New Tax Proposal: Should Small Businesses Return to Flat-Rate Tax?
A recent proposal suggests reintroducing a flat-rate tax (thuế khoán) for business households earning under 5 billion VND annually, challenging the current mandate that requires all businesses to transition to formal tax declaration by January 1, 2026.
While tax experts acknowledge that formal declarations improve transparency and align with global standards, they emphasize that the current transition timeline is too aggressive for many small-scale operators. Experts argue that while full compliance is the goal, certain sectors—such as street vendors and small market merchants—face significant practical barriers. A more flexible approach, potentially retaining flat-rate taxation for these specific groups, is being recommended to ensure social stability and ease the administrative burden during this shift. The focus remains on finding a sustainable roadmap that balances modernization with the realities of small-scale commerce. #SPACXUSDT
A recent proposal suggests reintroducing a flat-rate tax (thuế khoán) for business households earning under 5 billion VND annually, challenging the current mandate that requires all businesses to transition to formal tax declaration by January 1, 2026.
While tax experts acknowledge that formal declarations improve transparency and align with global standards, they emphasize that the current transition timeline is too aggressive for many small-scale operators. Experts argue that while full compliance is the goal, certain sectors—such as street vendors and small market merchants—face significant practical barriers. A more flexible approach, potentially retaining flat-rate taxation for these specific groups, is being recommended to ensure social stability and ease the administrative burden during this shift. The focus remains on finding a sustainable roadmap that balances modernization with the realities of small-scale commerce. #SPACXUSDT