Knowledge base
RegHub explanations of official Vietnamese tax, accounting and invoice documents, in plain language.
Corporate Income Tax
Corporate income tax rates, deductible expenses, incentives and annual finalisation.
Conditions for 3-Year CIT Exemption for Newly Established SMEs When the Founder Previously Owned Another Enterprise
Điều kiện miễn thuế TNDN 3 năm cho doanh nghiệp nhỏ và vừa thành lập mới khi người sáng lập từng là chủ doanh nghiệp khác
Under Article 7(3) of Decree No. 20/2026/NĐ-CP, small and medium-sized enterprises (SMEs) registering for the first time are exempt from corporate income tax (CIT) for 3 years from the date taxable income arises. The key condition is that the founder must not currently be a capital-contributing member or the member with the highest capital contribution in any operating enterprise at the time of establishing the new enterprise. The Hanoi Tax Authority confirmed: a person who previously owned a single-member LLC since 2023 but fully transferred all capital contributions to another party in April 2024, and who currently is neither a general partner nor the highest capital contributor in any operating enterprise, qualifies for the 3-year CIT exemption upon establishing a new small enterprise - provided the new enterprise meets all SME criteria under applicable law. The tax authority directs the taxpayer to consult additional guidance documents from the Hanoi Tax Department at https://hanoi.gdt.gov.vn or to contact the directly managing tax office for specific support.
Payment of Vehicle Rental Expenses Exceeding 5 Million VND via Driver's Personal Bank Account: VAT Input Deduction Conditions Under Decree 181/2025/NĐ-CP
Thanh toán chi phí thuê xe trên 5 triệu đồng qua tài khoản cá nhân của tài xế: Điều kiện khấu trừ VAT đầu vào theo Nghị định 181/2025/NĐ-CP
Under Article 26(2)(i) of Decree No. 181/2025/NĐ-CP, when goods or services purchased for taxable business activities are paid for by an authorized employee of the business using non-cash payment methods in accordance with the enterprise's financial or internal regulations, and the enterprise subsequently reimburses the employee by non-cash means, the input VAT on such purchases is deductible. The Ministry of Finance directed the inquirer to study the provisions of Article 26(2)(i) of Decree 181/2025/NĐ-CP to assess the validity of the payment arrangement through the driver's personal bank account. For this to be valid, the authorization to pay must be consistent with the enterprise's financial or internal regulations, and the reimbursement to the employee must also be made by non-cash transfer. This is an important clarification for enterprises incurring project-site expenses that need to be paid through an authorized employee rather than directly transferred to the service provider.