The approach has become more rational.

Specifically, based on research, listening to and absorbing the opinions of National Assembly deputies, so that the content of regulations on personal income tax for households and individuals doing business is consistent with reality; ensuring relative fairness in tax collection for other types of income as well as between individuals doing business that do not have to pay and individuals doing business that have to pay tax, including value added tax, the Ministry of Finance proposed to adjust personal income tax on business income from 200 million VND/year to 500 million VND/year. This is also the amount deducted before paying tax according to the rate on revenue and applying this revenue level, according to data calculated as of October 2025 with more than a million regular business households, it is expected that about 2.3/2.54 million business households will not have to pay tax, accounting for about 90%.

Second, supplement the regulation for households and individuals doing business with revenue from over 500 million VND/year to 3 billion VND/year to apply tax calculation based on income (revenue - expenses) to ensure tax collection according to the nature of personal income tax and apply 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 actual income. If they have little income, they must pay less; if they have no income, they must not pay taxes. Therefore, the level of revenue that is not subject to tax 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 taxes based on the percentage of revenue.

Third, to ensure consistency in the level of revenue not subject to personal income tax, the draft Law will amend and supplement Clause 25, Article 5 of the Law on Value Added Tax No. 48/2024/QH15 to increase the level of tax-free revenue of business households and individuals from VND 200 million/year to VND 500 million/year.

Assessing this adjustment, many experts believe that this approach is more reasonable, closely following the nature of income tax, in line with the reform trend, simplifying procedures and increasing transparency in tax management. However, the threshold of 500 million VND/year still does not ensure fairness compared to the tax rate of salaried employees, and needs to be raised to 1 billion VND/year. In addition, it is necessary to note that tax policies for business households need to be set in relation to enterprises. Tax rates for business households also need to be designed similarly to ensure equality and reduce tax pressure. If the tax rate is unreasonable, it will "erode" profits, making business households, which are already weaker due to small scale and limited cash flow, more likely to encounter difficulties.

Other opinions also stated that the proposal to raise the tax threshold for business households to 500 million VND/year is a remarkable step forward. However, in the context of strong economic fluctuations, business activities are facing many challenges, this level needs to be carefully calculated. Because in reality, business households with revenue of over 500 million/year but still incur losses still have to pay tax based on revenue. Or A business household has a revenue of 500 million VND/year but may only earn a few dozen million in profit after deducting expenses. Therefore, it should Consider raising the tax threshold for business households even higher or designing a more flexible calculation method. In addition, there should be a mechanism to update the tax threshold according to annual economic fluctuations, and not leave a fixed level for too long.

Not long ago, when explaining the draft law, Minister of Finance Nguyen Van Thang admitted that tax policy related to business households and individuals is an extremely difficult and complicated issue. That the revenue threshold must be recalculated so that business households do not feel disadvantaged compared to the threshold for starting to collect taxes from salaried employees. Therefore, raising the taxable revenue threshold for business households is necessary. And more importantly, amending the law must create a fair, equal legal corridor, suitable to practical conditions to promote development.

Source: https://daibieunhandan.vn/cach-tiep-can-da-hop-ly-hon-10399439.html