When discussing compliance costs, one cannot overlook the expenses within the management system itself, the place that must receive and process a colossal amount of transactions every day.

The National Assembly Economic and Financial Committee has proposed that the tax threshold for business households be at least VND2 billion. Deputy Nguyen Duy Thanh has suggested VND3 billion.

The method of calculating taxes for business households is revealing inadequacies compared with that for wage earners.

A new VCCI survey reveals that the majority of household businesses earn only marginal profits, with little room for growth or resilience.

Vietnam removes the fixed VND500 million tax threshold, allowing flexible adjustments based on economic conditions and fiscal needs.

Legislators on the morning of April 23 discussed in plenary a draft law amending and supplementing a number of articles of the laws on Personal Income Tax, Value-Added Tax, Corporate Income Tax, and Special Consumption Tax.

The Ministry of Finance is reviewing the VND500 million revenue threshold for household businesses to calculate personal income tax and value-added tax. It is considering not fixing a specific level in the law.

Experts warn that high compliance costs could discourage growth among Vietnam’s 1.7 million household businesses above the tax threshold.

During the transition from presumptive taxation to a declaration-based system, Vietnam’s tax authority has acknowledged emerging challenges, particularly in communication, and issued an apology to business households.

Small eateries, grocery stores, and market stalls are creating jobs for tens of millions of people; therefore, policies need to be designed to align with the daily rhythm of small-scale trade.

Vietnam is entering a new chapter in tax administration as it abolishes the lump-sum tax regime for household businesses.

Experts say that requiring e-invoices for business households with revenue of VND1 billion or more is reasonable, and that a VND3 billion threshold will lead to negative consequences.

Raising the annual revenue threshold for mandatory e-invoice issuance from $40,000 to $120,000 could lead to harmful consequences, experts caution.

A new decree will authorize enforcement agencies to seize not just shared business property but also individual assets of household business members if penalties go unpaid.

Beginning January 1, 2026, nearly 5 million business households will stop paying lump-sum tax and switch to revenue-based self-declaration.

Starting January 1, 2026, as business households transition to revenue-based tax declarations, the requirement for bank account notification has become a focal point. Experts say this is a necessary step toward ensuring cash flow transparency.

Stocktaking is one of the issues that concerns many business households as they transition from presumptive tax to declaration-based tax starting in 2026 and begin using e-invoices for sales activities.

Business households have sighed with relief as the tax-free revenue threshold has been raised to VND500 million per year as stipulated in the new PIT Law, but they are still concerned about invoices, accounting books and penalty levels.

Experts recommend setting the tax-exempt revenue threshold based on regional coefficients, similar to the minimum wage mechanism, and adjusting it periodically according to the CPI or average income growth.