Lục Giang – 12:48, Sat Aug 08, 2026 (GMT+7)
The proposal to raise the revenue threshold applying the simplified tax calculation method to 10 billion VND is expected to help many business households reduce compliance costs.
Proposal to reduce taxes, raise revenue thresholds, apply simple tax calculation methods
The Ministry of Finance is seeking opinions on the draft Resolution of the National Assembly on reducing personal income tax and corporate income tax for households, individual businesses and enterprises.
According to the draft, households and resident business individuals with total revenue in 2026 and 2027 of up to 10 billion VND will be reduced by 30% of the personal income tax payable for each year.
Similarly, businesses with total annual revenue of up to 10 billion VND are also entitled to a 30% reduction in corporate income tax payable in the two years 2026 and 2027.
The policy is aimed at micro-enterprises with an average of less than 10 employees participating in social insurance each year. At the same time, enterprises with capital sources not exceeding 3 billion VND; maximum revenue of 3 billion VND for the fields of agriculture, forestry, fishery, industry, construction and maximum of 10 billion VND for the fields of trade and services.
The drafting agency is expected to submit it to the Government to report to the National Assembly for consideration and adoption of the Resolution at the October 2026 session. The policy is proposed to be applied to the tax periods of 2026 and 2027.
According to the Ministry of Finance, this solution aims to contribute to supporting and creating conditions for households, individual businesses and small and medium-sized enterprises to develop.
Notably, along with the tax reduction policy, the Ministry of Finance also proposed raising the revenue level chosen to apply the simple tax calculation method (tax rate multiplied by revenue) for business households and individuals from 3 billion VND to 10 billion VND per year. At the same time, the revenue level for businesses to choose to apply the tax calculation method according to the tax rate multiplied by revenue is also raised to 10 billion VND per year, corresponding to business households and individuals.
Many inadequacies in the current business household sub-group
Assessing the above proposal, Mr. Luong Van Tuan, Director of Keytas Tax Accounting Co., Ltd., said that the most notable point is the proposal to raise the revenue threshold of group 2 – the group of business households selected to apply the simple tax calculation method (tax rate multiplied by revenue) – from 3 billion VND to 10 billion VND.
According to Mr. Tuan, if approved, group 2 will have revenue from 1-10 billion VND, instead of 1-3 billion VND as at present. At the same time, group 3 will be adjusted from over 3 billion VND to 10-50 billion VND and continue to apply the profit-based tax calculation method.
Mr. Tuan said that current regulations cause inadequacies to exist in both group 2 and group 3.
For group 2, the revenue gap from 1-3 billion VND is too narrow, only differing by 2 billion VND, so business households can easily “jump into groups” during operation.
According to him, group 1 enjoys many incentives on tax obligations and has very low compliance costs. Meanwhile, group 3 has to bear high compliance costs. Group 2, on its own, incurs additional tax burdens when revenue just exceeds the 1 billion VND mark and already has to pay taxes on the generated revenue, while profits are not large enough to compensate.
For group 3, there is currently a revenue of 3-50 billion VND, which New business households entering this group still have to bear high compliance costs but are no longer entitled to the exemption mechanism like group 2
Mr. Tuan analyzed that value-added tax is calculated as a percentage of revenue, while personal income tax is calculated as profit. Therefore, group 3 no longer enjoys the same support as the other two groups but must meet higher requirements for accounting, invoices, and documents.
According to him, revenue from 3-50 billion VND also creates unreasonableness. Business households with revenue of about 3-7 billion VND have to bear quite large compliance costs, eroding the profits generated. Meanwhile, households with revenue of 40-50 billion VND still apply the same mechanism but profits are large enough to compensate for these costs. This creates a feeling of injustice between business households in the same revenue group.
Household businesses under 10 billion VND are reduced accounting pressure
Mr. Tuan said that raising the revenue threshold of group 2 to 10 billion VND will greatly support business households in this group, helping business households with revenue below this level to continue to be selected to be taxed according to the ratio on revenue or profit, and at the same time adjust the scope of group 3 to 10-50 billion VND.
According to him, this plan will help business households with revenue under 10 billion VND not have to hire accountants or use accounting services only to track books. Business households mainly need to declare sales revenue to determine tax obligations, not necessarily having to prepare full invoices, input documents and a complete accounting book system like the profit-based tax calculation method.
Mr. Tuan said that for the tax calculation method based on the percentage on revenue, business households only need to implement a monitoring book according to the S2A form. This will significantly reduce compliance costs and operating costs, helping business households retain more profits, while limiting the risk of arising tax obligations due to not fully preparing invoices and documents as required by the profit-based tax calculation method.
According to Mr. Tuan, this is positive information for the business community and is expected to be considered and approved by the National Assembly at the October 2026 session.
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