On the Ministry of Finance's Electronic Information Portal, a reader reflected difficulties related to determining tax obligations for newly established individuals and business households and requested functional agencies to provide specific guidance.
According to reports, business households started operating from November 2025 with actual revenue of about 20 million VND per month.
Thus, total revenue generated in 2025, from November to the end of December, is about 40 million VND.
Readers said that according to the provisions of Circular No. 100/2021/TT-BTC dated November 15, 2021 of the Ministry of Finance amending and supplementing a number of contents of Circular No. 40/2021/TT-BTC, for individuals and business households newly starting business in the year, the determination of the revenue threshold of 100 million VND to serve as a basis for tax calculation is carried out based on actual revenue generated in the calendar year.
However, the local tax authorities still require this business household to pay taxes for 2025 even though the actual revenue in the year is only about 40 million VND.
From there, readers request the Ministry of Finance to clarify whether individuals and business households in the above case are subject to VAT and PIT in 2025, and at the same time request guidance on the legal basis for application.
Answering this content, the Tax authority in Hanoi said that the determination of tax obligations of business households is implemented according to the provisions of Circular No. 100/2021/TT-BTC dated November 15, 2021 of the Ministry of Finance.
According to Clause 1, Article 1 of Circular No. 100/2021/TT-BTC, in case new business households start doing business in the year, i.e., operating for less than 12 months in the calendar year, they are only subject to VAT and PIT if they have business revenue in the year of over 100 million VND.
Conversely, if revenue generated in the year is from 100 million VND or less, business households are not subject to VAT and PIT.
Based on the above regulations, Base 1 Tax of Hanoi city guides cases where new business households start operating in 2025 and have actual revenue in the year not exceeding 100 million VND, they are not subject to VAT and PIT.
The tax authority also requests taxpayers to base on their actual business operations to properly implement the provisions of Circular No. 100/2021/TT-BTC and relevant legal documents.
