Decree 141/2026/ND-CP: Important Changes in Tax Policies for Household Businesses and Enterprises That Need Attention

On April 29, 2026, the Government issued Decree No. 141/2026/ND-CP introducing several notable changes to tax policies applicable to household businesses, individual businesses, and enterprises.

Key highlights include:

• Increasing the non-taxable revenue threshold to VND 1 billion per year;

• Introducing mandatory electronic invoice requirements;

• Granting Corporate Income Tax (CIT) exemptions for low-revenue enterprises.

The article below helps businesses and household businesses understand the important new provisions of Decree 141/2026/ND-CP, especially regulations related to revenue declaration, electronic invoices, and tax obligations from 2026 onward.

1. Official Increase of the Household Business Revenue Threshold to VND 1 Billion per Year

One of the most significant changes introduced under Decree 141/2026/ND-CP is the increase of the non-taxable revenue threshold for VAT and Personal Income Tax (PIT) purposes from VND 500 million to VND 1 billion per year.

This means:

• Household businesses and individual businesses with annual production and business revenue of VND 1 billion or less will not be required to pay VAT and PIT under the regulations.

The new revenue threshold is consistently applied across various provisions of Decree 68/2026/ND-CP.

This is considered substantial support for small and micro household businesses amid rising operating costs, material expenses, and financial pressure.

Increasing the non-taxable revenue threshold also helps:

• Reduce tax declaration pressure for small household businesses;

• Support business recovery;

• Encourage transparent revenue declaration;

• Reduce the practice of underreporting revenue to avoid taxes.

However, businesses and household businesses should note that tax exemption does not mean exemption from invoice management, document retention, or declaration obligations required by tax authorities.

2. Mandatory Use of Electronic Invoices for Household Businesses with Revenue Above VND 1 Billion

Besides increasing the tax exemption threshold, Decree 141/2026/ND-CP also officially clarifies regulations regarding electronic invoices for household businesses.

Household Businesses with Revenue Above VND 1 Billion Must Use Electronic Invoices

Under the new regulations:

• Household businesses and individual businesses with annual revenue exceeding VND 1 billion are required to use electronic invoices authenticated by tax authorities.

At the same time, they must:

• Use electronic invoices generated from cash registers connected to the tax authority’s data system.

This demonstrates that tax authorities are strengthening digitalization in revenue management and actual business activity monitoring.

Household Businesses with Multiple Business Locations

For businesses operating at multiple locations:

• A single tax code may be used;

• However, the specific business location code must be clearly indicated on invoices.

This regulation enables authorities to more effectively monitor revenue generated at each business location.

Cases with Revenue Below VND 1 Billion

For household businesses with annual revenue of VND 1 billion or less:

• They may still voluntarily register to use electronic invoices if they meet conditions and have demand.

They may choose:

• Electronic invoices authenticated by tax authorities; or

• Electronic invoices generated from connected cash registers.

In addition, newly established household businesses or businesses whose previous-year revenue did not exceed the threshold but whose accumulated revenue during the current year exceeds VND 1 billion:

• Must switch to electronic invoice usage in accordance with regulations;

• Registration must be completed within 30 days from the time accumulated revenue exceeds the threshold.

This regulation requires household businesses to monitor revenue regularly in order to avoid delayed implementation and administrative tax violations.

3. Corporate Income Tax Exemption for Enterprises with Revenue Not Exceeding VND 1 Billion per Year

Another noteworthy change is the Corporate Income Tax (CIT) exemption policy applicable to small enterprises with low revenue.

Under Decree 141/2026/ND-CP:

• Enterprises with total annual revenue of VND 1 billion or less will be exempt from Corporate Income Tax.

Total revenue for determining exemption eligibility includes:

• Revenue from goods sales;

• Revenue from service provision;

• Financial income;

• Other income.

This policy is expected to provide significant support for:

• Micro-enterprises;

• Newly established startups;

• Enterprises facing financial difficulties.

Revenue Determination for Enterprises Operating Less Than One Year

For enterprises operating for less than 12 months:

• Revenue will be converted into an average monthly basis to determine tax exemption eligibility.

For newly established enterprises:

• If projected annual revenue does not exceed VND 1 billion, no provisional CIT payment is required.

• If actual year-end revenue exceeds the threshold, enterprises must conduct additional tax finalization in accordance with regulations, but no late payment interest will be charged.

However, this tax exemption policy does not apply to:

• Subsidiaries;

• Enterprises having related-party relationships with businesses that do not satisfy exemption conditions.

This aims to prevent artificial business splitting for tax incentive purposes.

4. Timing for Determining PIT Taxable Revenue of Household Businesses

The decree also clarifies the timing for determining PIT taxable revenue applicable to household businesses and individual businesses.

Specifically:

• For goods sales activities: revenue is determined at the time ownership or usage rights of goods are transferred to buyers.

• For service provision activities: revenue is determined at the time services or portions of services are completed for customers.

These regulations are important for:

• Determining the correct tax period;

• Reducing declaration errors;

• Avoiding improper revenue recognition timing.

Particularly for service household businesses, accurately determining service completion timing directly affects tax obligations.

5. Household Businesses Are Allowed to Self-Determine Taxable Revenue

Under the new provisions of the 2025 Tax Administration Law, household businesses and individual businesses may proactively determine their own revenue and tax obligations.

Specifically:

• If they are not subject to tax or exempt from tax payment, household businesses must report actual revenue to tax authorities.

• If subject to taxation, household businesses must self-determine payable VAT and PIT according to regulations.

Notable Point for Businesses Using Electronic Invoices

For household businesses using electronic invoices:

• The tax management system will automatically aggregate invoice data;

• Support tax return preparation;

• Synchronize data with tax authorities.

This reflects a strong transition toward electronic tax administration and automated tax data management in the coming years.

6. What Should Enterprises and Household Businesses Pay Attention To?

The changes introduced under Decree 141/2026/ND-CP not only affect tax obligations but also directly impact revenue management and operational administration.

Therefore, businesses and household businesses should:

• Regularly monitor revenue;

• Proactively implement electronic invoices;

• Review tax exemption eligibility;

• Reassess revenue recognition timing;

• Standardize accounting documents and data;

• Update tax regulations promptly.

As tax authorities increasingly strengthen electronic data management and real-time information connectivity, proper compliance will help businesses:

• Reduce tax inspection risks;

• Avoid administrative penalties;

• Improve financial transparency;

• Optimize long-term tax governance.