The Standing Committee of the National Assembly met on December 2 to give opinions on the explanations and revisions to the draft amendment of the Personal Income Tax Law and Tax Administration Law.

The Ministry of Finance (MOF) has proposed raising the annual revenue threshold exempt from Personal Incone Tax from VND200 million to VND500 million. An estimated 2.3 million household businesses would not be subject to tax.

Voters in several provinces who agree with the policy to eliminate a flat-rate tax in tax declaration and collection have proposed a variety of solutions and support policies for household businesses.

The Ministry of Finance (MOF) plans to apply a 17 percent income tax rate to individuals and household businesses with annual revenue exceeding a government-defined threshold, using a method similar to corporate income tax.

Transitioning from presumptive tax to declaration-based tax should follow a three-phase roadmap, accompanied by specific technical and financial support to ensure feasibility, according to the Vietnam Academy of Social Sciences (VASS).

Despite their significant role in the economy, the rate of household businesses transitioning to formal enterprises remains modest. What causes these businesses to seemingly "refuse to grow"?