Paving the way for startups and innovation

More than just an adjustment in tax rates, the new law shows a clear direction: to accompany and support small and medium-sized enterprises, startups and innovation - forces that increasingly play a key role in the economy .

The breakthrough point of this policy is the tiered tax rate mechanism. Enterprises with revenue of no more than 3 billion VND/year are completely exempted from corporate income tax; from 3 - 50 billion VND, the rate is 15%; over 50 billion VND, the rate is 20%. With this mechanism, the state has placed small and micro enterprises - which account for a large proportion of the total number of enterprises - in the central position of support. This is a strong message affirming that the development of the economy does not only rely on large corporations, but is also nurtured by millions of production establishments, business households, small and medium-sized companies across the country.

In particular, the new law also significantly expands the expenses that are considered reasonable expenses, including research and development (R&D), innovation, digital transformation, greenhouse gas emission reduction and moving towards the net zero target. Allowing the deduction of higher R&D costs than actual costs at the rate prescribed by the Government is considered a "golden signal" for the creative startup community. Because many young technology companies often face difficulties due to long payback cycles and expensive experimental products; but with this policy, they can confidently embark on more daring projects.

This reflects a new philosophy in public finance management: taxes are not only a tool for budget collection, but also a lever to stimulate innovation. The State, through tax incentives, has “contributed invisible capital” to help businesses confidently enter the technology playground, which requires a lot of courage and long-term vision.

The 2025 Corporate Income Tax Law clearly shows the direction of accompanying and supporting small and medium enterprises. In the photo: An enterprise processing cashew nuts for export in An Phu Industrial Park (Binh Kien Ward).

Along with incentives, the law also tightens up illegal expenses. Interest exceeding the limit prescribed by the Civil Code or cash payments of over VND5 million will no longer be deducted from expenses. This is a big challenge for large enterprises, forcing them to standardize their financial management systems and increase transparency. In the long term, this regulation will create a fairer business environment because when all costs are strictly controlled, enterprises must improve efficiency and compete with real value.

Overall, the new Corporate Income Tax Law is a “double boost”: creating room for development for small businesses and creative startups, while raising governance standards for large businesses. This is a combination of encouragement and constraint, support and discipline aimed at a dynamic, transparent, and sustainably developing business community.

In the context of Vietnam promoting the transformation of the growth model in depth, the Law on Corporate Income Tax prioritizing small enterprises and innovation is of special significance. It is a necessary step to unblock the flow of local startups, encouraging new ideas, new technologies, and new products to be commercialized.

Thus, from October 1, 2025, the corporate income tax policy is not just a matter of payment and collection, but has become part of the national strategy: giving more motivation to small and medium enterprises, paving the way for innovative startups, and shaping new standards for the Vietnamese business community on the path of integration.

Source: https://baodaklak.vn/kinh-te/202509/mo-duong-cho-khoi-nghiep-doi-moi-sang-tao-7840e9a/