HÀ NỘI — Hà Nội People’s Committee has asked relevant agencies to study support for business households facing difficulties as the city shifts toward a self-declaration and payment system while phasing out the long-standing lump-sum tax regime. The move aims to build a transparent, digital and equitable system that fosters sustainable private sector growth.

The request was raised in Document No 5997/UBND-KT dated November 11 regarding the implementation of the Ministry of Finance’s plan to abolish the lump-sum tax regime for business households from January 1, 2026.

Accordingly, the city will develop programmes to assist business households with the transition, including hands-on training in digital skills and guidance on using Etax Mobile, e-tax services, e-invoices and accounting apps. Support desks will be set up in traditional markets and commercial streets, while technology firms will be encouraged to offer free or discounted software to facilitate the transition.

The Department of Finance has been tasked with coordinating with relevant departments and agencies to support business households converting into enterprises under the city’s Decision No 5418/QĐ-UBND on the project to support SMEs in the 2026-30 period. The support will include financial aid for IT infrastructure, registration fees, digital skills training for business households and individuals facing difficulties during the transition of operation models or adopting electronic invoices generated from cash registers.

The municipal government asked the Department of Industry and Trade to enhance supervision of e-commerce and businesses on digital platforms to ensure compliance, while market watch will be increased to prevent trade fraud and tax evasion. Hà Nội also asked the State Bank of Việt Nam’s Region 1 branch to promote the expansion of electronic payments via QR code, POS and e-wallets at markets and retail points.

The capital city will strengthen data integration and information sharing to build a comprehensive database for managing business households and individuals. A steering committee has been established to implement the transition of the taxation regime, led by Vice Chairman of the Hà Nội People’s Committee Trương Việt Dũng.

Vũ Mạnh Cường, director of Hà Nội Tax Department, said the tax authority has implemented a number of measures to transition from the lump-sum tax regime to a declaration-based system in the capital. The department has signed cooperation agreements with 126 wards and communes on coordinated implementation and launched a comprehensive action plan to support business households to ensure consistent execution.

In early 2025, Hà Nội implemented a project to reform and improve the quality of tax management for business households. Cường also noted that the rollout of regulations on electronic invoices generated from cash registers, despite initial challenges, marked a significant milestone in modernising the tax system toward transparency.

In addition, a series of digital transformation campaigns were launched, such as 40 Days of Digital Transformation, 90 Days of Data Cleansing and 60 Days of Transition from Lump-sum to Declaration-based Tax Regime.

To date, more than 14,000 business households and individuals are using e-invoices generated from cash registers in the capital. More than 85 per cent of taxpayers have installed and are using the e-Tax Mobile app for online tax declaration and payment.

Hà Nội Tax Department has outlined a plan to support business households shifting to the self-declaration tax system or converting into enterprises. Taxpayers are divided into three groups based on their annual revenues for appropriate support measures: under VNĐ200 million, from VNĐ200 million to VNĐ3 billion, and above VNĐ3 billion.

The support measures focus on free legal consultation, free access to tools and software, increasing interaction and multi-level support, on-site surveys, technology solution assistance, training, and one officer–one group support.

Nguyễn Tiến Minh, deputy head of the Hà Nội Tax Department, said 2025 marks a year of major adjustments in mechanisms, policies and development planning, with the private sector considered a key growth driver and the centre of policymaking.

The shift from lump-sum tax to the self-declaration model is not about making things more complicated but about changing the approach, placing trust in taxpayers to declare and pay based on their actual revenues while tax authorities focus on support, verification and ensuring fairness through digital data.

“When transparency and fairness become the standard, business households will gain confidence to expand and naturally increase their revenues,” he said.

The transition is also a step forward in digital transformation, openness and transparency, paving the way for a modern and fair tax management system.

There are more than 300,000 business households in Hà Nội subject to the shift from the lump-sum tax regime to a declaration-based system. — VNS