Corporate income tax rates in 2026: 15% / 17% / 20% by revenue — small enterprises pay less
From the 2025 tax period, Vietnam's CIT Law 67/2025/QH15, Article 10 sets the corporate income tax rate by total annual revenue: 15% up to 3 billion VND, 17% above 3 billion up to 50 billion, and 20% otherwise. It is a real cut for small enterprises versus the flat 20% — here are the three tiers, how to pick the right one, and the related-party trap.
If your company has small or mid-sized revenue, the new Corporate Income Tax (CIT) Law brings welcome news: the CIT rate is now set by your total annual revenue, and small enterprises get a rate lower than the standard 20%. This post covers the three new tiers, how to identify the right one, and one easy trap — related parties.
Three rates, set by revenue
Previously the standard CIT rate was 20%, applied to most enterprises alike. From the 2025 tax period, CIT Law 67/2025/QH15, Article 10 splits it into three tiers by total annual revenue:
| Rate | Condition (total annual revenue) | Basis |
|---|---|---|
| 15% | up to 3 billion VND | Article 10, clause 2 |
| 17% | above 3 billion up to 50 billion VND | Article 10, clause 3 |
| 20% | standard (no ceiling) | Article 10, clause 1 |
What it means: an enterprise with total annual revenue ≤ 3 billion pays only 15% instead of the standard 20% — a quarter off the rate. The 3–50 billion band pays 17%. Larger enterprises (or those that don’t qualify for a reduced tier) stay at 20%.
The easy mistake: this is a flat rate by revenue, not a progressive table
Unlike the personal income tax (PIT) table, which is progressive across brackets, these three CIT rates are flat: your annual revenue only selects a single rate, and that rate then applies to your entire taxable income for the year. There is no “first 3 billion at 15%, the excess at 17%.”
Keep two figures distinct:
- Revenue for the year — used to pick the tier (≤ 3bn / 3–50bn / above 50bn).
- Taxable income (profit after deductible expenses) — the base the selected rate is applied to.
In short: revenue decides the rate, taxable income decides the amount.
The trap: related parties
The 15% and 17% rates do not apply automatically to every low-revenue company. Article 10 clause 4 excludes an enterprise that is a subsidiary of, or has a related-party relationship with, an enterprise that does not itself qualify for the reduced tier. The point is to stop a large enterprise from splitting into several low-revenue entities to slip down to 15%/17%.
So if your company sits inside a parent–subsidiary group or has related-party transactions, don’t conclude you get 15% or 17% from your own revenue alone — review the related-party relationships before you lock the rate.
When does it apply?
Law 67/2025/QH15 was passed on 14 June 2025 and takes effect on 1 October 2025, but the three revenue-based rates apply from the 2025 tax period. That means the 2025 CIT annual finalization (due by 31 March 2026) already uses these three tiers — you do not wait until 2026.
Every figure carries the law
True to Kê Khai’s every figure carries the law principle, each number above traces to the original text on the State’s official portal:
- The 15% / 17% / 20% revenue tiers + the related-party exclusion: CIT Law 67/2025/QH15, Article 10 — clause 2 (15% ≤ 3bn), clause 3 (17% for 3–50bn), clause 1 (20% standard), clause 4 (subsidiary / related-party exclusion). In force 1 Oct 2025, applied from the 2025 tax period.
Kê Khai picks the right tier for you
Kê Khai has updated the three revenue-based rates into its CIT calculation and finalization: when you enter your annual revenue, the app selects the correct tier (15% / 17% / 20%), applies it to taxable income, flags the related-party exclusion so you don’t overlook it, and links every number straight to the law behind it.
You can open the Kê Khai app to try a CIT calculation under the new tiers, or read more on why every figure carries the law.