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| Workers process agricultural products for export__Photo: VNA |
The decree, No. 20/2026/ND-CP, details and guides the implementation of a number of articles of the National Assembly’s Resolution 198/2025/QH15, dated May 17, 2025, on special mechanisms and policies for private sector development. It applies to enterprises, household businesses, individual business owners, as well as other relevant organisations and individuals.
Support for access to land and production premises
Under the decree, provincial-level People’s Committees are required to publicly disclose on their official portals the principles, criteria, norms and contents of support for investment in infrastructure facilities at industrial parks and technology incubators. Local authorities must also clearly announce the land areas reserved for lease or sub-lease by high-tech enterprises, small- and medium-sized enterprises (SMEs) and innovative start-ups, ensuring transparency and facilitating access to State support policies.
For industrial park projects implemented in phases, priority land areas will be determined for each phase. If, after two years, no eligible priority enterprises lease such land, it may be leased to other enterprises in accordance with regulations.
In addition, the State will support SMEs, supporting industry enterprises and innovative enterprises in leasing public houses and land through local property management organisations.
Tax incentives for enterprises and individuals
Alongside land-related policies, tax incentives will be applied to encourage innovative start-ups and support SMEs.
Accordingly, venture capital fund management companies and intermediary organisations supporting start-ups will enjoy corporate income tax (CIT) incentives on income derived from start-up and innovation activities. The incentive period will be calculated from the first year in which taxable income arises; where no taxable income is generated in the first three years, it will be calculated from the fourth year.
Enterprises earning income from the transfer of capital, shares or capital contribution rights in innovative start-ups will be exempt from CIT on such income, except in cases involving listed securities or real estate-related transactions as prescribed by law. Newly established SMEs will also be exempt from CIT for three years from the date of issuance of their enterprise registration certificates, excluding cases established through division, separation, merger or conversion of business form.
With regard to personal income tax (PIT), individuals earning income from the transfer of capital or shares in innovative start-ups will be exempt from tax, subject to certain exceptions under the law. In addition, experts and scientists working at innovative start-ups, research and development centres or start-up support organisations will be exempt from PIT for the first two years and entitled to a 50 per cent reduction for the subsequent four years, contributing to the attraction of high-quality human resources.
Support for science, technology, innovation, digital transformation and human resource development
To encourage enterprises to promote research and development (R&D), innovation and digital transformation, the State allows enterprises to allocate up to 20 per cent of taxable income to establish a Science, Technology, Innovation and Digital Transformation Development Fund.
In addition, expenses for training and retraining workers, including cases where large enterprises provide training support to SMEs participating in value chains, will be recognised as deductible expenses when determining taxable income. For R&D activities, enterprises may deduct expenses at twice the actual cost, thereby creating stronger incentives for technological innovation.
Alongside financial and tax support, the State will provide free digital platforms and shared-use accounting software for SMEs, micro-enterprises, household businesses and individual business owners. These systems will be integrated with e-invoices and digital signatures, helping to simplify financial and accounting management while meeting digital transformation requirements.
The State will also fully subsidise training courses on business management, including accounting, taxation and human resource management, for SMEs, micro-enterprises, household businesses and individual business owners. Through these programmes, producers and business operators will be equipped with additional management knowledge and skills, enhancing operational capacity and contributing to the effective use of support policies and the sustainable development of production and business activities.- (VLLF)
