Humanities are subject to taxation.

TP - Speaking at the recent Ba Dinh Assembly Hall regarding the tax threshold for household businesses, Phan Van Mai, Chairman of the National Assembly's Economic and Financial Committee, stated that 500 million VND is too low and suggested researching raising the minimum tax threshold to approximately 2 billion VND.

With the justification for the above proposal being "to ensure humanistic principles and practical relevance," the business community feels that the National Assembly's Economic and Financial Committee, in reviewing the law, has understood the philosophy, economic laws, and the necessity of changing policy thinking and the aspirations of millions of business households.

The tax threshold of 100 million VND (previously) has been increased to 500 million VND (effective January 1, 2026), and then further proposed to 2 billion VND. This gradual increase in the tax threshold applied to the "cells" that make up an economy worth over 514 billion USD demonstrates a positive aspect of the tax policy-making and implementation process that every household needs to understand.

First of all, regardless of the tax threshold, the majority of taxpayers will comply. Because when paying taxes, households not only take pride in their business success, but they also fulfill their obligation to transfer a portion of their profits to the State, which is used for countless important national tasks and maintaining territorial peace. When the legislature considers and chooses a tax threshold that is acceptable to the people, the State clarifies the tax rate for both the tax sector and businesses, enabling stricter management not only of taxpayers but also of businesses. Furthermore, this approach is helping everyone abandon the old business model – the collection of business license taxes always associated with rumors and the reality of tax evasion, fraud, and even bribery…

In reality, many businesses, organizations, and households that have been consistently and persistently evading taxes have been discovered and severely punished by authorities in recent times. This helps to increase transparency in tax collection, set tax thresholds, and bring fairness and peace of mind to businesses that pay taxes seriously. From there, they will understand the policies and pay taxes consistently in the long term.

Regarding the 2 billion VND tax threshold, from the taxpayer's perspective, among more than 5 million business households, the majority wish for a higher threshold of 500 million VND. The reason is not simply about collecting more taxes or applying a uniform rate, but rather, considering compliance costs, the current threshold forces many business households to go through complicated procedures even before they achieve significant profits.

Looking at the statistics, total tax revenue from the household business sector in 2025 is expected to reach nearly 33,000 billion VND, a 37.5% increase compared to the previous year, which is very impressive. With a low tax threshold, tax revenue from household businesses could be even higher this year. However, concerns about private investment by household businesses will gradually decrease, especially given the highly unstable business variables in 2026, and the growing number of street-front properties for rent that have to close down and display "waiting for tenants" signs.

The proposal to raise the tax threshold for household businesses to 2 billion VND shows a progressive policy signal, helping to remove many obstacles and difficulties for the household business community. Whether households with revenue of 2 billion or 1 billion VND or more will have to pay taxes remains to be seen, but the 500 million VND threshold is considered too "excessive" and increases compliance costs... and needs to be changed soon.

In the first quarter of 2026, 38,616 businesses resumed operations, an increase of nearly 6% compared to the same period in 2025. It is hoped that with the upcoming new tax policies, more household businesses will upgrade themselves into enterprises or expand their production and business activities, contributing more taxes to the State.

Source: https://tienphong.vn/nhan-van-nguong-chiu-thue-post1837505.tpo