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Decree No. 141/2026/ND-CP takes effect on January 1, 2026, introducing new regulations regarding tax-exempt revenue thresholds that will impact enterprises, household businesses, and business individuals:
1. For Enterprises:
- CIT Exemption: Enterprises with a total revenue from the sale of goods and provision of services (excluding financial revenue and other incomes) of VND 1 billion/year or less shall be exempt from Corporate Income Tax (CIT).
- Revenue Determination: For enterprises operating for less than 12 months, the revenue will be annualized to a 12-month equivalent to determine the threshold.
- Newly Established Enterprises: If the projected revenue does not exceed VND 1 billion, the enterprise is not required to make provisional CIT payments. If the actual revenue at the end of the year exceeds VND 1 billion, the enterprise must still perform tax finalization and pay the tax, but will not be subject to late payment penalties.
- Non-eligible Cases: Enterprises that are subsidiaries or have affiliated relationships with other businesses are not eligible for this tax incentive.
2. For Household Businesses and Business Individuals:
- Increased Tax-Exempt Revenue Threshold: The revenue threshold exempt from Value-Added Tax (VAT) and Personal Income Tax (PIT) is increased from VND 500 million to VND 1 billion/year.
- Regulations on Electronic Invoices (E-invoices):
- Revenue over VND 1 billion/year: Mandatory use of e-invoices with a tax authority’s code or e-invoices generated from cash registers connected to the tax authority’s database.
- Revenue of VND 1 billion/year or less: Not mandatory, but businesses may register to use them if desired.
- Household Businesses with Multiple Locations: Must use a single common Tax Identification Number (TIN) and clearly state the specific business location on the invoice.
- Newly Exceeding the Threshold: Businesses that newly exceed the VND 1 billion threshold must register to use e-invoices within 30 days from the end of the tax period in which the threshold was surpassed.
- Retrospective Adjustments: Cases previously declared under the former VND 500 million threshold that are now adjusted to the new VND 1 billion threshold will have their paid taxes processed accordingly (either offset or refunded).
