On the afternoon of November 19th, the National Assembly continued its 10th session agenda, discussing two draft laws: the amended Tax Administration Law and the amended Personal Income Tax Law.
One key point of interest among delegates was the proposed annual revenue threshold of VND 200 million for determining tax liability for small businesses. Delegate Pham Van Hoa from the Dong Thap Provincial Delegation argued that this threshold does not accurately reflect the actual income of small-scale business owners.
Delegate Pham Van Hoa, Dong Thap Provincial Delegation. (Photo: Quochoi.vn)
According to Delegate Hoa’s analysis, many street vendors, breakfast stall owners, and small grocery store operators earn only VND 7–8 million per month after expenses, which is insufficient to cover household expenses. Imposing taxes on such modest incomes is therefore unreasonable. He proposed raising the taxable revenue threshold to VND 400–500 million annually to ensure fairness and align with socioeconomic conditions.
Delegate Hoang Van Cuong, Hanoi Delegation. (Photo: Quochoi.vn)
Echoing this sentiment, Delegate Hoang Van Cuong from the Hanoi Delegation criticized the VND 200 million revenue threshold as inappropriate. He illustrated his point with an example: a milk vendor earning VND 100,000 profit per carton would need to sell 200 cartons to reach VND 200 million in revenue, yet their actual profit would only be VND 20 million. This contrasts sharply with the personal deduction allowance of VND 186 million per year for individuals. “We must reconsider the tax thresholds for business owners. For retailers and agents, the minimum threshold should be VND 1.5 billion, assuming a 20% profit margin, which would yield a taxable income of over VND 260 million. For service providers and contractors who do not incur material costs, the threshold should be at least VND 500 million,” Delegate Cuong recommended.
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According to a member of the National Assembly, the tax threshold of 200 million VND in annual revenue for individual and household businesses is unfair. After deducting expenses and personal income, the remaining amount from 200 million VND in revenue “would barely be anything.”
