Eliminating lump-sum tax: Business households enter a new stage of development
(Chinhphu.vn) - From 2026, business households will officially end the lump-sum tax mechanism, replacing it with self-declaration and tax payment based on actual revenue. This reform not only increases transparency but also opens up opportunities to upgrade business households to become enterprises.
Báo Chính Phủ•31/05/2025
Mr. Mai Son - Deputy Director of the Tax Department ( Ministry of Finance ) - Photo: VGP/HT
Historic move:Businesshouseholds are about to run out of 'tax-free period'
Resolution 68 requires the elimination of lump-sum tax for business households by 2026 at the latest. At the same time, the tax base must be expanded, especially electronic tax collection generated from cash registers. Responding to the Government Electronic Information Portal on the above content, Mr. Mai Son - Deputy Director of the Tax Department (Ministry of Finance) emphasized: The elimination of lump-sum tax is of key significance in reforming tax administration and promoting the development of the private economy .
Firstly, this change helps improve transparency and fairness in tax collection. When switching from contract to self-declaration and tax payment based on actual revenue, tax authorities can more accurately grasp the business capacity of each household, while ensuring the principle of "self-declaration, self-payment, self-responsibility". This promotes the sense of responsibility of taxpayers, helping them see tax obligations as a contribution to the community and the country.
Second, the new policy contributes to modernizing and improving the efficiency of tax administration. In particular, it is consistent with the digital transformation trend that is spreading throughout the system. Thanks to the application of technology and electronic declaration software, tax authorities can support taxpayers more easily, thereby reducing fraud and revenue loss. The business environment also becomes healthy competition when all businesses must comply with the same clear standards.
After the transformation, the business environment for individual households will become transparent and synchronous, creating conditions for sustainable development. The full implementation of Resolution 68 will not only help to collect sufficient budget revenue but also be a springboard for the private economic sector to develop more strongly, playing a key role in the national economy.
This is also the driving force for household businesses to transform into enterprises. Previously, due to the habit of paying lump-sum taxes, many households did not maintain accounting books or valid documents. Now that they are required to follow the declaration method, they will gradually become familiar with systematic financial management - an important premise for developing into small and micro enterprises, thereby accessing business support policies.
"Eliminating lump-sum tax also helps Vietnam move closer to modern world tax management standards. This is a step in the national tax reform roadmap, demonstrating the strong political determination of the Party, National Assembly, Government and Ministry of Finance," said Mr. Mai Son.
Large solution set for successful transformation
Thus, from now until the end of 2025 is the final time for the entire tax system and business households to prepare for a fundamental change. The success of this reform depends not only on institutions and technology but also on the companionship and support of the whole society - especially the local authorities and the taxpayers themselves.
To ensure effective implementation of the policy of converting business household tax, the Ministry of Finance has been implementing 7 groups of synchronous solutions, from legal, technological to practical support.
First, the Ministry of Finance is actively amending the tax law system. In fact, the Ministry is drafting a revised Law on Tax Administration, which completely eliminates the lump-sum tax mechanism for business households and individuals. Instead, it applies a self-declaration and self-payment mechanism with requirements for bookkeeping and invoicing like businesses. At the same time, it is studying the adjustment of the Personal Income Tax Law and the Value Added Tax Law to regulate the level of non-taxable revenue, protecting small business households.
Second, the Tax Department is reorganizing its apparatus in a streamlined and efficient manner. Business household management has shifted from function to object-based management, closely following the locality, thereby individualizing the responsibility of each tax officer. Thereby, collecting the right amount and avoiding budget losses.
Third, the Ministry of Finance advocates simplifying accounting books and invoices and providing free shared accounting and invoice software. This makes it easier for businesses to access and comply, while reducing the burden of procedures.
Fourth, the Tax Department is developing an automatic electronic declaration system, allowing the system to automatically calculate tax obligations based on invoice data. Thanks to that, business households only need to confirm instead of having to manually declare each item. The software also has functions to remind declaration deadlines, warn of errors, etc.
Fifth, the Tax sector is actively implementing electronic invoices from cash registers. From July 1, 2022, electronic invoices will be applied nationwide. From December 15, 2022, the Ministry of Finance has deployed additional electronic invoices generated from cash registers, a tool that helps businesses issue invoices right at the point of sale. From June 2025, businesses with revenue of over 1 billion VND/year in the retail and service sectors are required to apply this form.
Sixth, it is necessary to support business households during the transition period. Mr. Mai Son said that tax authorities from the central to local levels will continue to promote propaganda, guidance, and technical support. Households will be reminded, supported in installing cash registers, invoice software, and even receive financial support if they encounter difficulties. The Ministry also requested local authorities to proactively coordinate and issue additional support policies to help business households feel secure in the transition.
Seventh, tax industry leaders emphasized the need to strengthen compliance monitoring.
"The Tax Department is actively digitizing and connecting data with ministries, banks, market agencies... From invoice data, cash flow, and actual income, tax authorities can quickly detect signs of risk and tax evasion. Conversely, households that comply well will be given priority for support," said Deputy Director Mai Son.
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