|
GOVERNMENT |
SOCIALIST REPUBLIC OF VIETNAM |
DECREE
Regulations detailing Resolution No. 43/2026/QH16 on reducing personal income tax and
corporate income tax for individuals and businesses.
Based on the Law on Organization of the Government No. 63/2025/QH15;
Based on the Law on Personal Income Tax No. 109/2025/QH15, amended and supplemented by Law No. 09/2026/QH16;
Based on the Corporate Income Tax Law No. 67/2025/QH15, amended and supplemented by 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;
Based on the Law on Tax Administration No. 108/2025/QH15;
Based on Resolution No. 43/2026/QH16 of the National Assembly on reducing personal income tax and corporate income tax for individuals and businesses;
As requested by the Minister of Finance;
The government has issued a Decree detailing Resolution No. 43/2026/QH16 on reducing personal income tax and corporate income tax for individuals and businesses.
Article 1. Scope of application
This Decree provides detailed regulations on the reduction of personal income tax and corporate income tax for individuals and businesses as stipulated in Resolution No. 43/2026/QH16.
Article 2. A 30% reduction in personal income tax payable for the tax periods of 2026 and 2027 shall be granted to resident individuals whose annual revenue in 2026 and 2027 does not exceed VND 10 billion.
- The tax reduction stipulated in this Article applies to resident individuals engaged in production and business activities, including individuals registered to establish household businesses or persons authorized by household members to act as representatives of household businesses (hereinafter referred to as business individuals).
- The personal income tax reduction for the tax periods of 2026 and 2027 is calculated on the personal income tax payable arising from all income from the production and business activities of the individual business owner, regardless of the method of calculating personal income tax.
- Annual revenue used as the basis for determining whether an individual business is eligible for personal income tax reduction shall be in accordance with the provisions of Articles 4 and 5 of Decree No. 68/2026/ND-CP regulating tax policy and tax management for business households and individual businesses (amended and supplemented by Decree No. 141/2026/ND-CP).
- Claim for tax reduction
- a) Individuals conducting business who anticipate revenue in the tax periods of 2026 and 2027 not exceeding VND 10 billion shall declare a reduction in personal income tax using Form No. 01 in the Appendix attached to this Decree and submit it along with their quarterly, semi-annual, and annual tax returns.
- b) Organizations and individuals performing withholding, declaration, and payment of personal income tax on behalf of individual business owners, based on revenue not exceeding VND 10 billion within the scope of withholding, declaration, and payment as stipulated in this Article, shall reduce the amount of personal income tax withheld, declared, and paid by 30% on a monthly, quarterly, or per transaction, declaring it using Form No. 02 in the Appendix attached to this Decree and submitting it together with the personal income tax return of the organization or individual performing withholding, declaration, and payment of personal income tax on behalf of the individual business owner.
- c) Based on the total actual revenue of all business activities, the individual business owner shall determine the amount of personal income tax payable and the amount of personal income tax reduction as prescribed in this Article. If the total actual revenue for the year exceeds VND 10 billion, the tax reduction as prescribed in this Article shall not apply, and the individual business owner must pay the additional personal income tax that was reduced, declare the adjustment using Form No. 03 in the Appendix attached to this Decree, and submit it together with the tax return for the period in which the cumulative revenue from the beginning of the year exceeds VND 10 billion. The additional personal income tax payable due to the reassessment of the tax reduction conditions as prescribed in this Article shall not include late payment penalties up to the deadline for submitting the tax return as prescribed for the period in which the cumulative revenue exceeds VND 10 billion.
- d) In cases where personal income tax has been declared but the tax reduction as stipulated in Clauses 1, 2, and 3 of this Article has not been declared, adjustments or supplements to the declared tax return may be made, or the tax reduction may be determined during the annual tax settlement in accordance with the law on tax administration. In cases where individuals conducting business pay tax based on revenue, if they overpay, the excess tax paid may be offset, refunded, or reimbursed and offset against the state budget at the end of the year in accordance with the law on tax administration.
- d) In cases where an individual submits supplementary personal income tax returns for the tax periods of 2026 and 2027, or based on decisions, conclusions, or notifications of inspection, examination, or audit results from the tax authority or competent authority, resulting in an increase in the amount of personal income tax payable, the additional tax amount will be reduced by 30% as stipulated in this Decree, provided the individual still meets the conditions for tax reduction as prescribed in this Article.
- e) In cases where an individual submits supplementary personal income tax returns for the tax periods of 2026 and 2027, or based on decisions, conclusions, or notifications of inspection, examination, or audit results from the tax authority or competent authority that reduce the amount of personal income tax payable, the reduced personal income tax amount shall be adjusted according to the provisions of this Decree, and any overpaid tax (if any) shall be handled in accordance with the law on tax administration.
Article 3. A 30% reduction in corporate income tax payable for the tax periods of 2026 and 2027 shall be granted to enterprises and organizations established under Vietnamese law with annual revenue in 2026 and 2027 not exceeding VND 10 billion.
- The reduction of corporate income tax stipulated in this Article applies to corporate income tax payers that are enterprises and organizations established in accordance with Vietnamese law as prescribed in Clause 2, Article 1 of Resolution No. 43/2026/QH16 (hereinafter referred to as enterprises), including:
- a) The business is established in accordance with Vietnamese law.
- b) Cooperatives and cooperative unions established in accordance with the Law on Cooperatives.
- c) Public service units established in accordance with Vietnamese law.
- d) Other organizations established under Vietnamese law that engage in production and business activities generating income.
The reduction in corporate income tax stipulated in this Article does not apply to enterprises established under the provisions of the Enterprise Law that are formed from the division or separation of enterprises after the effective date of Resolution No. 43/2026/QH16, where the total annual revenue of the enterprises after division or separation in 2026 and 2027 exceeds VND 10 billion.
- The corporate income tax reduction for the tax periods of 2026 and 2027 is calculated on the entire income of enterprises with annual tax periods, regardless of the corporate income tax calculation method, including income specified in Clause 3, Article 18 of the Corporate Income Tax Law. The corporate income tax reduction is calculated on the corporate income tax payable for the tax periods of 2026 and 2027.
In cases where a business is entitled to tax incentives under the Corporate Income Tax Law or other laws and resolutions of the National Assembly, the amount of corporate income tax reduced as stipulated in this clause shall be calculated on the corporate income tax payable after deducting the tax incentives.
- Annual revenue used to determine eligibility for corporate income tax reduction includes revenue from sales and services (excluding revenue deductions), revenue from financial activities, and other income.
- a) In cases where the first tax period for a newly established enterprise or the last tax period for an enterprise undergoing a change in business type, ownership structure, merger, acquisition, division, separation, dissolution, or bankruptcy is shorter than 3 months and is added to the 2026 and 2027 tax periods to form a single corporate income tax period, the determination of revenue and the amount of tax reduction will apply to the 12 months of the 2026 and 2027 tax periods.
- b) In cases where a business has subsidiaries or business locations, the revenue for the corporate income tax period includes the revenue of the subsidiaries or business locations as shown in the consolidated annual financial statements.
- c) The determination of the total annual revenue of enterprises after division or separation as stipulated in Clause 1 of this Article is the sum of the revenue of all enterprises formed from the initial division or separation process in the tax periods of 2026 and 2027.
- Claim for tax reduction
- a) Businesses that project revenue for the tax periods of 2026 and 2027 to be no more than VND 10 billion can determine the amount of tax reduction themselves when making quarterly provisional corporate income tax payments.
- b) If the total actual revenue during the tax period exceeds VND 10 billion, the enterprise shall declare and pay corporate income tax in accordance with regulations. The enterprise must pay the full amount of tax owed, and the handling of late payment penalties shall be carried out in accordance with Clause 3, Article 24 of Decree No. 252/2026/ND-CP detailing some provisions and measures to organize and guide the implementation of some provisions of the Law on Tax Administration.
- c) In cases where a business submits supplementary corporate income tax returns for the tax periods of 2026 and 2027, or based on decisions, conclusions, or notifications of inspection, examination, or audit results from the tax authority or competent authority that increase the amount of corporate income tax payable, the additional tax amount will be reduced by 30% as stipulated in this Decree, provided the business still meets the conditions for tax reduction as prescribed in this Article.
- d) In cases where enterprises submit supplementary corporate income tax returns for the tax periods of 2026 and 2027, or based on decisions, conclusions, or notifications of inspection, examination, or audit results from tax authorities or competent agencies that reduce the amount of corporate income tax payable, the reduced corporate income tax amount shall be adjusted according to the provisions of this Decree, and any overpaid tax (if any) shall be handled in accordance with the law on tax administration.
Article 4. Effective Date
This Decree shall take effect from October 29, 2026 and shall apply to the tax periods of 2026 and 2027.
Article 5. Responsibility for Implementation
- If any difficulties arise during implementation, the Ministry of Finance shall provide guidance.
- Ministers, heads of ministerial-level agencies, chairpersons of provincial and city People’s Committees, and relevant organizations and individuals are responsible for implementing this Decree.
| Recipients: – Central Party Secretariat; – Prime Minister, Deputy Prime Ministers; – Ministries, ministerial-level agencies; – People’s Councils, People’s Committees of provinces and cities; – Central Office and Committees of the Party; – Office of the General Secretary; – Office of the President; – National Assembly’s Ethnic Council and Committees; – National Assembly Office; – Supreme People’s Court; – Supreme People’s Procuracy; – State Audit Office; – Central Committee of the Vietnam Fatherland Front; – Central agencies of political and social organizations ; – Government Office: Minister, Deputy Ministers, Prime Minister’s Assistants, Departments, Bureaus, Government Gazette; – Archives: Secretariat, General Accounting (2b) 15 |
behalf of the Government, Nguyen Van Thang |
Appendix
(Attached to Decree No. 398/2026/ND-CP
dated October 29, 2026 of the Government)
| No. | Content |
| Form No. 01 | Reduction of personal income tax according to Resolution No. 43/2026/QH16
(Attached is the Personal Income Tax Return Form for household businesses and individual business owners) |
| Form No. 02 | Reduction of personal income tax according to Resolution No. 43/2026/QH16
(Attached is the Personal Income Tax Return of the organization or individual performing withholding, filing, or paying on behalf of another person) |
| Form No. 03 | Adjusting the amount of tax payable and the amount of tax reduced for household businesses and individual business owners.
(Attached are forms 01/CNKD and 01/BDS, applicable to business households and individual business owners who have received a personal income tax reduction as stipulated in Resolution No. 43/2026/QH16, but whose actual total revenue exceeds VND 10 billion and must pay the additional tax amount that was reduced.) |
Form No. 01
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
_________________________
REDUCTION OF PERSONAL INCOME TAX UNDER RESOLUTION NO. 43/2026/QH16
(Attached is the Personal Income Tax Return Form for household businesses and individual businesses.
Tax period: Quarter… year … / 6 months… year … / Year…)
[01] Taxpayer:………………………………………………………
[02] Tax code:……………………………………………………….
[03] Name of organization or individual providing tax procedure services (if any):
…………………………………………………………………………..
[04] Tax code:……………………………………………………….
[05] Tax procedure service contract: Number: ………………..Date:………..
Currency: Vietnamese Dong
| No. | Business location | Business operations | Occupational groups | Amount of personal income tax payable | Amount of personal income tax reduced | |
| Business location code | Business location name | |||||
| [06] | [07] | [08] | [09] | [10] | [11] | [12] |
| 1 | ||||||
| … | ||||||
| Total | [13] | [14] | ||||
I certify that the information provided above is true and accurate, and I take full legal responsibility for its contents.
|
PERSON DIRECTLY PROVIDING TAX PROCEDURES (if any)
Full name: ……………… Professional Certificate in Taxation No.:….. |
…., Date … Month … Year …… |
______________________
Note:
– Indicator [09]: includes the following activities: Production and business activities of goods, provision of services with fixed business location; business activities on e-commerce platforms, other digital platforms; real estate rental activities; lottery agency activities, insurance, multi-level marketing; brokerage activities; individual business cooperation activities with organizations.
– Indicator [10]: includes the following industry groups: Lottery agency activities; insurance agency activities; multi-level marketing agency activities; brokerage activities; real estate rental activities; distribution and supply of goods; services, construction without material procurement; rental of assets other than real estate; production, transportation, services related to goods, construction with material procurement; provision of digital information content products for entertainment, electronic games, digital movies, digital photos, digital music, digital advertising; other business activities.
Form No. 02
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
________________________
REDUCTION OF PERSONAL INCOME TAX UNDER RESOLUTION NO. 43/2026/QH16
(Attached is the Personal Income Tax Return of the organization/individual
performing withholding, filing on behalf of, or paying on behalf of another
person. Tax period: Month…Year…/Quarter…Year…/Transaction…)
[01] Taxpayer:………………………………………………………
[02] Tax code:……………………………………………………….
[03] Name of organization or individual providing tax procedure services (if any):
…………………………………………………………………………..
[04] Tax code:……………………………………………………….
[05] Tax procedure service contract: Number: ………………..Date: ………….
Currency: Vietnamese Dong
| No. | Full name of the business owner/individual business | Tax identification number/Personal identification number of household businesses and individual businesses. | Occupational groups | Amount of personal income tax payable | Amount of personal income tax reduced |
| [06] | [07] | [08] | [09] | [10] | [11] |
| 1 | |||||
| … | |||||
| Total | [12] | [13] | |||
I certify that the information provided above is true and accurate, and I take full legal responsibility for its contents.
|
PERSON DIRECTLY PROVIDING TAX PROCEDURES (if any)
Full name: ……………… Professional Certificate in Taxation No.:….. |
…………, Date … Month … Year …… |
__________________
Note:
– Indicator [09]: includes the following industry groups: Lottery agency activities; insurance agency activities; multi-level marketing agency activities; brokerage activities; real estate rental activities; distribution and supply of goods; services, construction without material procurement; rental of assets other than real estate; production, transportation, services related to goods, construction with material procurement; provision of digital information content products for entertainment, electronic games, digital movies, digital photos, digital music, digital advertising; other business activities.
Form No. 03
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
_______________________
ADJUSTMENT OF TAX PAYABLE AND TAX REDUCTIONS
FOR HOUSEHOLD BUSINESSES AND INDIVIDUAL BUSINESSES
(Attached are forms 01/CNKD and 01/BDS, applicable to business households and individual business owners who have received a personal income tax reduction as stipulated in Resolution No. 43/2026/QH16, but whose actual total revenue exceeds VND 10 billion and must pay the additional tax amount that was reduced.)
| [01] Tax period: | Quarter … year …/6 months … year … | |
| [02] First time: □ | [03] Supplement number:…. □ |
[04] Taxpayer:………………………………………………………
[05] Tax code:……………………………………………………….
[06] Name of organization or individual providing tax procedure services (if any):
…………………………………………………………………………..
[07] Tax code:……………………………………………………….
[08] Tax procedure service contract: Number: …………….Date:…………
Currency: Vietnamese Dong
| No. | Business operations | Business location | Occupational groups | The amount of declared personal income tax has decreased. | The amount of personal income tax payable is due to not being eligible for tax reduction. | |
| Business location code | Business location name | |||||
| [09] | [10] | [11] | [12] | [13] | [14] | [15] |
| A | Household businesses and individual business owners must self-declare their income during the year. | |||||
| 1 | ||||||
| … | … | |||||
| B | Organizations and individuals who deduct, declare, or pay on behalf of others during the year | |||||
| 1 | ||||||
| … | ||||||
| Total | [16] | [17] | ||||
I certify that the information provided above is true and accurate, and I take full legal responsibility for its contents.
|
PERSON DIRECTLY PROVIDING TAX PROCEDURES (if any)
Full name: ……………… Professional Certificate in Taxation No.:….. |
…………, Date … Month … Year ……. |
________________
Note:
– Indicator [10]: includes the following activities: Production and business activities of goods, provision of services with fixed business location; business activities on e-commerce platforms, other digital platforms; real estate rental activities; lottery agency activities, insurance, multi-level marketing; brokerage activities; individual business cooperation activities with organizations.
– Indicator [13]: includes the following industry groups: Lottery agency activities; insurance agency activities; multi-level marketing agency activities; brokerage activities; real estate rental activities; distribution and supply of goods; services, construction without material procurement; property rental activities excluding real estate; production, transportation, services related to goods, construction with material procurement; activities providing digital information content products for entertainment, electronic games, digital movies, digital photos, digital music, digital advertising; other business activities.