MoF honing draft amending tax laws

The Ministry of Finance is seeking opinions on the draft amending tax laws

Presenting the draft law, Minister of Finance Ngo Van Tuan said, “The draft law was developed based on institutionalising the Party's policy on business households, individuals, and enterprises as outlined in Resolution No.68-NQ/TW dated May 4, 2025, of the Politburo on the development of the private economy, and the Party's policy on developing a green economy, promoting green transition, and energy transition as stated in the documents of the 14^th National Congress of the Communist Party of Vietnam.”

“The purpose of amending the law is to improve regulations on personal income tax, corporate income tax, and value-added tax policies for businesses and individuals, to encourage and create incentives for the development of businesses and individuals, thereby encouraging economic development," the minister said.

Regarding personal income tax, a key amendment stipulates that individuals renting out real estate, excluding accommodation businesses, will pay tax at 5 per cent on rental revenue exceeding a government-set threshold, replacing the current fixed threshold of VND500 million ($20,000) per year.

For VAT, the amendment exempts goods and services provided by households and individuals with annual revenue below a government-set threshold, along with assets of non-business entities, national reserve goods sold by state agencies, and statutory fees, replacing the current $20,000 annual threshold.

“The amendment of personal income tax and VAT for household and individual businesses is because from the beginning of 2026 until now, due to the impact of the global situation leading to many fluctuations in the domestic economy, rising fuel prices have increased input costs, purchasing power has decreased, and the production and business activities of household and individual businesses have faced many difficulties,” the MoF said

“Further research is needed to adjust the revenue threshold for personal income tax exemption for individual businesses, and the revenue threshold for household and individual businesses exempt from VAT, to support household and individual businesses, especially those in low-profit margin sectors and those heavily impacted by cost fluctuations.”

Regarding corporate income tax, a key amendment introduces an additional category of tax-exempt income. Specifically, Clause 14b has been added to Article 4 of the Corporate Income Tax Law No.67/2025/QH15, stipulating that enterprises with annual revenue below a government-defined threshold will be exempt from corporate income tax.

The MoF noted that while existing regulations already provide preferential policies for small businesses, current global economic pressures are weighing on the domestic economy, with small firms among the most affected. Limited capital and human resources leave them particularly vulnerable to external shocks.

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