30% reduction of PIT and CIT in Vietnam for 2026 and 2027: who qualifies and how to declare it

Short answer: Under Article 1 of Resolution 43/2026/QH16 (Nghị quyết 43/2026/QH16) and Decree 398/2026/NĐ-CP (Nghị định 398/2026/NĐ-CP) (in force 29/10/2026), individual businesses (cá nhân kinh doanh) (including household businesses (hộ kinh doanh)) and enterprises and organisations established under Vietnamese law with revenue in 2026 and 2027 of no more than 10 billion VND get a 30% reduction of the personal income tax (thuế TNCN) or corporate income tax (thuế TNDN) payable for these two years. Individual businesses declare it on Form 01, submitted with the tax return; enterprises determine the reduction themselves when making quarterly provisional payments. If revenue for the full year exceeds 10 billion VND, the amount reduced must be paid back (Article 2(4)(c) and Article 3(4)(b) of Decree 398/2026/NĐ-CP).

The texts of Resolution 43/2026/QH16 and Decree 398/2026/NĐ-CP in the text warehouse were recognised automatically from the signed PDF and may contain a few wrong characters; when an exact quotation is needed, open the original PDF.

Who qualifies for the 30% PIT reduction?

Resident individuals engaged in production or business, including individuals registering a household business or the representative of a household business, with revenue in 2026 and 2027 of no more than 10 billion VND (Article 1(1) of Resolution 43/2026/QH16; Article 2(1) of Decree 398/2026/NĐ-CP). The reduction is calculated on the PIT payable on all business income, whether tax is paid as a percentage of revenue or on taxable income (Article 2(2) of Decree 398/2026/NĐ-CP).

Revenue for the 10 billion threshold is determined under Articles 4 and 5 of Decree 68/2026/NĐ-CP (Nghị định 68/2026/NĐ-CP) (as amended by Decree 141/2026/NĐ-CP (Nghị định 141/2026/NĐ-CP)) (Article 2(3) of Decree 398/2026/NĐ-CP): all proceeds from sales of goods, processing and services, including price subsidies, surcharges and sales bonuses, whether or not the money has been collected (Article 5(1) of Decree 68/2026/NĐ-CP).

Households with annual revenue of 1 billion VND or less already do not pay PIT (Article 4(1) of Decree 68/2026/NĐ-CP, the 1 billion level as amended by Article 1(1) of Decree 141/2026/NĐ-CP), so in practice this reduction is for households with revenue above 1 billion and up to 10 billion VND. See How do household businesses pay tax from 2026?.

Who qualifies for the 30% CIT reduction?

CIT payers that are enterprises, cooperatives, cooperative unions, public service units and other organisations established under Vietnamese law that carry on business, with revenue in 2026 and 2027 of no more than 10 billion VND (Article 1(2) of Resolution 43/2026/QH16; Article 3(1) of Decree 398/2026/NĐ-CP).

• Revenue for the threshold includes revenue from sales of goods and services (excluding revenue deductions), financial income and other income, including that of dependent units and business locations (Article 3(3) of Decree 398/2026/NĐ-CP).
• The reduction is calculated on all income of the annual tax period, including income under Article 18(3) of the Corporate Income Tax Law 67/2025/QH15 (Luật Thuế TNDN 67/2025/QH15). If the enterprise enjoys incentives, the 30% reduction applies to the tax still payable after incentives (Article 3(2) of Decree 398/2026/NĐ-CP).
• It does not apply to enterprises formed by division or separation after Resolution 43 takes effect where the total annual revenue in 2026 or 2027 of the enterprises after the division or separation exceeds 10 billion VND (Article 1(2) of Resolution 43/2026/QH16; Article 3(1) and (3)(c) of Decree 398/2026/NĐ-CP).

How does an individual business declare the reduction?

Under Article 2(4) of Decree 398/2026/NĐ-CP:

1. Expected annual revenue of no more than 10 billion VND: declare the tax reduction on Form 01 (Mẫu số 01) (Appendix to Decree 398), submitted with the quarterly, six-monthly or annual tax return (point a).
2. Tax withheld, declared or paid on the taxpayer's behalf by an organisation or individual (for example an e-commerce platform with a payment function, under Article 13(4) of the Law on Tax Administration 108/2025/QH15 (Luật Quản lý thuế 108/2025/QH15)): that party reduces the amount to be withheld by 30% and declares it on Form 02 (point b).
3. Returns already filed without declaring the reduction: a supplementary return may be filed, or the reduction determined at annual finalisation. Any overpayment may be offset or refunded (point d).
4. Actual revenue for the full year exceeds 10 billion VND: no reduction; the amount reduced must be paid back, declared on Form 03 together with the file for the period in which cumulative revenue exceeds 10 billion. This additional payment does not incur late-payment interest (tiền chậm nộp) up to the filing deadline for that period (point c).

How does an enterprise declare the reduction?

An enterprise expecting annual revenue of no more than 10 billion VND determines the reduction itself when making quarterly provisional CIT payments (Article 3(4)(a) of Decree 398/2026/NĐ-CP). If actual revenue exceeds 10 billion, the enterprise declares and pays tax as normal and pays the full shortfall; late-payment interest is handled under Article 24(3) of Decree 252/2026/NĐ-CP (Nghị định 252/2026/NĐ-CP) (Article 3(4)(b) of Decree 398/2026/NĐ-CP): the total provisional payments for the 4 quarters must not be lower than 80% of the finalised tax; if lower, interest is charged on the shortfall from after the provisional payment deadline for Quarter IV.

If a supplementary return or an inspection increases the tax for 2026 or 2027, the additional amount is also reduced by 30% if the conditions are still met; if the tax decreases, the reduction is adjusted down accordingly (Article 2(4)(đ) and (e) and Article 3(4)(c) and (d) of Decree 398/2026/NĐ-CP).

Example of calculating the reduction

Household business F runs a grocery (distribution of goods), with 2026 revenue of 2 billion VND, and chooses to pay PIT as a percentage of revenue. Under Article 7(3) of the Personal Income Tax Law 109/2025/QH15 (Luật Thuế TNCN 109/2025/QH15) (taxable revenue is the part above the level in Article 7(1) of the Personal Income Tax Law 109/2025/QH15; this level is set by the Government under Article 1 of Law 09/2026/QH16 (Luật 09/2026/QH16) and is 1 billion VND under Article 4(1) of Decree 68/2026/NĐ-CP, as amended by Decree 141/2026/NĐ-CP):

• Taxable revenue: 2 billion − 1 billion = 1 billion VND.
• PIT: 1 billion × 0.5% (distribution and supply of goods, Article 7(3)(b) of the Personal Income Tax Law 109/2025/QH15) = 5 million VND.
• 30% reduction: 1.5 million VND.
• Still payable: 3.5 million VND.

The reduction applies only to PIT and CIT (Article 1 of Resolution 43/2026/QH16); the household's VAT is still calculated as normal.

From when does it apply?

Resolution 43/2026/QH16 takes effect from 24/8/2026 and applies to the 2026 and 2027 tax periods (Article 2(1) of Resolution 43/2026/QH16). Decree 398/2026/NĐ-CP takes effect from 29/10/2026 and also applies to the 2026 and 2027 tax periods (Article 4 of Decree 398/2026/NĐ-CP). So individual businesses that filed for the early periods of 2026 without the reduction may file a supplementary return or determine the reduction at the 2026 annual finalisation (Article 2(4)(d) of Decree 398/2026/NĐ-CP); for enterprises, the reduction is calculated on the CIT payable for the whole annual tax period (Article 3(2) of Decree 398/2026/NĐ-CP).

When to ask a lawyer or tax agent

• Expected annual revenue is close to 10 billion VND and cumulative revenue needs monitoring to avoid having to pay back the reduction.
• The enterprise has just been divided or separated, or belongs to a group of several companies.
• The household business has tax withheld by an e-commerce platform or a tenant and needs to reconcile the amount already reduced.
• The enterprise enjoys CIT incentives and needs to calculate the reduction after incentives.