Facilitating business households by abolishing lump-sum tax from 2026

Finance Minister Nguyen Van Thang answers questions from National Assembly deputies. (Photo: DUY LINH)

Minister of Finance Nguyen Van Thang answers questions from National Assembly deputies. (Photo: DUY LINH)

How can businesses not be afraid to pay taxes?

On the morning of June 19, at the National Assembly's question-and-answer session on financial issues, delegate Hoang Van Cuong ( Hanoi ) questioned Minister of Finance Nguyen Van Thang about the plan to implement the new tax policy for individual business households after abolishing lump-sum tax.

According to Mr. Cuong, Resolution No. 68 of the Politburo and Resolution No. 198 of the National Assembly have set out the requirement to abolish lump-sum tax on business households from January 1, 2026. This is an important policy that affects millions of business households across the country. However, there is still a great deal of apprehension among the business household community.

Delegate Hoang Van Cuong (Hanoi) questioned the Minister of Finance. (Photo: DUY LINH)

The delegate stated that what business households are concerned about is not the obligation to pay taxes, but the complexity in calculation, implementation procedures and transparency of the mechanism.

From there, the delegate raised the question: What specific plans and solutions has the Government had to prepare for tax collection under the new mechanism after abolishing lump-sum tax, thereby helping people feel more comfortable and excited in fulfilling their tax obligations to the state.

Responding to questions, Minister Nguyen Van Thang said that Vietnam's current tax system has relatively approached international practices. However, the manual collection mechanism still exists for some types of taxes, which is a major barrier to transparency, easily leading to inequality and difficulty in management.

According to the Minister, the abolition of lump-sum tax from 2026 is a correct and necessary policy of the Party and the State. The lump-sum tax mechanism is only suitable for a certain period, but has so far revealed many limitations such as lack of transparency, easy abuse, causing inequality between business models and not creating motivation for business households to develop into enterprises.

Finance Minister Nguyen Van Thang answers questions from National Assembly deputies. (Photo: DUY LINH)

The transition to a new tax model will help make business activities of households transparent, create fairness in tax obligations between business households and enterprises, and promote the strong development of the formal economic sector.

Mr. Thang stated that to realize this goal, the Ministry of Finance is preparing to synchronize legal and technological conditions to support business households to convert smoothly, minimizing the burden of costs and administrative procedures.

Accordingly, the ministry is reviewing and perfecting the tax policy system, including proposing amendments to the Law on Tax Administration and the Law on Personal Income Tax in a simple, transparent and easy-to-implement manner. Regulations related to books, invoices and documents will be simplified so that business households will not be pressured when converting to an enterprise model.

In addition, the Ministry also promotes digital transformation in tax management, applies electronic invoices, and connects from cash registers to ensure correct and full collection, while reducing time and costs for business households.

National Assembly deputies attend the question and answer session. (Photo: DUY LINH)

The Minister also informed that software supporting electronic tax declaration and payment, electronic invoice and accounting software will be provided free of charge to business households, with priority given to those facing difficulties in the initial stages of conversion.

Along with that, communication, consulting and training activities will be enhanced. The Ministry of Finance will closely coordinate with press agencies, especially Vietnam Television, to provide specific instructions to help businesses understand the benefits of electronic invoices, electronic tax declaration, and how to comply with legal regulations.

Minister Nguyen Van Thang affirmed that synchronous preparation from legal, technology to communication will create the best conditions for the new tax policy to be implemented smoothly, without interrupting the operations of business households, while promoting sustainable development and equality of the business environment.

Promoting the transformation of business households

Delegate Dang Bich Ngoc (Hoa Binh) questions. (Photo: DUY LINH)

Raising questions at the meeting, delegate Dang Bich Ngoc (Hoa Binh) said that in the context of many challenges and difficulties in the world and domestic economy, the number of enterprises withdrawing from the market continues to increase domestically, production and business activities of enterprises face many difficulties, creating pressure on the implementation of the goal of reaching 2 million enterprises operating in the economy by 2030 and in the spirit of Resolution 68.

From the above reality, the delegates asked the Minister of Finance to provide solutions to realize the goal of developing enterprises in both quantity and quality in the coming time.

Responding to this issue, Minister Nguyen Van Thang said that this goal was set in Resolution 68 of the Politburo, and the National Assembly also issued a Resolution to implement it. This is a very important goal for socio-economic development, demonstrating the strong desire for economic development.

Finance Minister Nguyen Van Thang answers questions from National Assembly deputies. (Photo: DUY LINH)

However, this is also a huge challenge in the context of declining demand, the domestic business environment still facing many difficulties, especially adverse impacts from the outside. The competitiveness of many enterprises is still weak, requiring high determination, great effort and drastic action. In the first months of the year, the number of enterprises withdrawing from the market remained high.

From that reality, Minister Nguyen Van Thang clearly stated 3 groups of solutions that need to be focused on and implemented synchronously in the coming time:

Firstly, creating a favorable, transparent and effective business environment. It is necessary to focus on removing barriers to entry and operation in the market; substantially cutting down on administrative procedures, reducing compliance costs, and reforming business conditions.

Second, it is necessary to review and remove obstacles in investment, land, construction, and planning to create a clear and stable corridor, helping businesses have the conditions and motivation to participate in the market. At the same time, promote digital transformation in management, creating favorable conditions for businesses through administrative procedure reform.

In this group of solutions, the Minister said, more than 5 million business households converting to enterprises are the force with the greatest potential to realize the goal of 2 million enterprises.

To promote the transformation of business households, the Ministry of Finance is reviewing and perfecting methods to narrow the gap between business households and enterprises in terms of management, finance, and accounting; implementing a policy to abolish lump-sum tax from 2026, promoting transparency and professionalization.

The Minister affirmed that this content has also been included in the Government's Resolution for the first 6 months of the year, and at the same time, there will be practical support policies such as exempting corporate income tax for 3 years, abolishing business license tax, providing digital platforms and free accounting software to improve business management capacity.

Along with that, it is necessary to improve the competitiveness of enterprises; prioritize support for access to land, capital, markets, technology, digital transformation and resource development; focus on removing bottlenecks, supporting enterprises to improve resilience and adaptation, thereby reducing the number of enterprises withdrawing from the market.

Nhandan.vn

Source: https://nhandan.vn/tao-thuan-loi-cho-ho-kinh-doanh-khi-bai-bo-thue-khoan-tu-nam-2026-post887958.html