Tax-free threshold for household businesses doubled to VND1 billion
The Government has raised the tax-exempt revenue threshold for household businesses to VND1 billion (US$38,000) per year, from the current VND500 million, to support small businesses, according to a newly-issued policy.
Under Decree No. 141/2026/ND-CP, the household businesses with annual revenue of VND1 billion or less will not have to pay personal income tax and value-added tax.
The new decree also regulates a similar tax-free revenue threshold of VND1 billion per year for small enterprises.
However, the tax exemption does not apply to those that have affiliated relationships or are subsidiaries of other enterprises that do not meet the conditions.
For household businesses with revenue above VND1 billion, they are required to use electronic invoices generated from cash registers connected to the tax authority.
In case a business initially determines its revenue is below VND1 billion but later exceeds this threshold within the tax year, it must register to use electronic invoices within 30 days.
The regulation takes effect from January 1, 2026. Therefore, if household businesses or individuals with revenue of VND1 billion or less have already declared and paid taxes in the first quarter of this year, the paid amount will be offset or refunded.
Online sales tax collection over US$22 million in 2023
Revenue from e-commerce for domestic organisations and individuals reached VND536.5 billion (over US$22 million) this year, reported the General Department of Taxation (GDT).
