Vietnam introduces sweeping financial and tax adjustments, reshaping compliance rules while closing loopholes in high-value transactions.

The Government has raised the tax-exempt revenue threshold for household businesses to 1 billion VND (38,000 USD) per year, from the current 500 million USD, to support small businesses, according to a newly-issued policy.

The Government issued Resolution No. 25/2026/NQ-CP on April 30, extending the application of Decree No. 72/2026/ND-CP, which reduces preferential import tariffs on several fuel products and inputs for fuel production.

When compliance costs become excessive for both household businesses and the tax system, a more balanced approach is needed - one that reduces compliance burdens while supporting this uniquely Vietnamese economic sector.

Vietnam removes the fixed VND500 million tax threshold, allowing flexible adjustments based on economic conditions and fiscal needs.

The 16th National Assembly today continued the agenda for its first session, holding a plenary discussion on the draft Law on amendments and supplements to the Law on Personal Income Tax, VAT, Corporate Income Tax, and Special Consumption Tax.

Legislators on the morning of April 23 discussed in plenary a draft law amending and supplementing a number of articles of the laws on Personal Income Tax, Value-Added Tax, Corporate Income Tax, and Special Consumption Tax.

The Ministry of Finance is reviewing the VND500 million revenue threshold for household businesses to calculate personal income tax and value-added tax. It is considering not fixing a specific level in the law.

PM Le Minh Hung has proposed raising the tax-free revenue threshold for business households to VND1 billion per year (US$41,000), signaling a significant shift in fiscal policy aimed at easing pressure on small-scale enterprises.

Plans to increase the tax-free revenue ceiling aim to ease pressure on small businesses while preserving fairness across the economy.

A draft law amending and supplementing several articles of the laws on personal income tax, VAT, corporate income tax, and special consumption tax was discussed at the morning session of the National Assembly (NA) Standing Committee on April 20.

Experts warn that high compliance costs could discourage growth among Vietnam’s 1.7 million household businesses above the tax threshold.

The finance ministry is seeking to make tax thresholds more flexible for household businesses and introduce a tax-free revenue level for small firms, in a move aimed at adapting to economic pressures and supporting growth.

During the transition from presumptive taxation to a declaration-based system, Vietnam’s tax authority has acknowledged emerging challenges, particularly in communication, and issued an apology to business households.

Vietnam’s tax authority has unveiled a wide-ranging inspection plan, focusing on major real estate companies and commercial banks across key cities.

Vietnam’s tax authority has flagged more than 400 companies earning over VND1,000 billion (US$41 million) annually yet reporting losses, highlighting potential risks of tax evasion.

Under the proposal, the environmental protection tax on petrol (excluding ethanol), diesel, aviation fuel, kerosene and mazut will be reduced to zero Vietnamese dong per litre.

A draft decree guiding the implementation of the Personal Income Tax (PIT) Law is being widely viewed by legal experts as a strategic policy move, going beyond mere technical tax adjustments to support long-term economic transformation.

Hanoi tax department to receive administrative tax documents at 31 public service centers from February 2, offering boundary-free access across the city.