Employing workers with disabilities is not only a social responsibility — enterprises may enjoy significant corporate income tax incentives if conditions are met. However, many businesses misunderstand the exemption conditions (citing a repealed provision) or breach the limits on using this workforce. This article systematizes employer obligations and incentives under the current framework.
1. Current legal framework
Employment of workers with disabilities is governed by Articles 158–160 of Labor Code No. 45/2019/QH14 (Consolidated Document 18/VBHN-VPQH 2026), Law on Persons with Disabilities No. 51/2010/QH12 (still in force), and tax incentives under Article 4(5) of CIT Law No. 67/2025/QH15 (effective 01/10/2025). Penalties follow Decree 283/2026/ND-CP (effective 10/9/2026).
2. CIT incentive: current conditions (Article 4(5), Law 67/2025)
Income from production and business in goods and services is exempt from corporate income tax when all three conditions are met:
- At least 30% of the average annual workforce are persons with disabilities, post-rehabilitation persons, or persons living with HIV/AIDS;
- Average annual workforce of 20 or more persons;
- The enterprise does not operate in finance or real estate business.
Important note: many materials still cite Article 34 of the Law on Persons with Disabilities 2010 for the CIT exemption — that provision was repealed in 2013 (by the 2013 amended CIT Law). The sole current basis is Article 4(5) of CIT Law 67/2025 above. Also, “30%” is measured against the average annual workforce, not headcount at a single point in time.
3. Other incentives for enterprises
- Support for improving working conditions and environment suitable for persons with disabilities (Article 34, Law on Persons with Disabilities 2010).
- Preferential loans for production and business development projects.
- Priority in leasing land, premises and water surface; exemption/reduction of rents for production and business based on the ratio of disabled workers, disability severity and enterprise scale.
- Vocational training expenses for employees (including disabled workers) are deductible for CIT purposes (Article 33, Law on Vocational Education 124/2025).
4. Employer obligations (Article 159)
- Ensure working conditions, work tools, occupational safety and hygiene and organize periodic health check-ups suitable for workers with disabilities.
- Must consult workers with disabilities when deciding matters relating to their rights and interests.
5. Prohibited conduct (Article 160)
- Prohibited: requiring workers with mild disabilities with at least 51% loss of working capacity, severe or exceptionally severe disabilities to work overtime or at night — unless the worker consents.
- Prohibited: assigning workers with disabilities to heavy, hazardous or dangerous work (per the MOLISA Minister’s list) without their consent after being fully informed about the job.
6. Penalties (Decree 283/2026/ND-CP)
Employers face fines of VND 5,000,000–10,000,000 per affected worker for: failing to consult workers with disabilities on their rights/interests; or requiring protected disabled workers (mild ≥51%, severe, exceptionally severe) to work overtime or at night without their consent. (Fines stated are for individuals; organizations pay double under Article 7(1), Decree 283/2026/ND-CP.)
7. Recommendations for enterprises
- Review the exemption basis in use: shift from citing repealed Article 34 of the Law on Persons with Disabilities 2010 to Article 4(5) of CIT Law 67/2025; compute the “average annual workforce” correctly.
- Establish a consultation procedure with disabled workers before decisions affecting them — both a legal duty and a fine-prevention measure.
- Check overtime/night-work assignments: only with the clear consent of protected disabled workers.
- Keep records of workforce ratios, disability levels and working conditions to evidence incentive eligibility during tax audits.
FAQs
Q: Does a company with 35% disabled workers qualify for CIT exemption?
A: Not yet. It must also have an average annual workforce of 20+ and not operate in finance or real estate (Article 4(5), Law 67/2025).
Q: May severely disabled workers do night shifts if they agree?
A: Yes. Article 160 only prohibits it without their consent.
Q: Is Article 34 of the Law on Persons with Disabilities still valid?
A: Its CIT-exemption rule was repealed in 2013; other incentives (workplace improvement support, preferential loans, land-rent priority/reduction) remain available.
Legal sources
- Labor Code No. 45/2019/QH14, Consolidated Document 18/VBHN-VPQH 2026 (Articles 158, 159, 160).
- Law on Persons with Disabilities No. 51/2010/QH12 (Articles 34, 35).
- Corporate Income Tax Law No. 67/2025/QH15 (Article 4(5)), effective 01/10/2025.
- Decree 283/2026/ND-CP on administrative penalties in the labor sector, effective 10/9/2026.
See more labor law articles by FLAT.
FLAT Law Firm advises enterprises on tax incentives and labor law compliance. Contact us.
This article was prepared by the FLAW AI Legal Council and is pending QA Council review; it has not been reviewed by a licensed human lawyer. It is for general reference only and does not constitute legal advice for any specific case.
