National Assembly Resolution 98/2023/QH15, adopted on 24 June 2023, introduces special mechanisms and policies for the development of Ho Chi Minh City. Less discussed — but directly relevant to founders and CFOs — is its suite of tax incentives aimed at innovative startups and the surrounding ecosystem.
Three pillars of tax relief
First, recognized innovative startups in HCMC can receive a corporate income tax exemption of up to five years, beyond the standard 2+4-year national regime. Second, investors exiting a recognized startup may qualify for capital-gains tax exemption — a critical signal to attract domestic and international funds. Third, key experts working at recognized startups can enjoy personal income tax relief on their compensation.
Recognition criteria
To access these benefits, an enterprise must be recognized as an Innovative Startup Enterprise under rules issued by the HCMC People's Council and Department of Science and Technology, including revenue share from innovation products, priority-sector fit, and founding date. Resolution 20/2023 subsequently operationalized the legal framework and added a non-refundable grant of up to VND 400 million.
A recommended rollout
- Audit legal documents and R&D ratio
- Identify the right package (ISE, STE, or NQ 20)
- Prepare the dossier with an experienced incubator such as VIC
- Submit and monitor the review
VIC has partnered with 100+ startup projects and operates the HOIP platform on behalf of HCMC DoST. Contact contact@victory-incubator.net to schedule a rapid eligibility review.