Decree No. 141/2026/ND-CP dated 29 April 2026 amending Decree No. 68/2026 on taxation applicable to household businesses and individual businesses, and Decree No. 320/2025 on Corporate Income Tax (CIT), effective from 01 January 2026, stipulates as follows:

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I. APPLICABLE TO HOUSEHOLD BUSINESSES AND INDIVIDUAL BUSINESSES

  1. Key Highlight:

The annual revenue threshold exempt from Value Added Tax (VAT) and Personal Income Tax (PIT) has officially been increased from VND 500 million to VND 1 billion per annum.

  1. Regulations on Electronic Invoices (E-invoices)
  • Annual revenue > VND 1 billion: Mandatory use of tax authority-authenticated e-invoices or e-invoices generated from cash registers connected directly to the tax authority’s data system.
  • Annual revenue ≤ VND 1 billion: Use of e-invoices is not mandatory. However, household businesses may still voluntarily register for e-invoice usage if desired.
  • Household businesses operating multiple business locations: A single tax identification number (TIN) shall be used for all business locations; however, invoices must clearly state the specific address of the business location where the transaction arises.
  • Cases where revenue newly exceeds the threshold: Registration for e-invoice usage must be completed within 30 days from the end of the tax period in which annual revenue exceeds VND 1 billion.
  1. Retroactive Adjustment and Tax Treatment

For cases previously declared under the VND 500 million threshold, adjustments under the new VND 1 billion threshold shall allow taxes already paid to be offset against subsequent tax periods or refunded in accordance with prevailing regulations.

II. APPLICABLE TO ENTERPRISES

  1. CIT Exemption Policy:

Corporate Income Tax (CIT) exemption shall apply to enterprises with total annual revenue not exceeding VND 1 billion.

  1. Determination of Revenue for Preferential Tax Treatment:
  • Revenue for determining eligibility for tax incentives shall comprise total revenue from the sale of goods and provision of services.

Note: Financial income and other income are excluded.

  • Enterprises operating for less than 12 months: Revenue shall be annualized on a 12-month equivalent basis for determining eligibility for tax exemption.
  • Newly established enterprises: Where projected annual revenue does not exceed VND 1 billion, provisional CIT payments are not required. If actual revenue at year-end exceeds VND 1 billion, the enterprise shall declare and pay CIT upon annual finalization without being subject to late payment interest.
  1. Cases NOT Eligible for Tax Exemption:

This tax exemption policy shall NOT apply to subsidiary companies or enterprises having related-party relationships with other enterprises, in order to ensure fairness and prevent abuse of tax incentive policies.

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