Accordingly, from January 1, 2026, all business households and individuals will switch to the method of tax declaration according to Resolution 68-NQ/TW dated May 4, 2025 of the Politburo, Resolution 198/2025/QH13 of the National Assembly and the Law on Tax Administration 2025 passed by the 15th National Assembly at the 10th session.
Accompanying and supporting business households and individuals in complying with tax laws, avoiding cases of administrative violations in the process of converting from the contract method to the declaration method according to the above regulations, the Tax Department guides the content related to not handling administrative violations as follows:
- Based on Article 51 of the 2019 Law on Tax Administration;
- Clause 4, Article 9 of Decree 125/2020/ND-CP stipulates:
Article 9. Cases where administrative violations of taxes and invoices are not handled
4. Not to sanction acts of tax procedure violations against individuals who directly finalize personal income tax late, submit personal income tax finalization dossiers that incur the amount of tax refunded, business households, and business individuals who have been taxed according to the provisions of Article 51 of the Law on Tax Administration".
- Article 13 of Circular 40/2021/TT-BTC guiding tax management for contractor households.
Article 13 of the 2025 Tax Administration Law stipulates the tax declaration of business households and individual businesses.
- Clause 4, Article 5 of Resolution 198/2025/QH15 stipulates:
Article 5. Principles for handling violations and resolving cases in business operations
4. Not to apply retroactive legal regulations to handle disadvantages for businesses, business households, and individual businesses".
Based on the above regulations, in cases where business households and individuals have paid taxes by contract method in 2025 or earlier (including cases where business households and individuals have changed the scale of production and business leading to tax revenue changes from 50% or more) and have been determined by the tax authority to set revenue and determine the contract tax rate according to the provisions of Article 51 of the Law on Tax Administration, when switching to the form of tax declaration from January 1, 2026, the tax authority will not conduct tax inspection, and will not use tax declaration revenue of business households and individuals in 2026 for retroactive handling of tax obligations of business households and individuals who have paid taxes by contract method from 2025 or earlier.
In case competent authorities detect that business households and business individuals have acts of fraud, concealing revenue leading to a shortage of tax payable, business households and business individuals will be administratively sanctioned for tax evasion according to the provisions of Article 17 of Decree 125/2020/ND-CP or serious violations may be criminally handled for tax evasion according to the provisions of Article 200 of the 2015 Penal Code (amended and supplemented in 2017).
