From January 1, 2026, Enterprises with annual total revenue below VND 01 billion to be exempt from Corporate Income Tax (CIT)

On April 29, 2026, the Government promulgated Decree No. 141/2026/ND-CP amending and supplementing certain articles of Decree No. 68/2026/ND-CP on tax policies applicable to household businesses and individual businesses, and Decree No. 320/2025/ND-CP elaborating certain articles and measures for the implementation of the Law on Corporate Income Tax. Accordingly:

Supplementing Clause 15 to Article 4 of Decree No. 320/2025/ND-CP, tax-exempt income includes income of enterprises or organizations with annual total revenue not exceeding VND 01 billion, specifically as follows:

- The annual total revenue used as the basis for determining whether an enterprise is eligible for CIT exemption means the total revenue from the sale of goods and provision of services (excluding revenue deductions), revenue from financial activities and other income stated in the Appendix on production and business results enclosed with the CIT settlement return of the immediately preceding tax period; 

- Where an enterprise has operated for less than 12 months in the immediately preceding tax period, the total revenue of such preceding tax period shall be determined by dividing the actual total revenue generated during that tax period by the number of months during which the enterprise actually conducted production and business activities in that tax period and multiplying the result by 12 months. Where an enterprise is newly established, converted into another type of enterprise, changes ownership form, undergoes consolidation, merger, full division or partial division in any month of the immediately preceding tax period, its operating duration shall be calculated on a full-month basis; 

- Where an enterprise is newly established during the tax period and its projected total revenue for the tax period does not exceed VND 01 billion, it shall not be required to make provisional CIT payments.  At the end of the tax period, if the actual total revenue exceeds VND 01 billion, the enterprise shall declare and settle CIT payments in accordance with regulations and shall not be subject to late payment interest;

- The tax exemption prescribed in this clause shall not apply to enterprises established in accordance with Vietnamese law that are subsidiaries or affiliated enterprises where the affiliated enterprise does not satisfy the tax exemption conditions prescribed in this clause. 

Therefore, according to the aforementioned regulations, officially from January 1, 2026, the enterprise will not have to pay corporate income tax if its annual revenue does not exceed VND 01 billion.

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-The translation is for reference only.