Business households still have many concerns
According to information from the Ministry of Finance, to ensure consistency and accurate representation of the nature of income tax, the Ministry plans to report to the Government on the plan to collect tax on income (revenue - expense) for all individuals with revenue according to the new revenue threshold.
The plan is expected to add a provision: Business individuals with a tax rate above the non-taxable threshold of up to VND 3 billion will be paid with the tax rate corresponding to corporate income tax (CIT) applied to enterprises with a revenue of VND 3 billion or more.
In case a business individual has a revenue of less than VND 3 billion, if the cost cannot be determined, they will continue to pay tax according to the current revenue ratio (with tax rates of 0.5%, 1%, 2% depending on the industry) and these households and individuals will be deducted according to the tax-free threshold before calculating tax, not including tax from the first total revenue as currently prescribed.
After the new proposal of the Ministry of Finance, many business households still have many concerns about the taxable revenue threshold, tax calculation methods, as well as the tax rate to be paid if calculated on interest...
Ms. Luu Thi Thuy - the owner of a multi-crab cake business on To Hieu Street, Cau Giay - said that the cost she has to spend every month to maintain her business is not small. She shared that the rent alone is more than 20 million VND/month; for workers, thanks to the help of family members, Ms. Thuy only needs to hire 2 more part-time employees, but her salary is from 25,000-30,000 VND/hour.
Proposing a taxable threshold for small business households, Ms. Thuy commented: "I also want to have enough to spend with my husband and wife and 2 children in a big city, the taxable threshold I think is at least 1 billion VND/year".
With the expected tax collection on income, Ms. Thuy shared: "We can do the tax rate on profit margin and the interest rate is about 4.5%, which is quite reasonable in the long term".
Selling groceries on Yen Hoa and Cau Giay streets, Mr. Do Vanem shared: "This item is less profitable, the inventory and expired goods are many, as busy as a "child" and cannot spend any money. Along this road, there are 3 stores like mine, with high competition, and all kinds of expenses such as electricity, water, and labor rental are still burdened".
On average, Mr. Them's shop only makes a profit of a few million VND per month after deducting all expenses. The goods are backlogged and have to be used for a period of time, causing losses, making profits even thinner, so the method of calculating tax on profit, in his opinion, is appropriate.
Many business households also agree with the option of calculating tax based on profit, because in the context of high costs, many households are just holding back and not making a profit. They hope that if a new calculation method is applied, cases that do not generate profits will be exempted from tax.
No interest will not have to pay tax
Regarding the new proposal of the Ministry of Finance, Mr. Luu Duc Huy - Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance) said: "The Ministry of Finance plans to submit a proposal to apply the method of tax calculation based on income - that is, revenue minus expenses. When determining income, business households with low incomes pay low taxes; high incomes pay high; even if no income is generated, they do not have to pay taxes, this is the principle of ensuring fairness. Only in cases where income cannot be determined for some reason, then the household will apply the method of calculating tax on revenue".
Evaluating the new proposal of the Ministry of Finance, Ms. Nguyen Thi Cuc - President of the Tax Consulting Association said: "Currently, with the method of calculating the ratio based on revenue, the specific costs of each industry - such as the cost of building hotels and restaurants in the food and beverage business; or the cost of means of transport - are not included. The revenue is paid as much as it is".
Ms. Cuc analyzed: "According to the draft, households with revenue from 3 billion VND to less than 50 billion VND will be taxed according to income: Revenue minus expenses, the rest will be paid 17%. As for the group of households under 3 billion VND, although not mandatory, if there are full invoices and documents and the ability to determine input - output, they can also switch to the method of calculating tax based on income.
At that time, the household will be able to accurately report the profit - loss: For example, seasonal goods such as moon cakes have expired, leading to losses, so the household does not have to pay taxes; if there is a profit, they will pay the corresponding tax. This is a step forward to help calculate taxes more transparently and fairly" - Ms. Cuc assessed.
