03-YEAR CORPORATE INCOME TAX EXEMPTION FOR FIRST-TIME REGISTERED SMALL AND MEDIUM-SIZED ENTERPRISES
- phanhoainamba
- 4 days ago
- 2 min read
On 15 January 2026, the Government promulgated Decree No. 20/2026/ND-CP, providing detailed guidance on the implementation of Resolution No. 198/2025/QH15 on special mechanisms and policies for the development of the private economic sector, together with the Law on Corporate Income Tax No. 67/2025/QH15.
Under this Decree, small and medium-sized enterprises that are registered for business for the first time are entitled to a corporate income tax exemption for three consecutive years, commencing from the first year in which the Enterprise Registration Certificate is issued.
Key highlights of the policy include:
A 03-year corporate income tax exemption for first-time registered small and medium-sized enterprises;
Transitional provisions allowing enterprises established prior to 17 May 2025 to continue enjoying the incentive for any remaining eligible period;
Clear criteria for determining small and medium-sized enterprises, based on workforce size, revenue, and total capital;
Specific conditions for identifying a “first-time registered enterprise”, excluding cases arising from restructuring or enterprise transformation.
The Decree also clearly specifies cases in which the tax exemption shall not apply, with the objective of ensuring that the incentive is implemented in line with its intended policy purpose and of mitigating the risk of abuse.
In this Newsletter, W&A summarizes and provides selective analysis of the key provisions of Decree No. 20/2026/ND-CP, focusing on matters that enterprises should carefully consider when assessing eligibility conditions, structuring their establishment, and managing income streams, in order to ensure regulatory compliance and effective tax risk management in practice.
👉 Read the full Newsletter here:
W&A stands ready to provide in-depth advisory and implementation support to Clients in connection with legal, tax, and accounting matters relating to the above corporate income tax exemption policy.
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