Many concerns about taxable revenue threshold for business households

(HTV) - The Ministry of Finance proposed raising the taxable revenue threshold for business households to 500 million VND/year to suit the current economic context and actual costs.

In reality, businesses are facing a series of costs such as rent, labor, electricity and water, taxes and many other arising expenses.

The Ministry of Finance has just proposed to adjust the tax-free revenue level for business households, raising it from the current threshold of VND100 million/year and the previously proposed VND200 million/year to VND500 million/year. According to calculations, with the new proposed level, about 2.3 million business households, equivalent to 90% of the total number of households nationwide, will not have to pay tax. This is considered an effort to accompany the business household sector in the context of production and trading activities still facing many difficulties.

In reality, businesses are facing a series of costs such as rent, labor, electricity, water, taxes and many other expenses, while revenue is not always stable. For small traders in traditional markets, the situation is not better. The nature of the industry requires large capital and competitive profit levels, so the difference between revenue and profit is often quite low. Therefore, determining the taxable revenue threshold is considered to be closer to the actual operation of small business models.

Each industry has different profit margins, so setting a fixed revenue level for all is not really reasonable.

Many experts believe that the threshold of 500 million VND does not fully reflect the characteristics of each business sector. Each industry has different profit margins, so setting a fixed revenue level for all is not really reasonable. According to analysis, with commercial activities, the common profit margin only fluctuates around 10-15%. If the revenue threshold of 1-1.2 billion VND/year is applied, the actual profit will correspond to a reasonable average income level for a household with many dependents.

In addition, experts also believe that it is necessary to recalculate the tax rate in a harmonious direction: both ensuring correct and sufficient collection and limiting budget losses, and creating conditions for business households to feel secure in maintaining operations and nurturing revenue sources in the context of many economic fluctuations. Accordingly, building a more appropriate taxable revenue threshold, taking into account the specific characteristics of each industry, is considered necessary to ensure fairness and efficiency in tax policy management for the business household sector.

>>> Please watch HTV News at 8:00 p.m. and 24G World Program at 8:30 p.m. every day on HTV9 channel.

Source: https://htv.com.vn/nhieu-ban-khoan-ve-nguong-doanh-thu-tinh-thue-doi-voi-ho-kinh-doanh-222251205140218426.htm