Vietnam National Assembly debates 30% tax cut for small businesses

tax reduction policy Vietnam National Assembly corporate income tax personal income tax small and medium enterprises

The Vietnamese National Assembly is discussing a proposal to reduce personal and corporate income taxes by 30% for the years 2026 and 2027. The policy targets individuals and businesses with annual revenues of 10 billion VND or less.

Finance Minister Ngo Van Tuan noted that this threshold covers approximately 99.98% of business households and 81.1% of enterprises. The measure is intended to provide much-needed resources for small businesses and households to maintain and expand operations amidst economic pressures. The total estimated impact on the state budget is a reduction of approximately 6,701 billion VND over the two-year period.

While there is broad consensus on the necessity of the support, some delegates raised concerns regarding the 10 billion VND threshold. Discussions include the potential for a 'cliff effect' where businesses slightly exceeding the limit lose all benefits, and suggestions for more flexible, tiered reduction rates based on specific business scales.

Entities

Ministry of Finance · National Assembly of Vietnam · Ngô Văn Tuấn · VCCI · Vietnam Chamber of Commerce and Industry

Claims

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

[● 6 SOURCES] The proposal targets individuals and businesses with annual revenues not exceeding 10 billion VND. mekongasean.vn · phunuvietnam.vn · thoibaonganhang.vn · thoibaotaichinhvietnam.vn · thanhnien.vn · +1 more
[○ 1 SOURCE] The 10 billion VND revenue threshold covers 99.98% of business households and 81.1% of enterprises. baochinhphu.vn
[○ 1 SOURCE] The total estimated budget reduction is 6,701 billion VND. thoibaonganhang.vn