Post by : Shakul

Vietnam is considering a major tax reform aimed at supporting small businesses and household enterprises by raising the tax exemption threshold. The proposal reflects the government’s effort to adapt fiscal policies to current economic conditions and promote sustainable growth.

The initiative has been put forward by the Ministry of Finance, which is drafting amendments to existing decrees governing tax policies for household and individual businesses. The proposal suggests increasing the annual revenue threshold for personal income tax and value-added tax exemptions to 1 billion VND.

This proposed adjustment comes after recent legislative changes that had already raised the tax exemption threshold to 500 million VND. Authorities believe that further revision is necessary to align with economic fluctuations and support taxpayers facing rising costs and declining purchasing power.

Officials noted that the global economic situation remains uncertain, with challenges affecting trade, investment, and domestic business activities. Small businesses and household enterprises have been particularly impacted, making policy support essential for their survival and development.

The new threshold is also expected to encourage household businesses to transition into formal enterprises by creating a fair and supportive tax environment. It aims to balance revenue collection with the need to nurture business growth and improve compliance.

According to estimates, more than 2.5 million households and individuals could benefit from the proposed changes. While the policy may reduce state budget revenue in the short term, it is expected to generate long-term economic benefits by boosting productivity and expanding the tax base.

The proposal also includes tax relief measures for small enterprises with annual revenue of up to 1 billion VND. This move is intended to promote fairness across different business types and contribute to the government’s broader goal of increasing the number of active enterprises in the economy by 2030.

#Economy #Policy #Business #Taxation #policy statement