HCMC – Vietnam’s National Assembly has approved amendments to four tax laws, including a plan to raise the annual revenue threshold for tax exemption for business households and individuals to VND1 billion.
The law was passed on April 24 with 466 out of 488 lawmakers voting in favor. It revises provisions under the personal income tax, value-added tax, corporate income tax, and special consumption tax laws.
According to a government report presented by Finance Minister Ngo Van Tuan, the new threshold will be specified in guiding regulations. The adjustment is based on macroeconomic indicators and budget capacity.
Tax authorities estimate about 2.56 million business households and individuals currently earn below VND1 billion annually. The change is projected to reduce State budget revenue by VND16.65 trillion compared to 2025, when the exemption threshold was VND100 million. The figure is VND4.85 trillion lower than under the current threshold of VND500 million.
The Government also proposed exempting corporate income tax for businesses with annual revenue not exceeding VND1 billion. The measure is expected to reduce tax revenue by about VND2.16 trillion and apply to around 235,800 businesses.
The revised law authorizes the Government to determine tax exemption thresholds based on economic conditions and fiscal balance. However, existing tax rules set key thresholds at VND3 billion in annual revenue. Adjustments beyond this level would require further amendments to ensure consistency.
Under current regulations, business households with revenue above VND3 billion must apply income-based tax calculation methods. Corporate tax rates also vary at this threshold, with 15% applied to revenue up to VND3 billion and 17% for revenue between VND3 billion and VND50 billion.
The amendments maintain preferential special consumption tax rates for battery electric vehicles. The Government said that the policy may support investment in charging infrastructure and related power systems.
Authorities noted that expanding charging networks would require coordinated planning, including grid upgrades, pricing mechanisms, and load management measures.
The law takes effect from January 1, 2026. The Government indicated that applying the changes from the start of the year would help avoid complications in tax reporting for households and businesses.
