2026 Vietnam Tax Policy Update: Effective Dates of New Tax Laws

From mid-2025 through end-2026, Vietnam is carrying out its deepest tax reform in over a decade: five major tax laws newly issued or comprehensively amended — value-added tax, corporate income tax, personal income tax, special consumption tax, and tax administration — plus support policies such as VAT cut to 8% and a 30% income tax reduction. Knowing the correct effective dates of the new tax laws 2026 not only helps enterprises avoid applying the wrong rate, but is a precondition for claiming the incentives and reliefs just issued. This article compiles all effective dates verified against the original texts, arranged chronologically, with action items for FDI enterprises, small businesses, and household businesses.

Contents

• 1. Overview: the 2025–2026 tax reform map
• 2. Detailed effective-date schedule
• 3. Practical impact on enterprises
• 4. Action items and deadlines
• 5. Open points to keep monitoring
• 6. Frequently asked questions

1. Overview: the 2025–2026 tax reform map

The table below summarizes the seven key statutes of the reform wave, with the instruments they replace:

The easiest confusion to clear up front: VAT Law 2024 did not take effect on 1/1/2026 as many assume — it took effect on 1/7/2025. Only two groups of provisions — the household business revenue threshold and Article 17 — took effect on 1/1/2026. Getting this date wrong means applying the wrong legal framework to all H2 2025 transactions.

2. Detailed effective-date schedule

The new tax laws took effect in three big waves — 1/7/2025, 1/10/2025, and 1/1/2026 — followed by the full effect of the 2025 PIT Law and the 2025 Tax Administration Law from 1/7/2026. This section arranges all the dates chronologically, with the corresponding guidance instruments, so enterprises can quickly look up the correct framework for each tax period.

2.1. Laws already effective in 2025

From 1/7/2025 — VAT Law 2024 and the 8% VAT policy. Most provisions of Law No. 48/2024/QH15 began applying on this date, replacing the 2008 VAT Law. Three important instruments took effect simultaneously:

• Decree 181/2025/ND-CP (issued and effective 1/7/2025) detailing implementation of the 2024 VAT Law. The most directly impactful point for corporate accounting is Article 26: purchased goods and services of VND 5 million or more (VAT-inclusive) must have non-cash payment documents to qualify for input VAT deduction. Multiple purchases in the same day from the same seller totaling VND 5 million or more must also meet this condition. The only exclusion is where the buyer pays cash into the seller's account.
• Circular 69/2025/TT-BTC (1/7/2025) detailing the 2024 VAT Law and Decree 181/2025.
• VAT cut from 10% to 8%: Resolution 204/2025/QH15 (17/6/2025) cut the rate by 2 percentage points from 1/7/2025 through 31/12/2026; Decree 174/2025/ND-CP (30/6/2025) provides the details. Excluded from the cut: telecommunications, finance, banking, securities, insurance, real estate business, and goods and services subject to SCT (except gasoline — gasoline entered the cut from 1/7/2026). Household and individual businesses taxed on a percentage of revenue receive a 20% reduction of the percentage rate when issuing invoices.

From 1/10/2025 — CIT Law 2025. Law No. 67/2025/QH15 replaced the 2008 CIT Law, applying tiered rates by revenue (Article 10): the standard 20%; enterprises with total annual revenue of no more than VND 3 billion apply 15%; over VND 3 billion up to VND 50 billion apply 17%. The basis is the total revenue of the immediately preceding tax period. The Law also expands the taxpayer scope to foreign enterprises, e-commerce, and digital platforms generating income in Vietnam — a point FDI enterprises with cross-border payment structures should note carefully.

2.2. The 1/1/2026 wave: the biggest change set

SCT Law 2025 in force. Law No. 66/2025/QH15 replaced the 2008 SCT Law. Beyond systematizing the taxable scope (alcohol, beer, tobacco, cars under 24 seats, karaoke, massage, casino, golf, lottery…), the Law for the first time brings sugary beverages exceeding the TCVN threshold into SCT under a roadmap: 8% from 1/1/2027 and 10% from 1/1/2028. For tobacco, the Law sets the 2027–2031 absolute-tax-increase roadmap.

The VND 1 billion/year threshold for household and individual businesses. From 1/1/2026:

• Goods and services of producing and trading households and individuals with annual revenue of VND 1 billion or less are exempt from VAT — Law No. 149/2025/QH15 had raised the threshold from VND 200 million to VND 500 million, then Law No. 09/2026/QH16 assigned the Government to set the level from time to time, and Decree 141/2026/ND-CP (issued 29/4/2026, effective 1/1/2026) fixed it at VND 1 billion per year.
• Resident individuals with production and trading activities with annual revenue of VND 1 billion or less are exempt from PIT (Clause 1, Article 7 of the 2025 PIT Law, guided by Decree 141/2026/ND-CP).

The two thresholds are synchronized. A point many household businesses miss: revenue below VND 1 billion still requires tax declaration — exemption does not mean exemption from filing. For revenue above VND 1 billion, business individuals are taxed by revenue bracket under the 2025 PIT Law and guidance decrees (Decrees 141/2026, 253/2026/ND-CP), demanding far tighter bookkeeping than the old presumptive mechanism. Households that declared and paid Q1 2026 tax under the old VND 500 million threshold have overpaid amounts offset or refunded.

Removing the VAT refund condition "seller must have declared and paid tax". Law No. 149/2025/QH15 abolished point c, Clause 9, Article 15 of the 2024 VAT Law — from 1/1/2026, buyers are no longer denied refunds merely because the seller had not declared and paid tax on the issued invoices. This directly benefits exporters and enterprises with large un-deducted input VAT balances.

Some provisions of the 2025 Tax Administration Law in early effect. Under the transitional rules, Article 13 and the use of e-invoices by household and individual businesses (Article 26 of Law No. 108/2025/QH15) took effect from 1/1/2026 — half a year ahead of the Law's general effective date.

New family deduction levels. Resolution 110/2025/UBTVQH15 adjusted the family deduction: VND 15.5 million per month for the taxpayer and VND 6.2 million per month for each dependent; effective 1/1/2026, applying from the 2026 tax period, replacing Resolution 954/2020/UBTVQH14.

Articles 1–3 of Law 09/2026/QH16 effective from 1/1/2026 (although the Law was passed 24/4/2026): abolishing the fixed VND 500 million threshold in favor of a flexible Government-set level based on macroeconomic conditions and budget balance. Immediately after, on 29/4/2026, the Government issued Decree 141/2026/ND-CP (amending Decree 68/2026/ND-CP) fixing the VAT and PIT exemption threshold for household and individual businesses at VND 1 billion per year, effective 1/1/2026 — see the analysis in section 5.

2.3. The 24/4/2026 wave: the law amending 4 tax laws

On 24/4/2026, the 16th National Assembly (first session) passed Law No. 09/2026/QH16 amending and supplementing several articles of 4 laws: PIT, VAT, CIT, and SCT. The Law took effect on the passing date; Articles 1, 2, and 3 took effect from 1/1/2026 as noted in section 2.2. Three points of note:

• Shifting the threshold mechanism from a hard figure to a flexible Government-set level (applying to the PIT and VAT exemption thresholds for household and individual businesses).
• Adding a CIT exemption: income of enterprises and organizations with total annual revenue at or below the Government-set level is exempt from CIT.
• Adjusting the SCT policy for battery electric vehicles toward extending incentives.

As the specific levels are assigned to the Government, enterprises should follow the guidance decrees to determine obligations correctly for the 2026 tax period.

2.4. The 1/7/2026 wave: the PIT Law and the Tax Administration Law

The 2025 PIT Law in full effect (except the provisions on business income, wages, and salaries of resident individuals already applied from the 2026 tax period). Core new points:

• The progressive tariff simplified from 7 brackets to 5 for wage and salary income.
• New taxable income expanded: remuneration and monetary or non-monetary benefits in all forms; income from transferring Vietnam's ".vn" internet domain names, from transferring greenhouse gas emission reduction results (carbon credits), from transferring auctioned license plates, from transferring digital assets, and from transferring gold bars.
• Expanded exemptions: income from voluntary pension funds and supplementary retirement insurance; income of sole proprietorship owners and single-member LLC owners after CIT has been paid is exempt from PIT — resolving a years-long double-taxation issue.
• Synchronized guidance effective the same 1/7/2026: Decree 253/2026/ND-CP (guiding the 2025 PIT Law), Circular 87/2026/TT-BTC.

The 2025 Tax Administration Law in full effect. Law No. 108/2025/QH15 replaced the 2019 Tax Administration Law, built leaner: from 17 chapters and 152 articles down to 9 chapters and 53 articles; 32 articles assigned to the Government and 24 to the Ministry of Finance for detailed regulation. Notable new points: automatic refund, exemption, and reduction mechanisms based on risk analysis; new prohibited acts (abusing positions to disclose taxpayer information; creating unlawful e-invoices and documents…); all tax debts arising before 1/7/2026 handled under the new law. The guidance cluster issued 30/6/2026, effective 1/7/2026: Decree 252/2026/ND-CP (detailing the 2025 Tax Admin Law), Decree 254/2026/ND-CP (invoices and documents), Decree 255/2026/ND-CP (tax administration for related-party transactions), Circulars 90, 91, 94/2026/TT-BTC.

Important note: the 8% VAT policy continues through 31/12/2026, running in parallel with the newly effective laws.

2.5. The 24/8/2026 wave: the 30% income tax cut

Resolution 43/2026/QH16 was passed by the National Assembly on 24/8/2026, effective immediately and applying to the 2026 and 2027 tax periods:

• A 30% reduction of payable PIT for the 2026 and 2027 tax periods for resident individuals with business income, if the corresponding year's annual revenue does not exceed VND 10 billion.
• A 30% reduction of payable CIT for the 2026 and 2027 tax periods for enterprises and organizations established under Vietnamese law with annual revenue not exceeding VND 10 billion.

Three points to get right: (i) the 30% reduces the tax payable, not the rate or the revenue; (ii) enterprises enjoying tax incentives still get the additional cut — the reduction is computed on tax payable after deducting incentives; (iii) not applicable to enterprises formed from splits or divisions after the Resolution's effective date if the combined revenue of the resulting enterprises exceeds VND 10 billion. The detailed guidance decree is being prepared by the Ministry of Finance, expected before the Government in October 2026.

2.6. Roadmap from 2027

• 1/1/2027: SCT on sugary beverages exceeding the TCVN threshold starts at 8%; from 1/1/2028 it rises to 10%.
• 2027–2031: the absolute-tax-increase roadmap for tobacco. Enterprises in the production, import, and distribution chains of these two product groups should build the tax roadmap into pricing and budgeting plans now, rather than waiting until the application date approaches.

3. Practical impact on enterprises

FDI enterprises: the tiered CIT rates of 15%/17%/20% by revenue open optimization opportunities for small and mid-size subsidiaries, but require correctly determining the basis revenue (total revenue of the immediately preceding tax period). Decree 255/2026/ND-CP on tax administration for related-party transactions (effective 1/7/2026) requires reviewing transfer pricing policies and arm's-length documentation. The VAT deduction tied to non-cash payments from VND 5 million (Article 26, Decree 181/2025) forces standardization of the entire payment process with domestic suppliers — including amounts authorized to employees for payment on behalf.

Small and medium enterprises: the 30% CIT cut for 2026–2027 (revenue not exceeding VND 10 billion) is direct cash-flow support; the abolition of the VAT refund condition "seller must have declared and paid tax" reduces the risk of refunds frozen by a counterparty's error — a problem that once kept many exporters waiting for long periods.

Household and individual businesses: the VND 1 billion per year threshold exempting both VAT and PIT (Decree 141/2026/ND-CP) is 5–10 times the old level, but comes with declaration and e-invoice obligations from 1/1/2026; the bracket-based taxation above VND 1 billion demands a different class of bookkeeping discipline.

Employees and HR departments: the 5-bracket PIT tariff with the new family deduction levels (VND 15.5 million / 6.2 million per month) applies to wage and salary income from the 2026 tax period — enterprises need to update payroll tables and withholding at source from the year's start, avoiding retrospective adjustments at finalization.

4. Action items and deadlines

1. In Q4 2026: review internal tax policies and pricing clauses in customer and supplier contracts — especially long-term contracts signed before 1/7/2025 that did not account for the 2024 VAT Law and the 8% VAT policy.
2. Standardize payments: every purchase of VND 5 million (VAT-inclusive) or more must have non-cash payment documents — re-check advance-payment processes, payments through employees' personal accounts, and multiple same-day purchases.
3. Assess incentives and cuts: determine whether the enterprise qualifies for the 30% CIT cut under Resolution 43/2026 (2026 revenue not exceeding VND 10 billion) and compute correctly on post-incentive tax; follow the guidance decree expected in October 2026.
4. VAT refunds: review refund dossiers frozen under the old condition and prepare to re-file under the new mechanism from 1/1/2026.
5. Household businesses: complete books and e-invoices; the first declaration period for most household businesses is Q1 2026, due no later than 30/4/2026 — preparation must start at the year's beginning.
6. Track guidance: the decree on the CIT exemption threshold (Law 09/2026/QH16 assigns the Government to set it) and the decree guiding Resolution 43/2026 — the two instruments deciding practical application for the 2026 tax period. (The household/individual business threshold has already been fixed at VND 1 billion per year by Decree 141/2026/ND-CP.)

5. Open points to keep monitoring

• Household business exemption threshold: Decree 141/2026/ND-CP (issued 29/4/2026, effective 1/1/2026) has fixed the VAT and PIT exemption threshold for household and individual businesses at VND 1 billion per year; households that declared and paid Q1 2026 tax under the old VND 500 million threshold have overpaid amounts offset or refunded. The point to keep monitoring: this level is Government-set from time to time and may be adjusted with macroeconomic conditions and budget balance, so update whenever new regulations come.
• Decree guiding Resolution 43/2026: the quarterly provisional payment mechanism, how to handle revenue crossing the VND 10 billion threshold mid-year, and the procedure for declaring the 30% cut are still in draft. Enterprises should provisionally pay in full and separately account for the expected reduction, avoiding late-payment interest risk from misinterpretation.
• Details of the individual business tax brackets: the 2025 PIT Law provides bracket-based taxation for revenue above VND 1 billion (per Decree 141/2026/ND-CP), but the percentage and rate levels for each bracket need direct comparison with the statute and Decree 253/2026/ND-CP — this article states no hard figures to avoid misapplication.
• SCT roadmaps for tobacco and sugary beverages: the year marks are clear, but the detailed annual tax schedule needs direct comparison with the 2025 SCT Law and guidance before pricing plans are made.
• Property tax: as of 27/9/2026, no property tax law has been passed by the National Assembly; this is a point to watch in upcoming sessions, with no current obligation arising.

6. Frequently asked questions

When did the 2024 VAT Law take effect? Most provisions took effect on 1/7/2025, replacing the 2008 VAT Law. Only two groups of provisions — the household business revenue threshold and Article 17 — took effect on 1/1/2026.

Up to what revenue are household businesses exempt from tax in 2026? VND 1 billion per year or less: no VAT and no PIT. This threshold is Government-set from time to time (Law 09/2026/QH16); Decree 141/2026/ND-CP currently fixes it at VND 1 billion per year, effective 1/1/2026. Note that tax declaration is still required.

Does my enterprise get the 30% CIT cut in 2026? If 2026 revenue does not exceed VND 10 billion, the enterprise gets a 30% reduction of payable CIT for the 2026 (and 2027) tax period under Resolution 43/2026/QH16; the cut is computed on tax after deducting incentives. The detailed guidance decree should be followed.

Can input VAT be deducted for invoices over VND 5 million paid in cash? No. Under Article 26 of Decree 181/2025/ND-CP, purchased goods and services of VND 5 million or more (VAT-inclusive) must have non-cash payment documents to qualify for input VAT deduction.

Until when does the 8% VAT policy apply? Through 31/12/2026 under Resolution 204/2025/QH15 and Decree 174/2025/ND-CP, except the excluded goods and services (telecommunications, finance – banking – securities – insurance, real estate, SCT-subject goods and services except gasoline).

Need a tax compliance review for your enterprise?

The effective dates of the 2025–2026 new tax laws interleave across many dates — misapplying one can lead to wrong declarations, lost incentives, or additional assessments. FLAT's tax lawyers support FDI and Vietnamese enterprises with comprehensive tax obligation reviews, internal policy updates, and old-law/new-law transition handling. Contact our hotline 0988424851 for advice on your enterprise's specific case.

Language versions

References

• Value-Added Tax Law No. 48/2024/QH15 (passed 26/11/2024).
• Law amending and supplementing several articles of the Value-Added Tax Law No. 149/2025/QH15 (passed 11/12/2025).
• Corporate Income Tax Law No. 67/2025/QH15 (passed 14/6/2025).
• Personal Income Tax Law No. 109/2025/QH15 (passed 10/12/2025).
• Special Consumption Tax Law No. 66/2025/QH15 (passed 14/6/2025).
• Tax Administration Law No. 108/2025/QH15 (passed 10/12/2025).
• Law No. 09/2026/QH16 amending and supplementing several articles of 4 tax laws (passed 24/4/2026).
• Resolution No. 204/2025/QH15 on VAT reduction (17/6/2025).
• Resolution No. 43/2026/QH16 on PIT and CIT reduction (24/8/2026).
• Resolution No. 110/2025/UBTVQH15 on family deduction adjustment.
• Decrees No. 181/2025/ND-CP (1/7/2025); No. 174/2025/ND-CP (30/6/2025); No. 141/2026/ND-CP amending Decree 68/2026/ND-CP (issued 29/4/2026, effective 01/01/2026); Decrees No. 252, 253, 254, 255/2026/ND-CP (30/6/2026).