On August 24, 2026, the Vietnamese National Assembly passed Resolution 43/2026/QH16 on personal and corporate income tax reductions, establishing direct tax relief policies for qualifying enterprises and organizations within specific revenue thresholds. This framework for corporate income tax reduction in Vietnam 2026 applies to the 2026 and 2027 tax assessment periods, offering a 30% reduction in payable corporate income tax (CIT) for businesses meeting statutory criteria. In this article, Viet An Law provides a detailed legal analysis covering eligible entities, reduction rates, revenue conditions, calculation methods, and critical compliance considerations for enterprises.
Key information on policy for corporate income tax reduction in Vietnam 2026
| Content | Provisions |
| Legal document | Resolution 43/2026/QH16 |
| Issuance date | August 24, 2026 |
| Effective date | August 24, 2026 |
| Eligible entities | Enterprises and organizations established under Vietnamese law |
| Revenue condition | Annual revenue not exceeding 10 billion VND |
| Reduction rate | 30% reduction of payable CIT |
| Applicable tax assessment periods | Year 2026 and Year 2027 |
| Excluded cases | Excludes enterprises formed through division or demerger where total revenue after division/demerger exceeds 10 billion VND |
| Cases entitled to existing tax incentives | The reduction is calculated on the payable CIT amount remaining after deducting current tax incentives |
Regulations on corporate income tax reduction in Vietnam 2026
Pursuant to Clause 2, Article 1 of Resolution 43/2026/QH16:
“Article 1. Reduction of personal income tax and corporate income tax
… 2. A 30% reduction in corporate income tax payable for the 2026 and 2027 tax periods shall apply to the income of enterprises and organizations established under Vietnamese law with annual revenue not exceeding VND 10 billion in 2026 and 2027; excluding enterprises formed through the division or splitting of an enterprise after the effective date of this Resolution, where the total annual revenue of the resulting enterprises in 2026 and 2027 exceeds VND 10 billion. In cases where an enterprise is already 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 specified in this Clause shall be calculated based on the corporate income tax payable after deducting such incentives.”
Thus, to determine whether an enterprise qualifies for the corporate income tax reduction in 2026, the following factors must be considered concurrently:
- Whether the enterprise or organization was established in accordance with Vietnamese law;
- Whether annual revenue in 2026 exceeds 10 billion VND;
- Whether annual revenue in 2027 exceeds 10 billion VND;
- Whether the enterprise falls under the exclusion criteria related to enterprise division or splitting;
- In cases where the enterprise is already enjoying corporate income tax incentives, the reduction amount is determined based on the tax payable after deducting the incentive portion.
It should be noted that this policy does not imply that all enterprises are entitled to a 30% reduction in corporate income tax. The 30% reduction applies only when the enterprise fully meets the conditions stipulated in the Resolution.
Which enterprises qualify for tax incentives under the 30% CIT cut in Vietnam?
Subjects eligible for corporate tax reduction according to Resolution 43/2026/QH16 are businesses and organizations established in accordance with Vietnamese law with annual revenue of 2026 and 2027 not exceeding 10 billion VND.
It can be understood that the policy focuses on supporting groups of businesses with relatively small revenue, thereby reducing financial obligations in the period 2026–2027.
Revenue requirement of no more than 10 billion VND
The most critical condition for applying for the 30% reduction is that the enterprise’s annual revenue must not exceed VND 10 billion.
Accordingly:
- If revenue in 2026 does not exceed 10 billion VND and other conditions are met, the enterprise is eligible for consideration for a tax reduction for the 2026 tax year.
- For the 2027 tax year, the enterprise must again meet the revenue requirement for 2027 to apply the tax reduction policy for that specific tax year.
- If revenue exceeds 10 billion VND, the enterprise fails to meet the revenue criterion required to apply the reduction under the Resolution for the corresponding tax year.
Therefore, enterprises need to monitor and accurately determine their revenue for each year, rather than automatically assuming they are entitled to the tax reduction for both 2026 and 2027.
The enterprise must be established in accordance with the laws of Vietnam
The resolution specifies that the entities eligible for the reduction are enterprises and organizations established in accordance with Vietnamese law.
This constitutes an eligibility criterion regarding the entity itself, in addition to the revenue-based requirement. Therefore, when determining eligibility for the tax reduction policy, enterprises must consider both their legal status and their actual revenue during the tax period.
What is the amount of CIT reduction in Vietnam for 2026?
Under Resolution 43/2026/QH16, eligible enterprises are entitled to a 30% reduction in the corporate income tax payable for the 2026 and 2027 tax years.
It is important to distinguish that this applies to a 30% reduction in the tax payable, rather than a 30% reduction in revenue, taxable income, or the CIT rate.
Example: Suppose an enterprise fully meets the conditions set forth in the Resolution and the CIT payable – determined in accordance with legal regulations – is 100 million VND. The tax reduction amount is: 100 million VND × 30% = 30 million VND. The remaining CIT payable is: 100 million VND – 30 million VND = 70 million VND.
The above example serves only to illustrate the 30% reduction mechanism; the actual tax liability for each enterprise must be determined based on revenue, taxable income, exempt income, deductible expenses, tax incentives, and relevant tax regulations.
Are enterprises currently receiving corporate income tax incentives eligible for an additional 30% reduction?
This is a matter requiring special attention from enterprises when applying the corporate income tax reduction policy for 2026.
Resolution 43/2026/QH16 stipulates that for enterprises currently benefiting from tax incentives under the Vietnamese Law on Corporate Income Tax or other laws and resolutions of the National Assembly, the CIT reduction amount is calculated based on the CIT payable after deducting such incentives.
Consequently, the 30% reduction prescribed by the Resolution is not calculated based on the tax amount prior to the application of other tax incentives.
The process can be visualized as follows:
CIT payable before incentives → deduction of CIT incentives → determination of CIT payable after incentives → application of the additional 30% reduction under Resolution 43/2026/QH16.
Example: An enterprise has a CIT liability of 200 million VND before incentives and, after applying incentives, the payable amount is reduced to 150 million VND.
Tax reduction amount under the Resolution: 150 million VND × 30% = 45 million VND.
Remaining tax payable: 150 million VND – 45 million VND = 105 million VND.
Therefore, enterprises currently enjoying tax incentives may still be eligible for the 30% reduction policy, provided they meet the conditions set forth in the Resolution.
Are enterprises divided or demerged after the Resolution’s effective date eligible to reduce corporate income tax in Vietnam?
Resolution 43/2026/QH16 stipulates an exclusion for a specific case involving the division or spin-off of an enterprise.
Accordingly, the 30% reduction policy does not apply to enterprises formed through division or spin-off after the Resolution takes effect if the total annual revenue of the resulting enterprises in 2026 or 2027 exceeds 10 billion VND.
This provision is significant for determining whether an enterprise truly falls within the group of entities eligible for the policy, particularly when the enterprise undergoes corporate reorganization via division or spin-off.
Therefore, enterprises should not base their conclusions regarding tax reduction eligibility solely on the revenue of individual legal entities following a division or spin-off; instead, they must properly consider the exclusion criteria specified in the Resolution.
Which tax assessment periods apply to the CIT reduction in Vietnam?
One notable aspect of the policy is the relatively clear timeframe for its application.
Resolution 43/2026/QH16 takes effect on August 24, 2026, with the tax reduction policy applying to the 2026 and 2027 tax years.
Thus, although the Resolution is issued and becomes effective in late August 2026, the tax reduction policy applies to the entire 2026 tax year, provided the enterprise meets the prescribed conditions.
For 2027, enterprises will continue to determine eligibility based on the criteria stipulated in the Resolution for the 2027 tax year.
How to determine the reduced corporate income tax amount for 2026 in Vietnam
In principle, enterprises must determine their corporate income tax liability in accordance with current tax laws before calculating the tax reduction amount under Resolution 43/2026/QH16.
This process can be summarized in the following steps:
Step 1: Determine the total annual revenue
The enterprise determines the annual revenue for the corresponding tax period.
For the year 2026, the revenue for 2026 must be determined; for the year 2027, the revenue for 2027 must be determined.
If revenue exceeds 10 billion VND, the enterprise does not meet the revenue condition required to apply the tax reduction policy under the Resolution.
Step 2: Determine the total payable CIT amount
The enterprise determines the corporate income tax payable in accordance with current regulations, including the determination of taxable income, assessable income, and tax incentives if the enterprise meets the eligibility criteria.
Step 3: Deduct existing tax incentives
If an enterprise is entitled to corporate income tax incentives under the Law on Corporate Income Tax or other laws and resolutions of the National Assembly, it must determine the corporate income tax payable after deducting such incentives.
Step 4: Calculate the 30% tax reduction amount
The amount of corporate income tax reduced is determined as follows: CIT payable after incentives × 30%.
Step 5: Determine the remaining net CIT payable
CIT payable after reduction: Corporate income tax payable after incentives minus the amount of corporate income tax reduced.
Enterprises must retain complete records, documents, and support data regarding revenue, income, tax payable, and incentives to facilitate tax declaration, finalization, and the provision of explanations when necessary.
Important considerations for enterprises applying the 2026 corporate income tax reduction in Vietnam
The corporate income tax reduction policy for 2026 offers additional financial support to businesses, but its application is subject to specific conditions.
- Not all businesses qualify for the 30% reduction: Businesses must verify eligibility criteria regarding the type of entity, revenue, and applicable exclusions. One should not assume that every business liable for CIT automatically qualifies for the reduction.
- Separate tracking of 2026 and 2027 revenue is required: The policy applies to two tax periods; therefore, businesses should track revenue for each year to determine the applicable conditions for that specific period.
- Distinguish between “tax reduction” and “tax rate reduction”: The Resolution stipulates a 30% reduction in the CIT amount payable, not the establishment of a new, lower tax rate.
- Correct calculation sequence for businesses already receiving tax incentives: Businesses must determine the tax liability after applying existing incentives before calculating the 30% reduction mandated by the Resolution.
- Pay attention to business division or separation scenarios: Entities formed through division or separation after the Resolution takes effect must carefully review exclusion rules regarding the aggregate revenue of the resulting entities.
The significance of the 2026 corporate income tax reduction policy in Vietnam
The 30% reduction in corporate income tax payable for the 2026 and 2027 tax periods, applicable to enterprises meeting specific revenue criteria, is a policy that directly impacts their financial obligations.
For enterprises with revenue not exceeding 10 billion VND, the tax reduction can help to:
- Lower tax expenses;
- Improve cash flow;
- Increase resources available for production and business operations;
- Support the maintenance and expansion of business activities;
- Generate additional resources for investment in personnel, technology, and business operations.
However, for the policy to be truly effective, enterprises must proactively review eligibility criteria, monitor revenue, and accurately calculate the tax reduction amount for each tax period.
Some questions regarding the corporate income tax reduction in Vietnam 2026
What is the percentage reduction for corporate income tax in 2026?
Enterprises and organizations meeting the conditions set forth in Resolution 43/2026/QH16 are entitled to a 30% reduction in the corporate income tax payable for the 2026 and 2027 tax years.
Are enterprises with revenue of 10 billion VND eligible for the corporate income tax reduction?
They may be eligible if they meet the other conditions specified in the Resolution. The revenue condition is defined as having revenue not exceeding 10 billion VND in the respective year.
Are enterprises already receiving corporate income tax incentives eligible for the additional 30% reduction?
Yes. If the conditions of the Resolution are met, the 30% tax reduction is calculated based on the corporate income tax payable after deducting applicable tax incentives.
Does the corporate income tax reduction policy apply to the year 2027?
Yes. Resolution 43/2026/QH16 stipulates that the corporate income tax reduction policy applies to the 2026 and 2027 tax years, with a 30% reduction granted if the conditions are met.
Are enterprises formed through division or splitting eligible for corporate income tax reduction?
For enterprises formed through division or splitting after the Resolution takes effect, exclusion rules must be considered. If the total annual revenue of the enterprises resulting from the division or splitting exceeds 10 billion VND in 2026 or 2027, they do not qualify for the tax reduction under this regulation.
The corporate income tax reduction in 2026 is a significant policy that businesses should proactively review and correctly implement in compliance with regulations. Viet An Law Firm – Tax Agency is ready to support enterprises with tax accounting services and the execution of tax law policies.
