Minister of Finance: There will be incentives when business households convert into enterprises

Minister Nguyen Van Thang said there will be quite large incentives to encourage business households to change their operating models, so that Vietnam will have 2 million enterprises by 2030.

This view was expressed by Minister of Finance Nguyen Van Thang when explaining to the National Assembly on May 16, about the draft Resolution on some special mechanisms for developing the private economy.

Vietnam currently has over 5.2 million business households, creating 8-9 million jobs, equivalent to the private sector, according to data from the General Statistics Office for the years 2018-2020. According to Resolution 68 of the Politburo, Vietnam aims to have 2 million enterprises by 2030 and 3 million by 2045.

Mr. Tran Hoang Ngan, Assistant to the Secretary of the Ho Chi Minh City Party Committee, calculated that on average, the country has 30,000-40,000 new businesses each year. Therefore, to achieve this goal, Mr. Ngan said that there needs to be special solutions and support policies for individual business households to convert to enterprise types. 

In order for 5.2 million business households to "upgrade" to enterprises, according to the draft resolution, the lump-sum tax for this sector will be abolished from January 1, 2026. The abolition of this lump-sum tax, according to Finance Minister Nguyen Van Thang, is a correct policy, aiming to make the activities of business households transparent. One of the initial policies designed is that the State supports the cost of renting and purchasing shared accounting software for business households to use for free.

"The Government has discussed specific solutions in detail, and large incentive policies will be designed to encourage business households to transform into enterprises," Minister Thang affirmed.

The private economic sector, including business households, currently contributes about 51% of GDP and over 30% of the state budget. 

Mr. Thang added that the Ministry is piloting the elimination of lump-sum tax for business households in some localities, and found that "this policy is very good and needs to be officially implemented soon". 

The Ministry of Finance is also preparing conditions, especially in terms of information technology and digital transformation in the tax sector, such as using electronic invoices generated from computers to collect correct and complete taxes and save time and costs for business households to declare and pay taxes when lump-sum tax is eliminated. 

million households Number of business households in Vietnam (Period 2011-2021) 2011 2015 2019 2020 2021 012 3456 VnExpress/General Statistics Office 2021 ● Business households: 5.26

Currently, there are 3 types of taxes and fees that business households and individuals must pay, including business license fees, value added tax (VAT), and personal income tax. In addition, they may have to pay environmental protection tax, resource tax, etc. if they trade in goods subject to tax under these laws. According to regulations, the business license fee ranges from 300,000 VND to 1 million VND depending on revenue, for households with revenue of over 100 million VND per year. They also have to pay an additional 1.5%, including 0.5% personal income tax and 1% VAT. 

Ms. Nguyen Thi Viet Nga, Deputy Head of the Hai Duong Provincial Delegation, suggested adding more support levels and specific funding support rates from the State to purchase and rent digital platforms and accounting software for shared use by business households, small and micro enterprises.

In addition, Deputy Head of the Thanh Hoa delegation Mai Van Hai suggested that there should be more policies to support training in the use of digital platforms and software for business households when they connect and declare and pay taxes. He proposed to postpone the abolition of lump-sum tax for business households until after July 1, 2026 so that management agencies have more time to prepare the infrastructure. 

The National Assembly will vote and pass this draft resolution on the morning of May 17. 

Anh Minh 

Source: https://vnexpress.net/