DA NANG VILLA REALTY

Vietnam continues to refine its legal and tax framework to support business growth and attract both domestic and international investment. Recently, the National Assembly officially passed amendments to four key tax laws, which will take effect from January 1, 2026.

These changes are particularly significant for small businesses, entrepreneurs, and foreign investors seeking opportunities in rapidly growing cities such as Da Nang.

Key changes in the Tax Law (applicable to customers with a registered individual business)
The amended law includes updates to the following:

- Personal Income Tax (PIT)
- Value Added Tax (VAT)
- Corporate Income Tax (CIT)
- Special Consumption Tax (SCT)

Among these, the most notable adjustments directly impact the business operations of small enterprises and individual entrepreneurs.

1. Higher Tax Exemption Threshold for Small Businesses

One of the most impactful changes is the increase in the annual revenue threshold for tax exemption:
- Old threshold: VND 500 million (~USD 20,000)
- New threshold: VND 1 billion (~USD 40,000)

This means that individuals and household businesses earning below this new threshold will not be subject to Personal Income Tax (PIT).

Why this matters:

- Encourages small-scale entrepreneurship
- Reduces financial pressure for startups
- Creates a more flexible environment for testing new business ideas

2. VAT Exemption for Small-Scale Business Activities

- The amended VAT law also adopts a similar approach:

- Businesses and individuals with annual revenue below the threshold set by the government will not be required to pay VAT on goods and services.

3. Broader Economic Impact

The government estimates that:

- Approximately 235,800 businesses will benefit
- Around VND 2.164 trillion in Personal Income Tax will be exempted

This reflects a clear policy direction: supporting grassroots business growth and stimulating the local economy.

Implications for Foreign Investors

If you are planning to invest in Vietnam, especially in emerging tourism and lifestyle hubs such as Da Nang, these tax reforms offer several advantages:

- Lower entry barriers
- The ability to start on a smaller scale with reduced tax obligations, making it easier to enter the market

Practical implications:

- Reduces operating costs for small businesses
- Simplifies tax compliance
- Enhances competitiveness in the domestic market

This is particularly beneficial in tourism-driven cities such as Da Nang, where many businesses start on a small scale--such as homestays, cafés, or niche retail shops.

Vietnam is demonstrating a clear commitment to creating a business-friendly environment, especially for small and medium-sized enterprises. These tax reforms are not merely administrative changes, but strategic steps to foster innovation, entrepreneurship, and sustainable economic growth.

For foreign investors, this is a strong signal that now is an excellent time to explore opportunities in Vietnam.

－Contact Us－

At DVR (Da Nang Villa Realty), we offer a wide range of real estate options in Da Nang City and nearby areas -- including condominiums, serviced apartments, offices, and retail spaces.

Whether you are relocating, on a long-term assignment, planning to move to Vietnam, or expanding your business, we can introduce properties that best suit your purpose.

Please feel free to contact us via email, LINE, or phone with your preferred area, budget, size, and layout requirements.

At DVR, a licensed Japanese real estate broker is always on-site.
We also have two full-time Vietnamese staff members who can assist you in Japanese and English.

For rental or sales brokerage in Da Nang, trust the experienced team at Da Nang Villa Realty (DVR).

Contact Information

Da Nang Office
Phone: +84-79.509.3575
Email: infodvr@danangvillarealty.com

Japan Office
Phone: +81-98.369.3575