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Vietnam’s New Tax and Financial Policies Taking Effect in May 2026
We outline Vietnam’s tax and financial policies effective in May 2026, including tax relief for small businesses and updated compliance requirements.
Vietnam has introduced several new tax and financial policies in May 2026, combining tax relief measures for small businesses with tighter transaction monitoring and financial compliance requirements.
Alongside regulations that recently came into effect, the Vietnamese authorities are also discussing new draft measures targeting tax debt enforcement and operational standards for credit information services.
Higher tax exemption threshold and mandatory e-invoicing for larger household businesses
The Government issued Decree No. 141/2026/ND-CP on April 29, 2026, amending Decree No. 68/2026/ND-CP on tax policies for business households and small enterprises. The decree applies retrospectively from January 1, 2026.
Key changes include:
- Raises the annual revenue threshold eligible for tax exemption for business households and individual businesses from VND200 million (US$8,000) to VND1 billion (US$40,000);
- Introduces corporate income tax (CIT) exemptions for qualifying small enterprises;
- Requires business households and individuals with annual revenues above VND1 billion to use e-invoices authenticated by tax authorities;
- Expands the use of cash-register-generated e-invoices connected directly to the tax administration system.
Following the decree’s issuance, the General Department of Taxation also released Official Dispatch No. 11, requesting local authorities to immediately implement the updated exemption policies and e-invoicing requirements.
Why it matters
- Reduces tax burdens for micro and household businesses;
- Accelerates Vietnam’s digitalization of tax administration;
- Tightens oversight in cash-intensive sectors such as retail and food services;
- Improves invoice transparency and verification for businesses working with local suppliers.
Banks stop automatic instant processing for transfers above VND500 million
From May 1, 2026, banks have stopped automatically splitting transactions exceeding VND500 million (US$20,000) for instant 24/7 transfer processing.
The adjustment follows Circular 40/2024/TT-NHNN issued by the State Bank of Vietnam regulating payment intermediary services.
Key changes include:
- Transfers above VND500 million must now be processed through standard banking channels;
- Banks can no longer automatically divide large transfers into smaller amounts for instant processing;
- Customers may still manually split transfers into smaller transactions below the threshold.
Why it matters
- Strengthens oversight of high-value transactions;
- Reduces risks associated with automated payment processing;
- May affect treasury operations and payment timing for businesses handling large supplier payments.
What is currently under discussion?
Proposed travel bans for tax debts and “ghost addresses”
The Ministry of Finance has submitted a draft decree guiding the implementation of the Law on Tax Administration, proposing stricter measures against tax debt violations.
Proposed measures include:
- Individuals with tax debts of VND1 million (approximately US$40) or more could face exit bans if they are no longer operating at their registered addresses;
- Existing cases already subject to travel restrictions would remain unchanged;
- The proposal targets businesses and individuals registered at so-called “ghost addresses”.
Why it matters
- Reflects Vietnam’s efforts to strengthen tax enforcement and reduce tax avoidance;
- Could potentially affect hundreds of thousands of taxpayers if adopted;
- Has sparked debate due to the relatively low debt threshold and potential administrative complications.
Credit information services may face stricter continuity requirements
The State Bank of Vietnam is also collecting feedback on a draft amendment to Decree 58/2021 on credit information services.
Proposed measures include:
- Credit information companies would be required to strengthen cybersecurity and data protection systems;
- Companies must maintain disaster recovery mechanisms;
- Service interruptions exceeding four working hours would not be permitted.
Why it matters
- Reflects growing regulatory focus on operational resilience and data security;
- May improve reliability of Vietnam’s credit information infrastructure;
- Could increase compliance obligations for credit information providers and fintech firms.
Managing tax in Vietnam is critical for FDI companies to stay compliant with local regulations, GST requirements, and global standards such as IFRS, navigate complex filings, and apply correct tax treatments. A well-structured tax process helps to avoid penalties and stay 100% compliant.
About Us
Vietnam Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Hanoi, Ho Chi Minh City, and Da Nang in Vietnam. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Indonesia, Singapore, Malaysia, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.
For a complimentary subscription to Vietnam Briefing’s content products, please click here. For support with establishing a business in Vietnam or for assistance in analyzing and entering markets, please contact the firm at vietnam@dezshira.com or visit us at www.dezshira.com
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