Propaganda and support for taxpayers to get acquainted with new management methods

(Chinhphu.vn) - From January 1, 2026, business households and individuals will stop applying the lump sum method and switch to self-declaration and tax payment according to new regulations. The Ministry of Finance (Tax Department) is urgently completing legal documents and organizing propaganda and training to help taxpayers promptly familiarize themselves with the new tax management method.

Regarding tax policy and tax management for business households and business individuals, on November 4, 2025, the Tax Department issued Document No. 4927/CT-CS with the following instructions:

To implement the provisions of the Tax Law and the Tax Administration Law, the Ministry of Finance issued Circular No. 40/2021/TT-BTC dated June 1, 2021 and Circular No. 100/2021/TT-BTC dated November 15, 2021 providing guidance on value added tax (VAT), personal income tax (PIT) and tax administration for business households and business individuals.

Business households and individuals with annual revenue of 100 million VND or less (from 01/01/2026, it will be 200 million VND or less) are not subject to VAT and personal income tax. Other taxes (such as special consumption tax, environmental protection tax, etc.) are implemented in accordance with tax laws.

The basis for calculating tax for business households and business individuals is taxable revenue and tax rate calculated on revenue, in which:

Revenue subject to VAT and revenue subject to personal income tax for business households and business individuals is the revenue including tax (in case of taxable cases) of all sales, processing fees, commissions, service provision fees arising during the tax period from production and business activities of goods, services, etc., regardless of whether the money has been collected or not.

Tax rates calculated on revenue include VAT rates and personal income tax rates applied in detail to each field and industry.

Regarding tax calculation method, based on Clause 4, Article 5 and Clause 2, Article 7 of Circular No. 40/2021/TT-BTC dated June 1, 2021, the tax calculation method is guided as follows:

"Article 5. Tax calculation method for business households and business individuals paying tax according to the declaration method

… 4. Business households and individuals paying taxes by declaration method must implement accounting, invoice and voucher regimes. In case business households and individuals conducting business in fields and industries with basis to determine revenue as confirmed by competent authorities, they do not have to implement accounting regimes.

… Article 7. Tax calculation method for business households and business individuals paying tax according to the lump-sum method

… 2. Business households and individuals paying taxes under the lump-sum method (Consolidated households) do not have to implement the accounting regime. Consolidated households using individual invoices must store and present to the tax authority invoices, documents, contracts, and records proving the legality of goods and services when requesting the issuance or retail sale of invoices each time they arise. In particular, in the case of a contracted business household operating at border markets, border gate markets, and markets in border gate economic zones in Vietnam, it is necessary to store invoices, documents, contracts, and records proving the legality of goods and present them when requested by a competent state management agency."

Based on the above instructions, business households and individuals pay taxes according to the above methods.

Tax authorities recommend that business households and individuals store invoices and purchase documents to provide to authorities upon request, ensuring their origin, source and legal ownership in accordance with legal regulations.

Amend and simplify tax management procedures

The Politburo issued Resolution No. 68-NQ/TW dated May 4, 2025, stipulating: "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 convert into enterprises... Eliminate the form of lump-sum tax for business households by 2026 at the latest".

The National Assembly issued Resolution No. 198/2025/QH15 dated May 17, 2025, stipulating: "Business households and business individuals shall not apply the tax lump-sum method from January 1, 2026. Business households and business individuals shall pay taxes in accordance with the law on tax administration".

Implementing Resolution No. 68-NQ/TW and Resolution No. 198/2025/QH15, the Ministry of Finance is urgently developing, amending and supplementing legal documents such as:

Develop a Decree guiding Resolution No. 198/2025/QH15, including solutions to support business households.

Develop the Law on Tax Administration (amended) and the Law on Personal Income Tax (amended) to submit to the National Assembly for consideration and approval at the 10th Session of the 15th National Assembly, in which the provisions on tax collection for business households and individuals are removed, and provisions on tax policies and self-declaration and tax payment mechanisms are added to apply from January 1, 2026.

The Ministry of Finance (Tax Department) is urgently focusing on amending tax management procedures in a simplified direction, applying automated systems to reduce administrative procedures, promote voluntary compliance, reform administrative procedures, and improve the efficiency of tax management according to the motto of taking taxpayers as the center of service.

The Ministry of Finance directs tax authorities to proactively promote forms of propaganda and support for business households and individuals in 2025 and 2026 so that taxpayers can become familiar with the new tax declaration and management method so that business households and individuals can implement it smoothly from January 1, 2026 according to Resolution No. 68-NQ/TW and Resolution No. 198/2025/QH15.

Chinhphu.vn

Source: https://baochinhphu.vn/tuyen-truyen-ho-tro-nguoi-nop-thue-lam-quen-voi-phuong-thuc-quan-ly-moi-10225111111114707.htm