Support business households to access new tax policies early

Mr. Tran Minh Duc, Director of Hong Duc Center for Training and Consulting on Finance - Accounting - Tax

According to Mr. Tran Minh Duc, recently, many new tax policies have been issued. Among them, policies that have a direct impact on business households and individuals can be summarized as follows: From June 1, 2025, business households with revenue of 1 billion VND/year or more will have to switch from tax collection to declaration; at the same time, they are required to use electronic invoices with tax authority codes, connected to cash registers. The Ministry of Finance is drafting a new Tax Administration Law, which will completely eliminate the form of tax collection, and apply mandatory declaration to all business households and individuals, including small-scale ones.

These are landmark policies, demonstrating the trend of transparency and modernization of tax and social insurance management, linking legal responsibilities with the long-term interests of business people.

How will these tax policies affect business households and individuals?

These tax policies not only contribute to increasing the self-awareness and responsibility of taxpayers, but also create an equal business environment between business households and enterprises. The complete abolition of the form of lump-sum tax further demonstrates the determination to promote reform, gradually bring all business activities into the framework of public and transparent tax policies, prevent budget losses and promote digital transformation in the tax sector. With these policies, business households are no longer as "free" as before, but must switch to more systematic operations. The shift from lump-sum tax to tax declaration means having to open accounting books, prepare revenue and expense reports, store invoices and comply with tax obligations on time.

Support business households to declare taxes

The application of these tax policies will increase compliance costs, especially for small businesses that are not familiar with accounting and tax procedures. However, in the long term, this is an opportunity for businesses and individuals to transform into enterprises with transparent management models and enjoy more complete legal rights and support policies.

What are the biggest difficulties that business households and individuals are facing when applying these new tax policies?

As mentioned, small businesses are not familiar with accounting and tax procedures, so the biggest difficulty they face is the lack of knowledge and tools for practicing accounting and tax. Many businesses do not know where to start opening books, do not know how to declare taxes, do not know how to process invoices, and do not understand the legal risks of errors. Some businesses are afraid to use technology or do not have the conditions to hire accounting services, especially small businesses and the elderly.

Most households are “afraid of change” and “afraid of being inspected” so they are slow to adapt. If this continues, it will lead to fines, tax arrears, or legal risks in the future.

What preparations and adjustments do business households and individuals need to make in their business operations to minimize the impact?

First, business households should proactively improve their knowledge of taxes and accounting through practical courses or professional consulting. Then, they need to gradually transition to a management model with books, knowing how to track costs, revenue, and invoices. For convenience, households need to choose support tools early, such as electronic invoice software, simple accounting software; build a habit of storing financial data and be ready for inspections and audits. At the same time, business households need to recalculate mandatory costs and include them in their business plans from now until 2025.

Do you have any instructions for households and individuals doing business at this time?

Instead of struggling to find ways to cope, business households and individuals need to consider the transition to declaration as an inevitable step for sustainable development. Don't wait until you are inspected to learn how to declare.

Any change will have initial difficulties, so proactively preparing now will be the way to minimize future losses. Choosing the right instructor or a focused practical accounting and tax course will save tens of millions of dong in fines and risks. If possible, individual business households should consider establishing a business to take advantage of preferential policies, tax deductions and the ability to expand.

What solutions do tax authorities and related units, including the center itself, need to have to support business households and individuals at present?

In fact, business households and individuals are not alone in this “journey” of innovation but are receiving great support from tax authorities as well as the government and related units. However, to best accompany business households, help them access and effectively apply these tax policies, there needs to be support from three parties to create a favorable environment for households to comply with the policies.

In particular, tax authorities, in addition to promoting propaganda in simple and easy-to-understand forms, support business households in accessing electronic invoice tools. The implementation process needs a roadmap and support for conversion to avoid shock. On the part of authorities at all levels, there should be support policies related to training, accounting costs, etc. for business households; support business households in converting to enterprises. Associations, associations, consulting centers, and invoice service providers need to support practical training in tax accounting close to the reality of business households, provide direct support at the grassroots level, and organize short-term, easy-to-access training courses.

Thank you!

HOANG ANH (written)

Source: https://huengaynay.vn/kinh-te/ho-tro-ho-kinh-doanh-som-tiep-can-chinh-sach-thue-moi-154958.html