Eliminate lump-sum tax for business households

Eliminate lump-sum tax for business households by 2026 at the latest

In Resolution 68 on private economic development recently issued by the Politburo, a notable content is to eliminate the lump-sum tax form for business households, no later than 2026.

Eliminating the lump-sum tax for business households is considered by experts to be a very correct policy. However, management agencies need to provide specific support for business households and have a suitable implementation roadmap. The advantage of lump-sum tax is that it is simple and easy to implement, but it lacks transparency. Many business households have high revenue but declare lower amounts to evade taxes.

Therefore, it is necessary to promote digitalization, transparency, simplification, ease of compliance, ease of implementation for accounting, tax, insurance regimes... to encourage the conversion of business households to operate under the enterprise model. Eliminate lump-sum tax for business households by 2026 at the latest. Provide free digital platforms, shared accounting software, legal consulting services, training on business administration, accounting, tax, human resources, law for small and micro enterprises, business households, and individual businesses.

At the same time, effectively implement the National Financial Inclusion Strategy, promote access to and use of financial products for small and micro enterprises, business households, prioritizing business owners, business households who are young people, women, vulnerable groups, ethnic minorities, mountainous, border and island areas and inclusive business models, creating social impact.

According to experts, to implement the resolution, specific instructions are needed. After the end of the lump-sum tax, business households will switch to the method of declaring or using electronic invoices from cash registers, through technology solutions and eTax Mobile applications. However, when switching to the method of declaring or using electronic invoices, the procedures will be more complicated than lump-sum tax, increasing costs for business households. Therefore, a specific roadmap and support measures are needed.

According to the data of the Tax Department (Ministry of Finance), by the end of March 2025, the number of business households and individuals who submitted tax declarations in the form of lump sums was 1,975,373 households, while the number of households using the declaration form was only 6,142 households. In the near future, the number of business households and individuals added to tax management in the form of declaration through the implementation of the business household number map is 61,329 business households.

Currently, there are 3.6 million business households nationwide that are under tax management, of which nearly 2 million households pay tax in the form of lump-sum tax, accounting for 66%. The average lump-sum tax rate in the first quarter of this year is about 672,000 VND/household/month.

According to the Tax Authority, the total state budget revenue from business households and individuals in the first 3 months of 2025 is estimated at VND 8,695 billion, an increase of 25.7% over the same period in 2024. Of which, the average lump-sum tax rate in March 2025 is VND 672,300/month/household, individual; and for business households and individuals paying tax by declaration method, the average is VND 4.6 million/month/household, individual.

Resolution 68 also pointed out that after nearly 40 years of renovation, our country's private economy has gradually developed in both quantity and quality, becoming one of the important driving forces of the socialist-oriented market economy. The private economic sector currently has more than 940,000 enterprises and more than 5 million business households in operation, contributing about 50% of GDP, more than 30% of total state budget revenue and employing about 82% of the total labor force in economic growth, creating jobs, being an important force promoting innovation, improving labor productivity, increasing national competitiveness, contributing to hunger eradication, poverty reduction, and stabilizing social life.

Therefore, the resolution sets out the task and solution of providing substantial and effective support to small and micro enterprises and business households. Accordingly, reviewing and perfecting the legal framework for individual businesses; minimizing the gap, creating all favorable conditions for management organization and financial and accounting regimes to encourage business households to transform into enterprises.

Source: https://baolamdong.vn/kinh-te/202505/xoa-bo-hinh-thuc-thue-khoan-doi-voi-ho-kinh-doanh-469428d/