From 2026, business households programming software with annual revenue over 1 billion VND will calculate personal income tax (PIT) according to the method specified in Decree 68/2026/ND-CP. Depending on the level of revenue, business households apply the tax rate method multiplied by (×) taxable revenue or the income tax method multiplied by (×) tax rate.
According to point b, clause 5, Article 4 of Decree 68/2026/ND-CP amended by clause 1, Article 1 of Decree 141/2026/ND-CP, business individuals with annual revenue of 1 billion VND or less are not subject to personal income tax.
For business individuals with annual revenue of over 1 billion VND to 3 billion VND, the method of calculating personal income tax according to the tax rate multiplied by (×) taxable revenue is applied. At the same time, business individuals in this revenue group are allowed to choose to apply the taxable income method multiplied by (×) tax rate.
In case an individual business has annual revenue of over 3 billion VND, the method of calculating personal income tax is applied according to taxable income multiplied by (×) tax rate.
According to regulations, taxable income is determined by the revenue of goods and services sold minus (-) expenses related to production and business activities in the tax period.
Clause 2, Article 7 of the 2025 Personal Income Tax Law amended by Article 1 of the Law amending the Personal Income Tax Law, Value Added Tax Law, Corporate Income Tax Law and Special Consumption Tax Law in 2026 stipulates the tax rate applicable to the taxable income method multiplied by (×) tax rate as follows:
- 15% for individual businesses with annual revenue above the level prescribed by the Government up to 3 billion VND;
- 17% for individual businesses with annual revenue over 3 billion VND to 50 billion VND;
- 20% for individual businesses with annual revenue over 50 billion VND.
In addition, according to point d, clause 5, Article 4 of Decree 68/2026/ND-CP amended by clause 1, Article 1 of Decree 141/2026/ND-CP, in case business households and individual businesses with revenue over 3 billion VND or annual revenue over 1 billion VND to 3 billion VND are applying the method of calculating personal income tax according to taxable income multiplied by (×) tax rate, the tax calculation method shall be stabilized for 2 consecutive years from the first year of application.
In case business households and individual businesses with annual revenue of over 1 billion VND to 3 billion VND are applying the personal income tax calculation method according to the tax rate multiplied by (×) taxable revenue, if at the end of the year the actual annual revenue is determined to be over 3 billion VND, then from the following year, it must be switched to applying the personal income tax calculation method according to the taxable income multiplied by (×) tax rate.
Thus, from 2026, business households programming software with annual revenue over 1 billion VND to 3 billion VND apply the tax rate multiplied by (×) taxable revenue method and are selected to apply the taxable income multiplied by (×) tax rate method. In case of annual revenue over 3 billion VND, the taxable income multiplied by (×) tax rate method is applied according to regulations.
