Proposed 10 Billion Dong Tax Threshold Does Not Suspend Tax Payments for Household Businesses

Vietnam’s tax authority has warned household and individual businesses not to change their tax declarations or stop provisional payments based on a proposed increase in the revenue threshold from 3 billion to 10 billion dong.

The Ministry of Finance proposed the change on Aug. 6 as part of tax support measures for household businesses, individual businesses and companies. The proposal is expected to enter a revised draft law on small and medium-sized enterprise development, which would amend provisions of the corporate and personal income tax laws. The National Assembly is expected to consider the draft during its October session.

Until authorized agencies revise the rules, the current requirements remain in force. The E-Commerce Tax Department has asked managers of e-commerce marketplaces and digital platforms to help inform online sellers that they must continue making provisional personal income tax payments under Decree 68/2026.

Businesses subject to personal income tax based on taxable income multiplied by the applicable tax rate must declare and provisionally pay tax monthly or quarterly, based on their value-added tax declarations. The provisional payment is calculated by multiplying taxable revenue for the period by the tax rate for the relevant business sector.

At year-end, businesses required to finalize their tax must continue doing so. If provisional payments fall short of the final liability, they must pay the difference. If they paid too much, the excess will be handled under the regulations. The article also notes that businesses operating at multiple locations must declare revenue for each location, although the supplied text ends before providing further details.

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However, this is still a policy proposal under consideration and is not yet a basis for household or individual businesses to change their declaration method or suspend their tax obligations.