Vietnam proposes 30% tax cut for small businesses

income tax reduction micro-enterprises business support policy tax reform revenue threshold

The Vietnamese Ministry of Finance has proposed a significant tax relief package for micro-enterprises and business households for the 2026-2027 period. The proposal includes a 30% reduction in personal income tax for business households and individuals with annual revenues up to 10 billion VND, as well as a 30% reduction in corporate income tax for micro-enterprises with annual revenues up to 10 billion VND.

If approved by the National Assembly, the policy is expected to reduce state budget revenue by approximately 6,700 billion VND over the two years. The government aims to use this measure to provide financial breathing room, encourage reinvestment, and support economic growth. Additionally, the proposal suggests raising the revenue threshold for applying simplified tax calculation methods from 3 billion VND to 10 billion VND to reduce administrative and compliance costs.

Experts suggest that while tax cuts are essential for liquidity and technological investment, they should be accompanied by administrative reforms to reduce the complexity of accounting, invoicing, and reporting procedures. Some specialists have also suggested considering higher revenue thresholds for tax relief to ensure a broader economic impact.

Entities

ACB · BSR · Bao Viet Group · Ministry of Finance · Mobile World Investment Corporation · National Assembly of Vietnam · Vietnam

Claims

What the coverage asserts, and how many sources carry each claim.

[● 2 SOURCES] The policy is expected to reduce state budget revenue by approximately 6,700 billion VND in total. cafef.vn · giadinh.suckhoedoisong.vn
[● 2 SOURCES] The tax reductions are proposed for the years 2026 and 2027. cafef.vn · giadinh.suckhoedoisong.vn
[● 2 SOURCES] The proposal includes a 30% reduction in corporate income tax for micro-enterprises with annual revenues up to 10 billion VND. cafef.vn · giadinh.suckhoedoisong.vn
[● 2 SOURCES] The Ministry of Finance has proposed a 30% reduction in personal income tax for business households and individuals with annual revenues up to 10 billion VND. cafef.vn · giadinh.suckhoedoisong.vn
[● 2 SOURCES] The estimated revenue reduction for 2027 is approximately 3,510 billion VND. cafef.vn · giadinh.suckhoedoisong.vn
[● 2 SOURCES] The estimated revenue reduction for 2026 is approximately 3,191 billion VND. cafef.vn · giadinh.suckhoedoisong.vn