RESOLUTION NO. 198/2025/QH15: A STRATEGIC WINDOW FOR PRIVATE ENTERPRISES

phanhoainamba
May 28
3 min read

On May 17, 2025, the National Assembly officially adopted Resolution No. 198/2025/QH15, introducing a series of comprehensive fiscal policy measures aimed at accelerating the development of the private sector—particularly small and medium-sized enterprises (SMEs) and innovative startups.

In this newsletter, W&A summarizes and analyzes the 10 most noteworthy tax, fee, and financial-credit support policies that businesses should carefully consider in order to fully leverage the incentives provided.

I. 10 HIGHLIGHTED POLICIES UNDER RESOLUTION 198/2025/QH15

1. 3-year Corporate Income Tax (CIT) exemption for SMEs: Applicable to SMEs from the date of issuance of their initial Business Registration Certificate. This policy helps ease financial burdens and enables capital accumulation and scale expansion during the early stages of operation.

2. Special tax incentives for innovative startups: A 2-year CIT exemption followed by a 50% reduction in CIT for the subsequent 4 years, applicable to income from innovative startup activities. This covers startups, venture capital management companies, and intermediary support organizations.

3. Tax exemption on share transfers to innovative startups: Income derived from the transfer of shares, capital contributions, or related rights into innovative startups will be exempt from both Personal Income Tax (PIT) and CIT.

4. PIT incentives for professionals and scientists: A 2-year PIT exemption and a 50% reduction for the next 4 years for wages and remuneration paid to professionals and scientists working in innovative startups, R&D centers, or intermediary organizations.

5. Abolishment of business license tax from January 1, 2026: From this date, individuals, household businesses, and companies will no longer be subject to the annual business license fee—encouraging formalization of small-scale business activities.

6. Elimination of lump-sum tax method from January 1, 2026: Household and individual businesses will shift from the flat tax method to filing under the Law on Tax Administration—bringing greater transparency and aligning with the digitalization trend.

7. Waiver of reissuance fees for official documents: Organizations, individuals, and enterprises will be exempt from fees and charges for the reissuance or replacement of documents in cases of government restructuring or administrative reform.

8. Tax-deductible training expenses: Training and retraining costs incurred by large enterprises for the benefit of SMEs in supply chains will be fully deductible when calculating CIT obligations.

9. Allocation of up to 20% of taxable income to science & technology funds: Enterprises are allowed to allocate up to 20% of taxable income to set up internal funds for science, technology, innovation, and digital transformation. These funds may be used for in-house implementation or outsourced projects under output-based contracts.

10. Double deduction for R&D expenses: Enterprises can deduct 200% of actual R&D expenses when calculating taxable income, providing a significant incentive for innovation and research investment.

II. W&A CONSULTING’S RECOMMENDATIONS

This is a critical time for businesses to revisit their financial and tax strategies. We recommend that enterprises:

Develop a transition plan from household business to enterprise status to enjoy the full range of incentives.
Establish or adjust R&D and innovation activities to qualify for tax benefits.
Reorganize capital structures and ownership to meet the conditions for tax-exempt capital transfers.
Participate in supply chains connecting SMEs and large enterprises, particularly in workforce training and technology transfer.

W&A is ready to support your business in navigating and applying the preferential policies introduced by Resolution 198/2025/QH15. Contact us today for tailored advice and timely assistance.

For more details, contact us:

☎️ +84 93 594 8688

📧 Email: nam.phan@waco.com.vn

🌐 Website: https://www.waconsulting.vn/

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