The National Assembly passed Resolution 198/2025/QH15 on 17 May 2025 introducing the incentives.
Vietnam’s National Assembly passed Resolution 198/2025/QH15 on 17 May 2025, introducing various tax and financial incentives to support private sector growth.
The government issued Resolution No. 139/NW-CP the same day to implement it. The resolution took effect immediately.
Key measures include:
- Corporate income tax exemptions for two years and 50% reductions for the next four years for innovative start-ups, and a three-year exemption for small and medium-sized enterprises. Individual investors are exempt from personal income tax, with reductions for experts and scientists in start-ups.
- Businesses can deduct 200% of R&D expenses and allocate up to 20% of assessable income to science and technology funds.
- A 2% loan interest subsidy is available for green and circular projects.
- High-tech start-ups receive a 30% reduction in land rent for five years.
