On the afternoon of August 20, the National Assembly Standing Committee gave opinions on the draft Resolution of the National Assembly on reducing personal income tax (PIT) and corporate income tax (CIT) for business households and enterprises.
According to the Government's Submission, the proposed policy is to partially solve difficulties and obstacles, create conditions for production and business recovery and development for business households, individual businesses and micro-enterprises in the context of a still challenging economic situation.
To meet the urgency of the policy, Member of the Party Central Committee, Minister of Finance Ngo Van Tuan said that the Government proposes that the National Assembly Standing Committee consider and allow the development and promulgation of a Resolution according to simplified procedures.
At the same time, the Government also proposed to add this Resolution project to the Program of the First Extraordinary Session of the 16th National Assembly for the National Assembly to consider and approve.
Regarding regulations on reducing PIT and CIT, the Government proposes to reduce 30% of the PIT payable in the tax period of 2026 and 2027 for income from business of resident individuals with annual revenue of 2026 and 2027 not exceeding 10 billion VND.
Reduce 30% of corporate income tax payable in the tax period of 2026 and 2027 for enterprises and organizations established under Vietnamese law with annual revenue in 2026 and 2027 not exceeding 10 billion VND.
In case a business is currently entitled to tax incentives under the CIT Law or other Laws and Resolutions of the National Assembly, the amount of CIT reduced specified in this clause is calculated on the amount of CIT payable after tax incentives have been deducted.
With this proposal, according to revenue in 2025, the total estimated budget revenue reduction in 2026 is about 3,191 billion VND and in 2027 is about 3,510 billion VND.
Tax reduction according to the above proposal may initially reduce state budget revenue, but in the long term, when businesses and individuals develop, they will contribute back to the budget by paying taxes on consumption and income of these businesses and individuals.
Presenting the Preliminary thẩm tra report of the Resolution project, Deputy Chairman of the Economic and Finance Committee Nguyen Thi Phu Ha said that the Standing Committee of the Economic and Finance Committee and agencies of the National Assembly highly agreed on the necessity of issuing the Resolution.
Regarding the conditions and mechanisms for applying tax reduction rates, Deputy Chairman Nguyen Thi Phu Ha said that although the majority of opinions agreed with the condition of reducing 30% of personal income tax and corporate income tax for establishments with annual revenue not exceeding 10 billion VND in 2026 and 2027; however, many appraisal opinions suggested that the Government clarify the basis for unified application of the 10 billion VND threshold for all sectors.
At the meeting, the National Assembly Standing Committee agreed to supplement the draft Resolution to the program of the First Extraordinary Session and submit it to the National Assembly for consideration and approval according to simplified procedures.
