The new tax-free revenue threshold is "easier to breathe"
The Ministry of Finance has just proposed raising the tax-exempt revenue threshold for households and individuals doing business to VND500 million/year, instead of VND200 million/year as before. This adjustment is considered a suitable step, reducing tax pressure for the majority of small business households, in the context of increasing operating costs.
For small-scale business households, the taxable revenue threshold is somewhat satisfactory, looking forward to getting into practice every day.
Mr. Nguyen Van The - Business owner of a phone repair and sales business on Trung Kinh Street, Hanoi hopes that the new tax-free revenue threshold of VND500 million/year will soon come into life.
Mr. The shared: "Technology machinery is getting more and more modern, the risk ratio for the phone components repair industry is getting higher and higher. For a price of the latest version of an Iphone like Iphone 17 Promax, a customer had a small crack in the screen, I had to accept the risk of nearly 20 million VND. Although the fee for forcing glass was several hundred thousand, even 1 million VND, the risk was several dozen times higher than in reality".
Mr. The added that in cash alone, the area only counts from the glass cabinet to the store's outer space, and each month he has to pay more than 10 million VND/month. "House money, electricity, living expenses, children's education, elderly parents in the countryside, the consequences of the recent flood have not been completely overcome, in Hanoi, we are struggling every day..." - Mr. The expressed.
For many business households such as Mr. Nguyen Huy Chuyen - Owner of a hair salon in Hanoi, the tax-free revenue from 500 million VND/year is "easier to breathe" but not close to reality.
Mr. Chuyen suggested that businesses like his hope that the tax threshold raised to VND1 billion/year or more will be more suitable for expenses in this era.
"For businesses with products like ours, in addition to rental costs, monthly electricity and water bills, and labor rental, we also have to calculate equipment depreciation. There are new investment packages to meet current needs, with current income being negative, while we still have to think about paying taxes" - Mr. Chuyen acknowledged.
Business households can rest assured to ensure their lives
Talking to Lao Dong, Ms. Ngo Thi Lua - Director of Luka Accounting Services and Tax Agency Company Limited said that the taxable threshold adjusted from 200 million VND/year to 500 million VND/year has helped sellers increase their tax exemption, helping them feel secure in doing business and stabilizing their lives.
However, in reality, the tax-exempt revenue level according to the new proposal of the Ministry of Finance is reasonable, but after deducting reasonable costs such as capital price, rental costs, labor costs, operating costs, etc., the remaining income is not much. Representatives of Luka Accounting Services Company Limited and Tax Agency proposed a tax-exempt revenue of VND500 million/year or more, which would be more appropriate.
According to Ms. Lua, the flexible mechanism for calculating tax based on income (reasonable revenue minus expenses) can be applied to business households with revenue below VND3 billion/year and is beneficial for some business households with full input invoices and documents. At the same time, calculating personal income tax based on taxable income at a rate of 17% is appropriate, contributing to creating transparency and fair competition for small and micro enterprises.
