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Update news household businesses
Starting from 2026, business households with average revenue of at least VND553,000 per day will have to pay tax. This would mean, for example, that a small vendor who sells only 28 boxes of sticky rice a day would be subject to a 4.5 percent tax.
Vietnam’s Ministry of Finance has proposed raising the annual revenue threshold for household businesses to be exempt from personal income tax from 200 million VND to 500 million VND (approximately USD 8,200 to USD 20,500).
The Ministry of Finance (MOF) has announced that it will amend the Law on Value Added Tax (VAT) by raising the level of VAT-exempt revenue.
Authorities are now looking ahead to revising the Law on Tax Administration to ensure fair, convenient and transparent tax policies for all business models, especially household businesses.
According to senior tax officials, the fixed-rate tax model is no longer suited to current realities due to the evolving nature and scale of business operations.
Contributing 30% of GDP, household businesses are vital - yet legal burdens deter them from transitioning into enterprises.