VI In order to promote the digital technology industry, encourage innovation, and enhance domestic value. The State has issued the Law on Digital Technology Industry 2025, which defines the eligible entities and preferential policies for priority sectors. Pursuant to Clause 5, Article 40 of the Law on Digital Technology Industry 2025, enterprises implementing electronic equipment manufacturing projects that meet the criteria are entitled to support and incentives regarding Corporate Income Tax. Circular 33/2025/TT-BKHCN issued by the Ministry of Science and Technology has officially announced the criteria for enterprises implementing electronic equipment manufacturing projects to enjoy Corporate Income Tax incentives. The document takes effect from January 1, 2026.
- Eligible entities
Pursuant to Clause 2, Article 1 of Circular 33/2025/TT-BKHCN, the Circular applies to agencies, organizations, and enterprises involved in electronic equipment manufacturing projects in Vietnam.
Specifically, Clause 1, Article 2 of Circular 33/2025/TT-BKHCN stipulates that an Electronic Equipment Manufacturing Project under this Circular refers to projects manufacturing electronic products, computers, and communication equipment under category C.26 (Electronic Products, Computers, and Optical Products) of the Vietnam Product Classification System issued by the Prime Minister.
- Criteria for Enjoying Corporate Income Tax Incentives
Article 3 of Circular 33/2025/TT-BKHCN clearly states that enterprises implementing electronic equipment manufacturing projects are entitled to Corporate Income Tax (CIT) incentives if they meet one of the following criteria:
– Criterion for using semiconductor chip products designed, manufactured, or packaged, and tested in Vietnam in the products of the electronic equipment manufacturing project, provided that one of the following cases is satisfied:
a) Use of semiconductor chip products with a design owned by a Vietnamese organization, enterprise, or an individual who is a Vietnamese citizen. Ownership is established through self-design, hiring another party (including Vietnamese individuals) to perform the design, or purchasing the design from other entities.
b) Use of semiconductor chip products that are manufactured or packaged and tested at a factory or production line in Vietnam.
– Criteria on scientific research, technological development, and innovation, where the enterprise must simultaneously meet both of the following requirements:
a) The enterprise must have a department for scientific research, technological development, and innovation with a minimum of 10 personnel holding a university degree or higher. At least 50% of the personnel in this department must be Vietnamese citizens.
For small and medium-sized enterprises (SMEs) as prescribed by the Law on Support for Small and Medium-sized Enterprises, having a dedicated department for scientific research, technological development, and innovation is not mandatory, but they must have a minimum of 3 personnel with a university degree or higher performing these activities. At least 50% of the personnel engaged in scientific research, technological development, and innovation must be Vietnamese citizens.
b) The enterprise’s total expenditure on scientific research, technological development, and innovation activities must reach a minimum of 2% of the average net revenue over the 03 consecutive preceding fiscal years or be 200 billion Vietnamese Dong/year or more over the 03 consecutive preceding fiscal years; if the enterprise has been operating for less than 03 years, the average is calculated over the entire period of operation since establishment, but not less than 01 full fiscal year.
– The product of the electronic equipment manufacturing project in Vietnam has a design (including requirements specification, system architecture, detailed design, schematic diagrams, PCB layout, and related technical documents) owned by the enterprise itself. Ownership is established through self-design, hiring another party (including Vietnamese individuals) to perform the design, or purchasing the design from other entities.
– Criteria on developing the domestic supply chain and technology transfer:
a) There must be a minimum of 30% Vietnamese enterprises among the total number of enterprises participating in and executing contracts for assembly, supply of raw materials, materials, components, and services to directly serve the electronic equipment manufacturing project;
b) The enterprise must perform technology transfer to a minimum of 01 Vietnamese organization or enterprise within 05 years from the date of issuance of the Investment Registration Certificate or the Decision approving the investment policy or a written agreement with the competent State authority. The form and content of the technology transfer shall comply with the provisions of the law on technology transfer.
3. Incentive Rate
Based on Clause 1, Article 13 of the Law on Corporate Income Tax 2025, the incentive rate for this category will be a tax rate of 10% for the next 15 years, specifically regulated as follows:
“1. A tax rate of 10% for the next 15 years shall apply to:
a. The income of the enterprise derived from implementing new investment projects specified at Points a, b, c, d, and đ, Clause 2, Article 12 of this Law;”
Clause 2, Article 12 of the Law on Corporate Income Tax 2025 stipulates the following:
“2. Sectors and trades eligible for Corporate Income Tax incentives include:
a) Application of high technology, venture investment for the development of high technology under the list of high technologies prioritized for development as prescribed by the Law on High Technology; application of strategic technology as prescribed by law; high-tech incubation, high-tech enterprise incubation; investment in construction and business of high-tech incubation facilities, high-tech enterprise incubation facilities;
b) Manufacturing of software products; manufacturing of network information security products and provision of network information security services that meet the conditions prescribed by the law on network information security; manufacturing of products, provision of key digital technology services, manufacturing of electronic equipment as prescribed by the law on digital technology industry; research and development, design, manufacturing, packaging, and testing of semiconductor chip products; establishment of artificial intelligence data centers;
c) Manufacturing of supporting industry products under the List of prioritized supporting industry products for development specified by the Government that meet one of the following criteria:
c1) Supporting industry products for high technology as prescribed by the Law on High Technology;
c2) Supporting industry products for the manufacturing of products in the textile – garment, footwear, electronics – informatics (including semiconductor design and manufacturing), automobile manufacturing and assembly, and mechanical engineering sectors, effective from the date of this Law, that cannot be manufactured domestically or, if already manufactured domestically, must meet the technical standards of the European Union or equivalent (if any) as prescribed by the Minister of Industry and Trade;
d) Manufacturing of renewable energy, clean energy, energy from waste destruction; environmental protection; manufacturing of composite materials, light construction materials, rare materials; national defense, security manufacturing, and manufacturing of industrial mobilization products as prescribed by the law on national defense, security, and industrial mobilization; manufacturing of key chemical industry products and key mechanical engineering products as prescribed by law;
đ) Investment in the development of water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seapaports, river ports, air terminals, railway stations, and other particularly important infrastructure works decided by the Prime Minister;
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