National Assembly approves amendments to four tax laws
VGP - The Legislature on Friday passed the Law amending and supplementing several articles of 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.
This new Law shall come into effect from January 1, 2026.
Specifically, the Legislature agreed to raise the tax-exempt revenue threshold for household businesses from current VND500 million (US$20,000) to VND 1 billion (approx. US$40,000). Accordingly, the estimated amount of personal income tax to be waived is about VND 2.164 trillion, benefiting approximately 235,800 businesses.
Similarly, amendments to the Law on Value Added Tax stipulate that goods and services provided by individuals and household businesses with annual revenue below the Government-defined threshold shall not be subject to VAT.
The Law on Corporate Income Tax sets different tax rates based on revenue thresholds. A rate of 15 percent applies to enterprises with annual revenue not exceeding VND3 billion (US$120,000), while a rate of 17 percent applies to those with revenue above VND3 billion and up to VND50 billion (US$2 million)./.
