Under a new policy, those individuals and businesses will receive a 30% reduction in their personal or corporate income tax liability for the 2026 and 2027 tax years.

The Government recently issued Decree No.398/2026/NĐ-CP, dated October 29, 2026, detailing National Assembly Resolution No.43/2026/QH16. The measure aims to ease difficulties for individuals who run businesses and for companies during the 2026 and 2027 tax years. Those with annual revenue of no more than VND 10 billion qualify for a 30% cut in the personal or corporate income tax they owe for those years.

The personal income tax reduction applies to resident individuals engaged in production or business, including individuals who register a household business and those authorized by household members to represent one. The reduction applies to the full amount of personal income tax owed on production and business activities, regardless of the calculation method.

Văn Phong Restaurant, a household business run by Lò Thị Tiển Oanh in Mường Thanh ward, is among the local food businesses with annual revenue below VND 10 billion. It qualifies for the 30% personal income tax reduction under Decree No.398/2026/NĐ-CP. Once the measure took effect, staff from Local Tax Office No.1 explained the eligibility rules to Oanh in person and showed her how to file and calculate the reduction through the electronic system.

Oanh said the 30% reduction eased financial pressure on the restaurant as ingredient and operating costs fluctuated. She said clear guidance from tax officers from the outset gave the business confidence that it could meet its tax obligations and freed up resources to reinvest and improve customer service.

The 30% corporate income tax reduction applies to enterprises, cooperatives, unions of cooperatives, service units and other organizations established under the laws of Việt Nam that engage in production or business and have annual revenue of no more than VND 10 billion in 2026 and 2027.

The reduction is calculated on the basis of a company’s entire taxable income, regardless of the tax calculation method. For companies receiving other tax incentives, the 30% reduction applies to the corporate income tax remaining after those incentives are deducted. For small businesses, the savings can help keep operations running, finance expansion, replenish working capital, cover essential expenses and adapt to market changes.

Soon after Decree No.398 was issued, tax officers briefed Thành Nam Technology Services Co., Ltd. in Mường Thanh ward on the rules and eligibility requirements. Company representative Ngô Gia Tự said the early guidance helped the business understand the new rules and prepare its accounts and tax filings. He said the 30% corporate income tax reduction for 2026 and 2027 came at a good time and would give the company more money to upgrade its technology equipment and expand its services.

About 90.5% of active taxpayers in Điện Biên province have 2026 revenue of no more than VND 10 billion. The corresponding figures for individuals running businesses and for enterprises are 98% and 87%, respectively. The high proportions point to a broad and direct impact on the province’s business community.

To ensure eligible organizations and individuals receive the full benefit promptly, Deputy Head of the Điện Biên provincial Tax Office Dương Duy Bẩy said the provincial tax authority would direct its departments and local tax offices to step up outreach. Staff will explain who qualifies, how to calculate the reduction and how to file, both in person and through electronic channels. The authority will also strengthen checks and oversight to ensure the policy is applied openly, transparently, consistently and in line with the law.

Preliminary figures for the area served by Local Tax Office No.1 in Điện Biên show that more than 600 enterprises and more than 300 household and individual businesses subject to tax have revenue below VND 10 billion. Deputy Head of Local Tax Office No.1 Cao Xuân Khánh said his office would stay in close contact with taxpayers, answer questions promptly and resolve problems that arise during filing so local taxpayers can get the full practical benefit of the measure.

The new policy addresses immediate needs and gives the province’s private sector a boost. With continued support from the authorities as the measure takes effect, businesses in Điện Biên are expected to use it to become more competitive and help sustain local economic and social development.