Vietnam Tax Reform Proposes Flexible Thresholds to Support Small Businesses

Vietnam tax reform proposals aim to introduce more flexible thresholds for household businesses and small firms as the government seeks to support growth amid economic pressures.

The finance ministry proposed removing the fixed annual revenue threshold of 500m dong (USD19,600) for household businesses and allowing it to be adjusted based on economic conditions.

It also suggested introducing, for the first time, a tax-free revenue threshold for small companies.

Officials said the Vietnam tax reform would improve policy flexibility, support vulnerable businesses and encourage household firms to formalise, with the draft expected to be submitted to the National Assembly under expedited procedures.