SOME NOTEWORTHY POINTS IN DECREE NO. 20/2026/ND-CP GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE NATIONAL ASSEMBLY’S RESOLUTION NO. 198/2025/QH15 ON A NUMBER OF SPECIAL MECHANISMS AND POLICIES FOR PRIVATE ECONOMIC DEVELOPMENT

On behalf of the Government, Deputy Prime Minister Nguyen Chi Dung has just signed Decree No. 20/2026/ND-CP dated January 15, 2026 to detail and guide the implementation of a number of articles of Resolution No. 198/2025/QH15 dated May 17, 2025 of the National Assembly on a number of special mechanisms and policies for private economic development. Decree No. 20/2026/ND-CP takes effect from January 15, 2026 (except for the provisions of Clauses 1 and 3, Article 7 and Article 9 of this Decree, which takes effect from the effective date of Resolution No. 198/2025/QH15 and applies from the tax period of 2025 and the provisions of Clause 2, Article 7 and Article 8 of this Decree take effect from the date the Decree Decision No. 198/2025/QH15 takes effect). Decree No. 20/2026/ND-CP has some noteworthy contents as follows:

1. Support access to land, production and business premises

• Objects of support: Enterprises that sublease land in industrial parks, industrial clusters, and technology incubators include:

– Enterprises that are granted hi-tech enterprise certificates in accordance with the law on high technology and belong to the type of private economy in accordance with the law on statistics;

– Small and medium-sized enterprises in accordance with the Law on Support for Small and Medium Enterprises and guiding documents;

– Innovative start-up enterprises are recognized in accordance with the provisions of the Law on Science, Technology and Innovation and guiding documents.

• Investors of investment and business projects on infrastructure of industrial parks, industrial clusters and technology incubators shall be refunded the support for which the land sublease has been reduced;

2. Corporate Income Tax Incentives

•  For innovative start-up investment fund management companies, innovative start-up enterprises, and intermediary organizations supporting innovative start-ups:

– Principles: Exemption from corporate income tax for a period of 2 years and 50% reduction of payable tax for the next 04 years for income from innovative start-up activities. The continuous calculation period from the first year of taxable income, if there is no taxable income in the first 3 years from the first year of having revenue from creative start-up or innovation activities, the tax exemption or reduction period is calculated from the fourth year;

– Note: Preferential income must be accounted separately. If they cannot be separated, they must be allocated according to the percentage of revenue or deductible expenses.

• For incomes from capital transfer:

– Principles: CIT exemption for income from the transfer of shares and capital contributed to innovative start-up enterprises (except for securities of public/listed companies);

– Note: In case of selling the entire single-member limited liability company owned by an organization in the form of transfer of capital attached to real estate, enterprise income tax shall be declared and paid according to real estate transfer activities.

•  For small and medium-sized business registration for the first time:

– Principle: Exemption from CIT for 03 years from the date of issuance of the first Business Registration Certificate.

– Note: Not applicable to newly established enterprises due to merger, consolidation, division, separation, change of ownership, conversion of type; or a newly established enterprise in which the legal representative (except for the case where the legal representative is not a capital contributor), a general partner or the person with the highest amount of contributed capital has participated in business activities as the legal representative, general partners or persons with the highest amount of contributed capital in operating or dissolved enterprises but less than 12 months from the time of dissolution of the old enterprise to the time of establishment of the new enterprise.

3. Personal Income Tax Incentives

•  Capital transfer: Individuals are exempt from personal income tax when transferring capital contributed to innovative start-up enterprises (except for securities of public/listed companies).
• Experts, scientists:

– Applied to incomes from salaries and wages at innovative start-up enterprises, research and development centers, intermediary organizations supporting innovative start-ups;

– Preferential rate: Tax exemption for the first 02 years; 50% reduction of payable tax amount for the next 04 years.

4. Supporting science and technology, innovation and digital transformation

•  To deduct up to 20% of taxable income for the establishment of the Science and Technology Development Fund, innovation and digital transformation.
• Large enterprises shall be included in the deductible expenses for human resource training expenses for small and medium-sized enterprises participating in the chain.
•  Actual research and development expenses are calculated as 200% when determining taxable income.
•  Free Accounting Software:

– The State provides free digital platforms and accounting software for small and medium-sized enterprises and business households.

– Software requirements: Must be able to integrate e-invoices, digital signatures; ensuring accounting standards, cloud storage, and data security.

•  Training support: The budget supports 100% of the cost of management training courses (including accounting and tax) for small and medium-sized enterprises and business households.