HCMC – Vietnam’s National Assembly on December 10 approved amendments to the Tax Administration Law and the Personal Income Tax (PIT) Law, lifting the annual revenue threshold for tax-exempt household and individual businesses to VND500 million, more than double the current level.
Finance Minister Nguyen Van Thang told legislators the revised laws incorporate recommendations from appraisal agencies, lawmakers and the National Assembly Standing Committee, aiming to simplify procedures while maintaining effective tax oversight.
Under the amended PIT Law, household and individual businesses earning below VND500 million a year will be exempt from PIT and value-added tax. Those earning between VND500 million and VND3 billion annually may choose a new tax calculation method based on taxable income with a flat tax rate of 15%, equivalent to the rate applied to small enterprises. Taxpayers may alternatively opt for tax payment based on a fixed percentage of revenue.
The amendments also reduce progressive PIT rates, lowering the second tax bracket from 15% to 10% and the third from 25% to 20%.
Family circumstance deductions have been updated to align with Resolution 110/2025/UBTVQH15, increasing the deduction for taxpayers to VND15.5 million per month and for each dependent to VND6.2 million. The Government will be authorized to propose adjustments to these levels in line with price and income changes.
