Paving the way for small business growth

In late April, the National Assembly passed amendments to several laws, including the Law on Personal Income Tax, Value-Added Tax (VAT), Corporate Income Tax, and Special Consumption Tax.

A notable change is the abolition of the fixed 500 million VND annual tax-exempt revenue threshold for business households. Instead, the Government is now empowered to determine tax-exempt thresholds that align with different stages of economic development.

Shortly thereafter, the Government issued Decree No. 141/2026/ND-CP, raising the tax-exemp revenue threshold for business households to 1 billion VND annually, effective from January 1, 2026.

This new benchmark provides business owners with additional time to boost revenue, accumulate capital, and stabilize operations before meeting full compliance requirements.

The Government’s Decree No. 141 also introduces corporate income tax exemptions for businesses with an annual revenue of 1 billion VND or less, while implementing more flexible interim payment obligations. These measures grant small businesses necessary breathing room during their initial phases, reducing immediate financial pressure.

According to tax authority data, the city currently hosts approximately 86,000 active business households, with over 73,000 currently filing tax declarations. Among these, more than 12,000 businesses report annual revenues exceeding 500 million VND, accounting for roughly 16% of the total.

While not the majority, this group sits at a transitional threshold where facilities begin to move beyond small-scale operations toward more professional business models. Raising the threshold to 1 billion VND will significantly benefit this segment, as the postponement of tax obligations allows them to focus on scaling and stabilizing their operations.

Hai Phong News