Vietnam proposes lower tax-free thresholds for low-value imports

Vietnam's Ministry of Finance and Customs Department are proposing significant changes to tax regulations. A draft decree suggests lowering the tax-free threshold for low-value imports to 100,000 VND (approximately $3.80) or a tax amount of 10,000 VND. This move aims to level the playing field for domestic businesses against the surge in cross-border e-commerce and to prevent tax evasion through order splitting.

Simultaneously, the tax authorities are conducting a major campaign titled “Cleaning Tax Codes - Removing Business Bottlenecks.” The initiative aims to standardize data and resolve long-standing legal issues for businesses that have ceased operations but failed to complete formal dissolution procedures. The goal is to process tax code termination requests within three working days for compliant entities.

Additionally, there is a proposal to increase the revenue threshold for business households to apply simple tax calculation methods from 3 billion VND to 10 billion VND, which is expected to be reviewed by the National Assembly in October.