On the morning of April 24, 2026, the National Assembly approved amendments to several provisions across four tax laws. Notably, the ‘fixed’ taxable threshold for household businesses—formerly set at revenues of VND500 million and above for personal income tax and value-added tax—is no longer stipulated in the law. Instead, it will be flexibly determined by the Government. This change raises questions not only about the specific threshold itself but also about the broader philosophy and policy approach underpinning it. The legislature’s decision to grant the Government authority to flexibly adjust the taxable threshold is a step in the right direction. On April 29, the Government raised the tax-exempt revenue threshold to VND1 billion per year. The adjustable level is understood to be below VND3 billion annually, since household businesses exceeding that threshold must calculate tax based on income rather than revenue. However, the real issue is not whether the threshold is VND1 billion, VND2 billion, or VND3 billion—that is merely the surface. The core question is how to ensure household businesses can generate profit and maintain the incentive to grow. This perspective opens a broader horizon for tax policy. Household businesses: The “survival economy” sector Vietnam has more than 5.2 […]
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