Three tax laws amended: over VND2 trillion a year exempted for education, simplified-tax threshold raised to VND10 billion

On the morning of 6 November 2026, Finance Minister Ngo Van Tuan explained to the National Assembly the government's position on the draft law amending several articles of the Corporate Income Tax (CIT) Law, the Non-Agricultural Land Use Tax Law and the Personal Income Tax (PIT) Law. The headline changes are new incentives for education, healthcare and small businesses.

Education exempted: over VND2 trillion a year

According to VTV, the draft is expected to exempt more than VND2,000 billion of corporate income tax a year for public and private education establishments that operate on a not-for-profit basis. Whether a private school is for-profit will be determined under the Education Law, with tax authorities relying on investment and business registration certificates.

Income from supplying meals to education and medical facilities will also be tax-exempt, provided it is accounted for separately. According to Bao Tin Tuc, the draft also adds non-agricultural land use tax exemptions for education establishments, and for residential land within quota of ethnic minority households in ethnic minority and mountainous areas, as regulated by the Government.

Small businesses: a wider simplified tax method

Currently, businesses with revenue below VND3 billion may calculate tax as a percentage of revenue. The draft proposes raising this threshold to VND10 billion. The minister said this meets the wishes of more than 90% of small and medium-sized enterprises, reducing compliance costs and filing work for a large number of firms.

Idle land faces the highest rate

Land left idle, not yet put into use or slow to be put into use would be taxed at 0.2%. The minister said this is the highest rate under the current law, equal to the rate on encroached land. Idle land will be identified under land law, with tax authorities coordinating with land management agencies and using the National Land Database and population data.

Together, the proposals show tax policy being used both to support the social sector and small firms and to encourage more efficient land use.

Key takeaways

• More than VND2,000 billion of CIT a year is expected to be exempted for not-for-profit public and private education establishments.
• The revenue threshold for the percentage-of-revenue tax method would rise from under VND3 billion to VND10 billion.
• Idle or slow-to-use land would be taxed at 0.2%, the highest rate under the current law.