Proposal to adjust the tax-free revenue level of business households

On the afternoon and evening of December 2, at the National Assembly House, under the chairmanship of National Assembly Chairman Tran Thanh Man, the National Assembly Standing Committee held its 52nd session to give opinions on important contents related to the explanation, acceptance and revision of the group of 3 drafts: Law on Personal Income Tax (amended); Law on Tax Administration (amended); Law on amending and supplementing a number of articles of the Law on Public Debt Management.

Báo Tin Tức•02/12/2025

Photo caption — National Assembly Chairman Tran Thanh Man speaks. Photo: Doan Tan/VNA

The National Assembly Standing Committee also gave opinions on the investment policy of the Long Thanh International Airport project and the draft Bankruptcy Law (amended).

Raising the tax-free revenue threshold for business households to 500 million VND/year

During the discussion session of the National Assembly Standing Committee on the explanation, acceptance and revision of the draft Law on Personal Income Tax (amended), a notable content proposed by the Government and commented by the National Assembly Standing Committee is the adjustment of the non-taxable revenue level of business households. According to Deputy Minister of Finance Cao Anh Tuan, in the latest draft, the Government proposed to increase the non-taxable revenue level from VND 200 million/year to VND 500 million/year. This VND 500 million level is also the level deducted before calculating tax on the revenue exceeding the threshold.

According to the tax authority's calculations, with the application of this new revenue threshold, about 2.3 million business households (accounting for about 90% of the total number of business households today) will not have to pay taxes. For households with revenue of over VND500 million to VND3 billion/year, the draft adds a provision to apply tax calculation based on income (revenue minus expenses) with a tax rate of 15% to ensure fairness.

In addition, the draft Law also adjusts the progressive tax schedule for income from salaries and wages in the direction of reducing tax obligations. Specifically, the tax rate at level 2 is reduced from 15% to 10%; the tax rate at level 3 is reduced from 25% to 20%. The highest tax rate at level 5 is kept at 35% to ensure reasonableness compared to the general level of the region and the world.

It is expected that the revised Law on Personal Income Tax will be voted on and passed by the National Assembly on the morning of December 10.

Speaking at the discussion session on the draft Personal Income Tax (amended), the National Assembly Chairman suggested that attention should be paid to taxing gold bar transfers, which must be carefully and reasonably calculated in the context of gold market management to determine the time of application.

Regarding the threshold of tax-free revenue for individual business households, the National Assembly Chairman suggested that it is necessary to clearly explain the taxation on revenue instead of income.

Regarding the progressive tax schedule, the National Assembly Chairman suggested that it is necessary to ensure the rationality between tax rates and the distance between tax rates, and to avoid the situation of tax rates increasing too high at some levels.

Regarding family deductions, the National Assembly Chairman requested that it is necessary to base the calculation on price and income fluctuations, ensuring that it is consistent with the socio-economic situation.

Commenting on the draft Tax Administration (amended), National Assembly Chairman Tran Thanh Man suggested that it is necessary to increase the application of technology in tax administration, ensuring conditions for infrastructure, application of information technology, database, risk management, automatic processing and information security; emphasizing how to manage better, reduce administrative procedures, and reduce inconvenience for taxpayers.

Regarding the draft Law amending and supplementing a number of articles of the Law on Public Debt Management, the National Assembly Chairman suggested that the Government continue to direct the review of the draft Law to ensure consistency between the contents and technical documents, and ensure persuasiveness.

Proposal to assign the Government to proactively approve phase 2 of Long Thanh airport

Also during the working session, the National Assembly Standing Committee gave opinions on adjusting the investment policy of the Long Thanh International Airport Project.

Presenting the report, Deputy Minister of Construction Pham Minh Ha said that the Government proposed that the National Assembly allow the Government to approve the feasibility study report for phase 2 of the project under its authority without having to report to the National Assembly for approval. The reason for this proposal is to take advantage of available human resources and machinery to implement phase 2 early, anticipating the growth momentum of air transport when GDP is expected to grow by double digits from 2026.

Concluding this content, Vice Chairman of the National Assembly Vu Hong Thanh stated that the National Assembly Standing Committee agreed with the Government's proposal to submit to the National Assembly for consideration and comments on the adjustment of the content of Clause 6, Article 2 of Resolution No. 94/2015/QH13 of the National Assembly on the investment policy of Long Thanh International Airport in the direction of allowing "the Government to organize the approval of the Feasibility Study Report for Phase 2 of the Project according to its authority without having to report to the National Assembly for approval" in order to create conditions for organizing the investment study for Phase 2 earlier, saving time, costs, shortening the progress and improving the efficiency of investment in construction of the Project.

The National Assembly Standing Committee requested the Government to direct ministries and branches to coordinate with the People's Committee of Dong Nai province to absorb the opinions of the National Assembly Standing Committee, the preliminary review opinions of the Standing Committee of the Economic and Financial Committee, and the review opinions of the National Assembly agencies to continue reviewing and perfecting the specific and necessary contents to propose to include in the Resolution of the 10th Session to ensure feasibility and within the authority of the National Assembly. At the same time, the Economic and Financial Committee was assigned to preside over and coordinate with the Ethnic Council and the National Assembly Committees to complete the Official Review Report to be submitted to the National Assembly at the 10th Session according to regulations. In addition, coordinate with the Secretary General of the National Assembly to synthesize opinions and issue the Conclusion of the National Assembly Standing Committee to send to relevant agencies for implementation.

Unified name changed to Law on Rehabilitation and Bankruptcy

Regarding the draft Bankruptcy Law (amended), National Assembly Chairman Tran Thanh Man affirmed that many opinions agreed to change the name of the Law to "Law on Rehabilitation and Bankruptcy" instead of the current Bankruptcy Law, to emphasize the priority of business recovery.

The National Assembly Chairman stated that the draft Law has one objective: to prioritize business recovery; amend the concept and conditions of bankruptcy; apply electronic litigation and simplified procedures; regulate court jurisdiction, coordinate with international organizations and the issue of advance payment of post-bankruptcy liability costs. Therefore, it is necessary to thoroughly absorb it.

Regarding the source of payment for bankruptcy costs (Article 20), the National Assembly Chairman said that the competent authority has agreed to propose exemption of bankruptcy costs in cases where there is no more money/assets to pay or assets cannot be sold to cover the costs. Bankruptcy costs will be immediately refunded to the State budget when the assets of the enterprise or cooperative are sold. The National Assembly Chairman suggested reviewing specific provisions in the Law to promptly remove difficulties and obstacles in practice.

Chief Justice of the Supreme People's Court Nguyen Van Quang further explained that, regarding the source of bankruptcy costs, in theory and practice, it is clear that it is necessary to use the budget to make advances and give priority to returning to the budget when the proceeds from the sale of assets are obtained because the enterprise is no longer able to pay. Chief Justice of the Supreme People's Court recommended that the National Assembly Standing Committee consider and approve this content.

Concluding the session, Vice Chairman of the National Assembly Vu Hong Thanh requested the Supreme People's Court to continue to enhance its sense of responsibility and actively coordinate with the Standing Committee of the Economic and Financial Committee to complete the draft Law dossier, ensuring the best quality when submitted to the National Assembly. At the same time, pay attention to studying the regulations on enforcement, transition, cases of law application, financial supervision mechanism, etc.

The Standing Committee of the Economic and Financial Committee urgently completes the Report on explanation, acceptance and revision of the draft Law before submitting it to the National Assembly for consideration and approval.

Comment (0)