On 24 April 2026, the National Assembly passed Law No. 09/2026/QH16 amending and supplementing a number of provisions of the Law on Personal Income Tax, the Law on Value-Added Tax, the Law on Corporate Income Tax, and the Law on Special Consumption Tax.
=> See more: Subjects exempted from agricultural land use tax from 01/01/2026
Changes to the Revenue Threshold Subject to PIT and VAT
Notably, the Law amends the provisions on the revenue threshold exempt from tax applicable to household businesses and individual businesspersons by removing the fixed threshold prescribed under the law and authorizing the Government to determine an appropriate threshold from time to time. These amendments shall take effect from 01 January 2026.
Specifically:
- Amendment and supplementation to Clause 1, Article 7 of the Law on Personal Income Tax:
Resident individuals engaged in production and business activities whose annual revenue does not exceed the threshold prescribed by the Government shall not be subject to personal income tax. Based on macroeconomic indicators, the State budget balancing capability, and socio-economic conditions in each period, the Government shall stipulate the appropriate annual revenue threshold.
- Amendment and supplementation to Clause 25, Article 5 of the Law on Value-Added Tax:
Goods and services of household businesses and individual businesspersons whose annual revenue does not exceed the threshold prescribed by the Government; assets sold by organizations and individuals not engaged in business activities and not being VAT taxpayers; national reserve goods sold by national reserve authorities; and fees and charges collected in accordance with the laws on fees and charges shall not be subject to value-added tax. Based on macroeconomic indicators, the State budget balancing capability, and socio-economic conditions in each period, the Government shall prescribe the annual revenue threshold applicable under this Clause.
Image 1. New regulations on land price framework applicable from 01 January 2026_Hotline: 0972118764
Addition of Corporate Income Tax Exemption for Small Enterprises
In addition to providing incentives for household businesses, Law No. 09/2026/QH16 also expands preferential treatment for legal entities. Article 3 of this Law supplements Clause 14a to Article 4 of the 2025 Law on Corporate Income Tax regarding tax-exempt income as follows:
“14a. Income of enterprises and organizations established in accordance with the laws of Vietnam whose total annual revenue does not exceed the threshold prescribed by the Government shall be exempt from corporate income tax...”
Currently, pursuant to the guidance under Decree No. 141/2026/ND-CP, enterprises with total annual revenue of VND 1 billion or less are exempt from corporate income tax (CIT). This policy is considered a breakthrough measure, enabling start-up enterprises to retain additional internal capital for reinvestment during their initial years of operation.
=> See more: Procedures for constructing the first land price list for publication and application from January 1, 2026
Image 2. New regulations on land price framework applicable from 01 January 2026_Hotline: 0972118764
In light of the significant amendments introduced under Law No. 09/2026/QH16, household businesses and enterprises should proactively review their actual annual revenue. A thorough understanding of the VND 1 billion threshold will assist taxpayers in optimizing their tax obligations, minimizing risks of errors in tax declaration and compliance procedures, and fully benefiting from the incentives and entitlements provided under applicable laws.
=> See more: Guidance on the establishment of the Asset Valuation Council in criminal proceedings from September 22, 2025
Image 3. Free legal advice_ Hotline: 097 211 8764
Social and Economic General Department - TLK Law Company Limited
Dear Readers,
In addition to providing you with useful knowledge and information about economic and socio-cultural life, TLK Law Company Limited is also an organization offering professional services in Legal Consulting, Accounting - Tax, and Trade promotion with many years of experience.
With the desire to fulfill our social responsibility, if you need advice on legal matters, please contact us at the hotline: 097 211 8764 to receive direct consultation from our lawyers (completely free of charge).
