Tax management for business households when lump-sum tax is abolished

VTV.vn - The Ministry of Finance has just sent a document to provinces and cities on coordinating and directing tax management for business households and individuals when eliminating lump-sum tax from January 1, 2026.

The Ministry of Finance requested localities to continue to direct and closely coordinate in propaganda, support and tax management work.

Improve the efficiency of tax management

To continue improving the effectiveness of tax management, creating development momentum for the private economic sector in accordance with the Party and State's policies, and at the same time ensuring that the transition process takes place smoothly, without disrupting the production and business activities of business households and individuals, the Ministry of Finance requests that localities continue to closely coordinate with tax authorities and synchronously implement tax management for business households and individuals.

Accordingly, it is necessary to focus on promoting propaganda and raising awareness of business households in the transition period from the lump-sum tax method to the self-declaration and self-payment method, while mobilizing people, small traders, and union members to support this policy. Press, radio, and television agencies need to develop columns, reports, and discussions to strengthen social trust in the tax reform policy.

The Ministry also requested localities to disseminate information about the benefits and obligations when business households convert to enterprises or switch to the declaration method; the purpose of the conversion to ensure greater transparency and fairness; the benefits when converting to enterprises; the work that needs to be prepared for the conversion; sanctions for tax evasion, doing business without business registration, tax registration, etc. to ensure that all business households and individuals have access to complete, accurate, easy-to-understand and easy-to-implement information.

Along with that, coordinate with tax authorities to organize programs to support business households in converting in the form of "hand-holding" and popularizing digital skills for business households, including: instructions on using the eTax Mobile application, electronic tax services for registration, declaration and tax payment, installation and use of invoice and accounting software, lookup and feedback information on the Business Household Digital Map, answer questions on the spot; organize appropriate support programs according to each group of business households' characteristics, or arrange support desks at markets, commercial streets...

The Ministry of Finance proposes to coordinate the implementation of tax management for business households when eliminating lump-sum tax.

Another key task is to promote connection and data sharing among agencies, forming an integrated database to serve the management of business households. The Ministry of Finance recommends that sectors such as the police, banks, statistics, natural resources and environment and local authorities coordinate to standardize and synchronize information related to business registration, transactions, revenue, business premises and actual activities of business households. Sharing this data will help the tax sector closely monitor business situations, prevent revenue loss and ensure fairness among taxpayers.

The Ministry of Finance also requested localities to strengthen control of revenue, cash flow and tax risk behaviors during the transition period, while promoting the role of the Steering Committee for preventing state budget losses, ensuring transparent and objective supervision without hindering production and business activities.

Along with that, the Ministry requested localities to urgently develop and promulgate regulations on coordination in tax management for business households, clearly defining the responsibilities of each agency and unit in implementation after the abolition of lump-sum tax.

The results achieved

According to the Ministry of Finance, the policy of eliminating the lump-sum tax method for business households is a strategic step, demonstrating the determination of the Party and State in creating motivation to promote business households to change their models, expand their scale and develop in the long term, contributing to the transparency of the activities of the private economic sector and enhancing social trust.

Accordingly, implementing Resolution No. 68-NQ/TW dated May 4, 2025 of the Politburo , Resolution No. 198/2025/QH15 of the National Assembly, Resolution No. 138/NQ-CP and 139/NQ-CP of the Government on private economic development, the Ministry of Finance has issued the Project "Converting the model and method of tax management for business households when eliminating lump-sum tax" in which fundamental solutions are identified to complete the goal of officially eliminating the lump-sum tax form from January 1, 2026, creating an important shift in tax management for business households and individuals.

The comprehensive transformation of tax management methods for business households and individuals from the lump-sum method to the declaration method will enhance the role and initiative of taxpayers in fulfilling their obligations to the State, promote voluntary compliance, and move towards a modern, transparent, fair, and taxpayer-centered tax management system.

The Ministry of Finance said that recently, tax collection has achieved positive results, in which the household and individual business sector has made important contributions. In 2024, state budget revenue from the household and individual business sector will reach VND 25,953 billion, up 20% compared to 2023; in the first 9 months of 2025, it is estimated to reach VND 25,089 billion, up 30% over the same period.

At the same time, digital transformation has received special attention from the tax authorities. Accordingly, by the end of September, more than 98% of business households paying taxes by declaration method had used electronic tax declaration and electronic tax payment services; 100% of business households that are required to use invoices generated from cash registers according to the provisions of Decree No. 70/2025/ND-CP of the Government had used electronic invoices generated from cash registers. In the first 9 months of the year, 18,348 households switched to paying taxes by declaration, and nearly 2,530 business households converted to enterprises.

The Ministry of Finance assessed this as an encouraging result, demonstrating the quick adaptation of the business household sector to the new tax management method, and at the same time reflecting an important step forward in the process of modernization and transparency of business activities. The Ministry also acknowledged and highly appreciated the attention and direction of the leaders of the provinces and cities who have paid attention to directing and closely coordinating with the financial and tax agencies in collecting the state budget in recent times.

Source: https://vtv.vn/quan-ly-thue-ho-kinh-doanh-khi-xoa-bo-thue-khoan-100251105172234588.htm