Tax exemption threshold may be raised in the Draft VAT Law

On the morning of September 27, the Ministry of Finance held a regular press conference for the third quarter of 2024.

At the press conference, a reporter from Lao Dong Newspaper asked about the Ministry of Finance's viewpoint regarding opinions that the Ministry of Finance should study raising the taxable revenue to 360 million VND, or 30 million VND/month, in order to reduce tax management costs, reduce social costs and support the development of small and micro enterprises and business households.

Deputy Directorate of Tax Directorate Dang Ngoc Minh said that the Government is submitting to the National Assembly an amendment to the VAT law and the National Assembly is expected to approve it at the next session.

The Government is being given the authority to issue an appropriate non-taxable level based on the actual situation. Currently, the threshold is below 100 million VND which is not subject to VAT. However, according to the reported plan, assessed by the National Assembly's Finance - Budget Committee, it is expected to submit a specific level to the National Assembly. There is a plan to be below 200 million VND or below 300 million VND.

"The National Assembly's agencies are considering and depending on the National Assembly's decision. The responsibility of the tax agency and the Ministry of Finance is to ensure the principle of fairness between VAT, personal income tax, between business entities and salaried employees. We will give specific assessments for the National Assembly to consider," said Mr. Minh.