Facilitate the transition of household businesses from lump-sum tax to declaration-based tax.

(Chinhphu.vn) - Facilitating the transition of household businesses from lump-sum tax to declaration-based tax is not only a tax reform, but also an important step to enhance the transparency and competitiveness of the economy. This is an inevitable movement in a modern business environment, aiming for sustainable and fair growth for all entities.

Transforming the tax model: An inevitable trend in business management.

The shift of household businesses from a lump-sum tax calculation method to a declaration-based tax system is considered a significant reform in tax administration. In the context of increasingly diverse commercial activities, the need for transparency in revenue and expenses, along with enhanced compliance, is essential to ensure fairness, reduce revenue losses, and create a healthy business environment.

The shift of household businesses from the lump-sum tax calculation method to the declaration-based tax method is considered a significant reform in tax administration.

According to analyses by many economic experts, the lump-sum tax model is suitable for the traditional management context, where household businesses are mainly engaged in small-scale trading, with low and stable sales. However, in recent years, household businesses have expanded their scale, operating in a model closer to enterprises, employing more workers, and generating much higher actual revenue than the lump-sum figure. This has led to an increasingly large gap between actual business operations and the tax collection method.

Meanwhile, the declaration method – using invoices, receipts, and periodic tax declarations – not only helps the State manage more closely but also brings practical benefits to household businesses. Households that want to expand their scale, access credit, participate in supply chains, or become suppliers for large enterprises all need transparent financial records. Therefore, switching to declaration is a natural trend as household businesses enter a new stage of development.

Removing obstacles and reducing compliance pressure for household businesses.

One of the biggest concerns for household businesses is that tax filing can increase costs and create paperwork difficulties. Therefore, regulatory agencies are promoting various solutions to facilitate a smooth transition.

Firstly, simplify procedures and digitize processes. Electronic invoices, online tax management applications, online tax filing, etc., help business households avoid direct contact with tax authorities or excessive paperwork. Using electronic invoices for each transaction also clarifies revenue, helping business households proactively calculate costs, profits, and tax obligations.

Secondly, it is necessary to establish a mechanism to provide specific support and guidance for business households transitioning to tax declaration for the first time. Some localities have implemented a "business household support team" model, assigning tax officials to directly guide businesses on how to prepare declarations, use software, and answer questions right from the initial stage.

Thirdly, reduce the burden of compliance costs. Many experts suggest considering waiving or reducing certain taxes during the initial transition period; or applying a proportionally deductible expense (lump-sum expense) for household groups that do not have sufficient input invoices. These flexible mechanisms help household businesses avoid a "tax shock" when changing methods.

Finally, public awareness campaigns and changing perceptions are also crucial. Tax authorities need to convey a clear message that tax declarations are not only for increasing budget revenue but also bring practical benefits to business households in accessing capital, expanding operations, participating in modern business practices, and enhancing their reputation in the market.

The household business sector makes a significant contribution to growth, creating jobs and income for millions of workers. However, for many years, this sector has lacked a unified regulatory framework, resulting in inaccurate data, difficulty in predicting trends, and challenges in developing appropriate policies. The transition to a declaration-based system presents an opportunity to standardize and create a sustainable foundation for the household business sector to contribute more effectively in the future.

In fact, many household businesses have proactively switched and reaped clear benefits. Having complete financial reports and invoices helps them access bank loans more easily, gives them opportunities to sign large contracts with foreign businesses, or participate in e-commerce platforms that require data transparency. For households that previously operated almost like businesses but still paid flat-rate taxes, switching to tax declaration reduces the risk of being subject to back taxes or administrative penalties for not accurately reflecting actual revenue.

For a smooth transition, coordinated efforts are needed among regulatory agencies, local authorities, industry associations, and the businesses themselves. Policies must be coupled with technical support and communication; minimizing costs and procedures while creating incentives for compliance. When businesses understand the long-term benefits and receive the right support, they will be more proactive in transitioning to the declaration method.

TT

Source: https://baochinhphu.vn/tao-dieu-kien-thuan-loi-de-ho-kinh-doanh-chuyen-tu-thue-khoan-sang-ke-khai-102251211131909129.htm