A business household in Cần Thơ City. — VNA/VNS Photo

HÀ NỘI — The Ministry of Finance has proposed a 30 per cent reduction in personal income tax and corporate income tax for household businesses, individual business owners, and enterprises with annual revenue of up to VNĐ10 billion (approximately US$384,000) this year and next year.

The proposal was released for public consultation on Friday as part of a draft resolution to be submitted to the National Assembly.

Under the draft, resident household businesses and individual business owners with annual revenue of no more than VNĐ10 billion during 2026 and 2027 would receive a 30 per cent reduction in their personal income tax liabilities for each tax year. Businesses with annual revenue within the same threshold would also be eligible for a 30 per cent reduction in corporate income tax during the two-year period.

The policy is primarily aimed at micro-enterprises, defined as businesses employing an average of fewer than 10 employees covered by social insurance each year. Eligible companies must also have capital of no more than VNĐ3 billion and annual revenue of up to VNĐ3 billion in the agriculture, forestry, fisheries, manufacturing, and construction sectors, or up to VNĐ10 billion in the trade and services sector.

The Ministry of Finance said the proposal comes as many household businesses and micro-enterprises continue to face significant challenges. According to a survey by the Vietnam Chamber of Commerce and Industry (VCCI), 59.3 per cent of household businesses and individual business owners cited rising and volatile input costs as their biggest concern, while 43.8 per cent reported weak market demand and 32.6 per cent faced shortages of capital and labour. Micro-enterprises have encountered similar difficulties.

The ministry said the proposed tax relief would allow businesses and individual entrepreneurs to retain more income for reinvestment, business expansion, and capital accumulation.

The tax incentives are estimated to reduce state budget revenue by more than VNĐ6.7 trillion over the two-year period. However, the ministry argued that while the measure may lower tax collections in the short term, stronger business growth would generate more sustainable tax revenues over the longer term.

The draft resolution is expected to be submitted to the government before being presented to the National Assembly for consideration at its October session. If approved, the tax reductions would apply to the 2026 and 2027 tax years. — VNS