Vietnam’s National Assembly has passed Resolution No. 43/2026/QH16 on the reduction of personal income tax (PIT) and corporate income tax (CIT) for individuals and enterprises, adopted at the First Extraordinary Session of the 16th National Assembly on 24 August 2026. The measure provides direct support by cutting 30% of the tax payable by small-scale business individuals and enterprises. Trustlineax summarises the key provisions so that business individuals and companies can determine whether they qualify.
1. Legal basis
- Resolution No. 43/2026/QH16 of the National Assembly — “On the reduction of personal income tax and corporate income tax for individuals and enterprises”, adopted by the 16th National Assembly at its First Extraordinary Session on 24 August 2026.
- Issued on the basis of Personal Income Tax Law No. 109/2025/QH15 (as amended by Law No. 09/2026/QH16) and Corporate Income Tax Law No. 67/2025/QH15 (as amended by Laws No. 116/2025/QH15, 127/2025/QH15, 133/2025/QH15, 141/2025/QH15, 143/2025/QH15 and 09/2026/QH16).
2. Scope of the reduction
The same revenue threshold applies to both categories of taxpayer:
| Taxpayer | Reduction | Revenue condition |
|---|---|---|
| Resident individuals with business income (business households and business individuals) | 30% reduction of PIT payable | Annual revenue for each of 2026 and 2027 not exceeding VND 10 billion |
| Enterprises and organisations established under Vietnamese law | 30% reduction of CIT payable | Annual revenue for each of 2026 and 2027 not exceeding VND 10 billion |
2.1. Business individuals
Under Clause 1, Article 1 of the Resolution:
“A 30% reduction of the personal income tax payable for the 2026 and 2027 tax periods shall apply to business income of resident individuals whose annual revenue for 2026 and 2027 does not exceed VND 10 billion.”
2.2. Enterprises and organisations
Under Clause 2, Article 1 of the Resolution:
“A 30% reduction of the corporate income tax payable for the 2026 and 2027 tax periods shall apply to income of enterprises and organisations established under Vietnamese law whose annual revenue for 2026 and 2027 does not exceed VND 10 billion.”
Exclusion — division or separation of enterprises: an enterprise formed through the division or separation of an enterprise after the Resolution takes effect (that is, after 24 August 2026), where the combined annual revenue of the resulting enterprises for 2026 and 2027 exceeds VND 10 billion, is not eligible for the reduction. This provision prevents larger businesses from splitting themselves up to fall under the revenue threshold.
Where an enterprise already enjoys CIT incentives (under the CIT Law or other laws and resolutions of the National Assembly): the 30% reduction under this Resolution is calculated on the CIT payable after the incentives have been applied — that is, a further 30% off the remaining tax, not off the pre-incentive amount.
3. Timing
- The Resolution takes effect from 24 August 2026.
- It applies to the 2026 and 2027 tax periods — meaning the full tax liability for both years, including amounts arising in 2026 before the Resolution took effect, not only from the effective date onwards.
- The Resolution assigns the Government to provide detailed regulations. Implementation matters — how revenue is determined, when and how to declare, the documentation required to claim the reduction, and detailed eligibility by sector — will be set out in a decree. The Resolution itself does not yet address these points.
4. Points to note
- The measure covers both business individuals and enterprises, using a single revenue threshold of VND 10 billion per year — targeting business households, small business individuals and small and micro enterprises.
- Revenue is assessed year by year: revenue for 2026 and for 2027 must each stay within VND 10 billion. A taxpayer whose revenue exceeds the threshold in either year loses the reduction for that year.
- Enterprises undergoing division or separation after 24 August 2026 should pay particular attention to the combined-revenue exclusion.
- Because the Resolution leaves procedural detail to the Government, enterprises and business individuals should monitor the implementing decree for the mechanics of determining and declaring the reduced tax.
This article was compiled by Trustlineax based on Resolution No. 43/2026/QH16 of the National Assembly, adopted on 24 August 2026. It is provided for general reference and does not replace the original legal documents or tailored tax advice; detailed implementation rules await the Government’s guiding decree.