Abolishing lump-sum tax: A turning point in making tax obligations transparent

(Chinhphu.vn) - The end of lump-sum tax and the transition to self-declaration and self-payment of taxes from January 1, 2026 marks an important turning point in tax reform in Vietnam, towards transparency, fairness, modernizing management and nurturing the sustainable development of the private economic sector.

Mr. Mai Son - Deputy Director of the Tax Department ( Ministry of Finance ) - Photo: VGP

Abolishing lump-sum tax - a move for fairness and transparency

Recently, the Ministry of Finance issued a Decision to completely end the lump-sum tax collection method for business households and individuals, switching to self-declaration and self-payment management from January 1, 2026. According to the new regulations, business households and individuals are divided into three groups: revenue from 200 million VND/year or less is exempt from tax; the group from over 200 million to 3 billion VND/year is subject to tax from 1-5% depending on the industry; the group over 3 billion VND/year applies the VAT deduction method with a personal income tax rate of 17% on profits.

At the program "Giving free software to 2 million business households to eliminate lump-sum tax according to Resolution 68-NQ/TW", Mr. Mai Son - Deputy Director of the Tax Department (Ministry of Finance) affirmed: This conversion is an important step to implement the Party and State's policy on fair and transparent tax management and promote the development of the private economic sector.

Ms. Nguyen Thi Cuc - President of Vietnam Tax Consultants Association - Photo: VGP

Ms. Nguyen Thi Cuc - President of the Vietnam Tax Consulting Association acknowledged that abolishing lump-sum tax is necessary to prevent tax evasion. Ms. Cuc cited many recent cases showing counterfeit goods, tax evasion with large amounts of money, including some famous people, to business individuals with revenue of hundreds of billions of VND but did not declare and pay taxes.

According to Ms. Cuc, when applying the declaration method, business households will implement accounting regimes, use invoices and documents, and gradually convert into enterprises.

"Thanks to that, business efficiency and management capacity will be improved. When business households become rich, they not only enrich themselves but also contribute to the country," said Ms. Cuc.

At the same time, Ms. Cuc said the State is supporting infrastructure, accounting software and more favorable land policies, helping businesses gradually integrate into domestic supply chains and reach out globally.

Tax authorities actively support taxpayers

Deputy Director Mai Son said that the Tax sector is focusing on building a smart electronic tax ecosystem for business households and individuals. In the fourth quarter of 2025, the Tax authority will upgrade the eTax Mobile application, automatically synthesizing revenue data from electronic invoices, creating suggested declarations so that taxpayers only need to check and confirm.

The Tax Department's leaders emphasized: This tool is especially useful when eliminating lump-sum tax, helping to avoid errors and increase the initiative of business households. The Tax Department is committed to cutting at least 30% of procedural time and compliance costs, and shifting to electronic forms as much as possible.

According to statistics, 98% of business households have declared and paid taxes electronically; more than 18,500 households have switched to declaring and 133,000 households have registered for electronic invoices from cash registers, these numbers show positive changes and quick adaptation to the new policy.

The Tax Department has developed a specific transformation roadmap, including 5 groups of solutions: simplifying procedures, supporting transition, accompanying cost reduction, ensuring transparency and encouraging business households to develop into enterprises. The Tax Department also coordinates with technology units such as MISA to support taxpayers most effectively.

Ms. Dinh Thi Thuy - Vice Chairman of the Board of Directors of MISA assessed: Eliminating lump-sum tax is an important step in modernizing the Vietnamese tax system. MISA has announced a program to give away free MISA eShop software to 2 million business households, along with 3 months of software use, 1 year of digital signature and 5,000 free electronic invoices.

Deputy Director Mai Son emphasized: The Tax Industry is designing a modern tax management model associated with data infrastructure and digital technology.

"We aim to connect synchronously with national databases, serving effective management, while creating a transparent business environment and nurturing sustainable revenue sources," said Mr. Mai Son.

MISA teams across the country have been deployed to every village road, alley, and market area - where many businesses are operating - to advise, guide, and give away free software to people.

Ms. Le Thi Chinh - Deputy Head of the Tax Department's Business Department added: In the first 9 months of 2025, more than 18,500 households switched to declaration, 2,530 households switched to the enterprise model and 133,000 households used electronic invoices from cash registers. These figures show the confidence and proactive adaptation of business people.

The Ministry of Finance has issued the Project "Converting tax management models and methods for business households when eliminating lump-sum tax" according to Decision 3389/QD-BTC, aiming to complete the conversion from January 1, 2026.

TT

Source: https://baochinhphu.vn/xoa-bo-thue-khoan-buoc-ngoat-minh-bach-hoa-nghia-vu-thue-102251024180544774.htm