The above proposal was submitted by the Ministry of Finance to the Government leaders regarding the acceptance and explanation of delegates' opinions on the draft revised Law on Personal Income Tax. Accordingly, the Ministry of Finance proposed the taxable revenue for business households to be raised to 500 million VND per year. At the same time, this level is also the threshold to be deducted before paying tax according to the rate on revenue.
Currently, the tax threshold applicable to households and individuals doing business is 100 million VND per year, expected to increase to 200 million VND from next year. Thus, the tax threshold proposed by the Ministry of Finance will be 5 times higher than the current level and 2.5 times higher than the expected increase from the beginning of next year.
The Ministry of Finance said this plan is to be suitable for reality, ensuring relative fairness between personal income tax collection and other types of income, and between business individuals who do not have to pay tax and those who have to pay tax.
According to data up to October 2025, the whole country has more than 2.54 million regular business households. With this tax threshold, it is expected that about 2.3 million business households will not have to pay tax (accounting for about 90%).
In addition to the tax threshold, the Ministry of Finance also proposed that the Government apply the method of calculating tax on profits (difference between revenue and expenses) for business households.
Specifically, households with revenue under 3 billion VND per year, if input costs can be determined, will be subject to a 15% tax rate on the profit. This level corresponds to the preferential corporate income tax rate of micro-enterprises with equivalent revenue.
In cases where the costs cannot be determined, individuals and business households continue to pay tax at the current rate on revenue, at 0.5-2% depending on the industry. However, they will be able to deduct the amount of revenue that is not subject to tax before calculating. That is, business households will not have to pay tax on the entire revenue from the first dong as currently.
According to the Ministry of Finance, if the new calculation method is applied, all households and individuals doing business will pay taxes based on actual income.
"If the income is low, then the tax payment is low, or even if there is no income, there will be no tax payment. Therefore, the tax-free revenue level will not have much impact on business households and individuals," the Ministry of Finance stated.
By the end of 2024, the country will have about 3.6 million business households and individuals. Last year's total state budget revenue from business households and individuals was about VND26,000 billion. In the first half of this year, this revenue is estimated to reach over VND17,000 billion.
Source: https://baohatinh.vn/de-xuat-nang-nguong-doanh-thu-tinh-thue-ho-kinh-doanh-len-500-trieu-dong-post300296.html
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