On 24/4, the National Assembly approved abolishing the 500 million VND tax revenue threshold for business households, tasking the government with setting a specific new level. The tax threshold is expected to increase to 1 billion VND.
Ms. Chau, who owns a food business in Tan Son Nhat Ward, Ho Chi Minh City, stated that her annual revenue previously often exceeded 500 million VND. However, weak purchasing power in the first Quarter of this year led to a 60% revenue decrease.
Despite this, business owners like Ms. Chau are concerned about administrative procedures and policy implementation. To issue electronic invoices, she had to invest 15-20 million VND in a point-of-sale (POS) machine and a printer, along with 6 million VND annually for software and digital signature maintenance. As business declines, these expenses become a fixed burden for small business households.
"Small-scale business households still have to carry out many procedures, such as registration, maintaining electronic invoices, storing transaction data, and making periodic declarations," she said.
Furthermore, she noted that inconsistent guidance from different authorities confuses small traders and increases compliance costs.
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A stall at Dong Xuan Market in Hanoi. Photo: Giang Huy
According to Le Hong Duc, an accountant at a service company in Tan Son Hoa Ward, Ho Chi Minh City, households with revenue below the tax threshold must still file declarations twice a year, in January and July. Daily bookkeeping is mandatory. However, many older or long-time small traders face difficulties with electronic declarations due to their unfamiliarity with technology.
Experts assert that raising the tax exemption threshold to 1 billion VND would only address a superficial issue. The policy's core focus must remain on cutting and simplifying procedures to alleviate the compliance burden for small business groups.
Nguyen Hoang Son, Vice Chairman of the Ho Chi Minh City Tax Consulting and Agents Association and CEO of Viet Tin, believes that regardless of how high the tax threshold is raised, the biggest obstacle for business households remains their ability to access technology for tax declarations.
He explained that most business owners are older, unfamiliar with digital devices and applications, and do not fully understand new tax regulations. Additionally, most small business households lack dedicated accounting staff. Owners often handle sales, bookkeeping, and tax procedures themselves. This heavy workload, combined with their unfamiliarity with digital applications, makes them prone to errors, which can result in penalties.
"Beyond increasing the tax exemption threshold as proposed, the tax sector needs to continue providing hands-on guidance to business households so they can overcome their hesitation and proactively adapt to new policies," Mr. Son remarked.
According to data from the Ministry of Finance, there are 3-4 million business households nationwide from 2022 to 2025. Over 2 million of these consistently declare taxes, contributing approximately 2% of the total state budget revenue.
Le Thi Duyen Hai, Vice Chairwoman and Secretary General of the Vietnam Tax Consultants' Association, observed that business households are not afraid to pay taxes. What they need are easy and transparent procedural processes, especially regarding penalty limits. "They need support to conduct standard business and manage effectively, thereby allowing them to 'grow bigger'," Ms. Hai shared.
Economist Pham Chi Lan also suggested that in an era where human jobs are threatened by artificial intelligence (AI) and automation, business households offer a suitable model to foster the "silver economy"—retirees starting businesses. Therefore, policies must ensure easy compliance, allowing business owners to operate with confidence, transparency, and fulfill their tax obligations properly.
To facilitate individuals and business households, experts recommend that regulatory bodies or the Vietnam Chamber of Commerce and Industry (VCCI) issue a comprehensive procedural guide. This guide should be detailed and easy to understand, helping new business owners grasp various documents and tax obligations to operate confidently and avoid violation risks.
Ha Dong - Thuy Dung
