Hanoi (VNA) – New tax incentives taking effect in 2025 and 2026 are expected to provide significant support for science and technology enterprises, helping create new growth drivers in line with the Politburo's Resolution No. 57-NQ/TW on science, technology, innovation and digital transformation.
Stronger tax incentives
According to the Ministry of Finance, tax incentives for science, technology and innovation are now comparable to, or even more favourable than, those of many countries in the region.
Under the Corporate Income Tax Law, effective from October 1, 2025 and applicable to the 2025 tax year, enterprises may deduct research and development (R&D) expenses at up to twice their actual value for tax purposes.
The law also allows companies to allocate up to 20% of pre-tax profits to science and technology development funds, double the previous cap of 10%.
High-tech and strategic technology projects are eligible for a preferential 10% corporate tax rate for 15 years, a four-year tax exemption and a 50% reduction in payable tax for the following nine years.
The Personal Income Tax Law, effective from July 1, 2026, exempts income derived from scientific research, technology and innovation activities. Highly skilled technology professionals and high-quality digital technology workers will also enjoy a five-year exemption on employment income.
Import tax incentives have been expanded to cover machinery, equipment, materials and components used directly in science and technology activities and the digital technology industry. Scientific organisations, high-tech enterprises and newly established high-tech manufacturing projects will receive import tax exemptions for five years from the start of research or production activities.
Supporting talent, innovation
Associate Professor and Dr Ly Phuong Duyen of the Academy of Finance said the new measures reflect the Party and State’s commitment to attracting highly qualified human resources to priority sectors.
She noted that the revised PIT Law incorporates tax exemptions introduced under National Assembly resolutions on special mechanisms to accelerate science and technology, innovation, digital transformation and private-sector development.
Tax incentives are one of the most important tools for encouraging businesses to invest in research and development, Duyen said, adding that lower technology investment costs would encourage enterprises to commercialise research outcomes and strengthen competitiveness.
Nguyen Van Duoc, General Director of Trong Tin Accounting and Tax Consultancy Co., Ltd., said PIT incentives for science and technology professionals form an important part of broader policies aimed at promoting innovation, with human resources at the centre.
The incentives, he said, will improve workers’ income, help enterprises attract and retain skilled talent, draw foreign experts and reduce brain drain. However, clear implementation guidelines will be needed to ensure consistent application, he stressed.
Boosting business competitiveness
Nguyen Cao Giap, CEO of GHT Group, said tax incentives would give technology startups greater financial flexibility to reinvest in R&D, product development and market expansion, particularly during their early years.
The policies are also expected to encourage the establishment of new technology enterprises and innovation-driven business models, contributing to higher-quality growth in the private sector.
Nguyen Van Dung, General Director of Lancom JSC, said the corporate tax incentives would stimulate investment in science and technology while increasing resources for innovation and digital transformation.
He noted that the measures would help startups overcome early cash-flow challenges and strengthen Vietnam’s technology ecosystem in regional competition.
The incentives are also expected to attract and retain scientists and technology experts while providing enterprises with additional resources to enhance competitiveness in strategic sectors such as artificial intelligence, semiconductors, software and biotechnology./.
VNA
