By raising the taxable revenue threshold for household businesses to VND1 billion and granting corporate income tax exemptions for small firms, the new regulation aims to alleviate financial burdens and stimulate economic growth.
On the afternoon of April 29, just ahead of the national holidays, Nguyen Thanh Hung, an owner of a household business in Ho Chi Minh City, received news that the taxable revenue threshold had been doubled from VND500 million to VND1 billion per year. Hung, who operates an F&B business with an annual revenue of approximately VND2 billion, expressed his relief. Under the new policy, his annual tax liability will drop from VND67.5 million to approximately VND45 million.
Similarly, Tran Ngoc Nguyen, a pesticide distributor in Lam Dong Province, noted that the VND1 billion threshold provides meaningful support. With an estimated annual revenue of VND1.2 billion, he will now only be taxed on the VND200 million exceeding the threshold. Nguyen added that filing and paying taxes via the eTax Mobile application remains seamless and efficient.
Beyond business households, Decree 141 stipulates that enterprises with annual revenues under VND1 billion are now exempt from Corporate Income Tax (CIT). Director Tran Xuan Dieu of a small educational firm in Hiep Binh Ward, Ho Chi Minh City, believes this is a game-changer.
Previously, many entrepreneurs preferred the business household model due to its tax advantages. He was delighted at the news, saying that with this amendment, many small-scale entrepreneurs will be encouraged to formally incorporate their businesses in line with state policy.
Taxpayers seek clarity on overpayments as new policy takes effect
While Decree 141 offers relief with a higher tax threshold, some households are grappling with refund procedures after accidental overpayments, highlighting the importance of clear guidance in policy rollout.
While welcoming the new policy, some taxpayers are seeking clarity on how to handle overpaid taxes. Nguyen Thanh Nguyen, a resident of Tay Ninh Province, shared his struggles with requesting a refund on the National Public Service Portal after accidentally submitting multiple payments.
According to Director Tran Thi Mai Thao of Gia Long Tax Consulting and Services Company, the VND1 billion threshold is a major boost for both individual traders and micro-enterprises. Since the deadline for Q1-2026 tax returns was early May, most households have already completed their filings and payments.
Regarding overpayments, Decree 141 clearly outlines procedures for refunds or offsets against future liabilities, ensuring that taxpayers can proceed with confidence.
Economic experts laud the Government’s responsiveness to market realities. Business households and small and medium enterprises (SMEs) are vital components of the economy. Policies that align with practical needs not only support these entities but also benefit their dependents, fostering a more resilient national economy.
