Exempt Income from Corporate Income Tax (CIT)

Article 8 of Circular 66/VBHN-BTC dated December 19, 2019 outlines 12 types of income exempt from CIT, specifically:

1. Income of businesses from: farming, livestock, aquaculture, and processing agricultural and aquatic products in specially disadvantaged areas. Income from fishing activities.

   Income of cooperatives from: self-cultivation, livestock, aquaculture, processing agricultural products, seafood, and salt production in difficult or especially disadvantaged areas. (Processing: Includes buying products for processing, with raw materials being agricultural or seafood products, where the ratio of raw materials to production costs must be at least 30%, and not subject to excise tax.)

2. Income from technical services directly supporting agriculture, including: irrigation, drainage services; plowing, harrowing the soil; dredging canals, internal field ditches; pest and disease control services for crops and livestock; services for harvesting agricultural products.

3. Income from executing scientific research and technological development contracts as per the law on science and technology, but:

   • Not exceeding 3 years from the date of revenue from the research contract.

   • Not exceeding 5 years from the date of revenue from products using newly applied technology in Vietnam for the first time.

4. Income from activities of enterprises with average labor in the year accounting for 30% or more of the total labor force, including: people with disabilities, those who have rehabilitated from drug addiction, individuals with HIV/AIDS (with confirmation from relevant authorities). The enterprise’s average annual labor force must be 20 people or more, and the enterprise must not operate in finance or real estate.

5. Income from vocational training (according to vocational training regulations) for ethnic minorities, people with disabilities, children in difficult circumstances, individuals affected by social vices, those in recovery from addiction, and those with HIV/AIDS.

6. Income derived from contributions, share purchases, joint ventures, and economic associations with domestic businesses after paying CIT.

7. Donations received for educational activities, scientific research, culture, arts, charity, humanitarian, and other social activities in Vietnam.

8. Income from certified emission reductions (CERs) of a business that has been granted an emission reduction certificate (must be verified by the competent environmental authority).

9. Income from loans to the poor and other social policy beneficiaries by the social policy banks; income of single-member limited liability companies managing assets of Vietnamese credit institutions; income from executing state-mandated tasks by: Vietnam Development Bank (for investment credit, export credit); state financial funds, land development funds, and other non-profit public funds established and operated as per the law.

10. Undistributed income of:

• Socialized organizations in the fields of education, healthcare, and other social fields (including forensic offices) that are retained for reinvestment in the development of these organizations according to sector-specific laws.

• Cooperatives retained to form cooperative assets.

11. Income from technology transfer in priority areas according to regulations for organizations and individuals in specially disadvantaged areas.

12. Income of notaries during the pilot phase as regulated in civil enforcement law.

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