The Ministry of Finance has just reported to the Government on the content of receiving and explaining opinions of National Assembly deputies related to the draft Law on Personal Income Tax (amended), focusing on adjusting tax policies for business households and individuals.
According to the draft Law submitted to the National Assembly , the tax-free revenue level kept 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 apply tax based on income multiplied by the tax rate, similar to small and medium enterprises. Specifically, in the case of individuals doing business 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%. For individuals doing business with revenue over 200 million to 3 billion VND/year, the tax is applied according to the rate on revenue that the draft Law inherits from the current Law.
Based on research, listening to and absorbing the opinions of National Assembly deputies, the Ministry of Finance said that the adjustment of tax policy needs to ensure compliance with reality, accurately reflect the actual number of households and individuals doing business that have to pay tax after changing the tax threshold; at the same time ensure relative fairness with income tax from salaries and wages; consistent with annual economic growth, socio-economic conditions and budget collection requirements.
In addition, the policy needs to be in harmony with the value added tax paid and ensure the principle that income tax is only collected on income.
Regarding the tax-free revenue level, the Ministry of Finance proposed to increase it from VND200 million/year to VND500 million/year. This VND500 million level is also the deductible level before calculating tax based on the revenue rate. According to the Tax Department, by October 2025, the country will have more than 2.54 million regular business households; with the new threshold, it is expected that about 2.3 million households, equivalent to 90%, will not have to pay personal income tax.
Regarding households and individuals doing business with revenue from over 500 million VND to 3 billion VND/year, supplement the regulation on applying tax calculation based on income (revenue-expense) 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 income, they must pay; if they have little income, they must pay less; if they have no income, they must not pay tax. Therefore, the adjusted tax-free revenue level will not have much impact on tax-paying households and individuals. In cases where business households and individuals cannot determine expenses, they must pay taxes based on the percentage of revenue.
To ensure consistency, the draft Law will amend Clause 25, Article 5 of the Personal Income Tax Law No. 48/2024/QH15, raising the tax-free revenue level to VND 500 million/year for business households and individuals.
According to the Ministry of Finance, the adjustment of the non-taxable revenue threshold is to be consistent with reality, reduce compliance burdens and facilitate taxpayers' production and business activities. The draft Law assigns the Government to submit to the National Assembly Standing Committee for detailed regulations to ensure consistency in tax management for business households and individuals.
Source: https://nhandan.vn/de-xuat-nang-muc-doanh-thu-khong-phai-nop-thue-len-den-500-trieu-dongnam-post926645.html
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