Decree 398/2026/ND-CP detailing Resolution 43/2026/QH16 on reduction of personal income tax and corporate income tax

DECREE

Detailing Resolution No. 43/2026/QH16 on reduction of personal income tax and corporate income tax for individuals and enterprises

Pursuant to the Law on Organization of the Government No. 63/2025/QH15;

Pursuant to the Law on Personal Income Tax No. 109/2025/QH15, amended and supplemented under Law No. 09/2026/QH16;

Pursuant to the Law on Corporate Income Tax No. 67/2025/QH15, amended and supplemented under Law No. 116/2025/QH15, Law No. 127/2025/QH15, Law No. 133/2025/QH15, Law No. 141/2025/QH15, Law No. 143/2025/QH15 and Law No. 09/2026/QH16;

Pursuant to the Law on Tax Administration No. 108/2025/QH15;

Pursuant to the National Assembly's Resolution No. 43/2026/QH16 on reduction of personal income tax and corporate income tax for individuals and enterprises;

At the proposal of the Minister of Finance;

The Government hereby promulgates the Decree detailing Resolution No. 43/2026/QH16 on reduction of personal income tax and corporate income tax for individuals and enterprises.

Article 1. Scope of regulation

This Decree details the reduction of personal income tax and corporate income tax for individuals and enterprises in accordance with Resolution No. 43/2026/QH16.

Article 2. Reduction by 30% of personal income tax payable for the 2026 and 2027 tax periods on business income of residents with annual revenue in 2026 or 2027 not exceeding VND 10 billion

1. The tax reduction specified in this Article shall apply to residents engaged in production or business activities, including individuals who register the establishment of business households or who are authorized by household members to act as representatives of business households (hereinafter referred to as business individuals).

2. The amount of personal income tax reduced for the 2026 and 2027 tax periods shall be calculated based on the personal income tax payable arising from all income derived from the production and business activities of a business individual, regardless of the method used to calculate personal income tax.

3. Annual revenue used as the basis for determining whether a business individual is eligible for the personal income tax reduction shall be determined in accordance with Articles 4 and 5 of Decree No. 68/2026/ND-CP providing tax policies and tax administration for business households and business individuals, as amended and supplemented under Decree No. 141/2026/ND-CP.

4. Tax reduction declaration

a) A business individual estimates that its revenue for the 2026 or 2027 tax period will not exceed VND 10 billion, shall declare the personal income tax reduction according to Form No. 01 in the Appendix to this Decree, and submit it together with the quarterly, first six-month, second six-month or annual tax declaration dossier.

b) Where an organization or individual withholds, declares and pays personal income tax on behalf of a business individual, if the revenue subject to such withholding, declaration and payment on behalf of the business individual does not exceed VND 10 billion, the organization or individual shall, in accordance with this Article, reduce by 30% the personal income tax required to be withheld, declared and paid on a monthly, quarterly or per-occurrence basis; make the declaration using Form No. 02 in the Appendix to this Decree; and submit it together with the personal income tax declaration of the organization or individual withholding, declaring and paying personal income tax on behalf of the business individual.

c) Based on the total actual revenue from all business activities, the business individual shall determine the personal income tax payable and the personal income tax reduction under this Article. Where the total actual annual revenue exceeds VND 10 billion, the tax reduction specified in this Article shall not apply, and the business individual shall additionally pay the personal income tax previously reduced, make an adjustment declaration using Form No. 03 in the Appendix to this Decree, and submit it together with the tax declaration dossier for the period in which cumulative revenue from the beginning of the year exceeds VND 10 billion. No late-payment interest shall be charged on the additional personal income tax payable due to the re-determination of the conditions for tax reduction under this provision until the deadline for submission of the tax declaration dossier for the period in which cumulative revenue exceeds VND 10 billion.

d) Where personal income tax has been declared but the tax reduction specified in Clauses 1, 2 and 3 of this Article has not been declared, the taxpayer may adjust or supplement the previously submitted tax declaration dossier or determine the tax reduction upon annual tax finalization in accordance with the law on tax administration. Where a business individual pays tax at a tax rate applied to revenue and has overpaid tax, the overpaid amount may, at the end of the year, be offset, refunded, or concurrently refunded and offset against state budget revenues in accordance with the law on tax administration.

dd) Where an individual makes an additional declaration for a personal income tax declaration dossier for the 2026 or 2027 tax period, or where a decision, conclusion or notice of tax inspection, examination or audit results issued by a tax office or competent agency results in an increase in the personal income tax payable, the additional tax shall be reduced by 30% under this Decree, provided that the individual continues to satisfy the eligibility conditions for tax reduction specified in this Article.

e) Where an individual makes an additional declaration for a personal income tax declaration dossier for the 2026 or 2027 tax period, or where a decision, conclusion or notice of tax inspection, examination or audit results issued by a tax office or competent agency results in a reduction in the personal income tax payable, the personal income tax reduction under this Decree shall be reduced, and any overpaid tax shall be handled in accordance with the law on tax administration.

Article 3. Reduction by 30% of corporate income tax payable for the 2026 and 2027 tax periods on business income of enterprises or organizations established under Vietnamese law with annual revenue in 2026 or 2027 not exceeding VND 10 billion

1. The corporate income tax reduction specified in this Article shall apply to corporate income taxpayers that are enterprises and organizations established under Vietnamese law as specified in Clause 2, Article 1 of Resolution No. 43/2026/QH16 (hereinafter referred to as enterprises), including:

a) Enterprises established under Vietnamese law.

b) Cooperatives and unions of cooperatives established under the Law on Cooperatives.

c) Non-business units established under Vietnamese Law.

d) Other organizations established under Vietnamese law and engaged in income-generating production and business activities.

The corporate income tax reduction specified in this Article shall not apply to enterprises established under the Law on Enterprises as a result of the division or splitting of an enterprise after Resolution No. 43/2026/QH16 takes effect, where the total annual revenue of the enterprises resulting from such division or splitting exceeds VND 10 billion in 2026 or 2027.

2. The corporate income tax reduction for the 2026 and 2027 tax periods shall be calculated on the entire income of an enterprise applying the annual tax period, regardless of the method used to calculate corporate income tax, including the income specified in Clause 3, Article 18 of the Law on Corporate Income Tax. The corporate income tax reduction shall be calculated on the corporate income tax payable for the 2026 and 2027 tax periods.

Where an enterprise is entitled to tax incentives under the Law on Corporate Income Tax or other laws or resolutions of the National Assembly, the corporate income tax reduction specified in this Clause shall be calculated on the corporate income tax payable after deduction of tax incentives.

3. Annual revenue used as the basis for determining whether an enterprise is eligible for the corporate income tax reduction shall include revenue from the sale of goods and provision of services, excluding revenue deductions, revenue from financial activities, and other income.

a) Where the first tax period of a newly established enterprise or the last tax period of an enterprise undergoing transformation of enterprise type, transformation of ownership form, consolidation, merger, division, splitting, dissolution or bankruptcy is shorter than 3 months and may be combined with the 2026 or 2027 tax period to constitute a corporate income tax period, the determination of revenue and the tax reduction shall apply to the 12 months of the 2026 or 2027 tax period.

b) Where an enterprise has dependent units or business locations, its revenue for the corporate income tax period shall include the revenue of such dependent units and business locations as presented in the annual consolidated financial statements.

c) The total annual revenue of enterprises resulting from a division or splitting as specified in Clause 1 of this Article shall be the total revenue of all enterprises formed through the division or splitting of the original enterprise during the 2026 or 2027 tax period.

4. Tax reduction declaration

a) Where an enterprise estimates that its revenue for the 2026 or 2027 tax period will not exceed VND 10 billion, it shall self-determine the tax reduction when making quarterly provisional corporate income tax payments.

b) Where the total actual revenue for the tax period exceeds VND 10 billion, the enterprise shall declare and pay corporate income tax in accordance with regulations. The enterprise shall fully pay the tax shortfall, and late-payment interest shall be handled in accordance with Clause 3, Article 24 of Decree No. 252/2026/ND-CP detailing a number of articles of, and providing measures for the implementation of, the Law on Tax Administration.

c) Where an enterprise makes an additional declaration for a corporate income tax declaration dossier for the 2026 or 2027 tax period, or where a decision, conclusion or notice of tax inspection, examination or audit results issued by a tax office or competent agency results in an increase in the corporate income tax payable, the additional tax shall be reduced by 30% under this Decree, provided that the enterprise continues to satisfy the eligibility conditions for the tax reduction specified in this Article.

d) Where an enterprise makes an additional declaration for a corporate income tax declaration dossier for the 2026 or 2027 tax period, or where a decision, conclusion or notice of tax inspection, examination or audit results issued by a tax office or competent agency results in a reduction in the corporate income tax payable, the corporate income tax reduction under this Decree shall be reduced, and any overpaid tax shall be handled in accordance with the law on tax administration.

Article 4. Effect

This Decree takes effect from October 29, 2026, and shall apply from the 2026 and 2027 tax periods.

Article 5. Responsibility for implementation

1. Any problems arising in the course of implementation shall be guided by the Ministry of Finance.

2. Ministers, heads of ministerial-level agencies, Chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.