One of the key highlights of the Corporate Income Tax Law proposed by the Ministry of Finance is the use of total revenue as the basis for determining entities eligible for preferential tax rates of 15% and 17%.

According to Clauses 2 and 3 of Article 10 of the Corporate Income Tax Law, a 15% tax rate applies to enterprises with annual total revenue not exceeding VND 3 billion. Additionally, a 17% tax rate is applicable to enterprises with annual total revenue exceeding VND 3 billion but not exceeding VND 50 billion.

Regarding the determination of total revenue, the Draft Decree proposes that total revenue includes income from sales of goods and services, financial activities, and other income as recorded in the Annex of Business Performance Results attached to the corporate income tax finalization return for the preceding tax period.

The law also provides specific guidance for newly established enterprises. For enterprises with an operating period of less than 12 months in the preceding tax period, the total revenue is calculated by dividing the actual revenue in that period by the number of months the enterprise was actively engaged in production and business activities, then multiplying by 12 months. For enterprises newly established in the current tax period and projecting total revenue not exceeding VND 3 billion or VND 50 billion, they are required to make quarterly provisional tax payments at the corresponding tax rates of 15% or 17%. However, if the actual revenue exceeds the projected amount, enterprises must pay the additional tax shortfall and any applicable late payment penalties as stipulated.

This law shall take effect from October 1, 2025, and apply to the corporate income tax period of 2025.

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