Vietnam Software CIT Incentives: 2026 Legal Guidelines

Software enterprises operating in Vietnam may enjoy Corporate Income Tax (CIT) incentives if their activities qualify as “software production” under Vietnamese regulations.

This article provides a practical guide to help businesses determine whether their operations meet the legal criteria for tax incentives.

1. Legal Basis

The determination of software production activities is based on:

• Law on Corporate Income Tax

• Law on Information Technology

• Relevant guiding documents issued by the Ministry of Information and Communications

• Product List under Circular 10/VBHN-BTTTT dated October 21, 2024

Enterprises must verify that their products fall within the official product list to be eligible for tax incentives.

2. What Is Considered Software Production?

Software production includes part or all of the following processes:

• Requirements analysis

• System design

• Coding and programming

• Testing and quality assurance

• Product completion and packaging

• Maintenance and upgrading

The key condition is that the enterprise must directly conduct the software development process, rather than merely distributing or trading software products.

3. Conditions to Qualify for CIT Incentives

To enjoy tax incentives, enterprises must:

• Produce products listed under Circular 10/VBHN-BTTTT (2024 consolidated version)

• Conduct actual production activities in Vietnam

• Maintain separate accounting for software-related revenue and expenses

• Comply with tax reporting obligations

4. Applicable CIT Incentives

Depending on the project location and investment conditions, enterprises may benefit from:

• Preferential CIT rate of 10% for up to 15 years

• Tax exemption for up to 4 years

• 50% tax reduction for the following 9 years

(Subject to the Law on Corporate Income Tax and relevant guiding regulations.)

5. Compliance Recommendations

Enterprises should:

• Ensure products match the official product list

• Standardize internal software development processes

• Maintain complete technical and contractual documentation

• Prepare for tax authority inspection or clarification requests

Proper classification of software production activities helps enterprises maximize tax benefits and reduce compliance risks.