax law

The group of other incomes is defined quite broadly, including but not limited to:

• Income from capital transfer, securities transfer
• Income from real estate and project transfer
• Income from ownership and use of assets
• Income from asset leasing
• Income from asset liquidation, transfer (excluding real estate)
• Interest on deposits, interest on loans
• Exchange rate differences
• Unrecoverable bad debts that have been written off but are recovered
• Gifts, rewards, and other incomes as stipulated

Enterprises need to correctly classify these income items for full declaration when determining taxable income.

Income Exempt from Corporate Income Tax

In addition to taxable income, the Decree also clearly stipulates income items exempt from tax, typically including:

• Income from fishing activities
• Income from agricultural, forestry, and fishery production, especially in areas with difficult socio-economic conditions
• Income from technical services directly supporting agriculture
• Income from contracts for scientific research, technology development, innovation, and digital transformation (exempt from tax for 3 years)
• Income from the activities of enterprises employing disabled people, people recovering from addiction, and people infected with HIV/AIDS

Basis and Method of Corporate Income Tax Calculation

Basis for tax calculation:

Corporate income tax is determined based on:

• Taxable income in the period
• Corresponding corporate income tax rate

Principles of offsetting profits and losses, and carrying forward losses:

Enterprises are allowed to offset profits and losses between production and business activities within the same tax period. However, please note:

• Losses from real estate transfer or investment projects cannot be offset against income from activities enjoying tax incentives
• Losses can be carried forward in full and continuously to subsequent years, for a maximum of 05 years

Revenue for Calculating Taxable Income

Revenue for calculating taxable income is the total amount the enterprise receives from selling goods, processing, and providing services, regardless of whether payment has been received.

The decree provides detailed guidance on:

• Revenue recognition point
• Methods for determining revenue in special cases such as:
  • Installment or deferred payment sales
  • Asset leasing
  • Construction and installation activities
  • Business Cooperation Contracts (BCC)
  • Other cases as stipulated

Deductible and Non-deductible Expenses

Conditions for deductible expenses:

An expense must simultaneously meet 3 conditions to be considered a deductible expense:

• Incurred in reality and related to production and business activities
• Possesses valid invoices and supporting documents
• Has non-cash payment documents for transactions of VND 5 million or more

Non-deductible expenses include:

• Expenses that do not meet the above conditions
• Administrative fines
• Expenses exceeding the prescribed limit for employee welfare
• Interest on loans corresponding to insufficient charter capital

Corporate Income Tax Rates

According to Decree 320/2025/ND-CP:

Standard tax rate: 20%

Preferential tax rates based on revenue scale:

• 15%: enterprises with total annual revenue not exceeding VND 03 billion
• 17%: enterprises with revenue exceeding VND 03 billion to not exceeding VND 50 billion

Special tax rates:

• 25% to 50% for oil and gas exploration, discovery, and exploitation activities
• 40% or 50% for the exploitation of rare resources

Foreign enterprises without a permanent establishment in Vietnam apply tax based on a percentage of revenue, for example:

• Services: 5% (specifically for restaurant, hotel, and casino management: 10%)
• Royalties: 10%
• Capital transfer: 2%

Corporate Income Tax Incentives

Industries and areas eligible for incentives

Notable incentivized industries and trades:

• Application of high technology, R&D
• Production of software and IT services
• Supporting industries
• Renewable energy, clean energy
• Investment in key state infrastructure
• Large-scale production projects with investment capital of VND 12,000 billion or more

Incentives by area apply to:

• Areas with difficult or particularly difficult socio-economic conditions
• Economic zones, high-tech zones, high-tech agricultural zones, concentrated digital technology zones

Preferential tax rates

• A tax rate of 10% for 15 years for new investment projects in incentivized industries or particularly difficult areas
• A tax rate of 10% for the entire operating period for certain agricultural, socialized, and social housing sectors
• A tax rate of 17% for 10 years for other incentivized projects or in difficult areas

Tax exemption and reduction

• Exemption for 04 years, reduction of 50% of payable tax for the next 09 years according to Clause 1, Article 19 of the Corporate Income Tax Law
• Exemption for 02 years, reduction of 50% for the next 04 years according to Clause 4, Article 19 of the Decree
• Incentives for expanded investment projects
• Exemption from tax for 02 years for newly established enterprises from business households
• Additional incentives for expenses related to female labor and ethnic minority labor

Effective Date

Decree 320/2025/ND-CP takes effect from 15/12/2025 and applies to the 2025 corporate income tax period.

Enterprises can choose to apply the regulations on revenue, expenses, incentives, tax exemption/reduction, and loss carryforward based on one of the following effective dates:

From the beginning of the 2025 tax period

• From the date the Corporate Income Tax Law takes effect
• From the date the Decree takes effect

Certain specific provisions, such as non-cash payments and capital transfer, will apply from the date the Decree takes effect.

Conclusion

Decree 320/2025/ND-CP sets higher requirements for revenue transparency and tax obligations, especially for small enterprises and business households. Proactively monitoring revenue, issuing full invoices, and centralizing data storage not only ensures compliance with regulations but also contributes to rationalizing estimated tax amounts, reducing the risk of tax assessments that do not accurately reflect reality. With integrated sales management, revenue, and invoicing tools on GTG CRM, enterprises can effectively control business data from the outset, facilitating more transparent work with tax authorities and creating a sustainable operating foundation in accordance with the spirit of Decree 320/2025/ND-CP. Outstanding features include:

• Direct creation and management of electronic invoices from transaction data.
• Automatic customer information filling, minimizing errors from manual input.
• Invoice status tracking (issued, sent, paid).
• Centralized invoice storage, making it easy to search and reconcile when needed.
• Connection with leading electronic invoice providers such as Sinvoce, Misa,... supporting enterprises in complying with current legal regulations.