HÀ NỘI — The National Assembly on Friday approved amendments to multiple tax laws, including the removal of a fixed VNĐ500 million (US$19,600) revenue threshold for household businesses.

The revised law, which amends provisions in personal income tax, value-added tax, corporate income tax and special consumption tax legislation, was passed with 466 out of 488 participating deputies voting in favour.

Presenting the draft revisions before the vote, Minister of Finance Ngô Văn Tuấn said the new framework would allow the government to set revenue thresholds for tax exemptions for individuals and household businesses based on macroeconomic conditions and state budget capacity.

Tuấn said existing tax regulations include benchmarks such as a VNĐ3 billion annual revenue threshold, above which households must calculate taxable income based on revenue minus expenses, while corporate tax rates also vary around that level.

Enterprises with annual revenue not exceeding VNĐ3 billion are subject to a 15 per cent tax rate, while those earning between VNĐ3 billion and under VNĐ50 billion face a 17 per cent rate, he added.

Given these provisions, raising tax exemption thresholds beyond VNĐ3 billion would require further legislative amendments to ensure policy consistency, Tuấn said.

He added that immediately after the law is approved, the Government will finalise procedures to issue a decree setting the revenue threshold at VNĐ1 billion.

The amendments also introduce a new clause in the corporate income tax law allowing income of enterprises and organisations established under Vietnamese law with total annual revenue below a Government-prescribed level to be exempt from corporate income tax.

The threshold will be determined by the Government based on macroeconomic indicators and budget balancing capacity in each period.

The revisions also amend provisions in the personal income tax law, allowing resident individuals engaged in business activities with annual revenue below a Government-defined threshold to be exempt from personal income tax.

Separately, the law updates rules under the special consumption tax, including provisions related to battery-powered vehicles with fewer than 24 seats.

The National Assembly (NA) on Friday also approved the State budget final accounts for 2024, together with adjustments to revenue estimates.

Total State budget revenue was recorded at more than VNĐ3.4 quadrillion ($129.1 billion), while total expenditure reached VNĐ3.58 quadrillion, including amounts carried over into 2025.

Lawmakers also approved an additional VNĐ13.76 trillion in 2024 revenue, including VNĐ3.41 trillion for the central budget and VNĐ10.35 trillion for local budgets.

According to a Government report, total budget resources carried over from 2024 to 2025 were estimated at nearly VNĐ1.44 quadrillion. These funds are allocated for wage reform, public investment, revenue surpluses, administrative autonomy, scientific research and procurement projects already under contract. — VNS