Law No. 09/2026/QH16 amending and supplementing a number of articles of the Law on Personal Income Tax, the Law on Value-Added Tax, the Law on Corporate Income Tax and the Law on Excise Tax contains a number of notable changes that enterprises should pay attention to.
1. Changes to annual revenue thresholds for PIT and VAT
Previous regulations
Clause 1 Article 7 of the Law on Personal Income Tax 2025 provides:
Resident individuals engaged in production and business activities having annual revenue of VND 500 million or less are not required to pay personal income tax.
At the same time, Clause 25 Article 5 of the Law on Value-Added Tax 2025, as amended and supplemented by Law No. 149/2025/QH15, provides:
Goods and services of business households or business individuals having annual revenue of VND 500 million or less are not subject to value-added tax.
New regulations
Articles 1 and 2 of Law No. 09/2026/QH16 abolish the annual revenue threshold of VND 500 million for PIT and VAT and replace it with a threshold prescribed by the Government, effective from January 1, 2026.
Specifically, Article 1 of the Law amends and supplements Clause 1 Article 7 of the Law on Personal Income Tax as follows:
“1. Resident individuals engaged in production and business activities having annual revenue not exceeding the threshold prescribed by the Government are not required to pay personal income tax. Based on macroeconomic indicators and budget balancing capacity, the Government shall prescribe an annual revenue threshold appropriate to the socio-economic context in each period.”
“25. Goods and services of business households or business individuals having annual revenue not exceeding the threshold prescribed by the Government; assets sold by non-business organizations and individuals that are not value-added tax payers; national reserve goods sold by national reserve agencies; charges and fees in accordance with the law on charges and fees. Based on macroeconomic indicators and budget balancing capacity, the Government shall prescribe the annual revenue threshold specified in this Clause in accordance with the socio-economic context in each period.”
Under Decree No. 141/2026/ND-CP amending and supplementing a number of articles of Decree No. 68/2026/ND-CP, the Government simultaneously revised the annual revenue thresholds for PIT and VAT applicable to business households and business individuals. Accordingly:
Business households and business individuals engaged in production and business activities with annual revenue of VND 1 billion or less are not subject to VAT.
Business households and business individuals having annual revenue exceeding VND 1 billion are subject to VAT and shall apply the direct method based on a percentage (%) multiplied by revenue.
Resident individuals engaged in production and business activities, including individuals registering the establishment of business households or persons authorized by household members to act as representatives of business households, having annual revenue of VND 1 billion or less are not required to pay PIT.
2. Addition of a CIT exemption case
Article 3 of Law No. 09/2026/QH16 adds Clause 14a after Clause 14 Article 4 of the Law on Corporate Income Tax regarding tax-exempt income, effective from January 1, 2026, as follows:
“14a. Income of enterprises and organizations established under the laws of Vietnam having total annual revenue not exceeding the threshold prescribed by the Government is exempt from corporate income tax. Based on macroeconomic indicators and budget balancing capacity, the Government shall prescribe the total annual revenue threshold appropriate to the socio-economic context in each period.”
Accordingly, the new Law authorizes the Government to prescribe the annual revenue threshold eligible for CIT exemption.
Currently, Article 2 of Decree No. 141/2026/ND-CP amending Article 4 of Decree No. 320/2025/ND-CP provides that CIT-exempt income includes income of enterprises and organizations established under Vietnamese law having total annual revenue of VND 1 billion or less.
3. Extension of excise tax incentives for electric vehicles
Article 4 of Law No. 09/2026/QH16 amends and supplements regulations on battery-powered vehicles with fewer than 24 seats specified at Point g Item 4 Part I of the Excise Tariff Schedule promulgated together with Clause 1 Article 8 of the Law on Excise Tax as follows:
Goods and services
Tax rate (%)
Passenger cars and four-wheeled passenger vehicles with engines having 9 seats or fewer; pick-up passenger vehicles
From January 1, 2026: 3% From January 1, 2031: 11%
Passenger cars and four-wheeled passenger vehicles with engines having from 10 to under 16 seats
From January 1, 2026: 2% From January 1, 2031: 7%
Passenger cars and four-wheeled passenger vehicles with engines having from 16 to under 24 seats
From January 1, 2026: 1% From January 1, 2031: 4%
Double-cabin pick-up trucks and VAN trucks having two or more rows of seats and a fixed partition between the passenger compartment and the cargo compartment
From January 1, 2026: 2% From January 1, 2031: 7%
Previously, these battery-powered vehicles were scheduled to be subject to increased excise tax rates from March 1, 2027.
However, the new Law extends the application period of the current preferential tax rates until January 1, 2031 in order to promote the electric vehicle market and support emission reduction goals.
Above are the key changes introduced by Law No. 09/2026/QH16 regarding PIT, VAT and CIT.
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