This year, key tax benefits for agricultural corporations, including corporate tax reductions, will be made permanent, and the support period for tax-exempt agricultural fuel will be extended until 2029. This decision comes as farmers face increased operational costs due to recent instability in the Middle East, aiming to alleviate their tax burden and support stable agricultural growth.
The Ministry of Agriculture, Food and Rural Affairs announced on August 9 that these measures are included in the 2026 tax reform plan released by the Ministry of Finance and Economy.
First, the corporate tax reduction for agricultural corporations, which was set to expire at the end of this year, along with the dividend income tax exemption for investors and members, will transition to a permanent tax benefit. As a result, farmers growing food crops will be fully exempt from dividend income tax, while those growing non-food crops will continue to receive exemptions within certain limits. The Ministry expects this measure will facilitate stable growth for agricultural corporations, job creation, and easier entry for young people into agriculture.
Additionally, the special provision for deferring capital gains tax to promote joint farming will also be made permanent. This provision allows farmers to pay capital gains tax when the agricultural corporation disposes of the contributed land or assets in the future. With the ongoing tax relief, participation in joint farming, which aims to scale up and mechanize operations by acquiring land from older farmers, is expected to increase.
The exemption for indirect taxes on agricultural fuel, which helps reduce fuel costs, will be extended for three more years until December 31, 2029. This means that the value-added tax, individual consumption tax, and transportation, energy, and environmental taxes on agricultural fuel will continue to be exempt. Given the volatility in international oil prices due to conflicts such as the U.S.-Iran war, the extension of the tax-exempt fuel provision is anticipated to significantly contribute to stabilizing farm operations.
The 2026 tax reform plan will undergo a legislative notice period until August 20 and will be submitted to the National Assembly in September, with final approval expected in December.
The Ministry of Agriculture, Food and Rural Affairs announced on August 9 that these measures are included in the 2026 tax reform plan released by the Ministry of Finance and Economy.
First, the corporate tax reduction for agricultural corporations, which was set to expire at the end of this year, along with the dividend income tax exemption for investors and members, will transition to a permanent tax benefit. As a result, farmers growing food crops will be fully exempt from dividend income tax, while those growing non-food crops will continue to receive exemptions within certain limits. The Ministry expects this measure will facilitate stable growth for agricultural corporations, job creation, and easier entry for young people into agriculture.
Additionally, the special provision for deferring capital gains tax to promote joint farming will also be made permanent. This provision allows farmers to pay capital gains tax when the agricultural corporation disposes of the contributed land or assets in the future. With the ongoing tax relief, participation in joint farming, which aims to scale up and mechanize operations by acquiring land from older farmers, is expected to increase.
The exemption for indirect taxes on agricultural fuel, which helps reduce fuel costs, will be extended for three more years until December 31, 2029. This means that the value-added tax, individual consumption tax, and transportation, energy, and environmental taxes on agricultural fuel will continue to be exempt. Given the volatility in international oil prices due to conflicts such as the U.S.-Iran war, the extension of the tax-exempt fuel provision is anticipated to significantly contribute to stabilizing farm operations.
The 2026 tax reform plan will undergo a legislative notice period until August 20 and will be submitted to the National Assembly in September, with final approval expected in December.
* This article has been translated by AI.
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