Tax news this week: the 30% income tax cut and the proposed ₫10bn threshold in the draft SME Development Law

Two pieces of tax news this week affect a very large group: companies, household businesses and individual traders with revenue of no more than ₫10 billion a year. One is a new proposal now before the National Assembly. The other is a tax cut already in force, with the first provisional payment deadline to apply it coming up.

News 1: Draft Law on SME Development submitted to the National Assembly

On the afternoon of 17 October 2026, Finance Minister Ngô Văn Tuấn, on behalf of the Prime Minister, presented the draft Law on Development of Small and Medium Enterprises, which would replace the 2017 Law on Support for SMEs (Znews).

The headline proposal: a simplified tax method up to ₫10 billion

Under Article 33 of the draft, companies and resident individuals with revenue up to ₫10 billion a year could choose between (VnExpress):

• tax on taxable income (revenue minus expenses) times the tax rate, as today; or
• a simplified method: revenue times a percentage set by the Government.

Today only those with revenue under ₫3 billion may choose a revenue- or profit-based method. Those between ₫3 and ₫10 billion must pay tax on income and keep input invoices to deduct costs. If passed, the new rule is proposed to apply from the 2026 tax year (VnExpress).

According to the Ministry of Finance, more than 2.69 million household businesses have annual revenue of no more than ₫10 billion (Hà Nội Mới) - almost every household business would be eligible to choose.

The draft also proposes (Znews):

• SME criteria based on average annual headcount rather than employees on social insurance, capped at 300 employees, ₫400 billion revenue or ₫150 billion total capital;
• priority support for household businesses converting into companies and small firms scaling up;
• continued simplified accounting and tax procedures for micro and small firms;
• state-funded construction, goods and mixed tender packages up to ₫20 billion reserved for SMEs.

Still debated: from 2026 or 2027?

This is still a draft, not law. Phan Văn Mãi, Chairman of the National Assembly's Economic and Financial Committee, said several tax provisions overlap or conflict with the CIT Law and Resolution 198/2025/QH15, and proposed moving the tax content of Article 33 into the bill amending the tax laws. Delegate Nguyễn Ngọc Sơn proposed applying it from the 2027 tax year, arguing that starting in 2026 would be retroactive and require re-finalisation (VnExpress).

The 2nd session of the 16th National Assembly opened on 17 October and is scheduled to close on 21 November 2026 (Znews). The final text, especially the start date, depends on the vote.

News 2: The 30% income tax cut is in force; Q3 provisional deadline is 30 October

Resolution 43/2026/QH16 was passed and took effect on 24 August 2026, with 480 of 481 delegates in favour (Nhân Dân). Under the full text:

• Article 1(1): a 30% cut in personal income tax payable for 2026 and 2027 on business income of resident individuals with annual revenue of no more than ₫10 billion;
• Article 1(2): a 30% cut in corporate income tax payable for 2026 and 2027 for companies and organisations established under Vietnamese law with annual revenue of no more than ₫10 billion. For companies already enjoying CIT incentives, the cut applies to the tax payable after the incentive is deducted;
• Excluded: companies formed by division or separation after the Resolution took effect, where the combined annual revenue of the resulting companies exceeds ₫10 billion;
• Article 2: the Government will issue detailed rules.

Minister Ngô Văn Tuấn said 99.86% of household and individual businesses and more than 81.11% of companies qualify (Công Thương). The Government estimates the revenue cost at about ₫3,191 billion in 2026 and ₫3,510 billion in 2027 (Nhân Dân).

Why 30 October matters

The Q3/2026 provisional CIT deadline is 30 October 2026, and Q4 is 30 January 2027 (Government News). On 5 October the Government Office announced that the Prime Minister had asked the Ministry of Finance to urgently submit the implementing decree for immediate issuance (Tinnhanhchungkhoan). Points still awaiting guidance include how to measure revenue for companies operating less than 12 months, how to treat tax already paid provisionally, and the forms to use (Doanh nghiệp & Hội nhập).

As of 22 October 2026, the implementing decree had not been published. Check the Government portal and the Tax Department before making your provisional payment.

What small businesses should do now

1. Estimate full-year 2026 revenue, not just nine months. The ₫10 billion threshold is annual; a company that qualifies in Q3 can still exceed it after Q4.
2. Calculate the Q3 provisional payment both ways (with and without the 30% cut) to plan cash before 30 October.
3. Do not split the company to get under the threshold. The Resolution already excludes this.
4. Keep every input invoice and document. Even if you later choose the revenue method, documents are still needed for traceability and inspections (Hà Nội Mới).
5. Household businesses with ₫3–10 billion revenue: do not change how you file yet. Keep filing under current rules until the law is passed and guidance is issued.

How 3M can help

3M is tracking the guidance on the 30% cut and the draft SME Development Law. For clients on full-service accounting & tax, we estimate full-year revenue, calculate the Q3 provisional payment under each scenario and flag early any risk of crossing ₫10 billion. Household businesses can start with household business accounting.

Book a free consultation to review your Q3 tax position before 30 October.

Talk to us:

• Hotline / Zalo: +84 33 827 0386 · Message on Zalo
• Email: [email protected]

This article is for general information, based on official documents and mainstream press up to 22 October 2026. The draft may change before it is passed. Contact 3M for advice on your specific situation.

Sources:

1. Government policy portal: Full text of Resolution 43/2026/QH16 (Vietnamese)
2. Nhân Dân (24 Aug 2026): 30% income tax cut for individuals and companies with revenue up to ₫10bn (Vietnamese)
3. Công Thương (24 Aug 2026): 30% income tax cut for individuals and companies with revenue up to ₫10bn (Vietnamese)
4. Government News (1 Oct 2026): 30% CIT cut under Resolution 43: how companies benefit (Vietnamese)
5. Tinnhanhchungkhoan (5 Oct 2026): PM orders immediate issuance of the 30% tax cut decree (Vietnamese)
6. Doanh nghiệp & Hội nhập (7 Oct 2026): 30% tax cut: small businesses wait for 30 October (Vietnamese)
7. Znews (17 Oct 2026): New SME law submitted to the National Assembly (Vietnamese)
8. VnExpress (17 Oct 2026): Household businesses up to ₫10bn may pay tax on revenue (Vietnamese)
9. Hà Nội Mới (21 Oct 2026): Household businesses up to ₫10bn: let them choose the tax method from 2026 (Vietnamese)