An important “push” for the business community

Corporate income tax has a strong impact on the profits and reinvestment ability of enterprises, and is considered a tool to regulate economic growth.

Corporate income tax has a strong impact on the profits and reinvestment capacity of enterprises. In addition, it is also considered a tool to regulate economic growth. On June 14, the National Assembly passed the Corporate Income Tax Law No. 67/2025/QH15 with many new and practical points, creating conditions for the business community to develop.

New points, close to reality

Corporate Income Tax Law No. 67/2025/QH15 takes effect from October 1, 2025 and applies from the 2025 corporate income tax period.

In particular, the Law brings important improvements compared to the current one, including: reducing tax rates according to enterprise size, expanding the subjects and industries eligible for incentives, encouraging research and innovation, flexible loss compensation mechanism, and adding clear regulations to limit risks in applying incentives.

The subjects exempted from corporate income tax are expanded. In Clause 10, Article 4, additional incomes are exempted from tax. Specifically: income from the transfer of emission reduction certificates, the first transfer of carbon credits after issuance by enterprises granted emission reduction certificates, carbon credits; income from green bond interest; income from the first transfer of green bonds after issuance.

In addition, some expenses supporting the construction of public works, while also serving the production and business activities of enterprises; expenses related to reducing greenhouse gas emissions to neutralize carbon and achieve net zero, reduce environmental pollution, and at the same time related to the production and business activities of enterprises are also deducted when determining taxable income.

The law stipulates that the general corporate income tax rate is 20%. The tax rate of 15% applies to enterprises with total annual revenue of no more than VND3 billion. The tax rate of 17% applies to enterprises with total annual revenue from over VND3 billion to no more than VND50 billion.

The Law also adds a 17% tax incentive for 10 years for investment projects in technical facilities supporting small and medium-sized enterprises, small and medium-sized enterprise incubators; investment projects in co-working spaces supporting small and medium-sized enterprises to start up and innovate according to the Law on Support for Small and Medium-sized Enterprises.

These adjustments demonstrate the Government’s strategic vision. The law not only aims to reduce costs for businesses but also promotes innovation and green development, especially for small and medium-sized enterprises and businesses investing in science and technology and high-tech agriculture .

Creating momentum for business

Currently, Lao Cai province's tax authority manages about 9,200 operating enterprises, of which more than 90% are small and medium enterprises. This is the majority of the business community and plays an important role in budget revenue.

In 2024, the total amount of taxes and fees paid to the State budget was 9,530 billion VND; local enterprises paid more than 7,692 billion VND to the budget, accounting for 70.7% of the total budget revenue from taxes and fees. In the first 7 months of 2025, this figure continued to reach 5,667 billion VND; local enterprises paid more than 4,819 billion VND to the budget, accounting for 85% of the total budget revenue from taxes and fees, contributing to maintaining a stable source of revenue for the State.

When implementing the Corporate Income Tax Law 2025, reducing the tax rate from 15% - 17% for small and medium enterprises in the short term may reduce the amount of tax payable. However, in the long term, this policy will motivate enterprises to expand production, increase revenue, thereby expanding the tax base and ensuring sustainable revenue growth for the State budget.

In order for the Law to quickly come into effect, Lao Cai Provincial Tax has focused on disseminating new points to organizations, enterprises, business households, and individuals doing business in the province through Facebook, Zalo, electronic information pages, and taxpayers' gmail.

Lao Cai Provincial Business Association has more than 1,000 member enterprises. Enterprises and entrepreneurs have been the vanguard force on the economic development front of the province.

Chairman of Lao Cai Province Business Association Nguyen Huy Long said: The new Corporate Income Tax Law coming into effect will create an important boost for the Lao Cai business community.

With a preferential tax rate of 10% for particularly difficult areas, and a tax rate reduced to 15-17% for small and medium enterprises, the tax burden will be significantly reduced. In addition, the expansion of deductible expenses and flexible loss compensation mechanisms help businesses be more proactive in cash flow. This is the driving force for Lao Cai enterprises to expand investment, improve competitiveness and contribute to promoting the province to become a growth pole, a center for international economic trade connections.

Tax policy has been improved to support the development of enterprises in particular and the economy in general. Therefore, through this amendment, the Law on Corporate Income Tax has become increasingly strict, helping to improve taxpayer compliance and supplement resources for the State budget.

Source: https://baolaocai.vn/cu-huych-quan-trong-cho-cong-dong-doanh-nghiep-post881949.html