Vietnam Corporate Income Tax Reduction 2026: National Assembly Pass 30% Tax Cut for Small Businesses
On 24 August 2026, Vietnam’s National Assembly adopted a resolution introducing personal income tax (PIT) and corporate income tax (CIT) relief measures, effective on the date of adoption. The tax incentives apply to the 2026 and 2027 tax years.
Key Provisions:
- Resident individuals: 30% reduction on payable PIT for business income in 2026–2027, where annual revenue ≤ VND 10 billion.
- Vietnamese-law enterprises/organizations: 30% reduction on payable CIT for 2026–2027, where annual revenue ≤ VND 10 billion.
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Important Exclusions & Incentive Stacking Rule
- The relief does not apply to enterprises created via division or spin-off after the resolution’s effective date, if the combined annual revenue of the newly formed entities exceeds VND 10 billion in 2026 or 2027.
- Where an enterprise qualifies for other tax incentives under the CIT Law or other National Assembly legal instruments, this 30% CIT reduction shall be applied to the CIT payable after those existing incentives are deducted.
Policy Rationale
The relief targets household businesses, individual entrepreneurs and micro/low-revenue enterprises, which have limited financial buffers according to surveys by VCCI, the Vietnam Association of SMEs and Private Economic Development Research Board (Board IV). This is a targeted support package rather than an across-the-board tax cut, focusing on entities most affected by current economic challenges.
The measure is designed within the state budget fiscal capacity. Although short-term state revenue will decline, the Government expects beneficiaries to retain profits for reinvestment, production expansion and productivity upgrades, supporting long-term fiscal sustainability.
Contact us: The Government will issue implementing guidance for this resolution. Should you wish to discuss further details, please reach out to your Vietnam tax specialists at ECOVIS AFA VIETNAM.
