Resolution 08/2026/UBTVQH16 on principles and criteria for dividing value-added tax revenues for each locality in 2027-2030 period

RESOLUTION

On principles and criteria for dividing value-added tax revenues for each locality applicable in the 2027-2030 period

THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam, which has a number of articles amended and supplemented under Resolution No. 203/2025/QH15;

Pursuant to Law No. 57/2014/QH13 on Organisation of the National Assembly, which has a number of articles amended and supplemented under Law No. 65/2020/QH14 and Law No. 62/2025/QH15;

Pursuant to Law No. 89/2025/QH15 on the State Budget, which has a number of articles amended and supplemented under Law No. 145/2025/QH15;

RESOLVES:

Article 1. Scope of regulation

This Resolution provides principles and criteria for dividing value-added tax (VAT) revenues retained for local budgets for each province or centrally governed city (below referred to as locality) as specified in Point e, Clause 2, Article 36 of the Law on the State Budget.

Article 2. Subjects of application

State agencies, organisations and individuals involved in the division of VAT revenues.

Article 3. Principles for division

1. The division of VAT revenues shall be associated with the socio-economic development level and final consumption of goods and services of each locality, ensuring centralised and unified management.

2. To ensure clarity, simplicity and ease of understanding, implementation, inspection, and supervision; fairness, publicity, transparency and stability during the budget period, creating favourable conditions for localities to take the initiative in formulating and administering annual budgets.

Article 4. Division criteria, figures and methods

1. Division criteria and figures:

a/ Population criterion: The population of up to 1 million shall be awarded 60 points. For a population from over 1 million to 2 million, every additional 5,000 people shall be awarded 0.25 points. For a population from over 2 million to 3 million, every additional 5,000 people shall be awarded 0.2 points. For a population exceeding 3 million, every additional 5,000 people shall be awarded 0.15 points. The average population figures for the year preceding the budget estimate year shall be announced by the Statistics Office;

b/ Natural land area criterion: A natural land area of up to 3,000 km² shall be awarded 20 points. For an area from over 3,000 km² to 5,000 km², every additional 10 km² shall be awarded 0.03 points. For an area from over 5,000 km² to 10,000 km², every additional 10 km² shall be awarded 0.02 points. For an area exceeding 10,000 km², every additional 10 km² shall be awarded 0.01 points. Natural land area figures as of December 31 of the year preceding the budget estimate year shall be announced by the Statistics Office.

c/ Per-capita GRDP criterion: A per-capita GRDP of up to VND 50 million shall be awarded 25 points. For a per-capita GRDP from more than VND 50 million to VND 100 million, every additional VND 5 million shall be awarded 2 points. For a per-capita GRDP from more than VND 100 million to VND 200 million, every additional VND 5 million shall be awarded 1.5 points. For a per-capita GRDP exceeding VND 200 million, every additional VND 5 million shall be awarded 0.5 points. Per-capita GRDP figures for the year preceding the budget estimate year shall be announced by the Statistics Office.

2. The method for determining division ratios and VAT amounts for each locality is provided in the Appendix.

Article 5. Organisation of implementation

1. The Government shall:

a/ Pursuant to this Resolution, determine division ratios and estimated VAT amounts retained for local budgets for each locality annually to be incorporated into state budget estimates and plans on allocation of central budget funds, and submit them to the National Assembly for consideration and decision in accordance with the Law on the State Budget;

b/ Based on actual VAT revenues and refund amounts, organise the division of VAT revenues for each locality according to the division ratios decided by the National Assembly mentioned in Point a of this Clause, ensuring the timeliness and compliance with regulations.

2. Provincial-level People’s Councils shall decide on the division of VAT revenues (that are retained for local budgets) between provincial-level budgets and commune-level budgets in accordance with the Law on the State Budget.

Article 6. Effect

This Resolution takes effect on August 1, 2026 and applies to budget years during the 2027-2030 period.

Article 7. Oversight of the implementation of the Resolution

The Standing Committee of the National Assembly, the Council of Ethnic Affairs and Committees of the National Assembly, delegations of the National Assembly and National Assembly deputies shall, within the ambit of their duties and powers, oversee the implementation of this Resolution.

This Resolution was adopted on July 8, 2026, by the 16^th National Assembly of the Socialist Republic of Vietnam at its 3^rd session.

On behalf of the Standing Committee of the National Assembly

PRESIDENT

TRAN THANH MAN

APPENDIX

THE METHOD FOR DETERMINING DIVISION RATIOS AND VAT AMOUNTS FOR EACH LOCALITY

(To Resolution No. 08/2026/UBTVQH16 of July 8, 2026)

1. The total estimated VAT revenues retained for local budgets shall be determined according to the following formula:

K = (A - B) x 30%

In which:

+ K is the total estimated VAT revenues retained for local budgets as specified in Article 1 of this Resolution;

+ A is the total estimated nationwide VAT revenues, excluding the estimated VAT revenues specified in Points c and o, Clause 1, Article 36, and Point g, Clause 1, Article 38 of the Law on the State Budget;

+ B is the nation’s projected VAT refund amount.

2. Based on the criteria specified in Clause 1, Article 4 of this Resolution, the number of points for each locality shall be calculated as a basis for division according to the following formulas:

- The total number of points for each locality is Xi, calculated using the formula:

X_i = a_i + b_i + c_i

In which:

+ a_i is the number of points calculated based on the population criterion of the i^th locality;

+ b_i is the number of points calculated based on the natural land area criterion of the i^th locality;

+ c_i is the number of points calculated based on the per-capita GRDP criterion of the i^th locality.

- The total number of points for all localities is Y, calculated using the formula:

3. The division ratio of VAT revenues for the i^th locality (rounded to two decimal places) is Z_i, calculated using the formula:

4. The estimated VAT amount divided to the i^th locality is V_i, calculated using the formula:

V_i = Z_i x K