“Boosting” individuals and enterprises through tax policy

The National Assembly recently adopted Resolution No. 43/2026/QH16 (referred to as Resolution 43), dated August 24, 2026, on personal income tax (PIT) and corporate income tax (CIT) reductions for individuals and enterprises. The resolution took effect on the date of its passage and applies to the 2026 and 2027 tax periods.

Taxpayers complete tax procedures at Tax Office No. 3 under the Dong Nai Tax Department.

This resolution is the latest tax incentive policy adopted by the National Assembly to “boost” small and micro-sized enterprises and individuals, which have limited resilience and are significantly affected by the current difficulties facing production and business activities.

Small revenue, big incentives

According to notices sent by the Dong Nai Tax Department to taxpayers, Resolution 43 clearly stipulates the cases eligible for tax reductions. Specifically, resident individuals earning business income and recording annual revenue of no more than 10 billion VND are entitled to a 30% reduction in PIT payable. The policy applies exclusively to business income and does not cover other types of personal income.

Enterprises and organizations with annual revenue not exceeding 10 billion VND are entitled to a 30% reduction in CIT payable for the two years mentioned above. The policy does not apply to enterprises established through the division or split of a company after Resolution 43 takes effect if the total revenue of the divided or split enterprises in 2026 and 2027 exceeds 10 billion VND.

Several enterprises said the support policy helps companies ease financial pressure and provides greater security for their production and business operations.

Nguyen Van Thanh, Director of Gia Hung Co., Ltd. in Long Binh Ward, said that over the past two years, the company had not performed as favorably as in previous years. Therefore, under the new tax incentive policy, his company will receive a tax reduction for two years. This practical and timely support from the Central Government will help his company maintain production and business activities while reducing the financial burden associated with investment and operations.

According to an assessment by the Ministry of Finance, the tax reduction policy is expected to reduce state budget revenue by more than 3.1 trillion VND in 2026 and more than 3.5 trillion VND in 2027. However, the policy will contribute to improving cash flow and easing financial pressure on business households, individual business owners, and companies. At the same time, it will create conditions for business establishments to proactively maintain operations, reinvest, and expand production and business activities, contributing to the goal of sustainable economic growth.

Timely implementation of tax incentive policies

The Dong Nai Tax Department reported that it promptly implemented incentive policies for taxpayers across the city in the first six months of 2026.

Accordingly, the Dong Nai tax sector implemented seven tax support policies in the first six months, reducing state budget revenue by more than 2.9 trillion VND. Notable measures included a value-added tax reduction of approximately 430 billion VND; a 50% reduction in environmental protection tax on gasoline, oil, and lubricants, with the estimated tax reduction amounting to approximately 250 billion VND; and a revenue reduction of 350 billion VND under the policy exempting gasoline, oil, and aviation fuel from environmental protection tax, value-added tax, and special consumption tax. The environmental protection tax rate for gasoline, excluding ethanol, diesel oil, and aviation fuel is 0 VND/liter. In addition, the Dong Nai tax sector implemented provisions of the 2025 Law on Personal Income Tax regarding PIT on salaries and wages. Accordingly, family deduction levels for taxpayers and dependents were increased, the number of tax brackets was reduced, and deduction levels were increased, with the tax reduction estimated at approximately 870 billion VND by the end of July 2026…

Business households with annual revenue of less than 10 billion VND are eligible for a 30% reduction in personal income tax in 2026 and 2027. Photo: Ngoc Lien

To continue supporting taxpayers in implementing tax incentive policies while ensuring strict compliance with tax regulations, Head of the Dong Nai Tax Department Nguyen Toan Thang said the tax sector will continue to advance advocacy and support efforts and ensure the timely and effective implementation of issued measures on the extension, exemption, and reduction of taxes, fees, and land rents to support enterprises and citizens.

Furthermore, the tax sector is effectively coordinating with local authorities to publicize and disseminate new tax-related policies and decrees. By effectively carrying out communication, support, and guidance activities, the tax sector helps individual taxpayers and household businesses comply with tax laws, contributing to nurturing and developing a sustainable revenue source in the coming period.

According to the Dong Nai Statistics Office, in the first eight months of 2026, domestic state budget revenue continued to be the primary source, reaching more than 53.3 trillion VND and accounting for more than 75% of total budget revenue. The figure was equivalent to 69% of the estimate and represented an increase of more than 28% compared with the same period last year. Several key revenue sources recorded solid year-on-year growth, contributing positively to overall budget revenue in the area, including revenue from the non-state economic sector and revenue from foreign direct investment enterprises, among others.

By Thuy Moc – Translated by Minh Hong, Minho