Removing obstacles to help household businesses enter the 'new playing field' of tax declaration.

(Chinhphu.vn) - The abolition of lump-sum tax and the shift to a self-declaration mechanism from 2026 is considered the most fundamental change in the history of tax management for household businesses. This transformation of the tax management model is not just about changing the method of collection, but also about accompanying household businesses in accessing technology, improving compliance, and gradually integrating into the digital economy.

Workshop "Decoding Model Transformation and Tax Filing: From the Practice of Household Businesses"

Abolishing lump-sum tax – a major milestone in tax administration.

On the afternoon of December 16th in Hanoi , the Vietnam Chamber of Commerce and Industry (VCCI), in collaboration with relevant units, organized a workshop titled "Decoding the Transformation of Business Models and Tax Declaration: From the Practice of Household Businesses." The workshop took place in the context of the planned abolition of lump-sum tax and the transition to a new tax management mechanism for household businesses, scheduled to begin in 2026.

Speaking at the event, Mr. Nguyen Quang Vinh, Vice President of VCCI, emphasized that 2026 is a significant milestone, marking a fundamental change in the history of tax management for the private sector in Vietnam. According to him, the shift from lump-sum tax to self-declaration and self-payment is not only a technical requirement but also reflects the spirit of Resolution 68 of the Politburo on the development of the private economy, aiming for a transparent, fair, and modern business environment.

Mr. Nguyen Quang Vinh argued that household businesses are not only the livelihood of individual families but also a crucial force contributing to GDP growth, job creation, and social security. Therefore, this transformation process is not intended to create additional burdens, but rather a necessary step towards the sustainable development of the household business sector, gradually approaching modern management standards.

According to data from the Ministry of Finance , there are currently approximately 3.6 million active business households and individuals nationwide, a 106% increase compared to the previous year. This sector not only attracts millions of workers but also contributes increasingly to the state budget. In 2024, revenue from business households and individuals reached nearly 26,000 billion VND, a 20% increase; in the first six months of 2025 alone, it reached 17,100 billion VND, far exceeding the same period last year.

However, the current lump-sum tax model has revealed many limitations, such as a lack of transparency, failure to accurately reflect the scale of operations, and unfairness among business entities. According to VCCI leaders, switching to a declaration-based model will help standardize tax management, while also creating a foundation for business households to access credit, expand markets, and enhance competitiveness.

Acknowledging the concerns of household businesses regarding compliance costs, technological skills, and the use of electronic invoices, Mr. Nguyen Quang Vinh affirmed that VCCI will continue to accompany and support them throughout the transition process. The goal is not only to change the declaration method but also to build a culture of compliance, helping household businesses gradually shift from a hesitant mindset to a proactive one, understanding correctly and confidently mastering the technology.

Mr. Nguyen Quang Vinh, Vice President of VCCI, delivered a speech.

Taxation Sector: Putting the taxpayer at the center

At the workshop, many business households raised specific questions about input invoices, conversion to enterprises, and tax incentives. In response to these concerns, representatives from the tax authorities and related units directly answered and clarified how to handle expenses without invoices or supporting documents, and the necessary steps for the conversion process. The speakers emphasized that the conversion policy is not intended to create difficulties, but rather to standardize operations and create a transparent foundation for the sustainable development of business households.

From the perspective of the tax authority, Mr. Mai Son, Deputy Director of the Tax Department, stated that the tax sector considers accompanying and supporting business households not only as an immediate task but also as a long-term, overarching direction.

In accordance with the policies of the Party, the National Assembly, and the Government, the Ministry of Finance has developed a plan to transform the tax management model for business households, in which the Tax Department is implementing a "60-day intensive plan to convert from lump-sum tax to declaration tax".

This plan focuses on preparing the necessary technical infrastructure, operational procedures, guidance documents, and support tools, while also helping business households gradually familiarize themselves with the new methods.

During the implementation process, tax authorities at all levels actively listened to feedback from business households through the press, VCCI, and representative organizations, thereby advising on policy adjustments to reduce the compliance burden.

Mr. Mai Son, Deputy Director of the Tax Department, delivered a speech.

A key highlight, according to Mr. Mai Son, is that the National Assembly has passed the amended Law on Tax Administration and the amended Law on Personal Income Tax, with many practical supporting provisions.

Notably, this includes the elimination of accounting requirements for household businesses and raising the threshold for tax-exempt personal income from 200 million VND to 500 million VND per year.

According to the head of the Tax Department, these are important steps to reduce compliance pressure, create favorable conditions for small businesses, and promote the development of the private sector.

From a research perspective, Mr. Pham Ngoc Thach, Deputy Head of the Legal Department of VCCI, said that a VCCI survey showed that 49% of business households are concerned that the cost and time spent managing invoices and documents will increase when switching to declaration-based reporting.

Other challenges center around limited technological capabilities, the habit of manual record-keeping, and high initial investment costs.

Therefore, VCCI recommends that business households proactively update legal regulations, enhance the application of technology, and choose appropriate solutions so that technology becomes an "assistant," not a burden.

From the perspective of a technology company, Mr. Do Tuan Anh, Deputy General Director of KiotViet, commented: Age, industry, and business environment determine the ability to adopt technology.

According to Mr. Do Tuan Anh, traditional businesses need more support, and understanding and collaboration are key factors in the success of digital transformation.

KiotViet has developed a digital transformation roadmap for household businesses, from initial assessment of conditions to post-sales support, aiming to solve each "small problem" in the transformation process.

Ms. Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association, emphasized the role of tax consulting in reducing costs, increasing transparency, and building a culture of voluntary compliance.

"Switching to online declaration not only makes businesses more transparent, but also expands opportunities for market access and long-term development," Ms. Cúc said.

TT

Source: https://baochinhphu.vn/go-vuong-de-ho-kinh-doanh-buoc-vao-san-choi-moi-ke-khai-thue-102251216175801929.htm