Vietnam Proposes 30% Income Tax Cut for Small Firms and Household Businesses
The reduction would apply in 2026 and 2027 to micro-enterprises and household businesses earning up to 10 billion dong ($380,000) a year, pending parliamentary approval this month.
HANOI, Aug 10 (Reuters) - Vietnam's government plans to seek parliamentary approval for a 30% cut in income taxes for small businesses and household businesses with annual revenue of up to 10 billion dong ($380,000), as part of efforts to support growth, the government said over the weekend.
• The proposed tax reduction would apply in 2026 and 2027 to household businesses, individual business operators and micro-enterprises meeting the revenue threshold, the government said in a statement.
• The proposal will be submitted to the parliament this month for approval, the government said.
• "The move is aimed at encouraging household businesses, individual business operators and small and medium-sized enterprises to expand their production and business activities, thereby helping to drive economic growth," the government said.
• Vietnam is targeting annual gross domestic product growth of above 10% during the rest of the decade.
($1 = 26,127 dong)
(Reporting by Khanh Vu; Editing by John Mair)
