The Ministry of Finance has issued a document addressing voters’ concerns in Vinh Long Province regarding tax policies for business households.
Specifically, voters disagreed with the current tax policy, questioning the application of “input and output” taxes on small business and trading households.
They requested guidance and solutions from authorities to address this issue.
In response, the Ministry of Finance clarified that the current tax policies for business and individual households are governed by several laws, including the Value Added Tax Law No. 48/2024/QH15, the Personal Income Tax Law of 2007 (amended and supplemented), the Special Consumption Tax Law, and the Environment Protection Tax Law.
The determination of tax rates for business and individual households who pay taxes under the quota method is stipulated in the Tax Management Law No. 38/2019/QH14 and Law No. 56/2024/QH15.
To implement these laws, the Ministry of Finance has also issued circulars providing detailed guidelines.
Under the current policy, business households and individuals with an annual revenue of VND 100 million or less from production and business activities are exempt from value-added tax and personal income tax.
From January 1, 2026, the threshold for tax exemption will be increased to VND 200 million per year.
For other types of taxes, such as special consumption tax and environmental protection tax, business households still need to comply with the specialized legal regulations.
Business households question the application of input and output taxes. Photo: TU UYEN |
Regarding the tax calculation basis, the Ministry of Finance stated that the payable tax amount is determined by two factors: taxable revenue and the tax rate applied to that revenue.
Taxable revenue includes value-added tax and personal income tax on the total sales, commissions, and service provision income earned during the tax period from production and business activities, regardless of whether the money has been collected.
The tax rate, which includes the value-added tax rate and the personal income tax rate, is applied in detail according to different fields and industries. Thus, business and individual households are currently paying taxes as a percentage of their revenue.
The Ministry of Finance affirmed that the current regulations do not apply the input-output tax calculation method (tax deduction) to business and individual households.
Additionally, the Ministry of Finance is actively working on amending and developing legal documents to implement Resolution No. 68-NQ/TW and Resolution No. 198/2025/QH15.
Specifically, they are drafting a decree to guide the implementation of Resolution No. 198/2025/QH15, which includes support measures for business households.
Furthermore, the draft amendments to the Tax Administration Law and the Personal Income Tax Law are expected to be submitted to the National Assembly for approval in the October 2025 session.
These amendments will abolish the tax quota regulation and introduce a self-declaration and self-payment tax mechanism for business households, effective from January 1, 2026.
The Ministry of Finance has instructed tax authorities to proactively step up propaganda and support to help taxpayers familiarize themselves with the new tax declaration and management methods, ensuring a smooth transition for business and individual households from January 1, 2026.
TU UYEN
– 11:27 11/09/2025
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