In the afternoon of August 22, the National Assembly discussed in the hall about the draft Resolution of the National Assembly on reducing personal income tax and corporate income tax for individual businesses and enterprises.
At the discussion session, many delegates supported the policy of tax reduction to partially solve difficulties, create conditions for production recovery and development for business households, individuals, and businesses.
Delegate Nguyen Duy Thanh (National Assembly Delegation of Ca Mau province) pointed out the inadequacy, if a business has revenue of no more than 10 billion VND and is entitled to a 30% tax reduction. But when revenue just exceeds 10 billion VND, the reduction level is no longer there.
A business with revenue of 9.9 billion VND enjoys a reduction, while a business with revenue of 10.1 billion VND does not. The scale of operation is almost equivalent, but tax obligations may change quite a lot" - the delegate said.
Delegate Nguyen Duy Thanh also warned that this may create a psychology of reluctance to increase scale; arising motivation to divide revenue, separate operations or legal entities to continue to enjoy policies.
Delegate Nguyen Thi Yen Nhi (National Assembly Delegation of Vinh Long province) also proposed that it is necessary to clarify the revenue criterion of 10 billion VND to ensure the right subjects and fairness.
This delegate noted that it is necessary to avoid the situation of revenue separation, business operation subdivision, enterprise separation, and revenue adjustment to bring revenue below the threshold of 10 billion VND.
Therefore, it is necessary to control the case of joint enterprises, with the same location, owning joint business operations. The goal is to ensure that policy beneficiaries are the right subjects.
Explaining the selection of the revenue threshold of 10 billion VND, Member of the Party Central Committee, Minister of Finance Ngo Van Tuan said that according to current statistics of the Ministry, there are 2.69 million business households with revenue under 10 billion VND, accounting for 99.98% of the total number of business households nationwide.
The number of businesses with revenue below 10 billion VND is more than 865,000 businesses, accounting for about 81.1% of the total number of businesses.
Thus, the threshold of 10 billion VND ensures coverage and support for the majority of small and micro business households and enterprises that are really facing difficulties today" - the Minister of Finance stated.
Regarding solutions to avoid the situation of separation to enjoy preferential policies, the Minister of Finance affirmed that the draft Resolution of the Government will eliminate cases of subsidiaries and affiliated companies to ensure minimizing policy profiteering.
The Minister said that the effective date of the resolution starts from August this year and applies to both the 2026 and 2027 tax periods. Accordingly, it will be announced soon to help businesses proactively calculate the level of incentives they will enjoy, thereby proactively building investment plans, production and business, especially in the year-end cycle and the Lunar New Year.
