Speaking at the press conference of the second quarter of 2025 of the Ministry of Finance, held on July 2, Mr. Mai Son - Deputy Director of the Tax Department - assessed that the classification of business households is extremely necessary to accurately reflect operational practices and increase transparency in tax management.
In reality, there are two groups of popular business households. The first group is households that make a living and serve essential needs such as small grocery stores, stalls in the market, etc., most of which have revenue below the taxable threshold or only slightly higher.
The second group is larger-scale business households, operating in many areas, not only in the same district or ward but also spanning many provinces and cities. Management, monitoring and support for this group requires the application of electronic methods to save costs, reduce procedures and avoid tax losses.
According to Mr. Mai Son, many large business households today can actually undertake accounting, bookraising and are qualified to convert into micro or small and medium enterprises. Typical examples are food chains, construction materials, functional foods, medical equipment, beauty services, etc.
Based on actual management, the tax authority proposes to divide business households into 4 groups according to revenue levels:
Group 1: Under 200 million VND/year
Group 2: From 200 million to under 1 billion VND/year
Group 3: From 1 billion to 3 billion VND/year.
Group 4: Over 10 billion VND/year
For two groups with revenue of 1 billion or more (ie group three and group four), business households will have to implement a mandatory invoice regime. Meanwhile, groups 1 and 2 are encouraged to use electronic invoices. The above classification aims to create fairness in tax management, reduce pressure on small households but at the same time clearly require large-scale households.
Also at the press conference, Mr. Mai Son said that the tax authority is continuing to collect opinions on adjusting the minimum taxable revenue threshold, including a proposal to increase from 100 million VND to 400 million VND. This is a content that is being carefully calculated, with reference to the personal income tax system applied to people working for hire.
For example, if determining the family deduction for individuals working in salary earners, it is also necessary to calculate the average profit rate of business lines to determine the taxable revenue threshold for business households. This is the basis for ensuring connectivity and fairness between taxpayers, said Mr. Son.
Our goal is to build a policy that is both suitable for management practices and creates favorable conditions for taxpayers to fulfill their obligations according to regulations, towards a more equal and modern business environment, Mr. Mai Son emphasized.
