The Ministry of Finance said on Tuesday it is considering taxing household businesses on profits rather than on total revenue after the revenue-based taxation system caused a stir among the public.
While Minister of Finance Nguyễn Văn Thắng said that the ministry will continue to study an appropriate revenue threshold for taxation on household businesses to ensure fairness, opinions remain divided over what level would be appropriate.
After abolishing the lump-sum tax system from the beginning of 2026, the tax authority will shift to a new household business management model based on revenue thresholds and the level of business development.
Under the plan, all business households nationwide will switch to a self-declaration and payment, starting from January 1, 2026, putting an end to lump-sum tax mechanism that has been in place for decades.
The Ministry of Finance is drafting a decree to implement the National Assembly’s resolution on promoting private sector development, including measures to provide free digital platforms and shared accounting software for SMEs, household businesses and self-employed individuals.
Millions of small business households are facing a major turning point, as the lump-sum tax system is replaced by tax declaration starting in 2026, part of a broader regulatory reform to modernise tax administration and promote a transparent and efficient...
The tax management system will transition from 20 regional tax branches to 34 provincial and centrally governed municipal tax offices and 350 grassroots tax units.
In the first five months of 2025, tax authorities collected VNĐ74.4 trillion (US$2.9 billion) from organisations and individuals engaged in e-commerce and other digital economy activities, up 55 per cent year-on-year.
Starting June 1, business households with large annual revenues have been required to transition from lump-sum tax payments to payments based on actual revenue.
Business households with large annual revenues from June 1 will be required to transition from lump-sum tax payments to tax payment based on actual revenue, as mandated by Decree 70/2025/NĐ-CP.
The General Department of Taxation requires effective implementation of tax management for electronic commerce activities (e-commerce) and electronic invoices (e-invoices) initiated from cash registers.
GDT would urge and speed up the implementation of electronic invoices with the tax agency''s code initiated from cash registers nationwide in the coming time, said Pham Quang Toan, head of the GDT''s IT Department.
The municipal Department of Taxation has been directed to collaborate with departments, sectors, the people’s committees of Thu Duc City and districts, and relevant units to put the scheme into action.
Generating e-invoices from cash registers was convenient for taxpayers. It also supports tax authorities in having database of goods and services transactions to serve the tax management and combat frauds and tax evasion.