30% CIT and PIT reduction for 2026–2027 under Resolution 43/2026/QH16 | GACC

GACC summarizes the policy of reducing by 30% the corporate income tax (CIT) and personal income tax (PIT) payable in the 2026–2027 tax periods under Resolution 43/2026/QH16 (issued on 24/08/2026).

This article is suitable for enterprises, accountants and business individuals with annual revenue close to or below the VND 10 billion threshold who need to understand the conditions and how the reduction is calculated.

Reference sources: Ministry of Finance and Vietnam Law Library.

• Condition: revenue of 2026 or 2027 not exceeding VND 10 billion.
• How the 30% reduction is calculated and the case of existing tax incentives.
• Notes on division/separation of enterprises and the effective date.

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1. Which enterprises are entitled to the 30% CIT reduction?

Under Clause 2 Article 1 of Resolution 43/2026/QH16, enterprises and organizations established in accordance with the laws of Vietnam are entitled to a 30% reduction of the CIT payable for the 2026 and 2027 tax periods if:

• Annual revenue of 2026 or 2027 does not exceed VND 10 billion.

Accordingly, the tax reduction policy is determined based on the revenue of each year. Enterprises should review the revenue condition corresponding to each of the 2026 and 2027 tax periods.

Example: In 2026, Enterprise A has:

• Revenue: VND 8 billion
• CIT determined as payable: VND 200 million
• Reduction under Resolution 43: 30% × VND 200 million = VND 60 million

After the reduction, the remaining CIT payable is: VND 200 million – VND 60 million = VND 140 million.

2. May enterprises currently enjoying CIT incentives receive a further 30% reduction?

Resolution 43/2026/QH16 provides specifically: Where an enterprise is currently entitled to tax incentives under the Law on Corporate Income Tax or other laws and resolutions of the National Assembly, the corporate income tax reduction under this clause is calculated on the corporate income tax payable after deducting the tax incentives.

Accordingly, the 30% reduction is calculated on the CIT payable after deducting the tax incentives.

This can be understood in the following order:

CIT as prescribed → apply CIT incentives → determine the tax still payable → further reduce by 30% under Resolution 43/2026/QH16.

Example: After applying the CIT incentives, the enterprise still has CIT payable of VND 100 million.

The amount reduced under Resolution 43: VND 100 million × 30% = VND 30 million.

The enterprise still has to pay: VND 100 million – VND 30 million = VND 70 million.

3. Cases of division and separation of enterprises require special attention

At the same time, the Resolution introduces provisions to restrict cases where enterprises carry out division or separation in order to meet the VND 10 billion revenue threshold and enjoy the tax reduction policy.

Accordingly, the 30% CIT reduction policy does not apply to enterprises formed from the division or separation of enterprises after the effective date of the Resolution, where the total annual revenue of the enterprises after division or separation in 2026 or 2027 exceeds VND 10 billion.

This is a point that enterprises need to check carefully when carrying out restructuring during 2026–2027.

4. Business individuals are entitled to a 30% PIT reduction

Not only enterprises, Resolution 43/2026/QH16 also introduces a support policy for business individuals.

Under Clause 1 Article 1 of Resolution 43/2026/QH16, a 30% reduction of the PIT payable for the 2026 and 2027 tax periods applies to:

• Business income of resident individuals with annual revenue of 2026 or 2027 not exceeding VND 10 billion.

Therefore, note that this policy applies to business income of resident individuals, and not a 30% PIT reduction on all types of individual income such as salaries, wages, capital investment or capital transfer.

5. Effective date of Resolution 43/2026/QH16

Under Article 2 of the Resolution: This Resolution takes effect from 24/08/2026 and applies to the 2026 and 2027 tax periods.

At the same time, the National Assembly assigns the Government to provide detailed regulations on this Resolution.

Therefore, enterprises subject to application should continue to monitor the Government’s detailed regulations, especially regarding the method of determining revenue, the procedures for implementing the tax reduction, and how to present the reduced tax amount on tax declaration and finalization dossiers.

6. What should enterprises do right from 2026?

For enterprises with a revenue scale close to or below the VND 10 billion threshold, GACC recommends that enterprises proactively:

• Monitor the 2026 and 2027 revenue to determine the ability to meet the tax reduction conditions;
• Accurately determine the CIT payable before calculating the 30% reduction;
• If currently enjoying CIT incentives, calculate the incentives first, then calculate the 30% reduction under Resolution 43;
• Review cases of division, separation or restructuring of enterprises that may affect eligibility for the policy;
• Monitor the Government’s Decree guiding Resolution 43/2026/QH16 in order to carry out the correct procedures when declaring and finalizing tax.

7. Summary of the tax reduction policy under Resolution 43/2026/QH16

Conclusion

Resolution 43/2026/QH16 is a notable tax support policy in 2026, especially for enterprises with a revenue scale not exceeding VND 10 billion/year.

With a 30% reduction of the CIT payable in the two tax periods 2026 and 2027, the policy can directly reduce tax obligations and support cash flow for qualifying enterprises.

However, enterprises need to note how it applies to enterprises currently enjoying tax incentives and to cases of division and separation of enterprises.

GACC will continue to update the regulations and guiding documents implementing Resolution 43/2026/QH16 in order to help enterprises accurately determine their obligations and the applicable incentive and tax reduction policies.