On April 14, 2026, the Tax Department issued Official Dispatch No. 2354/CT-CS guiding tax policies and tax management for business households and individual businesses according to new regulations effective from 2026.
Accordingly, from January 1, 2026, business households and individual businesses with annual revenue of 500 million VND or less are not subject to value-added tax and are not required to pay personal income tax. This regulation is implemented according to Law No. 149/2025/QH15 amending and supplementing a number of articles of the Law on Value Added Tax and the Law on Personal Income Tax.
Notably, in cases where business households have revenue of over 500 million VND to 3 billion VND and choose the method of calculating personal income tax by multiplying by the taxable revenue, the personal income tax obligation is only calculated for the revenue exceeding 500 million VND.
This regulation is assessed as helping to reduce tax obligations for small and medium-sized business households, while creating favorable conditions in the process of transitioning to new tax management methods from 2026.
Tax rates continue to be applied according to current regulations
The Tax Department said that the taxable percentage and taxable revenue for value-added tax continue to be implemented according to the provisions of the 2024 Value Added Tax Law.
Meanwhile, the personal income tax rate is applied according to the tax calculation method on taxable income multiplied by the tax rate specified in the 2025 Personal Income Tax Law with rates of 15%, 17% and 20% depending on each business sector.
These tax rates have been applied stably for many years and are consistent with the operating characteristics of the business household and individual business sectors.
Increase support for electronic declaration for business households from 2026
According to Decree No. 68/2026/ND-CP of the Government and Circular No. 18/2026/TT-BTC of the Ministry of Finance, business households declare taxes electronically. Tax authorities are responsible for supporting taxpayers in the implementation process.
The Tax Department said that it has built a system of declaration forms in the direction of simplifying procedures, strengthening the application of digital transformation to create favorable conditions for business households in the process of fulfilling tax obligations.
In addition, many banks and technology businesses are currently implementing sales, accounting and integrated electronic invoice software solutions to support business households, including initial free programs for taxpayers to get acquainted with new management methods.
According to the orientation of supporting digital transformation in the private economic sector, the State is also promoting the provision of digital platforms and accounting software integrating electronic invoices, contributing to helping business households more conveniently record revenue, make invoices and declare taxes in the electronic environment.
