Under Decree No. 141/2026/ND-CP, the household businesses with annual revenue of 1 billion VND or less will not have to pay personal income tax and value-added tax.

The new decree also regulates a similar tax-free revenue threshold of 1 billion VND per year for small enterprises.

However, the tax exemption does not apply to those that have affiliated relationships or are subsidiaries of other enterprises that do not meet the conditions.

For household businesses with revenue above 1 billion VND, they are required to use electronic invoices generated from cash registers connected to the tax authority.

In case a business initially determines its revenue is below 1 billion VND but later exceeds this threshold within the tax year, it must register to use electronic invoices within 30 days.

The regulation takes effect from January 1, 2026. Therefore, if household businesses or individuals with revenue of 1 billion VND or less have already declared and paid taxes in the first quarter of this year, the paid amount will be offset or refunded.