Starting from 2026, Vietnam introduces a series of significant tax incentives to promote investment, research and development (R&D), innovation, and high-quality talent attraction in the fields of high technology, digital technology, and strategic technology or located in concentrated digital technology zones. These incentives are available to both eligible enterprises and individuals working in these priority sectors
The incentives generally apply to enterprises engaged in the production, development, and R&D of products and technologies included in the Government's priority lists, such as:
| Case (Sector / Location) | CIT Incentive | PIT Incentive | Eligibility Conditions |
| Software Production | 10% CIT for 15 years 4‑year CIT exemption + 50% reduction for 9 years |
5 years exention for High‑Quality Digital Technology Personnel |
Must be a new investment project in software production Software must comply with Vietnam’s software classification standards |
| Cybersecurity / Network Information Security Services | Eligible for CIT incentives as part of incentivized digital‑technology sectors | 5 years exention for High‑Quality Digital Technology Personnel |
Activity must fall under legally defined network information security services Must obtain specialized Cybersecurity Service License from MIC (in addition to ERC/IRC) |
| High‑Tech Enterprises; Enterprises in strategic technologies, or strategic technology product |
10% CIT for 15 years applied for group 2; 25 years applied for group 1 4‑year CIT exemption + 50% reduction for 9 years |
5-year PIT exemption: Applicable to employment income earned by high-tech professionals engaged in R&D activities related to high technologies, strategic technologies, or strategic technology products. | Must obtain Certification and satisfy all of the following: ≥ 70% revenue from high tech products ( 80% for group 1) or 40% revenue from R&D R&D spending = 0.5%–2% of annual net revenue depending on enterprise size ( from 1% - 5% for group 1) Highly skilled workforce = 1%–5% of employees depending on enterprise size + Domestic value-added ratio of at least 40% ( applied to group 1) |
| Key Digital Technology Products & Semiconductor Activities | 10% CIT for 15 years 4‑year CIT exemption + 50% reduction for 9 years |
Applicable if personnel meet high‑quality digital‑tech criteria (5‑year PIT exemption) | Products must appear in the official list of key digital technology products Must be a new investment project in: semiconductor R&D, design, production, packaging, testing; AI data center; or electronic equipment manufacturing Enterprise must ensure accuracy and truthfulness of product information under Circular 31/2025/TT BKHCN |
| Enterprises in Concentrated Digital Technology Zones | Location‑based CIT incentives (10% preferred CIT rate or other preferential rates depending on project type) | High‑quality digital‑tech personnel working in these zones qualify for 5‑year PIT exemption | Project must be located in an officially designated concentrated digital technology zone Must satisfy zone specific investment and operational conditions |
In summary: Companies operating in software development, cybersecurity, semiconductors, AI, digital technology, high-tech manufacturing, and strategic technology sectors should proactively assess their eligibility for the newly introduced tax incentives. By properly structuring their investment projects and satisfying the applicable certification and operational requirements, businesses may benefit from significant Corporate Income Tax (CIT) reductions, while also leveraging the 5-year Personal Income Tax (PIT) exemption to attract and retain highly qualified talent. These incentives present a valuable opportunity to enhance investment returns, strengthen competitiveness, and support long-term growth in Vietnam's rapidly expanding technology ecosystem.
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