Deputy Prime Minister Nguyen Van Thang has just signed and issued Decree No. 141/2026/ND-CP on behalf of the Government amending and supplementing a number of articles of Decrees on tax policies. The most notable point is the regulation on corporate income tax (CIT) exemption for units with small revenue scale.
Corporate income tax exemption for units with revenue under 1 billion VND
According to Article 2 of the Decree, enterprises and organizations established under Vietnamese law with total annual revenue of 01 billion VND or less will be eligible for corporate income tax exemption.
This total revenue includes income from sales, service provision, financial activities and other income. For newly established businesses or businesses operating for less than 12 months, revenue will be calculated on average monthly to determine tax exemption conditions.
In particular, if the enterprise expects revenue not to exceed 1 billion VND, it is not required to temporarily pay corporate income tax in the year. In case the actual year end exceeds this threshold, the enterprise only needs to declare and finalize without being charged late payment interest.
Raising the threshold for household business tax management to 1 billion VND
Decree 141 also fundamentally amends Decree No. 68/2026/ND-CP. Accordingly, the phrase "500 million VND" in previous regulations has been raised to "01 billion VND".
This change means easing the tax threshold and strict management conditions, creating more room for individual business households to develop before having to fulfill more complex tax obligations.
New regulations on electronic invoices
Regarding invoice management, the Decree clearly stipulates:
- Business households and individual businesses with annual revenue over 01 billion VND must apply electronic invoices with codes from tax authorities or generated from cash registers.
- Households with revenue of 01 billion VND or less, if they meet the conditions and have demand, can still register to use electronic invoices.
In the tax year, if accumulated revenue exceeds the threshold of 01 billion VND, the household owner must register to use electronic invoices within 30 days.
Effectiveness and transition clauses
Decree 141/2026/ND-CP officially takes effect from January 1, 2026.
For businesses that have temporarily paid tax in the first quarter of 2026 but expect revenue for the whole year to be less than 1 billion VND, they do not have to pay in the following quarters. The surpaid tax will be offset or refunded according to regulations. For business households that have paid tax according to the old threshold (500 million VND), the surpaid tax will also be handled according to new regulations.
