Business households excited about proposal to raise taxable revenue threshold

According to current regulations, business households with revenue of 100 million VND/year or more must pay VAT, personal income tax (except for some special cases) and business license fees. From January 1, 2026, business households with revenue of 200 million VND/year or more will have to pay tax (according to VAT Law No. 48/2024/QH15). However, recently, experts and many National Assembly deputies have suggested that this tax calculation method does not ensure fairness for business households.

Vo Ta Dinh business household in Thanh Sen ward was informed and surveyed about its revenue by tax officials.

Recently, the Ministry of Finance issued Official Letter No. 18491/BTC-CST reporting to Prime Minister Pham Minh Chinh and Deputy Prime Minister Ho Duc Phoc on the reception and explanation of the review opinions and opinions of National Assembly deputies on the Draft Law on Personal Income Tax (amended). Accordingly, the Ministry of Finance proposed a plan to adjust the non-taxable revenue of business households to ensure compliance with the actual situation. This information was positively received by tens of thousands of business households in Ha Tinh.

Expressing his joy at receiving the information, Mr. Vo Ta Dinh - a business owner on Nguyen Cong Tru Street, Thanh Sen Ward shared: "My mattress, foam, and car and motorbike repair shop mainly makes a profit by working. Every month, I pay a lump-sum tax of VND 405,000, equivalent to a revenue of about VND 17 million/month (this revenue includes both costs and profits - PV). Abandoning the lump-sum tax and switching to paying taxes by declaration method, my revenue has just reached the threshold of over VND 200 million and will have to declare and pay taxes. When I heard that the Ministry of Finance proposed to use the revenue threshold of VND 500 million/year or more to calculate taxes, I was very happy. Hopefully, this proposal will be passed to help small businesses like us reduce the tax burden and have more motivation to continue doing business."

Ha Tinh is mainly a small business area, so the Ministry of Finance's proposal to raise the taxable revenue threshold has been positively received by many business households and individuals.

According to the proposal of the Ministry of Finance, the tax-free revenue threshold is raised to 500 million VND/year (instead of the previous proposal of 200 million VND/year), which is 5 times higher than the current applicable level. Not only proposing to raise the revenue threshold, the Ministry of Finance also proposed to add regulations on applying tax calculation based on income (revenue minus expenses) for business households and individuals with revenue of over 500 million VND/year - 3 billion VND/year. Accordingly, all business households and individuals must pay tax based on actual income, if they have little income, they must pay less, and if they have no income, they do not have to pay tax. In case the business household cannot determine the expenses, they must pay tax at a rate on revenue, depending on the industry, for the revenue over 500 million VND/year.

Mr. Dang Quang Chung - a business owner on Ly Tu Trong Street, Thanh Sen Ward said: "My store sells mobile phones, so the revenue is high, but the actual profit is very low. The revenue may be large, but the cost of importing goods, promotions, online competition, etc. increases a lot. If we only look at revenue to impose taxes, small businesses like us will easily suffer. Therefore, I think paying taxes based on profits is more reasonable. I hope that in the future, the State will research and implement the most appropriate tax calculation method, creating fairness and encouraging business development."

Mr. Dang Quang Chung - a business owner in Thanh Sen ward expressed his joy at the proposal of the Ministry of Finance to raise the taxable revenue threshold.

According to the review data, Ha Tinh currently has more than 54,000 operating business households, of which more than two-thirds are households with small revenue, under 500 million VND/year. Therefore, the proposal of the Ministry of Finance to raise the taxable revenue threshold to 500 million VND/year is receiving great expectations from tens of thousands of business households in the area.

According to regulations, from January 1, 2026, all business households must pay taxes by declaration method. Currently, the tax sector is actively promoting, guiding and supporting households to switch from paying lump-sum tax to declaring to ensure compliance with regulations.

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