Vietnam doubles tax exemption threshold to 1 billion VND for small firms

Vietnam has doubled its tax-exempt revenue threshold for household businesses and individuals to 1 billion VND a year or about $38,000, under Decree No. 141/2026/ND-CP. The higher ceiling applies to revenue from goods sales, services, financial activities and other income and it exempts qualifying earners from personal income tax and value-added tax.

The rule took effect Jan. 1, 2026, even though the decree was issued April 29. Businesses above the threshold must use electronic invoices tied to tax authorities, while those below it can skip quarterly PIT and VAT payments and settle at year-end.

Who gets the exemption

Household businesses, individuals and small enterprises established under Vietnamese law are the main winners. That includes some expats, digital nomads and travelers running local side gigs through household registration, as long as annual revenue stays under 1 billion VND.

Tax residency still matters for broader income. Anyone in Vietnam for 183 days or more can face PIT on worldwide income, even as the local business exemption widens.

What to do next

Small operators can self-declare expected annual revenue at or below 1 billion VND to stay out of PIT and VAT payments. Those who already paid under the old 500 million VND rule in early 2026 can seek an offset or refund.

If revenue rises above the limit, businesses have 30 days to register electronic invoices. Read our full Vietnam guide for the complete picture and check our visa updates for more country changes.