Ministry of Finance proposes raising tax exemption threshold to 1 billion VND
The Ministry of Finance proposes raising tax exemption threshold to 1 billion VND for business households, individual business owners, and small enterprises.
The Ministry of Finance is drafting a Decree to amend and supplement certain provisions of Decree No. 68/2026/ND-CP on tax policies for business households and individual businesses, and Decree No. 320/2025/ND-CP detailing certain provisions and measures to implement the Law on Corporate Income Tax.
On December 10, 2025, the National Assembly passed the law on Personal Income Tax No. 109/2025/QH15, and on December 11, 2025, passed the Law Amending and Supplementing Certain Provisions of the law on Value-Added Tax No. 149/2025/QH15. These raised the annual revenue threshold exempt from tax for individual businesses from VND 100 million to VND 500 million, and the revenue threshold for business households and individuals not subject to value-added tax from VND 200 million to VND 500 million.
Based on impact assessments on business households, small enterprises, state budget, and socio-economic growth targets, the Ministry of Finance proposes raising the personal income tax exemption revenue threshold for business households and individuals to VND 1 billion per year. At the same time, the value-added tax exemption revenue threshold is also proposed to be raised to VND 1 billion per year.
This level aligns with regulations requiring business households and individuals with annual revenue of VND 1 billion or more to use e-invoices generated from cash registers connected to tax authorities via electronic data transfer.
The draft Decree also proposes amendments to Decree No. 68/2026/ND-CP by replacing ‘VND 500 million’ with ‘VND 1 billion’ in several articles, including Article 3, Article 4, Clause 1, Point b Clause 5 Article 8, Article 9, Article 10, Clause 3 Article 11, Clauses 1 and 2 Article 12, Clause 4 Article 17, and Clause 3 Article 18.
The draft specifies how to determine total revenue for exemption purposes, including revenue from sales, services, financial revenue, and other income in the immediately preceding tax year; it also guides cases for enterprises operating less than 12 months, or newly established, converted, merged or separated enterprises.
The draft Decree is currently open for public comments on the Ministry of Finance's E- Information Portal.
Hai Phong News