How do business households declare taxes?

(Chinhphu.vn) - The Ministry of Finance is drafting a Decree regulating the declaration, calculation and deduction of taxes, and use of electronic invoices by business households and individual businesses.

The Ministry of Finance regulates the declaration and calculation of taxes by business households and business individuals.

Business households and individuals doing business are not subject to value added tax and do not have to pay personal income tax (1)

According to the draft, business households and individuals not subject to value added tax or personal income tax must declare their revenue and send it to the tax authority directly managing them no later than January 31 of the following year.

Tax authorities shall review the database of business households and individual businesses in 2025 to provide guidance:

Business households and individuals paying tax by the lump-sum method and business households and individuals paying tax by the declaration method in 2025 with revenue subject to value added tax, must pay personal income tax according to the law on value added tax and the law on personal income tax applicable from January 1, 2026, shall declare and pay tax according to the provisions (2) below.

Business households and individuals paying tax by the lump-sum method and business households and individuals paying tax by the declaration method in 2025 with revenue that is not subject to value added tax and not subject to personal income tax according to the law on value added tax and the law on personal income tax applicable from January 1, 2026 must declare revenue for 2026 no later than January 31, 2027.

Business households and individuals subject to value added tax must pay personal income tax (2)

The draft clearly states that business households and individuals subject to value-added tax must declare and pay value-added tax monthly and quarterly in accordance with the provisions of tax administration law.

Declaration and payment of personal income tax are specifically as follows:

Business households and individuals subject to personal income tax payment based on taxable revenue multiplied by tax rate shall declare and pay personal income tax quarterly within the same time limit as declaring and paying value added tax.

Business households and individuals subject to personal income tax payment based on taxable income (revenue - expenses) multiplied by tax rate must pay personal income tax annually no later than January 31 of the following year.

In case business households and business individuals use electronic invoices, invoices generated from cash registers with data connection to tax authorities, based on electronic invoice database, tax management database and other database sources that tax authorities obtain from other state agencies, organizations and individuals, the information technology system automatically creates suggested tax declarations to support business households and business individuals in tax declaration and tax calculation.

New business households and individuals

According to the draft, business households and individuals starting production and business activities in the first 6 months of the year must declare actual revenue generated from the start of business until June 30 and submit the first tax declaration to the direct tax authority no later than July 30 and submit the second tax declaration no later than January 31 of the following year.

Business households and individuals starting production and business activities in the last 6 months of the year must declare actual revenue in the year no later than January 31 of the following year.

The above-mentioned business households and individuals shall, based on their actual declared revenue, self-determine whether they are subject to non-taxation, non-taxation, tax, or tax according to the provisions of the law on value added tax and personal income tax from January 1, 2026. In case they are subject to tax or tax, the latest tax payment deadline is the deadline for declaring revenue according to the above provisions.

From the following year, business households and business individuals shall comply with the provisions in (1) and (2) above.

Business households and business individuals starting production and business activities shall use electronic invoices as prescribed in Point b, Clause 8, Article 3 of this draft Decree.

Point b, Clause 8, Article 3 of the draft Decree clearly states: Business households and business individuals with annual revenue of less than 1 billion VND are not required to use electronic invoices with tax authority codes or electronic invoices generated from cash registers with data connection to tax authorities. In cases where the conditions on information technology infrastructure are met and there is a need to use electronic invoices, the tax authority encourages and supports business households and business individuals to register to use electronic invoices with tax authority codes or electronic invoices generated from cash registers with data connection to tax authorities. In cases where business households and business individuals do not register to use electronic invoices but have a need to use electronic invoices, they must declare and pay taxes before being issued electronic invoices with tax authority codes by the tax authority for each transaction of selling goods or providing services.

We invite readers to read the full draft and give comments here./.

Source: https://baochinhphu.vn/ho-kinh-doanh-ke-khai-thue-the-nao-102251205173742142.htm