30% cut in corporate and personal income tax for 2026 – 2027
Nghị quyết 43/2026/QH16 cuts 30% of the tax payable for the 2026 and 2027 tax periods for businesses and individual traders with annual revenue of no more than VND 10 billion. This reduction comes on top of any tax incentives already granted.
Published 17/09/2026
This article is an English summary prepared for convenience only. Vietnamese tax and accounting rules are issued in Vietnamese, and many technical terms have no exact English equivalent — a translation may therefore be imprecise or read differently from the original, and acting on it alone can lead to a genuine misunderstanding of the rule. Names and reference numbers of legal instruments are kept in Vietnamese so that you can check the source text. Where this translation and the Vietnamese version differ, the Vietnamese version governs. Please read the Vietnamese article, or contact TRÍ TÍN, before relying on anything here.
On 24 August 2026, the National Assembly passed Nghị quyết 43/2026/QH16 on reducing personal and corporate income tax. It takes effect on the date of issue and applies to the 2026 and 2027 tax periods.
This is genuinely good news for most businesses and household traders: the 30% reduction is calculated on the tax payable and comes on top of any tax incentives already granted. Combined with the corporate income tax rates under Luật Thuế TNDN số 67/2025/QH15, smaller businesses benefit twice over.
At a glance
| Who | Condition | Reduction | Periods |
|---|---|---|---|
| Businesses and organisations established under Vietnamese law | Annual revenue of no more than VND 10 billion | 30% of corporate income tax payable | 2026 and 2027 |
| Resident individuals with business income | Annual revenue of no more than VND 10 billion | 30% of personal income tax payable | 2026 and 2027 |
1. For businesses
Businesses and organisations established under Vietnamese law whose annual revenue for 2026 and 2027 does not exceed VND 10 billion receive a 30% reduction of the corporate income tax payable for the corresponding tax period.
The revenue condition is assessed year by year, so a business should track actual revenue for both 2026 and 2027 to establish whether it qualifies in each period.
How this sits alongside current CIT rates
Under Luật Thuế thu nhập doanh nghiệp số 67/2025/QH15 and Nghị định 320/2025/NĐ-CP, the corporate income tax rate depends on revenue and field of activity. The 30% reduction under Nghị quyết 43 is applied last, to the tax payable:
| Rate | Applies to |
|---|---|
| 15% | Businesses with total annual revenue of no more than VND 3 billion |
| 17% | Businesses with total annual revenue above VND 3 billion up to VND 50 billion |
| 20% | The standard rate, where the business does not fall under 15%, 17% or an incentive rate |
| Incentive rates | Certain projects, sectors, locations or types of income |
Businesses already receiving tax incentives
Where a business already enjoys tax incentives under the corporate income tax law or other laws and resolutions of the National Assembly, the 30% reduction is calculated on the corporate income tax payable after those incentives have been deducted.
Order of calculation
Apply the tax rate and any incentives first to arrive at the tax payable, then reduce that figure by 30%. Businesses on incentive terms are not excluded from this reduction.
Businesses formed by division or separation
The resolution excludes businesses formed by dividing or separating an existing business after its effective date, where the combined annual revenue of the resulting businesses for 2026 and 2027 exceeds VND 10 billion.
Recommendation
If a division or separation is planned during this period, weigh it carefully: the restructuring may forfeit the reduction if combined revenue afterwards exceeds VND 10 billion.
2. For individual traders
Resident individuals with business income whose annual revenue for 2026 and 2027 does not exceed VND 10 billion receive a 30% reduction of the personal income tax payable for the corresponding period.
This matters particularly for household businesses and individual traders, who typically carry a heavy compliance burden relative to their size.
3. Effect and what comes next
- The resolution takes effect from 24 August 2026.
- It applies to the 2026 and 2027 tax periods.
- The Government will issue detailed implementing regulations.
What to do now
Review projected revenue for the whole of 2026 against the VND 10 billion threshold; if you already hold tax incentives, recalculate the tax payable after incentives so the reduction is applied correctly; hold off on any division or separation until the tax impact has been fully assessed.
TRÍ TÍN will publish an update once the Government issues the implementing decree. To confirm whether your business qualifies, or to recalculate the tax payable, please contact TRÍ TÍN directly.
Legal basis
- Nghị quyết số 43/2026/QH16 ngày 24/8/2026 của Quốc hội
- Luật Thuế thu nhập doanh nghiệp số 67/2025/QH15
- Nghị định 320/2025/NĐ-CP
This summary reflects the legislation in force on the date of publication and is provided for general information. Rules may change or be interpreted differently in later guidance. It is not advice for any specific situation — please contact TRÍ TÍN before applying it to your own filings.
Need advice on your own situation?
Every business is different. Contact TRÍ TÍN to get advice for your specific case before you act.