Vietnam proposes 30% tax cut for small businesses and individuals

tax reduction proposal personal income tax corporate income tax small and medium enterprises Vietnam economic policy

The Vietnamese government has submitted a proposal to the National Assembly to reduce personal income tax and corporate income tax by 30% for the 2026 and 2027 tax years. This measure targets resident individuals and businesses with annual revenues not exceeding 10 billion VND.

Minister of Finance Ngô Văn Tuấn presented the proposal, stating that while the reduction is expected to decrease state budget revenue by approximately 3,191 billion VND in 2026 and 3,510 billion VND in 2027, it aims to stabilize production, control inflation, and support economic growth. The government intends to use an expedited procedure to have the resolution passed during the first extraordinary session, potentially implementing it as early as the third quarter of this year.

The Standing Committee of the National Assembly has expressed general agreement with the plan. Proponents and business representatives suggest the policy will provide much-needed liquidity and support for small and medium enterprises facing rising input costs and fluctuating profits.