📌 Resolution 43/2026/QH16 reduces personal income tax and corporate income tax for the tax periods of 2026 and 2027:
- A 30% reduction in income tax For the tax period of 2026-2027, this applies to income from business activities of resident individuals, enterprises, and organizations established under Vietnamese law with annual revenue not exceeding 10 billion VND.
- Not applicable for cases of business division or separation after the Resolution takes effect, where the total revenue of the divided or separated businesses in 2026 and 2027 exceeds 10 billion VND.
- In cases where a business is currently enjoying tax incentives, this 30% reduction is calculated on the remaining corporate income tax payable after deducting the incentive, not on the tax amount before the incentive.
At its plenary session on the afternoon of August 24th, 2026, the 16th National Assembly voted to approve Resolution 43/2026/QH16 on reducing personal income tax and corporate income tax payable for the tax periods of 2026 and 2027 for resident individuals and businesses/organizations established under Vietnamese law. The Resolution takes effect from the date of its adoption.
Tax reduction levels for 2026-2027
According to Resolution 43/2026/QH16, there will be a 30% reduction in income tax for the portion of income generated from business activities of resident individuals and organizations/enterprises established under Vietnamese law with annual revenue in 2026 and 2027 not exceeding 10 billion VND.
| Tax | Personal Income Tax | CIT |
| Reduction | 30 % of the tax payable | |
| Condition | Annual revenue not exceeding 10 billion VND (2026 and 2027) | |
| Applicable tax period | 2026 and 2027 | |
In cases where a business is currently enjoying tax incentives as stipulated in the Corporate Income Tax Law or other Laws and Resolutions, the amount of corporate income tax reduced under this Resolution shall be calculated on the tax payable after deducting the tax incentives.
Cases where tax reduction does not apply: business division or separation.
Businesses formed from the division or separation of enterprises after the effective date of this Resolution, whose total annual revenue for 2026 and 2027 exceeds 10 billion VND, are not eligible for tax reduction. This regulation aims to prevent the misuse of legal entity division to bring each unit's revenue below the tax reduction threshold.
What do businesses and individual business owners need to do to receive tax reductions in 2026-2027?
- Re-estimate full-year revenue for 2026. Entities with total revenue in the 9–11 billion VND range need to monitor closely, as small discrepancies around this threshold can alter the entire discount entitlement for that period.
- Re-evaluate the basis for the tax reduction. If you are currently enjoying tax incentives, calculate the reduction based on the tax amount after the incentive and clearly state the calculation method in your records for explanation if needed.
- Review the plan for splitting or separating legal entities. For restructuring plans scheduled to be implemented after August 24th, 8, a tax impact assessment is required before implementation.
- Update the provisional payment amount and cash flow. Adjust the provisional tax payments for the remaining quarters according to the reduction, and also monitor the tax declaration guidelines to ensure the correct forms are used.
Frequently Asked Questions about Tax Reductions 2026-2027
Are there any differences in the procedures and required documents?
The resolution does not specify any particular documents or procedures for applying for a tax reduction. However, in the 30% corporate income tax reduction in 2020, businesses determined the amount of tax to be reduced themselves and declared it during the annual tax settlement. Individuals and businesses should ensure they retain all necessary documentation proving their revenue is under 10 billion VND for post-audit purposes.
The first and second quarters have already been provisionally paid, how will the reductions for the third and fourth quarters be calculated?
Corporate income tax is calculated on an annual basis; quarterly payments are only provisional payments. The 30% reduction is calculated on the total tax for the entire year 2026 and finalized at the tax settlement. From the third quarter onwards, provisional payments can be made based on the reduced amount — approximately 70% of the tax payable for the quarter; the amount paid in the first and second quarters will be deducted from the annual tax liability.
For example
Tax for the entire previous year was reduced by 100 million VND → after the reduction, it is down to 70 million VND. Advance payments for Q1-Q2: 40 million VND → remaining tax payable: 30 million VND.
⚠️ The total provisional payment for the four quarters must not be less than 80% of the annual settlement amount. If year-end revenue exceeds 10 billion VND, the right to reduce the amount is lost — businesses close to the threshold should make provisional payments cautiously.
If I've already paid the tax, will I get a refund for the difference?
✅ Yes — The amount exceeding the tax obligation after reduction is the overpaid tax: it can be offset against the tax payable, or refunded when there is no outstanding tax debt (Article 15 of the 2025 Tax Administration Law). In practice, offsetting against the next period is faster than a cash refund. The overpaid amount is only officially determined after the year-end tax settlement.
If a company is undergoing dissolution and its tax identification number is being closed, will it still be eligible for benefits?
✅ Yes, if there are still 2026 or 2027 tax periods that need to be settled — the Resolution does not exclude businesses that are dissolving. However, guidance on how to determine revenue when the tax period is shorter than 12 months is needed. The 2020 tax reduction is calculated as actual revenue ÷ number of months of operation × 12, applicable to both dissolution and bankruptcy cases. If the tax identification number was closed before August 24th, 2026, it is necessary to discuss this with the tax authority.