Small and medium-sized FDI enterprises exempted from corporate income tax for the first 03 years of establishment
In an effort to improve the investment environment and support start-up enterprises, competent State agencies continuously promulgate and update tax incentive policies. Most recently, on June 11 th , 2026, the Tax Department issued Official Letter No. 3896/CT-CS to provide detailed guidance on corporate income tax (“ CIT ”) policies under Decree No. 20/2026/ND-CP . This Official Letter has opened up an opportunity to access an extremely important incentive: A 03-year CIT exemption for small and medium-sized foreign direct investment (“ FDI ”) enterprises. Foreign investors and economic organizations must clearly understand the legal bases, from foundational definitions to exceptional cases, to apply them correctly and maximize this opportunity. 1. Legal basis for determining small and medium-sized enterprises: Regarding the definition, pursuant to Article 4.10 of the Law on Enterprises 2020 : “An enterprise means an organization with a proper name, assets, a transaction offic...