Gov’t proposes 30% reduction in personal and corporate income tax to spur economic growth
VGP - The Government has proposed a 30 percent reduction in personal income tax payable for the 2026 and 2027 tax periods on business income earned by resident individuals whose annual business revenue between 2026 and 2027 does not exceed VND 10 billion.
Minister of Finance Ngo Van Tuan - Photo: VGP
The proposal was presented by Minister of Finance Ngo Van Tuan on August 21 at the on-going extra session of the National Assembly.
A 30% reduction in corporate income tax payable for the 2026 and 2027 tax periods is also proposed for enterprises and organizations established in accordance with Vietnamese law whose annual revenue in 2026 and 2027 does not exceed VND 10 billion.
For enterprises currently eligible for tax incentives under the Law on Corporate Income Tax or other laws and resolutions of the National Assembly, the proposed corporate income tax reduction would be calculated based on the amount of corporate income tax payable after tax incentives have been deducted.
According to the finance minister, the tax cuts would help ease difficulties and stabilize production and business activities for business households, individuals and enterprises.
The measures would also ensure timely support for inflation control and macroeconomic stability, contributing to the realization of the country's economic growth targets.
With these proposals, state budget revenue is expected to decline by approximately VND 3.191 trillion (US$112.12 billion) in 2026 and VND 3.51 trillion (US$134.2 billion) in 2027./.