Vietnam’s 10 New Tax Policies under Resolution No. 198/2025/QH15
On May 17, 2025, the National Assembly of Vietnam passed Resolution No. 198/2025/QH15, which came into effect on the same day. Aimed at promoting the development of the private sector, the resolution introduces several special mechanisms and policies, including tax incentives, simplified administrative procedures, and improved access to land and resources. Below are some of the updated tax-related policies from the resolution:
- Corporate income tax exemption for SMEs for 3 years: Small and medium-sized enterprises (SMEs) are exempt from corporate income tax for the first three years from the date of receiving their enterprise registration certificate.
- Abolishment of the fixed tax regime starting January 1, 2026: Sole proprietors and individual business households will no longer be subject to the fixed tax regime and must pay taxes in accordance with the Law on Tax Administration.
- Extension of VAT reduction policy through the end of 2026: From July 1, 2025, to December 31, 2026, the VAT rate on goods and services currently subject to 10% will be reduced by 2%, bringing it down to 8%.
- Abolition of business license tax starting in 2026: Business license tax will no longer be collected or payable as of January 1, 2026.
- Exemption of reissuance fees for documents: Organizations, individuals, and enterprises required to reprocess documents due to government agency restructuring will be exempt from relevant administrative and licensing fees.
These policies aim to support economic recovery, enhance the efficiency of tax administration, and strengthen the supervision of corporate and individual tax compliance. For more detailed information or assistance, it is recommended to consult a professional legal or tax advisor.
To learn more about company registration in Vietnam, please refer to our in-depth guide.
Source: LuatVietnam
