Taxable revenue threshold raised for household businesses

The Government’s decision to raise the taxable revenue threshold for individual and household businesses to VND 1 billion per year has provided a strong boost for tens of thousands of household businesses in Dong Nai, as well as more than 2.5 million nationwide.

Household businesses carry out tax procedures at Tax Office No. 8 of the Dong Nai City Tax Department. Photo: Ngoc Lien

The policy is detailed in Government Decree No. 141/2026/ND-CP, which amends and supplements several provisions of Decrees No. 68/2026/ND-CP and No. 320/2025/ND-CP on tax policies for household and individual businesses and on the implementation of corporate income tax. The decree took effect on January 1, 2026.

Policy shaped at the National Assembly (NA) session

At the first session of the 16th NA on April 23, based on proposals from the Ministry of Finance and the Government, lawmakers discussed draft amendments to several tax laws, including 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.

Building on these discussions, the issuance of Decree No. 141 reflects the Government’s efforts to support household businesses and enterprises while safeguarding national interests and strengthening tax administration. Notably, the removal of the previous taxable revenue threshold of VND 500 million per year for household businesses, coupled with granting the Government authority to determine a new threshold, drew significant attention from legislators.

According to the Dong Nai City Tax Department, the sector currently manages more than 55,300 enterprises and nearly 150,000 active household businesses. Of these figures, around 5,100 household businesses generate annual revenue of VND 1 billion or more, while more than 96,500 earn VND 1 billion or less. As a result, over 96,500 household businesses in Dong Nai will be exempt from tax under Decree No. 141.

During the discussions, many NA deputies offered practical and experience-based opinions, noting that the amendment would enhance policy flexibility and better reflect the diverse scale of household businesses.

In addition to raising the taxable revenue threshold, Decree No. 141 also introduces regulations on e-invoices for household businesses across different revenue brackets, helping them better understand and comply with tax declaration requirements.

Furthermore, the decree provides corporate income tax exemption for enterprises and organizations with a total annual revenue of VND 1 billion or less. However, this provision does not apply to subsidiaries or affiliated companies if the parent or related entities do not meet the exemption criteria.

For household businesses with annual revenue below VND 1 billion that have already declared and paid value-added tax and personal income tax, the amounts paid will be treated as overpayments. Similarly, enterprises eligible for tax exemption that have made provisional corporate income tax payments for the first quarter of 2026 are not required to continue such payments for subsequent quarters. Besides, they may offset or claim refunds for overpaid amounts.

Bringing tax policy into practice

Immediately after the issuance of Decree No. 141, tax authorities intensified communication and implementation efforts to ensure the new policy reached household businesses quickly. At the same time, concerns and questions from enterprises and household businesses have been promptly addressed through guidance and support.

Nguyen Thi Trang, owner of a cosmetics and beauty service business in Tran Bien ward, said her household business generates around VND 800 million per year. Previously, she had declared taxes for the first quarter under the household business bracket, earning between VND 500 million and VND 3 billion annually, which was not eligible for tax exemption. However, under Decree No. 141, her business now qualifies for exemption. Following guidance from tax authorities, she was able to update the procedures for subsequent tax declarations with ease.

“With this new tax policy, my household business is exempt from tax. This support gives us greater confidence, especially as market conditions remain volatile, costs continue to rise, and profit margins shrink. Raising the taxable revenue threshold is therefore a significant form of support,” Trang said.

Similarly, Nguyen Van Thanh, owner of a restaurant in Tan Trieu ward, said his annual revenue is around VND 900 million and that he had recently completed the tax declaration for the first quarter. Under the new policy, his business is no longer subject to tax. To ensure compliance, he proactively consulted tax officials for guidance and adjusted his tax filing accordingly.

Although timely guidance has been provided, many household businesses still have questions and concerns during implementation. Taking note of taxpayers' concerns, tax authorities have compiled and addressed several key issues related to the implementation of Decree No. 141. Specifically, household businesses with annual revenue of less than VND 1 billion are not required to pay tax or use e-invoices. If they have already paid tax for the first quarter of 2026, they are eligible for a refund. However, household businesses must still keep accounting books and periodically report revenue. Meanwhile, household businesses with annual revenue exceeding VND 1 billion must pay tax in accordance with regulations.

By N. Lien – Translated by M.Nguyet, Minho