Experts have proposed raising the revenue threshold for a 30% tax reduction from 10 billion VND to 50 billion VND per year. This adjustment is intended to expand the scope of support and increase the effectiveness of tax policies for small businesses and individual entrepreneurs.

The Ministry of Finance is currently gathering opinions on a draft resolution from the National Assembly regarding tax reductions for personal income tax and corporate income tax for households and individuals engaged in business activities. According to the draft, households and individuals with total revenues up to 10 billion VND in 2026 and 2027 will benefit from a 30% reduction in their personal income tax liabilities. Similarly, businesses with annual revenues up to 10 billion VND will also receive a 30% reduction in corporate income tax for the same period.

Le Van Tuan, Director of Keytas Tax Accounting Company, commented that this proposal represents direct financial support through tax reductions, which can quickly assist businesses and individual entrepreneurs facing challenges due to rising input costs. He emphasized that tax reduction policies have a more immediate impact on taxpayers compared to other solutions that may take longer to implement or evaluate.

However, Tuan noted that the current scale of support is limited, estimating the total tax revenue reduction under this policy to be approximately 3.191 trillion VND in 2026 and 3.510 trillion VND in 2027, targeting businesses and individuals with revenues up to 10 billion VND per year. He pointed out that while the tax relief is significant, its impact on overall economic growth may not be substantial, as it represents only about 0.12% of the total state budget revenue projected for 2025.

In his analysis, Tuan argued that reducing the corporate income tax by 30% would provide businesses with revenues below 10 billion VND with additional resources for operations and investments. He also highlighted that, alongside tax support, reducing compliance costs is crucial for households and individual entrepreneurs. However, he acknowledged that significantly lowering compliance costs would require time and careful consideration based on experiences from existing tax policies.

Ultimately, Tuan believes that the proposal to reduce taxes is a viable solution that can be implemented quickly and yield immediate benefits. However, to effectively support economic growth, the scale of the policy needs to be sufficiently large. He suggested considering raising the revenue threshold for tax exemptions to 50 billion VND per year, which would allow more households and individual entrepreneurs to benefit from government support.

In the long term, Tuan emphasized the importance of significantly reducing compliance costs to align with the capabilities of small businesses and creating a more transparent and stable legal environment to foster sustainable growth and enhance long-term state budget revenues.