Tax and Finance Newsletter – May 2026

ACAC – Tax and Finance Newsletter, May 2026

Tax-Exempt Revenue Threshold for Business Households Raised to VND 1 Billion/Year, as the National Assembly Grants the Government Authority to Flexibly Adjust the Taxable Revenue Threshold

At Anh Consulting and Auditing Co., Ltd. (ACAC), we place strong emphasis on keeping pace with regulatory developments and providing accurate professional knowledge to help businesses make effective financial decisions, remain compliant, and adapt flexibly in a changing policy environment.

May 2026 saw an important legislative change: the National Assembly no longer fixes the taxable revenue threshold directly in law, but instead grants the Government the authority to adjust it flexibly from time to time — and shortly thereafter, the tax-exempt revenue threshold for business households was raised from VND 500 million to VND 1 billion/year. ACAC’s May 2026 newsletter summarizes the most notable updates to help enterprises and business households stay informed and adjust accordingly in a timely manner.

Tax Policy Guidance and Updates

Value-Added Tax (VAT)

On 5 May 2026, the Government issued Decree No. 144/2026/ND-CP amending the regulations on non-cash payment documentation for goods and services purchased on deferred or installment payment terms valued at VND 5 million or more. Under the new regulation, a business establishment remains entitled to deduct input VAT even without non-cash payment documentation, provided the contractual payment date has not yet arrived — a significant relaxation compared to the previous regulation. Only once the contractual payment date has arrived without the enterprise having obtained non-cash payment documentation must it declare and reduce the corresponding input VAT deduction; if the documentation is subsequently obtained, the deduction may be reclaimed.

Major Change to the Taxable Revenue Threshold for PIT, VAT, and CIT

On 24 April 2026, the National Assembly adopted Law No. 09/2026/QH16 amending and supplementing the Law on PIT, the Law on VAT, the Law on CIT, and the Law on Special Consumption Tax. The most important change: the Law abolishes the fixed revenue threshold (VND 500 million) previously set directly in law, replacing it with a mechanism under which the Government prescribes the appropriate threshold for each period, based on macroeconomic indicators and the capacity of the state budget — applicable to both the PIT and VAT exemption thresholds for business households and business individuals. The Law also adds a new provision: an enterprise or organization with total annual revenue at or below the level prescribed by the Government will be exempt from CIT — a policy directly supporting small and micro enterprises. The Law takes effect from 24 April 2026, with the provisions on the revenue threshold applied retroactively from 1 January 2026.

Personal Income Tax (PIT)

Under Decision No. 1109/QD-BTC (8 May 2026), the quarterly PIT declaration procedure for organizations and individuals paying income subject to withholding on wages and remuneration has been re-regulated: the quarterly tax declaration dossier must be filed no later than the last day of the first month of the following quarter, using Declaration Form No. 05/KK-TNCN together with the Appendix allocating the tax amount among the localities entitled to the revenue (Form No. 05-1/PBT-KK-TNCN). The procedure for registering PIT withholding documents is carried out separately under Decree No. 70/2025/ND-CP.

Other Taxes

On 13 May 2026, the Ministry of Finance issued Circular No. 50/2026/TT-BTC replacing a series of forms relating to taxation of business households (Form No. 01/TKN-CNKD, 01/CNKD, 01/BDS, 02/BK-KTBDS). Notably, the Government had earlier issued Decree No. 141/2026/ND-CP amending Decree No. 68/2026/ND-CP, officially raising the taxable revenue threshold for business households from VND 500 million to VND 1 billion/year, applicable from 1 January 2026 — this is the implementing document giving concrete effect to the new policy under Law No. 09/2026/QH16 noted above. A business household with annual revenue of VND 1 billion or less that has not yet filed its Q1 2026 tax declaration dossier, or has not yet sent its Account/E-Wallet Number Notification, must do so no later than 31 July 2026. Regarding foreign contractor tax, Official Letter No. 3326/CT-CS (22 May 2026) provides guidance on the principles for considering tax exemption or reduction under a Double Taxation Avoidance Agreement: the foreign contractor must hold a valid Certificate of Residence, demonstrate that it is the beneficial owner of the income (rather than merely the recipient of the payment), and the tax authority will re-determine the substance of the income as well as whether a permanent establishment has arisen in Vietnam before applying the preferential tax rate under the Agreement. The Official Letter also notes that an application for tax exemption or reduction under an Agreement is not a tax declaration dossier, and therefore late submission of such an application is not subject to an administrative penalty for late tax declaration.

Other Matters

On 15 May 2026, the Ministry of Home Affairs issued Circular No. 08/2026/TT-BNV providing detailed guidance on electronic labor contracts, effective from 1 July 2026: each electronic labor contract submitted to the Electronic Labor Contract Platform will be assigned a unique identification (ID) code, which remains unchanged throughout the contract’s lifecycle, including upon amendment, suspension, or termination. Employers should monitor this development and prepare the necessary connection infrastructure ahead of the effective date. On social insurance, on 29 April 2026 Vietnam Social Security issued Decision No. 366/QD-BHXH prescribing the procedure for registering and adjusting information for participation in social insurance (SI), health insurance (HI), and unemployment insurance (UI), and for issuing the SI book and HI card — participants may use the VNeID level-2 application, the VssID application, or email to receive and use the electronic SI book and HI card.

Transparency – Updates – Partnership

Through its monthly newsletter, ACAC aims not only to deliver authoritative information but also to help enterprises and business households understand the practical impact of policy changes, enabling them to proactively adjust their financial strategies and risk management.

We believe that transparency, professional rigor, and timely updates form the foundation for the sustainable growth of Vietnam’s business community in this era of global integration.

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