The Ministry of Finance is seeking opinions on the draft Resolution of the National Assembly on reducing personal income tax and corporate income tax for households, individual businesses and enterprises.
According to the draft, households and resident business individuals with total revenue in 2026 and 2027 of up to 10 billion VND will be reduced by 30% of the personal income tax payable for each year.
Similarly, businesses with total annual revenue of up to 10 billion VND are also entitled to a 30% reduction in corporate income tax payable in the two years 2026 and 2027.
Direct reduction of tax payable
Assessing the above proposal, Mr. Le Van Tuan - Director of Keytas Tax Accounting Co., Ltd. said that this is a direct cash support plan through reducing the amount of tax payable, thereby quickly supporting businesses, business households and individual businesses in the face of difficulties caused by fluctuations in input costs.
According to Mr. Tuan, while some other solutions require implementation time or a period of time to assess effectiveness in practice, tax reduction policies have a more direct impact on taxpayers.
With the proposed tax reduction policy, we are directly supporting taxpayers with money. Therefore, taxpayers can easily know the direction of the State's policy support, thereby immediately reducing 30% of the tax payable when temporarily paying taxes from the third quarter of 2026 tax calculation period and not having to wait until the end of 2026 to apply it," Mr. Tuan analyzed.
However, according to Mr. Tuan, the expected support scale is currently limited. The budget revenue reduction according to the policy is expected to be about 3, 191 billion VND in 2026 and 3, 510 billion VND in 2027, for businesses, business households and individual businesses with revenue up to 10 billion VND/year.
Mr. Tuan believes that the policy will be effective in supporting a group of businesses, business households, and individual businesses of very small scale. However, with the amount of tax supported being more than 3,000 billion VND per year, the impact on the growth of the economy may not be clear.
According to calculations given by Mr. Tuan, total state budget revenue in 2025 will reach about 2.65 million billion VND, while the scale of support mentioned above is equivalent to about 0.12%. Compared to the total budget revenue estimated for 2026, this rate is even lower.
Proposal to raise the revenue threshold to 50 billion VND
According to Mr. Tuan, reducing 30% of corporate income tax payable will help businesses with revenue under 10 billion VND have more resources to serve business and investment activities.
For households and individual businesses, besides tax support, the issue of more concern is compliance costs. According to him, households and individual businesses need to drastically reduce compliance costs to levels appropriate to the capacity of this group.
However, sharply reducing compliance costs is difficult to implement immediately and requires time to research and draw experience from the actual implementation of current tax policies. Therefore, in this period, reducing the amount of tax payable can be considered as an indirect support measure for compliance costs that businesses, households and individual businesses are facing.
From the above analysis, Mr. Tuan believes that the proposal to reduce 30% of tax payable is a solution that can be implemented immediately and bring rapid support effectiveness in practice. However, if aiming for the goal of supporting economic growth, the scale of policies needs to be large enough to create an impact.
We can consider raising the revenue threshold applied for tax exemption to 50 billion VND/year, instead of the current proposal of 10 billion VND," Mr. Tuan proposed.
According to Mr. Tuan, with a revenue threshold of 50 billion VND/year, groups of households and individuals doing business in group 3 - groups that are bearing many compliance costs and need time to adapt - can also benefit from the State's support policies.
In the long term, Mr. Tuan believes that the important issue is still to sharply reduce compliance costs to a level suitable for the capacity of households and individual businesses, while creating a more transparent and stable legal environment for businesses. Thereby contributing to creating conditions for businesses to develop stably and sustainably and supporting increased budget revenue in the long term.
