Business households with annual revenue of 500 million VND may be exempt from tax (Illustration photo)
The Ministry of Finance has just sent an official dispatch to the Government regarding the reception and explanation of review opinions and opinions of National Assembly deputies on the draft Law on Personal Income Tax (amended).
Accordingly, on the basis of listening to and absorbing the opinions of National Assembly deputies, in order to regulate personal income tax for households and individuals doing business in accordance with reality, ensuring fairness with personal income tax from salaries and wages, including value added tax (VAT), the Ministry of Finance proposed that the Government adjust the increase in the non-taxable revenue for business households from 200 million VND to 500 million VND/year, meaning that business households only pay tax on revenue exceeding 500 million VND/year.
For example, if a business household has a revenue of 501 million VND/year, the household owner only pays tax on the revenue of 1 million VND.
At the same time, the Ministry of Finance added regulations that households and individuals doing business with revenue from 500 million to 3 billion VND/year will be taxed based on profit (revenue minus expenses), with a tax rate of 15%.
In addition, the Ministry of Finance also proposed adjusting the tax rates of 2 of the 5 progressive tax rates for personal income of people with income from salaries and wages. Specifically, reducing the tax rate of 15% (at level 2) to 10% and the tax rate of 25% (at level 3) to 20%.
Accordingly, employees and wage earners with an average monthly taxable income of 10 million VND pay 5% tax; 10 million VND to 30 million VND pay 10% tax; 30 million VND to 60 million VND pay 20% tax; 60 million VND to 100 million VND pay 30% tax; over 100 million VND pay 35%.
Source: https://nld.com.vn/bo-tai-chinh-de-nghi-tang-doanh-thu-mien-thue-len-500-trieu-dong-nam-196251128195236293.htm
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