The Ministry of Finance received a petition from voters in Lam Dong province, forwarded by the National Assembly's Committee on Citizen Petitions and Supervision. According to the petition, voters in Dak Mil commune requested that the competent authorities review and adjust the tax policy to be more appropriate, arguing that applying the same tax rate to business households with revenues ranging from 200 million VND to less than 3 billion VND is unreasonable.
In response to the proposal, the Ministry of Finance stated that on December 10, 2025, the National Assembly passed Law No. 109/2025/QH15 on Personal Income Tax, which adjusted the tax-exempt revenue threshold for individual businesses to VND 500 million per year and allows this amount to be deducted before calculating tax based on a percentage of revenue.
At the same time, the Law added a method for calculating income tax (revenue - expenses) for individual business owners.
Specifically, individuals with annual revenue between 500 million VND and 3 billion VND are subject to a 15% tax rate on income; individuals with annual revenue between 3 billion VND and 50 billion VND are subject to a 17% tax rate on income; and individuals with annual revenue exceeding 50 billion VND are subject to a 20% tax rate on income.
The law has adjusted the tax-exempt revenue threshold for individual businesses to 500 million VND per year and allows this amount to be deducted before calculating tax based on a percentage of revenue. Photo: Nguyen Le
According to the Ministry of Finance, this regulation is also consistent with the provisions of the Corporate Income Tax Law No. 67/2025/QH15 (a tax rate of 15% applies to businesses with total annual revenue not exceeding 3 billion VND; a tax rate of 17% applies to businesses with total annual revenue from over 3 billion VND to not exceeding 50 billion VND).
Individuals with annual revenue exceeding 500 million VND up to 3 billion VND can choose to have their tax calculated based on either a percentage of revenue or income.
Accordingly, individuals with annual revenue of 500 million VND or less are not required to pay personal income tax. Individuals with annual revenue between 500 million VND and 3 billion VND can choose to calculate tax based on a percentage of revenue or based on income. If an individual chooses the method of calculating tax based on a percentage of revenue, they are allowed to deduct 500 million VND before calculating personal income tax. The percentage of revenue is determined according to each specific industry.
According to data as of October 2025, there are over 2.54 million regular business households. With the aforementioned regulations, the Ministry of Finance anticipates that approximately 2.3 million business households will be exempt from taxes (accounting for about 90% of the total 2.54 million business households). In addition to these tax-exempt individual business owners, the majority of the remaining individual business owners have revenues ranging from 500 million to 3 billion VND.
Accordingly, the regulations on personal income tax for business owners in the aforementioned Personal Income Tax Law have been carefully studied and calculated to ensure they are consistent with the characteristics and business conditions of current business owners. This contributes to reducing tax obligations for the majority of business owners and encourages them to develop production and business activities.
What are the procedures and documents for registering dependents for tax deductions when settling personal income tax, given that the Personal Income Tax Law No. 109/2025 takes effect from July 1, 2026?
Source: https://vietnamnet.vn/bo-noi-ro-ve-kien-nghi-dieu-chinh-thue-ho-kinh-doanh-co-doanh-thu-den-3-ty-dong-2488740.html
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