Politics

Legislature approves 30% income tax cut for small enterprises, business households

The resolution, comprising two articles, provides for a 30% reduction in personal and corporate income tax for the 2026-2027 tax periods for individuals, business households and enterprises with annual revenue of no more than 10 billion VND (381,000 USD).

The 16th National Assembly on August 24 approve a resolution reducing personal and corporate income taxes for individuals, business households and enterprises. (Photo: VNA)
The 16th National Assembly on August 24 approve a resolution reducing personal and corporate income taxes for individuals, business households and enterprises. (Photo: VNA)

Hanoi (VNA) – The 16th National Assembly on August 24 approved a resolution reducing personal and corporate income taxes for individuals, business households and enterprises, with 480 out of 481 participating lawmakers voting in favour at its first extraordinary session.

The resolution, comprising two articles, provides for a 30% reduction in personal and corporate income tax for the 2026-2027 tax periods for individuals, business households and enterprises with annual revenue of no more than 10 billion VND (381,000 USD).

The policy will not apply to enterprises established through the division or separation of other enterprises after the resolution takes effect if the combined revenue of the resulting enterprises exceeds 10 billion VND in 2026 or 2027. For enterprises already eligible for tax incentives under the Law on Corporate Income Tax or other laws and National Assembly resolutions, the 30% reduction will be calculated on the corporate income tax payable after applicable tax incentives have been deducted.

The resolution takes effect from August 24 and applies to the 2026 and 2027 tax periods.

According to Minister of Finance Ngo Van Tuan, the Government and National Assembly have introduced a range of measures to support people and businesses, including cutting value-added tax (VAT) on most goods from 10% to 8%, reducing environmental protection taxes on petrol, oil and lubricants, and implementing tax measures for fuel and aviation fuel. More than 40 types of fees and charges have also been exempted or reduced.

Citing surveys by the Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam Association of Small and Medium Enterprises, and the Private Economic Development Research Board (Board IV), Tuan said micro-scale business households, individual businesses, and enterprises are currently among the groups facing the greatest difficulties and having limited resilience.

These groups account for a large proportion of the country’s business community, making targeted tax relief more appropriate than broad-based tax cuts, he noted.

Regarding the 10-billion-VND revenue threshold, the minister said the measure will cover 99.86% of individuals and business households and more than 81.11% of enterprises.

The 30% reduction, he said, represents meaningful support for beneficiaries while remaining compatible with the State budget’s balancing capacity and is consistent with support levels adopted in several previous policies./.

VNA
#Nghị quyết 66 #pháp luật #đột phá thể chế #NQ 66 #tax cut #business households #personal income tax #corporate income tax #16th National Assembly
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