According to the draft Law submitted to the National Assembly , the tax-free revenue level maintained according to the provisions of the Law on Value Added Tax No. 48/2024/QH15 is 200 million VND/year; at the same time, it is stipulated that individuals with revenue over 3 billion VND are subject to personal income tax at the same rate as small and medium enterprises. Specifically, in the case of business individuals with revenue from 3 billion to 50 billion VND/year, the tax rate is 17%; in the case of revenue over 50 billion VND/year, the tax rate is 20%. The Government is assigned the authority to adjust the tax-free revenue level.
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, the Ministry of Finance proposed that the Government adjust the tax-free revenue for business households from 200 million VND to 500 million VND/year. At the same time, this 500 million VND/year is also the amount deducted before paying tax according to the rate on revenue.
According to the Ministry of Finance, applying this revenue level, according to current data managed by the tax sector, by October 2025, there will be more than 2.54 million regular business households, of which about 2.3 million are expected to not have to pay tax, accounting for about 90%. According to the tax authority's estimate, the total tax reduction (including personal income tax and value added tax) is about 11,800 billion VND.
At the same time, the Ministry of Finance added regulations that for households and individuals doing business with revenue from 500 million to 3 billion VND/year, tax calculation based on income (revenue minus expenses) will be applied, with a tax rate of 15% similar to the corporate income tax rate prescribed in the Corporate Income Tax Law No. 67/2025/QH15 for enterprises with revenue under 3 billion VND/year.
Accordingly, all business households and individuals must pay taxes based on their actual income. If they have a lot of income, they must pay more tax; if they have a little income, they must pay less; if they have no income, they must not pay tax. Therefore, the level of tax-free revenue will no longer have much impact on tax-paying households and individuals. In cases where business households and individuals cannot determine their expenses, they must pay tax based on the percentage of revenue.
According to the Ministry of Finance, by adjusting the threshold of non-taxable revenue to VND500 million and raising the non-VAT revenue to VND500 million, and deducting VND500 million from revenue before calculating tax and adding the method of calculating tax based on income (revenue - expenses) for business households and individuals, the Draft Law has created a fair and equal legal corridor, suitable for the business conditions of business households and individuals, thereby supporting individuals to feel secure in production and business to stabilize their lives and develop production and business.
To ensure consistency in the level of revenue not subject to personal income tax, this draft Law will amend and supplement Clause 25, Article 5 of the Law on Value Added Tax No. 48/2024/QH to increase the level of non-taxable revenue of business households and individuals from VND 200 million/year to VND 500 million/year.
Source: https://baotintuc.vn/tai-chinh-ngan-hang/bo-tai-chinh-de-xuat-nang-nguong-doanh-thu-khong-phai-nop-thue-cua-ho-kinh-doanh-len-500-trieu-dongnam-20251128224122014.htm
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