Vietnam proposes tax threshold increase to 10 billion VND

The Vietnamese Ministry of Finance has proposed a significant change to tax management for small businesses and household enterprises. The proposal suggests raising the revenue threshold for choosing simplified tax calculation methods from 3 billion VND to 10 billion VND per year. Under this plan, businesses and households with annual revenues up to 10 billion VND could choose to pay tax based on a percentage of revenue rather than profit, which would simplify accounting requirements and reduce the burden of tracking detailed input costs.

Additionally, Resolution No. 43/2026/QH16, passed by the National Assembly, includes a 30% reduction in corporate income tax and personal income tax for the 2026 and 2027 tax periods. This reduction applies to businesses and household enterprises with annual revenues not exceeding 10 billion VND. Experts suggest these fiscal measures are intended to alleviate pressure from rising input costs, such as raw materials and labor, and to improve liquidity for small-scale economic actors.