The Ministry of Finance proposed raising the tax-free revenue threshold for business households to 500 million VND/year.

The Ministry of Finance has just submitted to the Prime Minister a plan to raise the tax-free revenue threshold of business households from 200 million to 500 million VND/year.

On November 27, the Ministry of Finance issued Document No. 18491/BTC-CST to Prime Minister Pham Minh Chinh and Deputy Prime Minister Ho Duc Phoc regarding the reception and explanation of delegates' opinions on the draft revised Law on Personal Income Tax.

One of the important contents that public opinion is particularly interested in is the taxable revenue threshold for business households and individual businesses.

The Ministry of Finance said that, on the basis of studying, listening to, and absorbing the opinions of National Assembly deputies, the content of regulations on personal income tax (PIT) for business households and individuals is consistent with reality (based on the number of business households and individuals managed by the tax sector), ensuring relative fairness in the collection of PIT on other types of income (including income from salaries and wages), between business individuals who do not have to pay and business individuals who have to pay tax, including value added tax (which is the amount that business households and individuals collect from buyers and pay to the state budget).

According to the Tax Department, by October 2025, the country will have more than 2.54 million regular business households. Photo: PV

The Ministry of Finance proposed to adjust the non-taxable revenue from VND200 million/year to VND500 million/year. At the same time, this VND500 million/year level is also the level deducted before paying tax according to the rate on revenue. Applying this revenue level, according to data calculated as of October 2025, there are more than 2.54 million regular business households, it is expected that about 2.3 million business households will not have to pay tax (accounting for about 90% of the total 2.54 million business households).

Regarding the tax calculation plan for households and individuals doing business with revenue from over 500 million VND/year to 3 billion VND/year, in the document submitted to the Government leaders, the Ministry of Finance proposed to add regulations to apply tax calculation based on income, that is, revenue - expenses. This level ensures tax collection according to the nature of personal income tax and applies a tax rate of 15% like micro-enterprises.

Accordingly, all business households and individuals must pay taxes based on their actual income. If they have little income, they must pay less, and if they have no income, they must not pay taxes. Therefore, the level of tax-free revenue will no longer have much impact on tax-paying business households and individuals.

In case the business household or individual cannot determine the cost, they will pay tax at the current tax rate of 0.5%, 1%, 2% on revenue, depending on the industry, for the revenue over 500 million VND. This content will be proposed to the National Assembly for approval in the amended Law on Personal Income Tax and applied from the 2026 tax period.

To ensure consistency in the level of revenue not subject to personal income tax, in the draft law amending the Law on Value Added Tax No. 48 of 2024, the Ministry of Finance proposed 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://daibieunhandan.vn/bo-tai-chinh-de-xuat-nang-nguong-doanh-thu-mien-thue-ho-kinh-doanh-len-500-trieu-dong-nam-10397573.html