THONG LUAT CO., LTD.
THONG LUAT CO., LTD.
According to Clause 3, Article 7 of Government promulgating Decree 20/2026/ND-CP dated January 15, 2026, effective January 15, 2026, small and medium-sized enterprises with business registration for the first time are exempt from corporate income tax for 03 years from the date of initial issuance of the Business Registration Certificate. The tax exemption period is calculated continuously from the first year of initial issuance of the Business Registration Certificate. In cases where the Business Registration Certificate was issued before the effective date of the Resolution No. 198/2025/QH15 (May 17, 2025) and the preferential period is still valid, the enterprise is entitled to the preferential treatment as stipulated in this clause for the remaining period.
What are the criteria for small and medium-sized enterprises?
Article 5 of the Decree No. 80/2021/ND-CP details the criteria for determining the types of small and medium-sized enterprises, including:
|
Type of enterprise |
Sector | Average number of workers participating in social insurance per year |
Maximum total revenue (year) |
or Maximum total source of capital (year) |
|
Micro-enterprise
| + Agriculture, forestry, and fisheries; industry and construction + Trade and services | + No more than 10 people
+ No more than 10 people | + No more than 3 billion VND
+ No more than VND 10 billion | + No more than VND 3 billion
+ No more than VND 3 billion |
| Small-sized enterprise
| + Agriculture, forestry, and fisheries; industry and construction
+ Trade and services | + No more than 100 people
+ No more than 50 people | + No more than VND 50 billion
+ No more than VND 100 billion | + No more than VND 20 billion
+ No more than VND 50 billion |
| Medium-sized enterprise | + Agriculture, forestry, and fisheries; industry and construction
+ Trade and services | + No more than 200 people
+ No more than 100 people | + No more than VND 200 billion + No more than VND 300 billion | + No more than VND 100 billion + No more than VND 100 billion |
The preferential regulations do not apply to:
- Newly established enterprises resulting from acquisition, consolidations, full division, partial division, changes in ownership, or changes in type of enterprise;
- Newly established enterprises where the legal representative (except in cases where the legal representative is not a capital contributing member), general partner, or the person with the highest capital contribution has previously participated in business activities as the legal representative, general partner, or person with the highest capital contribution in existing or dissolved enterprises, but less than 12 months have passed since the dissolution of the old enterprise to the establishment of the new enterprise;
- Revenue as stipulated in Clause 3, Article 18 of the Corporate Income Tax Law No. 67/2025/QH15.
We will make updates when the implementation guidelines are available.
*** Note:
-The translation is for reference only.
