Collect the number of business households at each revenue level for appropriate support

Business households reduce pressure

According to the assessment of the Vietnam Chamber of Commerce and Industry (VCCI), the Government's recent issuance of a Decree relaxing the taxable revenue threshold for business households from 500 million VND to 1 billion VND per year is a very timely and very commendable decision. This is not just a technical adjustment, but an important policy signal.

This shows the listening to the aspirations of business households.

VCCI said that the 2026 Business Household Survey conducted by VCCI from February to April with responses from more than 1,000 business households in 34 provinces and cities has shown a truthful and detailed picture.

In which 36.3% of business households have revenue below 500 million VND and 51.4% are in the range of 500 million to under 3 billion VND, raising the threshold to 1 billion VND will help a significant part of micro and small households reduce direct compliance pressure, have more room to accumulate, reinvest and consolidate resilience.

Raising the tax exemption threshold is also agreed upon by many business households, especially in the context that input costs, premises, labor and living expenses have all increased sharply compared to previous years.

Ms. Nguyen Thi Hoa - owner of a grocery store in Hanoi - said that revenue is over 2 billion VND/year, but profit is only enough to cover after expenses. Raising the tax exemption threshold to 1 billion VND/year is suitable for current market fluctuations when prices, labor, and rental costs are all increasing.

Similarly, Mr. Tran Van Manh, owner of a restaurant in Cau Giay, Hanoi, said that his restaurant currently achieves revenue of about 1.8 billion VND/year, but most of the revenue revolves around raw materials, premises rent and employee salaries.

Looking at the revenue figure, it seems high, but the food and beverage industry goes in and out very quickly. As soon as food, gas, and electricity prices increase, profits will immediately shrink" - according to Mr. Manh, if the market continues to be difficult as it is now, the tax exemption threshold of about 1-2 billion VND/year will be more suitable for small and medium-sized food and beverage and service business households, helping households have more resources to maintain operations and reinvest.

Mr. Dinh Huy - owner of an electronics store in Cau Giay district, Hanoi - proposed adjusting the tax exemption threshold by industry, based on actual data, instead of applying a common revenue level.

Strong support for vulnerable business households, but a transition roadmap is needed

Mr. Le Van Tuan - Director of Keytas Tax Accounting Co., Ltd. - said that the tax-free revenue threshold of 1 billion VND/year helps households and individuals doing business with revenue below 1 billion VND to be exempted from both value-added tax and personal income tax at the same time, meaning they will enjoy a relatively strong financial obligation support package.

Not only exempted from two taxes, the group of households under 1 billion VND also has very low compliance costs when they do not have to make electronic invoices, do not have to submit tax returns, and mainly only notify revenue and bank accounts to the tax authority. This is a fairly clear social security policy for vulnerable business households and newly starting households" - Mr. Tuan said.

However, the expert believes that what is noteworthy is not only the figure of 1 billion VND but also the roadmap for transition from the presumptive tax mechanism to the mechanism of management based on actual revenue.

According to him, Vietnam needs a transitional period for tax authorities to collect accurate data on the number of business households at each level of revenue, from under 1 billion VND, groups of 1-3 billion VND to groups over 3 billion VND.

When there are full actual data, the State will know exactly which groups should be supported, which groups should be promoted to develop, and which tax-exempt revenue levels are truly suitable for the business context" - Mr. Tuan assessed.

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