Recently, the National Assembly issued Resolution No. 43/2026/QH16 (Resolution No. 43) on August 24, 2026, on reducing personal income tax (PIT) and corporate income tax (CIT) for individuals and businesses. The resolution took effect upon its adoption and applies to the 2026 and 2027 tax periods.

Taxpayers complete tax procedures at Tax Office No. 3, Dong Nai City Tax Department.

This is another tax incentive policy adopted by the National Assembly to “support” small and micro-sized businesses and individuals, whose resilience remains limited and who are relatively heavily affected by difficulties in production and business activities under current conditions.

Small Revenue, Significant Tax Incentives

According to a notice from the city’s tax authority sent to taxpayers, Resolution No. 43 clearly specifies the cases eligible for tax reductions. Specifically, resident individuals earning income from business activities with annual revenue of no more than VND 10 billion are entitled to a 30% reduction in the PIT payable. The policy applies specifically to income from business activities and does not cover other sources of PIT.

Businesses and organizations with annual revenue of no more than VND 10 billion are entitled to a 30% reduction in CIT payable for the two years mentioned above. In cases where businesses are formed through the division or separation of an existing business after Resolution No. 43 takes effect, and the combined revenue of the divided or separated businesses exceeds VND 10 billion in 2026 or 2027, the policy will not apply.

Some businesses said that this support policy helps reduce financial pressure and gives them greater confidence in maintaining production and business activities.

Mr. Nguyen Van Thanh, Director of Gia Hung Co., Ltd. in Long Binh Ward, shared that over the past two years, his company’s business operations have not been as favorable as in previous years. Therefore, under the new tax incentive policy, his company will be able to reduce its tax payments over the two-year period. This practical and timely support from the central government will help the company maintain production and business activities while reducing the financial burden of investment.

According to the Ministry of Finance, the tax reduction policy is expected to reduce state budget revenue by more than VND 3.1 trillion in 2026 and more than VND 3.5 trillion in 2027. However, it is expected to improve cash flow and ease financial pressure on households, individual businesses, and enterprises, while creating conditions for businesses to proactively maintain operations, reinvest, and expand production and business activities, thereby contributing to sustainable economic growth.

Timely Implementation of Tax Incentive Policies

According to statistics from the city’s tax authority, during the first six months of 2026, the city’s tax sector promptly implemented tax incentive policies for taxpayers across the city.

Accordingly, the Dong Nai tax sector implemented seven tax support policies during the first six months of the year, resulting in a reduction of more than VND 2.9 trillion in state budget revenue. Notable policies included a reduction in value-added tax of approximately VND 430 billion; a 50% reduction in environmental protection tax on gasoline, oil, and lubricants, with an estimated reduction of approximately VND 250 billion; and a VND 350 billion reduction in revenue under the policy exempting environmental protection tax, value-added tax, and special consumption tax on gasoline, oil, and aviation fuel (the environmental protection tax rate for gasoline, excluding ethanol, diesel, and aviation fuel is VND 0 per liter). In addition, the Dong Nai tax sector also implemented the 2025 Personal Income Tax Law concerning PIT on salaries and wages. This included increasing personal and dependent deductions, reducing tax rates, and increasing deductions, with estimated tax reductions reaching approximately VND 870 billion through July 2026…

Households with annual revenue below VND 10 billion are entitled to a 30% reduction in personal income tax for 2026 and 2027. Photo: Ngoc Lien

To continue supporting taxpayers in implementing tax incentive policies while ensuring compliance with tax regulations, Head of the city’s tax authority Nguyen Toan Thang said that the tax sector will continue to strengthen communication, support, and the timely and effective implementation of measures on tax, fee, and land-rent extensions and exemptions already issued to support businesses and residents.

In addition, the tax sector will effectively coordinate with local authorities to communicate and disseminate new tax-related policies and regulations. Effective communication, support, and guidance for individual taxpayers and business households in complying with tax laws will contribute to nurturing and developing sustainable revenue sources in the future.

According to the city’s Statistics Office, in the first eight months of 2026, domestic state budget revenue remained the primary source, exceeding VND 53.3 trillion, accounting for more than 75% of total budget revenue, reaching 69% of the estimate and increasing by more than 28% year on year. Several major revenue sources recorded strong growth compared with the same period last year, making positive contributions to local budget revenue, including revenue from the non-state economic sector and revenue from foreign direct investment enterprises…

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Source: Báo Đồng Nai