The National Assembly "finalized" the tax-free revenue of business households and individuals at 500 million VND/year.

Continuing the tenth session program, on the morning of December 10, the National Assembly voted to pass the Law on Personal Income Tax (amended) with a high number of votes in favor.

The National Assembly passed the amended Personal Income Tax Law. Photo: Vu Hieu

With 438 out of 443 participating delegates voting in favor, representing 92.60%, the National Assembly passed the amended Personal Income Tax Law, consisting of 4 chapters and 30 articles.

Before the vote, the National Assembly heard Minister of Finance Nguyen Van Thang, authorized by the Prime Minister, present a summary report on the acceptance, revision, and explanation of the draft Law on Personal Income Tax (amended).

Based on the opinions of National Assembly deputies discussed in committees and plenary sessions, the review opinions of the National Assembly's Economic and Financial Committee, and the conclusions of the National Assembly Standing Committee, the Government has reviewed, incorporated as much as possible, explained, and further refined the draft amended Personal Income Tax Law. The main contents have been incorporated and revised.

Accordingly, regarding taxes for household and individual businesses, in order to reduce the compliance burden and facilitate business operations, especially for small and medium-sized enterprises, the Government has reviewed and revised the regulations on taxes for household and individual businesses in the draft law as follows: Adjusting the tax-exempt revenue threshold for household and individual businesses from VND 200 million/year to VND 500 million/year and allowing this amount to be deducted before calculating tax based on a percentage of revenue; adjusting the corresponding value-added tax-exempt revenue threshold to VND 500 million.

Deputy Speaker of the National Assembly Nguyen Duc Hai presides over the session. Photo: Vu Hieu

The draft law adds a method for calculating income tax for households and individuals engaged in business with annual revenue exceeding 500 million VND up to 3 billion VND; applying a 15% tax rate similar to the corporate income tax rate for businesses with annual revenue under 3 billion VND. At the same time, it stipulates that these individuals can choose to calculate tax based on a percentage of revenue or based on income...

Regarding personal deductions: The government has incorporated the personal deductions stipulated in Resolution No. 110 of the National Assembly Standing Committee, which sets the deduction for the taxpayer themselves at VND 15.5 million/month and for each dependent at VND 6.2 million/month, into the draft law. The draft law also stipulates that the government shall submit to the National Assembly Standing Committee proposals to adjust these deductions based on price and income fluctuations to ensure they are appropriate and flexible to the socio-economic situation of each period.

Regarding the tax on gold transfers, based on feedback and refinement, the draft regulations stipulate a tax rate of 0.1% on the transfer price for each transaction; the Government is tasked with specifying the tax threshold for gold bars, the time of application, and adjusting the personal income tax rate on gold bar transfers in accordance with the gold market management roadmap.

The government's decision to specify the tax threshold for gold bars aims to exclude individuals buying and selling gold for savings and safekeeping purposes, not for business. Therefore, this new regulation helps to tightly manage gold trading activities, limit speculation in gold, and attract social resources to participate in the economy.

Source: https://hanoimoi.vn/quoc-hoi-chot-muc-doanh-thu-khong-phai-nop-thue-cua-ho-ca-nhan-kinh-doanh-la-500-trieu-dong-nam-726263.html