Accordingly, the Resolution adopted a provision to reduce 30% of the personal income tax payable for the 2026 and 2027 tax periods on business income of resident individuals whose annual revenue for 2026 and 2027 does not exceed 10 billion VND.
Reduce 30% of the corporate income tax payable for the 2026 and 2027 tax periods for enterprises and organizations established under the provisions of Vietnamese law whose annual revenue for 2026 and 2027 does not exceed 10 billion VND; except for enterprises formed from the division or separation of enterprises after the effective date of this Resolution, where the total revenue of the divided or separated enterprises in 2026 and 2027 exceeds 10 billion VND.
Where an enterprise is currently entitled to tax incentives under the Law on Corporate Income Tax or other Laws and Resolutions of the National Assembly, the corporate income tax reduction stipulated in this clause shall be calculated on the corporate income tax payable after deducting tax incentives.
This Resolution takes effect from August 24, 2026, and applies to the 2026 and 2027 tax periods.
Minister of Finance Ngo Van Tuan presents the report on the absorption, explanation, and revision of the draft Resolution on the afternoon of August 24
Regarding the revenue threshold of no more than 10 billion VND for applying the tax reduction policy, previously, Minister of Finance Ngo Van Tuan stated that this threshold covers up to 99.86% of individuals and business households and over 81.11% of enterprises. Accordingly, the vast majority of business households and individuals with revenue below 10 billion VND per year are eligible for the policy.
The choice of the 10 billion VND threshold aims to focus support on business households and individuals and small and micro-sized enterprises, limiting the negative impacts of current difficulties in production and business activities.
This revenue threshold is also consistent with the criteria for identifying micro-enterprises in the trade and service sectors as stipulated in the Law on Supporting Small and Medium-sized Enterprises and the Government's Decree No. 80.
According to the Government's calculations, this year's budget is expected to decrease by approximately 3,191 billion VND in revenue and approximately 3,510 billion VND in 2027. However, according to the Government, this is a temporary measure that contributes to nurturing revenue sources in the long term and will directly support these entities in retaining profits for reinvestment, expanding production, improving labor productivity, and increasing disposable income to improve their quality of life, with consumption contributing back to the State budget.
