The National Assembly on Monday voted to pass a resolution on cutting income tax by 30 per cent for individuals and businesses with annual revenue of no more than VNĐ10 billion. — VNA/VNS Photo

HÀ NỘI — The National Assembly on Monday passed a resolution on cutting income tax by 30 per cent for individuals and businesses with annual revenue of no more than VNĐ10 billion (US$380,000) in 2026 and 2027 in a move to support small businesses.

The resolution takes effect immediately and applies to 2026 and 2027 tax years. 

Individuals with annual business revenue of no more than VNĐ10 billion in each of the two years will receive a 30 per cent reduction in personal income tax payable.

Enterprises and organisations with annual revenue of no more than VNĐ10 billion will also be entitled to a 30 per cent reduction in corporate income tax payable for 2026 and 2027. 

The tax cut will not apply to businesses formed through the division or separation from one company after August 24 if the combined annual revenue of the newly established entities exceeds VNĐ10 billion. 

For businesses already eligible for tax incentives under the Law on Corporate Income Tax or other laws and National Assembly resolutions, the 30 per cent reduction will be calculated on the corporate income tax payable after existing tax incentives have been deducted.

Previously, Minister of Finance Ngô Văn Tuấn reported that 99.86 per cent of individuals and household businesses and 81.1 per cent of enterprises will qualify for the tax reduction.

The policy is intended to support household businesses, individual business operators and micro-enterprises, which have limited capacity to withstand economic difficulties.

The Government estimates the tax cuts will reduce State budget revenue by about VNĐ3.19 trillion this year and VNĐ3.51 trillion in 2027.  — VNS