Vietnam National Assembly approves 30% tax cut for small businesses

The National Assembly of Vietnam has passed Resolution No. 43/2026/QH16, which mandates a 30% reduction in personal income tax and corporate income tax for the 2026 and 2027 tax years. This relief applies to resident individuals and Vietnamese-established enterprises with annual revenues not exceeding 10 billion VND.

The policy aims to support business households and small enterprises facing economic pressures. Recent surveys by the Vietnam Chamber of Commerce and Industry (VCCI) indicated that many small businesses have struggled with declining revenues, low profits, and reduced customer numbers. The tax cuts are intended to provide financial relief and encourage these entities to expand or transition into formal corporate models.

The resolution takes effect on August 24, 2026. For businesses already receiving other tax incentives, the 30% reduction will be calculated based on the tax amount remaining after those existing incentives have been applied.