Industry

Accounting for tech startups in Vietnam: incentives, ESOP, and investor reporting

Specialist accounting and tax for technology startups in Vietnam: CIT incentives for software and high-tech, ESOP structuring, and investor-grade reporting.

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Overview

Technology startups in Vietnam benefit from a specific set of incentives: 10% CIT for high-tech and software projects, tax holidays of 2–6 years, and 50% reduction for up to 9 subsequent years. Our startup team has worked with venture-backed and bootstrapped technology companies at every stage, from incorporation to exit.

Who needs this service

  • Venture-backed technology startups
  • Bootstrapped software companies scaling in Vietnam
  • Startups preparing for a Series A or an exit

Legal requirements

CIT incentives for software

Software and IT services may qualify for 10% CIT and tax holidays. Eligibility requires registration with the high-tech authority.

ESOP

ESOPs are taxed at vesting. The taxable amount is the FMV at vesting less any exercise price paid. The company must withhold PIT at vesting.

Investor reporting

Monthly management accounts, quarterly board reporting, and the annual audit are standard investor expectations.

Pricing

Indicative fees

ItemFee
Startup monthly compliancefrom USD 1,200 / month
ESOP structuring and ongoing compliancefrom USD 2,500

Fees are indicative and depend on transaction volume, complexity, and reporting requirements. Request a tailored proposal.

Timeline

Typical engagement timeline

Phase 1 · Week 1–4

Setup

Entity setup, incentive application, ESOP plan, accounting system.

Phase 2 · Month 1–12

Pre-revenue

Monthly bookkeeping, cost tracking, runway monitoring.

Phase 3 · From month 12

Growth

Revenue recognition, CIT incentives claimed, ESOP vesting, audit.

Watch out

Common mistakes we help you avoid

  • 01Not claiming CIT incentives at IRC application
  • 02Misclassifying ESOP income (taxable at vesting, not at exercise)
  • 03Failing to implement proper internal controls early
  • 04Not preparing for the audit from day one
Why us

What you get

Incentive expertise

We help you identify and claim the incentives you are entitled to, with the registration and the supporting documentation.

Investor-ready reporting

Monthly management accounts, runway monitoring, and the audit-ready books that investors expect.

ESOP support

Plan design, PIT withholding, annual PIT finalisation, and reporting to the parent.

FAQ

Frequently asked questions

What incentives are available for tech startups?
Tech startups in software, IT services, R&D, and digital content may qualify for: 10% CIT for high-tech projects, tax holidays of 2–6 years, and 50% reduction for up to 9 subsequent years. Eligibility requires registration with the high-tech authority and the GDT.
How is a tech startup typically structured in Vietnam?
Most tech startups set up a 100%-foreign-owned LLC. Pre-revenue startups often operate with a small team and rely on the parent for capital. The Vietnamese entity grows as the customer base in Vietnam grows.
What ESOP rules apply in Vietnam?
ESOPs are taxed at vesting. The taxable amount is the fair market value at vesting less any exercise price paid. The company must withhold PIT at vesting and declare monthly. Cash settlement is taxed at receipt.
What grants and incentives are available from the government?
Vietnam offers support for tech startups via the National Technology Innovation Fund, the High-Tech Park incentive scheme, and various provincial-level programs. Eligibility and timing vary; we help identify and apply for the relevant programs.
Get Started

Ready to discuss tech startups?

Free 30-minute consultation. We'll review your situation and outline a fixed-fee engagement.

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