The National Assembly  on May 17 adopted a Resolution on several special mechanisms and policies for development of the private economy in Vietnam.

The Resolution aims to improve the investment and business environment; facilitate private sector access to resources; promote science, technology, innovation, digital and green transformation; develop human resources; and expand the participation of private enterprises in national key projects.

The resolution stipulates corporate income tax exemption for small and medium-sized enterprises for three years from the date of issuance of the first business registration certificate.

It also stipulates corporate income tax exemption for two years and a 50% reduction in the amount of tax payable for the next four years for income from innovative start-up activities of innovative start-up enterprises, innovative start-up investment fund management companies, and intermediary organizations supporting innovative start-up.

The determination of tax exemption and reduction periods shall be implemented in accordance with the provisions of the law on corporate income tax.

Individuals and organizations now can enjoy exemption of personal income tax and corporate income tax for income from the transfer of shares, capital contributions, capital contribution rights, rights to purchase shares, and rights to purchase capital contributions in innovative start-up enterprises.

Personal income tax is exempted for two years and tax payable is reduced half for the next four years for income from salaries and wages paid to experts and scientists by innovative startups, research and development centers, innovation centers, and intermediary organizations supporting innovative startups.

Regarding financial and credit support, the resolution clearly states that private enterprises, household businesses, and individual businesses will receive a 2% annual interest subsidy from the State on loans used for green and circular projects and for adopting the environmental, social, and governance (ESG) standards framework.

Lump-sum tax for household businesses will be removed from January 1, 2026 instead of July 1, 2026. To reduce burdens and costs, and encourage them to engage in digital transformation, the resolution stipulates that the State allocates funds to provide free digital platforms and accounting software for the group.