Abolish lump-sum tax, create fairness.

Starting in 2026, all business households with taxable revenue will switch to self-declaration and self-payment of taxes based on actual revenue generated, instead of the previous lump-sum tax system. This macroeconomic policy decision has attracted significant public attention and ushers in a more modern tax management system.

Tax officials from Unit 6, Thai Nguyen Provincial Tax Department, guide business households in Bac Kan ward on registration and declaration procedures. Photo: Provided.

For decades, lump-sum taxation was a management tool suited to traditional accounting skills and business practices. Setting a revenue threshold and the amount of tax payable for the entire year simplified procedures and reduced costs for both tax authorities and taxpayers. Thanks to this convenience, millions of small businesses were brought under the management system.

However, this very simplicity creates increasingly significant problems as the economy shifts to a modern and digitized model. The gap between the actual revenue of many business households, especially those doing well, and the estimated revenue is widening. This creates unfairness for businesses that must strictly adhere to accounting regulations and leads to revenue losses for the government. The subjective nature of revenue assessment also creates loopholes for non-transparent practices, eroding confidence in tax administration.

Switching to a self-declaration mechanism based on actual revenue is a step in line with the trend of modernizing tax management. The essence of this change is to shift power and responsibility to the taxpayer. Business owners must prove their income themselves and bear responsibility for the amount of tax paid. This approach creates a fairer playing field, ensuring the principle of "income matches liability."

In the long run, this motivates household businesses to improve their professionalism and manage their accounting and invoicing more systematically. With a solid management foundation, they are better positioned for sustainable development and can gradually transform into micro-enterprises. The tax authorities also gain more accurate data on the size of the individual economic sector, effectively supporting macroeconomic management and policy planning.

The biggest challenge in implementing self-declaration lies not in the technical aspects but in the psychological ones. Millions of business households, accustomed to the simplicity of lump-sum tax, will face the requirement of maintaining complete accounting records, storing and presenting electronic invoices.

This shift from "estimated" practices to data-driven management requires a change in mindset. Therefore, this process needs specific guidance and technological support to prevent taxpayers from feeling overwhelmed and to create a more favorable compliance environment.

The abolition of lump-sum tax from 2026 is therefore historic. This decision demonstrates a determination to build a more modern and transparent tax system.

Initial disruptions are inevitable, but with a clear roadmap, appropriate technological support, and training, the change will bring about fundamental transformations in tax administration and the operations of millions of businesses. This new order, once established and stable, will contribute to strengthening the foundation for sustainable economic growth and development.

Source: https://baothainguyen.vn/kinh-te/202511/bo-thue-khoan-tao-cong-bang-4254346/