VI Software production is one of the industries currently eligible for corporate income tax incentives. Below are the corporate income tax incentive policies for software production. Let’s explore them further with Pham Consult!
Does software production qualify for corporate income tax incentives? What are the specific regulations?
Based on point b, clause 2, Article 12 of the Corporate Income Tax Law 2025, software production is eligible for corporate income tax incentives.
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Specifically, the regulations are as follows:
Principles and subjects of application of corporate income tax incentives
- Enterprises are entitled to corporate income tax incentives according to the industries, professions eligible for corporate income tax incentives, and geographical areas eligible for corporate income tax incentives as stipulated in this Article. The level of corporate income tax incentives shall be implemented according to the provisions of Articles 13 and 14 of this Law.
In cases where other laws have provisions on corporate income tax incentives different from those of this Law, the provisions of this Law shall apply, except for the Law on the Capital City and resolutions of the National Assembly stipulating special and specific mechanisms and policies.
If, at the same time, an enterprise is entitled to multiple different tax incentives as stipulated in this Law for the same income, the enterprise may choose to apply the most advantageous tax incentive.
- Industries eligible for corporate income tax incentives include:
- b) Software product manufacturing; Producing cybersecurity products and providing cybersecurity services in accordance with the law on cybersecurity; producing key digital technology products and providing digital technology services, manufacturing electronic equipment in accordance with the law on the digital technology industry; researching and developing, designing, manufacturing, packaging, and testing semiconductor chip products; building artificial intelligence data centers;
Therefore, software production is one of the industries eligible for corporate income tax incentives.
What are the corporate income tax incentives for software production?
Based on Clause 1, Article 13 of the Corporate Income Tax Law 2025, the following is stipulated:
Preferential Tax Rates
- A tax rate of 10% for 15 years shall apply to:
- a) Income of enterprises from implementing new investment projects as stipulated in points a, b, c, d, and e of Clause 2, Article 12 of this Law; income of enterprises as stipulated in point e of Clause 2, Article 12 of this Law;
- b) Income of enterprises from implementing investment projects as stipulated in points g and h of Clause 2, Article 12 of this Law;
- c) Income of enterprises from implementing new investment projects in the areas stipulated in point a of Clause 3, Article 12 of this Law;
- d) Income of enterprises from implementing new investment projects in high-tech zones, high-tech agricultural zones, and concentrated digital technology zones; New investment projects in economic zones located in tax-incentive areas as stipulated in points a and b, Clause 3, Article 12 of this Law. In cases where an investment project in an economic zone is located in both tax-incentive and non-tax-incentive areas, the determination of tax incentives for the project shall be regulated by the Government.
Therefore, software production activities will enjoy corporate income tax incentives at a rate of 10% for 15 years.
Which industries will be eligible for corporate income tax incentives in 2026?
Based on Clause 2, Article 12 of the Corporate Income Tax Law 2025, as amended and supplemented by Clause 7, Article 25 of the High-Tech Law 2025 (effective from July 1, 2026), Clause 2, Article 50 of the Investment Law 2025 (effective from March 1, 2026), and Clause 9, Article 43 of the Cybersecurity Law 2025 (effective from July 1, 2026), the following business sectors are eligible for corporate income tax incentives:
– Venture capital for high-tech development prioritized for strategic technology development; high-tech incubation, strategic technology incubation, high-tech enterprise incubation, strategic technology enterprise incubation as stipulated in the High-Tech Law; investment in the construction and operation of high-tech incubation facilities and high-tech enterprise incubation;
– Software product manufacturing; Producing cybersecurity products and providing cybersecurity services in accordance with the law on cybersecurity; producing key digital technology products and providing digital technology services, manufacturing electronic equipment in accordance with the law on the digital technology industry; researching and developing, designing, manufacturing, packaging, and testing semiconductor chip products; building artificial intelligence data centers;
– Production of supporting industrial products included in the List of Priority Supporting Industrial Products for Development as stipulated by the Government, meeting one of the following criteria:
+ Supporting industrial products for high technology as stipulated in the Law on High Technology;
+ Supporting industrial products for the production of products in the textile and garment, leather and footwear, electronics and information technology (including semiconductor design and production), automobile manufacturing and assembly, and mechanical engineering industries, which, as of the effective date of this Law, are not yet produced domestically or are produced but must meet the technical standards of the European Union or equivalent (if any) as stipulated by the Minister of Industry and Trade;
– Production of renewable energy, clean energy, energy from waste disposal; environmental protection; production of composite materials, lightweight building materials, rare materials; production for national defense and security and production of industrial mobilization products as stipulated in the law on national defense, security and industrial mobilization industries; – Producing key chemical and mechanical industrial products as prescribed by law;
– Investing in the development of water treatment plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airfields, train stations, and other particularly important infrastructure projects as decided by the Prime Minister;
– Group 2 high-tech enterprises as prescribed by the law on high technology, science and technology enterprises as prescribed by the Law on Science, Technology and Innovation;
– Strategic technology research and development centers, strategic technology enterprises, high-tech research and development centers, Group 1 high-tech enterprises as prescribed by the law on high technology;
– Enterprises producing high-tech products as prescribed by the law on high technology;
– Investment projects in the manufacturing sector must meet the following conditions:
+ Have a minimum investment capital of VND 12,000 billion and disburse the total registered investment capital within no more than 5 years from the date of investment approval as stipulated by investment law;
+ Use technology that meets the requirements stipulated by the Minister of Science and Technology;
– Investment projects that are eligible for special investment incentives and support as stipulated in Clause 2, Article 17 of the Investment Law. The Government shall specify the timeframe for disbursing the total registered investment capital of projects specified in this point;
– Planting, caring for, and protecting forests; producing, propagating, and breeding plant and animal varieties; investing in post-harvest preservation of agricultural products, preservation of agricultural products, aquatic products, and food; producing, exploiting, and refining salt, except for salt production as stipulated in Clause 1, Article 4 of the Corporate Income Tax Law 2025;
– Forestry and forestry products;
– Products from crops, planted forests, livestock, aquaculture, and processing of agricultural and aquatic products.
+ Income from processing agricultural and aquatic products as stipulated in this point must meet the conditions specified in Clause 1, Article 4 of the 2025 Corporate Income Tax Law;
– Production of high-grade steel; production of energy-saving products; production of machinery and equipment serving agriculture, forestry, fisheries, and salt production; production of irrigation equipment; production of animal feed, poultry feed, and aquatic feed;
– Production and assembly of automobiles; production of other digital technology products;
– Investment in business facilities supporting small and medium-sized enterprises (SMEs), SME incubation facilities; investment in business facilities supporting innovative start-ups for SMEs as stipulated in the Law on Supporting Small and Medium-sized Enterprises;
– People’s credit funds, microfinance institutions, cooperative banks;
– Cooperatives and cooperative unions operating in the fields of agriculture, forestry, fisheries, and salt production;
– Socialization in the fields of education and training, vocational training, health, culture, sports, and environment according to the list of types, scale criteria, and standards prescribed by the Prime Minister; forensic examination;
– Investment in the construction of social housing for sale, rent, or lease-purchase for beneficiaries of social housing support policies as stipulated in the Housing Law;
– Publishing as stipulated in the Publishing Law;
– Press (including advertising in newspapers) as stipulated in the Press Law.
