A tax official provides instructions to owner of a household business in Lâm Đồng Province. — VNA/VNS Photo Nguyễn Dũng

HÀ NỘI — The Department of Taxation said it has received and is studying proposals from business associations and experts to allow small household businesses with annual revenue below VNĐ5 billion (US$191,000) to continue paying taxes under the presumptive tax regime.

Speaking at the Ministry of Finance’s second-quarter press briefing on Wednesday, Mai Sơn, the department’s deputy director general, said the tax authority welcomes and carefully considers proposals that could make tax compliance easier for household businesses and enterprises.

“We will continue to study such recommendations and advise the Ministry of Finance and competent authorities for consideration,” Sơn said.

He said the ongoing transition from the presumptive tax regime to a self-declaration system for household businesses is being implemented in line with the Politburo’s Resolution 68 and Government directives.

Sơn said the most significant change is not in tax rates but in the method of tax management. The exemption threshold has now been raised to VNĐ1 billion per year from VNĐ100 million.

For businesses with annual revenue exceeding VNĐ1 billion, tax rates calculated as a percentage of revenue remain largely unchanged. Taxpayers are now required to determine and declare their actual revenue on a monthly or quarterly basis.

To facilitate the transition, the tax authority has worked with technology service providers to offer a range of digital tools, some of which are available free of charge during the initial implementation phase.

Sơn said the new management approach is intended to better reflect actual business revenue and address shortcomings of the presumptive tax system, under which tax obligations were not always adjusted promptly when revenue changed.

He added that about 98 per cent of household businesses filed tax declarations on time during the initial phase of implementation.

The new system has delivered encouraging early results, including helping improve transparency in business operations and reduce the risk of tax revenue losses associated with outdated revenue estimates, Sơn said.

The tax authority will continue reviewing and improving regulations while expanding digital support tools and simplifying administrative procedures to make tax compliance easier for household businesses.

At the briefing, Deputy Finance Minister Nguyễn Đức Chi said the ministry had also received proposals to raise the exempted revenue threshold for the new tax regime from VNĐ1 billion to VNĐ5 billion per year.

The ministry is reviewing and evaluating the recommendations and may propose adjustments, if necessary, Chi said. — BIZHUB/VNS