DECREE NO. 141/2026/ND-CP AMENDING AND SUPPLEMENTING REGULATIONS ON TAX POLICIES FOR HOUSEHOLD BUSINESSES (“HB”), INDIVIDUAL BUSINESSES (“IB”), AND GUIDING THE IMPLEMENTATION OF THE LAW ON CORPORATE INCOME TAX (CIT)
On April 29, 2026, the Government promulgated Decree No. 141/2026/ND-CP, marking a major turning point in Vietnam’s tax policy. By amending and supplementing the provisions of Decree No. 68/2026/ND-CP and Decree No. 320/2025/ND-CP, this document brings high expectations for the small and medium-sized business community.
The Decree takes effect from January 1, 2026, introducing significant policy changes that accountants and business owners need to update promptly to avoid risks, as follows:
1. Raising the tax-exempt revenue threshold for household businesses from VND 500 million to VND 1 billion per year
- Previously: revenue ≤ VND 500 million/year
- From January 1, 2026: revenue ≤ VND 1 billion/year
👉 This change helps reduce the tax burden on small household businesses, better reflecting current business realities and supporting the start-up phase.
2. New regulations on electronic invoices for household businesses and individual businesses:
3. Corporate income tax exemption for enterprises with annual total revenue of VND 1 billion or less:
In addition to household businesses, enterprises and organizations legally established in Vietnam also benefit significantly: a 100% exemption from corporate income tax (CIT) for enterprises with annual total revenue of VND 1 billion or less, applied to income from production and business activities. Specifically:
Basis for determination:
- Revenue of the preceding year (including sales, service provision, and other income).
- In case of operation under 12 months, average monthly revenue is multiplied by 12.
For newly established enterprises:
- If the projected annual revenue does not exceed VND 1 billion, they are not required to make provisional CIT payments.
- If actual revenue at year-end exceeds the threshold, they must declare and pay tax normally, but late payment interest will not be charged.
Cases not eligible for tax exemption: The exemption does not apply to subsidiaries or companies with related-party relationships where the related enterprise does not meet the conditions for tax exemption.
This regulation helps reduce cost pressures and supports small businesses in maintaining and developing their business activities.
4. Transitional handling
Treatment of provisional tax payments
Transitional tax exemption allocation 2025 – 2026
In cases where the tax period of 2025 ends after January 1, 2026 and the enterprise meets the conditions for tax exemption, corporate income tax will be exempted for the period from January 1, 2026 until the end of the 2025 tax period.
The corporate income tax exempted for the 2025 tax period is calculated according to the following formula:
