Accordingly, the project "Converting tax management models and methods for business households when eliminating contract tax" clearly summarizes 3 business groups and new points in converting tax calculation methods after eliminating contract tax.
In group 1, there are business households with a revenue of less than 200 million VND/year. This group is exempt from value-added tax (VAT) and personal income tax (PIT), (the old regulation was 100 million VND/year).
In addition, group 1 will not need to apply complicated accounting books but still have to make periodic declarations. Businesses can choose the right time to declare twice a year, whether at the beginning of the year or the middle/end of the year.
Group 2 is business households with revenue from 200 million to less than 3 billion VND. The project of the Ministry of Finance clearly states that this group applies the same direct tax calculation method on revenue as at present. The tax rate by industry is clearly classified: Distribution of goods 1.5%, production, catering services 4.5%, other services 7%, property lease is 10%,...
The regulations of the Ministry of Finance also create conditions for group 2 not to follow complicated accounting regimes, but still have to establish simple books with forms according to regulations. However, business households must declare taxes 4 times/year (quarterly) instead of paying taxes under the contract method as before.
In this group, if a business household has a revenue of over 1 billion VND/year and belongs to the retail and service industry that directly reaches consumers according to the provisions of Decree 70 of 2025, it must issue an electronic invoice from a cash register connected to a tax authority.
Other business households under 1 billion VND/year are not required to issue invoices, but the Ministry of Finance notes that they should still record revenue.
For business households with revenue of over VND3 billion/year, for 2 consecutive years based on the monitoring of the tax authority, the third year will be moved to group 3.
Group 3 is business households with revenue of over 3 billion VND/year. For this group, the authorities have specific requirements as follows:
First, it is mandatory to apply the VAT deduction method including: Output VAT - Input VAT equal to payable VAT.
Personal income tax rate is calculated at 17% on total profit, in which Profit = reasonable revenue minus expenses.
Second, the declaration method. Revenue of over 50 billion VND/year, business households declare monthly. Revenue under 50 billion VND, business households declare quarterly.
Third, it is mandatory to issue invoices (whether from cash registers or in other forms).
Fourth, it is necessary to open a separate bank account to serve business activities.
According to data from the Ministry of Finance, the number of business households continues to increase, in 2024 the whole country will have about 3.6 million business households and individuals (equivalent to 106% of 2023). The number of businesses operating stably (including contracted and declared households) is 2.2 million households, an increase of 4% compared to 2023.
Notably, the number of households with revenue above the tax payment threshold (over 100 million VND/year) is 1.3 million households, accounting for 59% of the total number of business households.
In 2024, the total state budget revenue from business households and individuals will be about VND26,000 billion, an increase of 20% compared to 2023. In the first 6 months of 2025, it is expected to collect over VND 17,000 billion from households and individuals doing business, more than 130% over the same period.
