Nguyen Quang Huy from Faculty of Finance & Banking (Nguyen Trai University), commented that the increase to VND500 million per year only makes sense when placed within the broader strategy for the development of this sector.

According to Huy, household businesses act as a natural “incubator” for the startup economy. Therefore, policy should not only aim at reducing tax burdens but also create pathways for them to grow transparently and move closer to the model of small and micro enterprises in the future.

Huy emphasized that the size of the household labor force is an important factor. Households with multiple full-time workers have income-generating capacities very different from households with only one worker. 

Thus, when determining the tax-exempt threshold, it is possible to consider the personal income tax threshold for salaried workers to ensure consistency and fairness between different income sources and avoid creating the perception of excessive preferential treatment for business households.

“By nature, the income of a household with several workers is equivalent to the combined income of several salaried individuals,” he explained.

He also suggested categorizing tax exemptions by industry. Sectors with high profit margins and rapid capital turnover should apply lower adjustment coefficients, while manufacturing and service sectors with lower margins should receive more support. This approach makes policy more practical and prevents businesses from switching industries merely to enjoy tax incentives.

In addition, regional conditions should be taken into account. Business costs in major cities like Hanoi and HCMC are significantly higher than in other regions. Therefore, tax-exempt thresholds could be applied based on regional coefficients similar to the minimum wage mechanism. This would make the policy more flexible and realistic, avoiding unreasonable disparities between areas.

He noted that tax reform is not only about reducing tax obligations but also about helping household businesses advance toward modern management. This includes implementing digital transformation support packages, simple electronic bookkeeping, user-friendly tax filing tools, training in accounting – business – marketing, and advisory programs for transitioning into enterprises when eligible.

To manage effectively without creating pressure, Huy suggested applying a mechanism of "minimum registration & declaration but no tax payment" for households below the tax-exempt revenue threshold. Simple revenue declaration via digital applications helps management agencies obtain real data while bringing benefits to business households, such as easier access to credit capital due to transaction history.

He also recommended piloting the policy in several localities for 6–12 months, combining quantitative and qualitative impact assessments before nationwide implementation. Simultaneously, there must be a mechanism for periodic adjustment according to the CPI or average income growth rate so that the exemption threshold always remains appropriate, avoiding being outdated or overly favorable.

Proposal to raise the level to VND750 million or VND1 billion

Le Van Tuan, director of Keytas Tax Accounting Company, commented that the VND500 million/year tax-exempt revenue threshold is appropriate and ensures fairness among individuals with income from wages and salaries, as well as between business households regarding VAT and PIT obligations.

However, Tuan pointed out that the proposal still ‘forgets’ one important thing: support from the state for business entities. Accordingly, when determining the tax exemption threshold, the costs of tax compliance should be taken into account, such as: equipping cash registers, accounting software, electronic invoices, digital signatures, etc. 

This is a non-trivial initial cost compared to the scale of business households, estimated at about VND20 million, not including annual maintenance costs.

Comparing other countries with corresponding GDP per capita and tax-exempt revenue levels, Tuan said: "If we make a correlation comparison with Thailand, the tax-exempt revenue level that should be considered is VND750 million. If comparing with Malaysia, our revenue threshold that should be considered is VND1 billion, while the figure should be VND1.5 billion if compared with China.”

Emphasizing that tax policy is not meant to collect every small amount, but must nurture the source of revenue and support business owners to develop so they can contribute more significantly to the budget later, Tuan proposed considering raising the tax-exempt revenue threshold to at least VND750 million, equivalent to Thailand's level, or even VND1 billion to promote entrepreneurial spirit and create long-term development momentum for the business household sector.

Nguyen Le