Vietnam raises small‑business tax exemption threshold to VND 1 billion

Under Decree 141/2026 issued on 29 April 2026, the Vietnamese government increased the revenue threshold for household and individual businesses exempt from value‑added tax (VAT) and personal income tax from VND 500 million to VND 1 billion per year. The measure also extends tax relief to micro‑enterprises and includes additional support mechanisms for small and medium‑sized enterprises.

The tax authority issued guidance for businesses that had already filed quarterly tax returns for Q1 2026 under the previous threshold. Such entities may either submit a supplementary return adjusting the taxable revenue to zero or cancel the original filing. They must also submit a revenue notification (Form 01/TKN‑CNKD) by 31 January 2027 and will no longer need to file quarterly returns if their annual revenue remains below the new threshold. Accounting records must shift from the S2a‑HKD format to the S1a‑HKD and S3a‑HKD books as stipulated in Circular 152/2025/TT‑BTC. The changes aim to reduce compliance burdens and free resources for reinvestment and growth among Vietnam’s small‑scale producers and traders.