Eliminate lump-sum tax, expected to tax individuals at 17%

(Dan Tri) - The Ministry of Finance proposed applying a 17% tax rate to business individuals with revenue exceeding the prescribed threshold, instead of the current lump-sum tax form.

In the appraisal dossier of the revised Law on Personal Income Tax, the Ministry of Finance proposed to amend and complete regulations on tax calculation methods for business income of resident individuals.

According to current regulations, business individuals pay personal income tax at a rate based on revenue for each field and industry of production and business. Currently, business individuals with revenue of over 100 million VND per year must pay personal income tax at a rate based on revenue.

Revenue is calculated as the total sales, processing fees, commissions, and service provision fees arising during the tax period from production and business activities of goods and services.

In case a business individual cannot determine revenue, the competent tax authority will determine revenue according to the provisions of the law on tax administration.

However, from January 1, 2026, in accordance with the policy of abolishing the lump-sum tax form, the Ministry of Finance proposed to add a method of calculating tax based on income instead of revenue. Accordingly, resident individuals with annual revenue above the level prescribed by the Government will have the tax payable determined by multiplying taxable income by the rate of 17%.

In which, taxable income is determined by revenue from goods and services sold minus expenses related to production and business activities during the tax period.

Abolishing lump-sum tax, the Ministry of Finance proposed that individual businesses pay a 17% tax (Photo: Tien Tuan).

This regulation is equivalent to the regulation on corporate income tax for small and medium-sized enterprises currently stipulated in the Corporate Income Tax Law No. 67/2025/QH15, which applies a tax rate of 17% to enterprises with total annual revenue from over 3 billion VND to no more than 50 billion VND.

For business individuals with annual revenue below the level prescribed by the Government, the method of calculating tax based on the revenue rate as in the current Personal Income Tax Law will still be maintained.

The country currently has about 5.2 million business households, contributing more than 24% to GDP. Last year, revenue from business households and individuals reached VND25,953 billion, equal to 120% compared to 2023.

In addition, the Ministry of Finance proposed a tax rate of 5% for some income from providing digital information content products and services on entertainment, video games, digital movies, digital photos, digital music, and digital advertising.

Source: https://dantri.com.vn/kinh-doanh/bo-thue-khoan-du-kien-ca-nhan-kinh-doanh-chiu-thue-17-20250905205703379.htm