Vietnam Government raises household business tax exemption threshold to VND 1 billion under Decree No. 141/2026/ND-CP effective 1 January 2026.
Vietnam’s Government has issued Decree No. 141/2026/ND-CP on 29 April 2026, introducing amendments and supplements to Decree No. 68/2026/ND-CP on tax policies for household and individual businesses and Decree No. 320/2025/ND-CP guiding the implementation of the Corporate Income Tax Law.
Under the decree, the annual revenue threshold for tax exemption applicable to household businesses has been increased to VND 1 billion, replacing the previous threshold of under VND 500 million.
The new threshold applies from 1 January 2026. Article 1 of Decree No. 141/2026/ND-CP replaces “500 million VND” with “1 billion VND” across multiple provisions of Decree No. 68/2026/ND-CP, including Articles 3 and 4; Clause 1 of Article 8; Articles 9 and 10; Clause 3 of Article 11; Clauses 1 and 2 of Article 12; Clause 4 of Article 17; and Clause 3 of Article 18.
The decree also revises Clause 5 of Article 8 of Decree No. 68/2026/ND-CP in relation to electronic invoices (e-invoices). Household and individual businesses with annual revenue exceeding VND 1 billion are required to use e-invoices with tax authority codes or e-invoices generated from cash registers connected to the tax authority’s data system. Businesses operating at multiple locations must use a single tax identification number, with the specific business location code indicated on each invoice.
Household and individual businesses with annual revenue of VND 1 billion or less may voluntarily register to use e-invoices if conditions are met. Newly established household businesses, or those with prior-year revenue not exceeding VND 1 billion but exceeding this threshold during the tax year, must adopt e-invoices within 30 days from the end of the tax period in which cumulative revenue surpasses VND 1 billion.
Article 2 of Decree No. 141/2026/ND-CP introduces Clause 15 to Article 4 of Decree No. 320/2025/ND-CP, providing additional guidance on the Corporate Income Tax Law. Enterprises and organisations established under Vietnamese law with total annual revenue of VND 1 billion or less will determine eligibility for corporate income tax exemption based on total revenue, including revenue from the sale of goods and services (excluding deductions), financial income, and other income as reported in the appendix to the corporate income tax return for the preceding tax year.
For businesses operating for less than 12 months in the preceding tax year, total revenue is calculated by dividing actual revenue by the number of months of operation and multiplying by 12. In cases involving newly established businesses, changes in business type or ownership, mergers, acquisitions, divisions, or separations, operating time is calculated in full months.
Newly established businesses with projected annual revenue not exceeding VND 1 billion are not required to make provisional corporate income tax payments. However, where actual revenue exceeds this threshold at year-end, corporate income tax must be declared and settled in accordance with regulations, without late payment penalties. These tax exemption provisions do not apply to subsidiaries or affiliated companies where the parent or related enterprise does not meet the eligibility conditions.
The decree also provides transitional provisions. Household and individual businesses with annual revenue of VND 1 billion or less that have already declared and paid personal income tax and value-added tax under Decree No. 68/2026/ND-CP will have their tax amounts handled in accordance with Article 12 of that decree.
Businesses that made provisional corporate income tax payments for the first quarter of 2026 and expect annual revenue of VND 1 billion or less are not required to continue such payments for subsequent quarters. Excess tax paid may be offset, refunded, or credited against future tax liabilities in accordance with tax administration regulations.
For tax periods ending after 1 January 2026 but relating to the 2025 fiscal year, enterprises meeting the conditions under Article 2 will be exempt from corporate income tax for the period from 1 January 2026 to the end of that tax period, with the exempt amount calculated proportionally based on the number of months falling within 2026. From the 2026 tax period onwards, the new provisions under Article 2 will fully apply.
