Voters in Lam Dong province believe that calculating taxes for business households based on total revenue without deducting expenses is inappropriate, leading to a situation of "double taxes".
Voters also proposed that the State have more support policies for small business households.
Answering the proposal, the Ministry of Finance said that, according to the provisions of the Law on Personal Income Tax No. 109/2025/QH15, Law No. 09/2026/QH16 and guiding decrees, the level of revenue not subject to personal income tax for business individuals has been increased from 100 million VND to 1 billion VND per year.
At the same time, the law also supplements the tax calculation method based on actual income (revenue minus expenses), in addition to the tax calculation method based on the ratio to revenue.
Individuals doing business with revenue of 1 billion VND/year or less are not required to pay personal income tax.
Individuals with revenue over 1 billion VND to 3 billion VND are allowed to choose one of two tax calculation methods:
Pay 15% tax on the income after deducting eligible expenses.
Or pay tax at a rate on revenue, with rates from 0.5% to 5% depending on the business sector. In case of choosing this method, taxable revenue is only the portion exceeding 1 billion VND.
For individual businesses with revenue from over 3 billion VND to 50 billion VND, the tax is calculated at a tax rate of 17% on income. For revenue over 50 billion VND, the tax rate is 20% on income.
According to the Ministry of Finance, when applying the income tax calculation method, households and individual businesses are entitled to deduct many expenses for production and business activities.
Deductible expenses include expenses for raw materials, goods, fuel, energy; salaries, wages, bonuses, allowances and compulsory insurance premiums of employees; depreciation expenses of fixed assets; electricity, water, telephone, internet, transportation, asset lease, repair, maintenance expenses; loan interest expenses from credit institutions serving production and business, and other direct expenses.
According to the Ministry of Finance, allowing the deduction of these expenses helps business individuals enjoy a mechanism similar to those with income from salaries and wages who apply deductions according to regulations.
According to calculations by the tax authorities, there are currently over 2.5 million households and individuals doing business with revenue of less than 1 billion VND per year.
With the raising of the tax-free revenue threshold from 100 million VND to 1 billion VND, the state budget is expected to reduce revenue by about 16,650 billion VND compared to 2025.
At the same time, about 83.3% of business households nationwide, equivalent to 2.5 million out of a total of about 3 million households, will be eligible to not pay personal income tax.
In addition to adjusting tax policies, the Ministry of Finance said that it has been and is implementing many solutions to support households and individual businesses.
The first group of solutions is to implement policies under Decree No. 20/2026/ND-CP to support digital infrastructure, provide free or support accounting software, electronic invoices, digital signatures, sales management platforms, electronic payments and skills training.
The second group of solutions is the Program "Accompanying business households in tax management method conversion", focusing on supporting electronic tax registration, using electronic invoices, electronic invoices generated from cash registers, online tax declaration and payment, helping the transition from fixed tax to declaration to take place smoothly.
The third group of solutions is implemented according to the orientation of Tax Administration Law No. 108/2025/QH15, with the goal of modernizing tax management, promoting digitization, simplifying administrative procedures, expanding electronic tax services and reducing compliance time and costs for business households.
According to the Ministry of Finance, the solutions are built synchronously in the direction of developing the private economy, modernizing tax management and putting taxpayers at the center, thereby contributing to reducing compliance costs, expanding tax coverage and improving management efficiency for households and individual businesses.
