CIT 2026: 20%, 17%, 15% Rates, Exemption, Prepayment

Corporate income tax (CIT) in 2026 is governed by three layers of rules that must be read together: the rates by revenue size under Law 67/2025/QH15, the revenue-based exemption added in April 2026, and the rules on quarterly prepayment and finalization under the new Law on Tax Administration, which took effect on 01/7/2026.

Quick answer: the standard rate is 20%. A business with total annual revenue of up to 3 billion VND pays 15%, and one with revenue above 3 billion VND up to 50 billion VND pays 17%. A business with total annual revenue of 1 billion VND or less is exempt from CIT from 01/01/2026. Tax is prepaid quarterly, and the four prepayments must total at least 80% of the annual finalized tax. The finalization is due no later than the last day of the third month after the end of the year.

Which rate applies: 20%, 17% or 15%?

Total annual revenue	Rate
Up to 1 billion VND	Exempt from CIT, except for subsidiaries and affiliated companies that do not meet the conditions (see below)
Above 1 billion VND up to 3 billion VND	15%
Above 3 billion VND up to 50 billion VND	17%
Above 50 billion VND	20%

Total revenue is the total of sales of goods and services (excluding revenue deductions), financial income and other income, shown in the Appendix to the business results statement attached to the CIT finalization return for the preceding tax period (Clause 4, Article 11, Decree 320/2025/NĐ-CP). Additional rules apply:

Preceding period of less than 12 months: actual revenue is divided by the number of months of operation and multiplied by 12. A business established, converted, merged, consolidated, divided or separated in any month counts that month in full.
Newly established business in the period: prepays quarterly at 15% or 17%, depending on expected revenue. If actual revenue at the end of the period does not meet the condition, the business pays the shortfall with late-payment interest.
Subsidiaries and affiliated companies: the 15% and 17% rates do not apply if the related company does not meet the conditions for those rates.

A business with total annual revenue of 3 billion VND or less, whose revenue can be determined but whose costs and income cannot, declares CIT as a percentage of revenue: 0,3% for distribution and supply of goods; 1,2% for manufacturing, transport, services linked to goods, and construction with supply of materials; 1,5% for services and construction without supply of materials (4% for property leasing, insurance agency, lottery and direct selling; 0,5% for other activities) (Clause 4, Article 12, Decree 320/2025/NĐ-CP).

Is a business with revenue of up to 1 billion VND exempt from CIT?

Yes, from 01/01/2026. Law 09/2026/QH16 (approved on 24/4/2026) adds Clause 14a to Article 4 of the CIT Law: income of enterprises and organizations established under Vietnamese law with total annual revenue at or below the level set by the Government is exempt. Decree 141/2026/NĐ-CP (issued 29/4/2026, effective 01/01/2026) adds Clause 15 to Article 4 of Decree 320/2025/NĐ-CP and sets the level at 1 billion VND. Key points:

How revenue is determined: the same method as for the rate: total revenue in the Appendix attached to the finalization return for the preceding tax period. A period of less than 12 months is converted by months of operation.
Newly established businesses: if expected revenue for the tax period is 1 billion VND or less, the business does not prepay. If actual revenue exceeds that level, the business declares and finalizes tax and is not charged late-payment interest.
Exclusion: the exemption does not apply to a subsidiary or affiliated company if the related company does not meet the exemption conditions.
Transition (Article 4, Decree 141/2026/NĐ-CP): a business that prepaid for Q1/2026 and meets the conditions does not prepay later quarters and may offset or recover the excess tax paid. For a 2025 tax period that ends after 01/01/2026, the part of the period from 01/01/2026 is exempt under the formula in Clause 3, Article 4.

Is a new small or medium enterprise exempt for 3 years?

Clause 4, Article 10 of Resolution 198/2025/QH15 provides a CIT exemption for small and medium enterprises for 3 years from the date the enterprise registration certificate is first issued. Clause 3, Article 7 of Decree 20/2026/NĐ-CP (issued and effective 15/01/2026) sets out the details:

Exemption period: runs continuously from the first year the registration certificate is issued. If the first tax period is less than 12 months, the business may elect to start the exemption from that period, or register with the tax authority to start from the next period (Clause 5). Where another incentive also applies, the business chooses the most favorable and keeps it stable (Clause 4).
Three cases where the exemption does not apply: (b1) a newly established business formed through merger, consolidation, division, separation, change of ownership or change of legal form; (b2) a newly established business whose legal representative (unless that person is not a capital contributor), general partner or largest capital contributor already held the same role in an operating business, or in a dissolved business that was dissolved less than 12 months before the new business was established; (b3) income described in Clause 3, Article 18 of the CIT Law 67/2025/QH15.

Note for businesses with foreign investment: Dispatch 2169/TPHCM-QLDN3 (09/3/2026) of the Ho Chi Minh City Tax Department concluded that a small or medium enterprise with foreign capital did not qualify under Resolution 198/2025/QH15 and Clause 3, Article 7 of Decree 20/2026/NĐ-CP. This is an answer to one case, not a normative document, so each file should be checked individually before filing for the exemption.

How does quarterly CIT prepayment work?

Under Article 24 of Decree 252/2026/NĐ-CP (effective 01/7/2026):

CIT is prepaid quarterly.
The deadline for each quarterly prepayment is the last day of the first month of the quarter after the quarter in which the obligation arose.
The business determines each quarterly amount itself, but the total prepaid for 04 quarters must be at least 80% of the tax payable shown in the annual finalization it declares.
If the amount paid is less than the 80% level, late-payment interest applies to the shortfall from the day after the due date for the fourth-quarter prepayment until it is paid in full.

Illustration: the annual finalization shows tax payable of 500.000.000 VND. The four prepayments must total at least 400.000.000 VND. If 350.000.000 VND is paid, the shortfall of 50.000.000 VND bears late-payment interest.

When is the CIT finalization due?

The finalization period is the accounting year of the business (Point đ.1, Clause 2, Article 9, Decree 252/2026/NĐ-CP). The finalization dossier must be filed no later than the last day of the third month after the end of the finalization period (Point a, Clause 5, Article 10). Where there is a decision to terminate operations, dissolve, go bankrupt, divide, separate, merge or consolidate, the deadline is the 45th day after the date of the decision (Point b, Clause 5, Article 10). This is directly relevant to tax finalization on company dissolution. For the full finalization and financial reporting calendar, see tax finalization and financial statements.

How Thái Tín supports CIT planning

Thái Tín helps businesses determine the correct rate, the level of any exemption and the prepayment schedule, then connects them with accounting and tax partners who prepare the filings:

Review revenue for the preceding period, the ownership structure and related-party relationships to determine the rate and whether the exemption may apply.
Build a quarterly prepayment schedule and compare the amounts paid with the 80% minimum.
Connect the business with specialist partners who prepare the finalization dossier, or review the 2025 dossier when a business changes its rate mid-period.

To start, please send us revenue for the two most recent years, the ownership structure and the amount of tax already prepaid, so that we can prepare a plan and connect you with the right specialist partner.

Questions and answers

What is the corporate income tax rate in 2026?

The standard rate is 20%. Businesses with total annual revenue of up to 3 billion VND pay 15%, and those with revenue above 3 billion VND up to 50 billion VND pay 17% (Clauses 1, 2 and 3, Article 10, Corporate Income Tax Law 67/2025/QH15; Clauses 1, 2 and 3, Article 11, Decree 320/2025/NĐ-CP). The revenue used is total revenue in the preceding tax period.

What revenue level makes a business exempt from CIT?

1 billion VND or less. Article 3 of Law 09/2026/QH16 adds Clause 14a to Article 4 of the CIT Law, authorizing the Government to set the total annual revenue level for exemption. Clause 15, Article 4 of Decree 320/2025/NĐ-CP, supplemented by Article 2 of Decree 141/2026/NĐ-CP, sets this at 1 billion VND. The rule takes effect from 01/01/2026. The level does not apply to subsidiaries or affiliated companies whose related parties do not meet the exemption conditions.

Does a newly established business expecting annual revenue of 1 billion VND or less have to prepay CIT?

No (Point c, Clause 15, Article 4, Decree 320/2025/NĐ-CP, as supplemented by Decree 141/2026/NĐ-CP). At the end of the tax period, if actual total revenue exceeds 1 billion VND, the business declares and finalizes its tax under the normal rules and is not charged late-payment interest.

When are quarterly CIT prepayments due and what is the minimum?

Under Article 24 of Decree 252/2026/NĐ-CP (effective 01/7/2026), the deadline for each quarterly prepayment is the last day of the first month of the quarter after the quarter in which the obligation arose. The total prepaid for 04 quarters must be at least 80% of the tax payable shown in the annual finalization. If the amount paid is less than this, late-payment interest applies to the shortfall from the day after the due date for the fourth-quarter prepayment.

When is the CIT finalization deadline, and what happens on dissolution?

Clause 5, Article 10 of Decree 252/2026/NĐ-CP: no later than the last day of the third month after the end of the finalization period (the finalization period is the accounting year, Point đ.1, Clause 2, Article 9). If there is a decision to terminate operations, dissolve, go bankrupt, divide, separate, merge or consolidate, the deadline is the 45th day after the decision (Point b, Clause 5, Article 10).

Legal basis · verification date

Verified 20 October 2026 · next review 18 January 2027. The content is general guidance and does not replace advice for a specific case.

Corporate Income Tax Law 67/2025/QH15 (issued 14/6/2025; effective 01/10/2025, applying from the 2025 tax period under Clause 1, Article 19; Official Gazette Nos. 965 and 966, 24/7/2025): Article 10 (tax rates), Article 11 (method of calculating tax), Article 4 (exempt income).
Law 09/2026/QH16 (approved by the National Assembly on 24/4/2026; Official Gazette No. 286, 27/5/2026): Article 3 (adds Clause 14a to Article 4 of the CIT Law), Clause 2, Article 5 (Articles 1, 2 and 3 take effect from 01/01/2026).
Decree 320/2025/NĐ-CP (issued and effective 15/12/2025, applying from the 2025 tax period; Official Gazette Nos. 1737 and 1738, 28/12/2025): Article 11 (rates of 20%, 17% and 15%, how total revenue is determined, newly established businesses, affiliated companies), Clause 4, Article 12 (deemed rates on revenue where costs cannot be determined: 0,3%, 1,2%, 1,5%, 4% and 0,5%), Article 24 (effect).
Decree 141/2026/NĐ-CP (issued 29/4/2026, effective 01/01/2026; Official Gazette No. 272, 14/5/2026): Article 2 (adds Clause 15 to Article 4 of Decree 320/2025/NĐ-CP: exemption for businesses with total annual revenue of 1 billion VND or less), Article 4 (transition: businesses that prepaid for Q1/2026 and meet the conditions, and the 2025 tax period ending after 01/01/2026).
Decree 252/2026/NĐ-CP (issued 30/6/2026, effective 01/7/2026; Official Gazette No. 401, 16/7/2026): Point đ, Clause 2, Article 9; Clause 5, Article 10; Article 24 (quarterly prepayment).
Resolution 198/2025/QH15 (dated 17/5/2025), Clause 4, Article 10: CIT exemption for small and medium enterprises for 3 years from the date the first enterprise registration certificate is issued. Decree 20/2026/NĐ-CP (issued and effective 15/01/2026; Official Gazette No. 65, 29/01/2026), Clauses 3, 4 and 5, Article 7: the exemption period runs continuously from the first year of the certificate; three cases are excluded (b1, b2, b3); the most favorable incentive is chosen; the first tax period may be less than 12 months. Dispatch 2169/TPHCM-QLDN3 dated 09/3/2026 of the Ho Chi Minh City Tax Department is an answer to one specific case (a business with foreign capital), not a normative document; the published content was checked against the version on thuvienphapluat.vn (published 20/8/2026).
Circular 89/2026/TT-BTC (30/6/2026; corrected by Decision 2551/QĐ-BTC dated 15/9/2026) and Circular 20/2026/TT-BTC (12/3/2026, applying from the 2025 tax period) were checked. The full text of Circular 89/2026/TT-BTC could not be read, so no details from that document are used.
Checked for amendments or replacements on 20/10/2026: the CIT Law has been amended by Law 09/2026/QH16 (Clause 14a, Article 4), and other laws not relevant to the articles used in this article (Cybersecurity Law, High-Tech Law, Investment Law, Criminal Judgment Enforcement Law, Public Debt Management Law). Decree 320/2025/NĐ-CP is supplemented by Decree 141/2026/NĐ-CP. No amendment to the other articles has been found. Consolidated text 61/VBHN-VPQH states that the CIT Law takes effect on 01/10/2026, which differs from the original text (01/10/2025); this article follows the original text.