RESOLUTION ON A 30% REDUCTION OF INCOME TAX FOR BUSINESS INDIVIDUALS AND ENTERPRISES FOR TAX PERIODS 2026-2027

On 24 August 2026, the National Assembly passed a Resolution granting a 30% reduction of personal income tax (“PIT”) and corporate income tax (“CIT”) payable by business individuals and enterprises satisfying the revenue condition.

 Eligible taxpayers and conditions for application:

• Resident individuals with income from business activities: entitled to a 30% reduction of the PIT payable if revenue for 2026 and 2027 does not exceed VND 10 billion.
• Enterprises and organizations established under the laws of Vietnam: entitled to a 30% reduction of the CIT payable for the 2026 and 2027 tax periods if revenue does not exceed VND 10 billion. Where an enterprise is enjoying CIT incentives, the 30% reduction shall be calculated on the tax payable after application of such incentives.

Period of application: The 2026 and 2027 tax periods.

Note: The policy does not apply to enterprises formed from a division or separation after 24 August 2026 where the aggregate revenue of the enterprises resulting from such division or separation exceeds VND 10 billion per year.