Household businesses are interested in the regulations regarding tax payment based on actual revenue.

Tax officials explain new tax policies to taxpayers. Photo: N. Lien

According to regulations, from June 1, 2025, households and individual businesses with annual revenue of 1 billion VND or more currently using the lump-sum tax method must switch to declaring and paying taxes directly based on actual revenue. Household businesses with annual revenue below 1 billion VND are not yet required to switch, but the tax authorities still encourage them to proactively make the transition.

Changes in tax administration for household businesses

In recent times, the tax sector has intensified tax management solutions such as administrative reform, modernization of management processes, and development of digital technology platforms to serve taxpayers. In particular, Government Decree No. 70/2025/ND-CP on invoices and supporting documents (Decree 70) came into effect on June 1st.

Speaking at the National Assembly session on June 19th, Deputy Prime Minister Ho Duc Phoc requested the Ministry of Finance to conduct further research to advise competent authorities on regulations regarding lump-sum tax based on revenue, in order to facilitate poor households and small-scale traders and ensure people's livelihoods. The Deputy Prime Minister suggested that for households with annual revenue under 1 billion VND, a lump-sum tax should be applied to avoid disadvantaging vulnerable groups.

Prior to that time, the tax authorities only stipulated that household businesses with annual revenue of 100 million VND or more had to pay three types of taxes: business license tax, personal income tax, and value-added tax (VAT). Of these, the business license tax was a fixed annual amount, independent of the business owner's profit, but determined based on charter capital or revenue. Personal income tax and VAT were calculated by the authorities based on total revenue, the VAT rate on goods and services, and personal income tax for each business activity.

Therefore, when Decree 70 came into effect, requiring households with annual revenue exceeding 1 billion VND to switch to electronic invoices generated from cash registers, the tax authorities focused on supporting households and individual businesses, working alongside the private sector in fulfilling their tax obligations under the new regulations. The main focus was on households and individual businesses using electronic invoices generated from cash registers connected to the tax authorities, significantly contributing to increased transparency and convenience for taxpayers. Initial results have shown positive changes, with the majority of households cooperating and complying with the regulations.

According to Nguyen Ngoc Tuan, Director of Viet A Law Firm (Bien Hoa City), since Decree 70 came into effect, many household businesses with revenues exceeding 1 billion VND have been researching the regulations regarding the new tax policy. Currently, most of Viet A Law Firm's business clients have established limited liability companies because doing so allows them to benefit from preferential tax policies.

Raising awareness of taxpayer responsibility.

Vietnam currently has over 5.2 million household businesses (HKD). The application of a flat-rate tax to HKD has long been considered an optimal form of tax management. However, in light of recent market developments, the tax authorities have recognized that this method has some limitations and has not provided the necessary incentives for HKD to expand. Furthermore, in the context of a rapidly developing domestic and global economy, budget management requires increasingly higher standards of transparency, fairness, and modernization in tax administration.

According to statistics from the tax authorities, as of March 2025, there were over 71,000 household businesses under the tax administration in Dong Nai province. Of these, over 38,000 households paid flat-rate taxes and over 2,500 households paid taxes through declaration.

According to Mr. Nguyen Ngoc Tuan, the tax authorities' request to change the tax management method for household businesses is necessary and correct. Connecting electronic invoices generated from cash registers to the tax authorities is not too difficult because there are already providers offering fairly simple solutions. Most importantly, taxpayers must understand that revenue must be actual revenue. Previously, taxpayers self-declared their revenue and paid flat-rate taxes based on that declaration without being audited. However, with the new tax management system, taxpayers are now required to declare accurate and truthful revenue because state management agencies can check individual accounts using identification numbers, thereby detecting any tax law violations.

Mr. Tuan believes that this is a time when taxpayers need to change their perception and mindset regarding taxes, accurately declare their revenue, and ensure they fulfill their tax obligations as required. Accurate and complete tax declarations reflect the taxpaying culture.

Sharing information on the implementation of tax management measures to ensure state budget revenue in the coming period, Deputy Head of the Tax Department of Region XV, Nguyen Toan Thang, said that in the coming time, the Tax Department of Region XV will strengthen inspections to combat tax evasion by household businesses. At the same time, the tax sector will review household businesses to promptly include them in the household management list. In addition, the tax sector will focus on implementing tax collection from household businesses in the retail and food service sectors and deploying electronic invoices generated from cash registers to combat tax evasion.

Ngoc Lien

Source: https://baodongnai.com.vn/kinh-te/202506/ho-kinh-doanh-quan-tam-den-quy-dinh-nop-thue-theodoanh-thu-thuc-te-a2e0ffc/