On November 27, the Ministry of Finance issued Document No. 18491/BTC-CST to Prime Minister Pham Minh Chinh and Deputy Prime Minister Ho Duc Phoc on receiving and explaining the opinions of delegates on the draft revised Law on Personal Income Tax.
In particular, one of the important contents that the public is particularly interested in is the threshold of revenue for tax calculation for business households and individual businesses.
The Ministry of Finance said that, based on the study of listening to and absorbing the opinions of National Assembly deputies, in order to make the content of the regulations on personal income tax for households and individuals doing business suitable to reality (based on the number of households and individuals doing business in the tax sector), ensuring fairness relatively to the collection of personal income tax on other types of income (including income from salaries and wages), between business individuals not having to pay to business individuals paying taxes, including value added tax (the amount that business households and individuals collect from buyers and pay to the state budget).
The Ministry of Finance proposes to adjust the non-taxable revenue from 200 million VND/year to 500 million VND/year. At the same time, this rate of VND 500 million/year is also the rate deducted before paying tax according to the rate on revenue. Applying this revenue level, according to data as of October 2025, there are more than 2.54 million regular business households, so it is expected that there will be about 2.3 million business households that do not have to pay taxes (accounting for about 90% of the total of 2.54 million business households).
Regarding the tax calculation plan for households and individuals doing business with a revenue of over VND500 million/year to VND3 billion/year, in the document submitted to the Government leaders, the Ministry of Finance proposed to add regulations on applying tax calculation based on income, i.e. revenue - cost. This level ensures tax collection in accordance with the nature of personal income tax and applies a tax rate of 15% like micro enterprises.
Accordingly, all households and individuals doing business pay taxes based on actual income, if they have low income, they pay low, and even if they do not have income, they do not have to pay taxes. Therefore, the level of non-taxable revenue will no longer have much impact on households and individuals doing business that have to pay taxes.
In case the business household or individual cannot determine the cost, they will pay tax according to the current tax rate of 0.5%, 1%, 2% on revenue, depending on the industry, for revenue over 500 million VND. This content will be proposed by the National Assembly to be approved in the amended Law on Personal Income Tax and applied from the tax calculation period in 2026.
To ensure synchronization of the revenue level that does not require personal income tax, in the draft law amending the Law on Value Added Tax No. 48 of 2024, the Ministry of Finance proposed to increase the non-taxable revenue of business households and individuals from 200 million VND/year to 500 million VND/year.
