Vietnam’s new digital-technology incentives are promising, yet the rules and timing can feel unclear, especially if you’re still deciding if you would like to move forward with your business or invest in semiconductors, AI, data centers, or other digital products. Because updates are spread over various documents and criteria are still evolving, it’s easy to miss meaningful tax and mobility benefits. This guide gathers the essentials in one place: what’s available, who may qualify, and how to plan next steps—kept practical and easy to skim.
TL;DR
- Meaningful corporate tax relief. Eligible projects can receive a 4-year CIT holiday, a 50% CIT reduction for up to 9 years, and then a 10% CIT rate for 15 years. Some CIT provisions apply from 1 July 2025, with other parts of the law effective 1 January 2026.
- Support for talent. Qualified engineers, developers, managers and directors working on recognized digital-tech projects may be exempt from PIT for 5 years, lowering total compensation cost while improving take-home pay.
- Easier entry and stay. High-quality experts can access visa-exempt certificates (valid up to 5 years), entries of up to ~90 days, TRCs up to 5 years (including family), and a work-permit exemption via a confirmation letter. Criteria for “high-quality expert” will be further clarified.
Want a quick eligibility screen and project structuring checklist? Contact Sunbytes now
What counts as “digital technology” here?
In scope are activities across production and provision, , research, design production, testing, construction of advanced tech—such as electronic equipment, semiconductors, AI, and key digital technology products. This definition is the starting point for incentive eligibility, and which one applies depends on the type of high-tech
How do the corporate tax breaks work?
If your project is recognized as a new investment in an eligible digital-tech activity, the pathway typically looks like this:
- Years 1–4: 0% CIT (holiday)
- Next up to 9 years: 50% CIT reduction
- Then 15 years: 10% preferential CIT (standard is 20%)
- Timing: CIT incentives apply from 1 July 2025; the broader law takes effect 1 January 2026. If you already operate in Vietnam, you may consider structuring a qualifying new investment project or expansion of an existing one (e.g., a semiconductor R&D or AI data-center build) once criteria are finalized.
Who can access the 5-year PIT exemption?
Engineers, developers, managers, and directors tied to recognized digital-tech projects may qualify for a 5-year PIT exemption. To keep compliance straightforward, align job descriptions and contracts so the link to the eligible project or zone is clear.
Visas, TRCs, and work permits — what this means for your team
- Visa-exempt certificate: Valid up to 5 years; processing is typically ~5 working days; each entry is up to ~90 days and extendable.
- Residence: TRCs up to 5 years for high-quality experts; spouses and children under 18 can obtain equal-duration residence with support for schooling and job placement.
- Work-permit exemption: Eligible experts can obtain a confirmation letter of exemption (~5 working days) instead of a work permit. Final criteria for “high-quality expert” will be confirmed once available.
Practical next steps
- Map your activities to the law’s definition (semiconductors/AI/electronics/key digital products).
- Choose your entry path: greenfield or a new qualifying project within your existing footprint.
- Model benefits over time: apply the tax holiday → CIT reduction → 10% CIT rate sequence to your projects.
- Align roles and contracts for PIT eligibility and zone alignment.
- Prepare mobility paperwork early (visa-exempt certificate/TRC; exemption letters).
- Monitor guidance on “high-quality expert” and project recognition; requirements may be refined.
About Sunbytes – We Transform – Secure – Accelerate
We help international teams set up and scale in Vietnam—managing lean entity setup, secure-by-design engineering, compliant operations, and accelerate HR tasks with trusted local partners. If a quick eligibility check or a project-structuring walkthrough would be useful, we’re happy to help. Contact Sunbytes‘s knowledge expert for a free consultation
FAQs
When do the incentives start?
CIT exemption and incentives: 1 July 2025 and PIT exemptions per 1 January 2026.
Who qualifies for the 5-year PIT exemption?
Qualified personnel working on recognized digital-tech projects in priority sectors or designated zones. Ensure roles and income are clearly tied to the project.
Is there a work-permit exemption?
Yes, eligible experts may receive a confirmation letter of exemption (around 5 working days). Final criteria will be clarified in forthcoming guidance.
How long can experts stay per entry under the visa-exempt certificate?
Typically up to ~90 days per entry, with the certificate valid up to 5 years (subject to passport validity).
Do families benefit?
Yes, spouses and children under 18 can receive equal-duration residence cards and support for education and employment
Do all companies qualify for the CIT reductions?
No, only if they meet certain requirements related to the type of project, sector, company and location.
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