On May 4, 2025, the Politburo issued Resolution No. 68 on private economic development. The important content is to review and perfect the legal framework on individual businesses; minimize the gap, create all favorable conditions for management organization and financial and accounting regimes to encourage business households to transform into enterprises. Eliminate lump-sum tax for business households by 2026 at the latest.
To realize the above goal and create an important shift in the economic development strategy, on May 17, 2025, the National Assembly issued Resolution No. 198 on a number of special mechanisms and policies for the development of the private economy. In Article 10, Resolution No. 198 stipulates exemption from corporate income tax (CIT) for a period of 2 years and a 50% reduction in tax payable for the next 4 years for income from innovative start-up activities.
Income from the transfer of shares, capital contributions, capital contribution rights, rights to purchase shares, and rights to purchase capital contributions in innovative start-up enterprises is exempt from personal income tax (PIT) and corporate income tax. In particular, from January 1, 2026, business households and individuals no longer have to pay business license fees. Small and medium-sized enterprises are exempt from corporate income tax for 3 years from the date of being granted the first Business Registration Certificate.
Exemption of fees and charges for organizations, individuals and enterprises for documents that need to be reissued or replaced when restructuring the state apparatus in accordance with the law. From January 1, 2026, business households and business individuals will not apply the tax lump sum method; business households and business individuals will pay taxes in accordance with the law on tax administration.
Mr. Pham Tuan Anh, Director of ION ONE Vietnam Water Joint Stock Company, Vinh Yen city shared: "With many special and breakthrough policies on tax, fee and charge exemption; financial and credit support; support for access to land, production and business premises; support for science , technology, innovation, digital transformation and human resource training along with the principles of inspection, examination, licensing and certification, Resolution No. 198 not only affirms the attention and support of the Party and State but also creates the premise and motivation for the private economic sector to develop and make strong breakthroughs in the new era".
To ensure transparency in operations and create conditions for business households to switch to paying taxes by declaration method and establishing enterprises, the Tax sector has been implementing synchronous solutions, proactively disseminating policies on tax exemption, reduction and extension for business households, individuals and enterprises, providing implementation guidance and promptly resolving problems so that taxpayers can properly and fully benefit from the Government's support policies, while improving compliance with tax laws.
On May 27, the Tax Department of Region VIII held an online conference to disseminate the provisions of Decree No. 70 of the Government amending and supplementing Decree No. 123 regulating invoices and documents to all taxpayers in the area. Through livestream on the fanpage of the Tax Department of Region VIII, the conference attracted more than 30,000 taxpayers and received nearly 700 questions.
Along with that, the Tax Department has proactively reviewed unnecessary tax administrative procedures to propose the Tax Department to advise the Government to reduce them. Proactively research and develop applications of the Tax Department to improve digital transformation capacity to minimize the time to process administrative procedures and legal compliance costs. Along with that, build a separate section on the Tax Department's Electronic Information Portal and social networking sites to receive and promptly resolve problems, feedback, and recommendations from people, businesses, business households, etc.
Changing the form of tax payment from lump-sum method to declaration and tax payment based on actual revenue is an inevitable and necessary step to promote business households to change their model and operate more transparently and professionally.
At the same time, improve management efficiency and create equality in tax obligations between business households and enterprises. Limit the risk of being taxed because business households are proactive in paying taxes when they are proactive in self-declaring and self-determining the amount of tax payable, which is not affected by the previous year's revenue and the lump sum determined by the tax authority.
In particular, when converting models, business households can easily access credit sources, supply chains and formal business opportunities for effective and sustainable development.
Article and photos: Hong Tinh
Source: http://baovinhphuc.com.vn/Multimedia/Images/Id/129899/“New-Lan-gio”-cho-ho-ca-nhan-kinh-doanh
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