Tax incentives in 2025 under Resolution No. 198/2025 are opening up significant opportunities for startups and startup investors in Vietnam. The new policies on tax exemptions, reductions, and financial support are expected to strongly promote the innovative startup ecosystem in the near future.
In this article, DNP Viet Nam Law Firm provides legal analysis and key information to help businesses understand and effectively take advantage of these incentives.
1. Definitions of startups and startup investors
Legal basis: Clause 1 Article 3, Clause 2 Article 10 of Resolution No. 198/2025/QH15; Clause 1 Article 2 of Decree No. 38/2018/ND-CP.
- An innovative startup enterprise is a business established to realize ideas based on the exploitation of intellectual property, technology, or new business models, with high growth potential.
- A startup investor refers to individuals or organizations that invest capital in innovative startups in accordance with investment and enterprise laws, aiming for both profit and the promotion of the innovation ecosystem.
2. Conditions for startups and startup investors to receive tax incentives in 2025
2.1. Conditions for innovative startup enterprises
Legal basis: Articles 4 and 17 of the Law on Support for Small and Medium-sized Enterprises 2017; Articles 1 and 18 of Decree No. 38/2018/ND-CP; Article 12 of the Corporate Income Tax Law 2025 (effective from October 1, 2025).
- Must be a small or medium-sized innovative startup enterprise operating for no more than 5 years, with annual revenue not exceeding VND 300 billion.
- Operates in sectors eligible for tax incentives such as high technology, R&D, digital transformation, or incubation centers.
- Must be officially recognized by competent authorities as an innovative startup enterprise.
2.2. Conditions for startup investors
Legal basis: Article 2 of Decree No. 38/2018/ND-CP.
- Invests through a venture capital fund or directly in a startup officially recognized as an innovative startup.
- Has a capital contribution agreement that complies with the Law on Enterprises and the Law on Investment.
- Invests in sectors related to high technology or innovation.
Image designed by DNP Viet Nam Law Firm
3. Tax incentives and financial support under the 2025 policy for startups and startup investors in Vietnam
Legal basis: Clause 6 Article 7 and Article 10 of Resolution No. 198/2025/QH15; Point o Clause 2 Article 12 and Article 13 of the Corporate Income Tax Law 2025 (effective from October 1, 2025).
| Type of incentive/support | Innovative startup enterprises | Small and medium-sized enterprises | Individual investors | Experts, scientists |
| Corporate income tax (CIT) incentives | 100% CIT exemption for 2 years and 50% reduction for the next 4 years. | 100% CIT exemption for the first 3 years. | Not applicable. | Not applicable. |
| Personal income tax (PIT) incentives | Not applicable. | Not applicable. | 100% PIT exemption on income from transferring shares or capital contributions to startups. | PIT exemption for 2 years and 50% reduction for the following 4 years. |
| Preferential tax rates | 10% or 17% CIT for activities in R&D, high-tech, or digital transformation. | 17% preferential tax rate for 10 years. | Not applicable. | Not applicable. |
| Land lease support | Minimum 30% reduction in land lease fees for the first 5 years. | Minimum 30% reduction in land lease fees for the first 5 years. | Not applicable. | Not applicable. |
| Training cost support | Not applicable. | Deductible training costs for retraining employees when calculating CIT. | Not applicable. | Not applicable. |
“The above content is provided by DNP Viet Nam Law Firm for reference purposes only. For detailed, accurate, and tailored legal advice that meets your specific needs, please contact us using the information provided below.”
—————————————-
DNP VIET NAM LAW FIRM
🏢Address: 5th Floor, 52 Nguyen Thi Nhung Street, Van Phuc Estate, Hiep Binh Ward, Ho Chi Minh City, Viet Nam.
📞 Hotline: 0987 290 273 (Đinh Văn Tuấn Lawyer).
📩 Email: info@dnp-law.com.
Website: https://www.dnp-law.com/
