How to calculate household tax for many industries and locations
According to Notice 85/TB-CT of 2026 of the Tax Department on disseminating tax policies, individuals and business households operating in many industries or in many different locations will have more flexible tax calculation plans.
Taxpayers are entitled to choose a single business line or business location to apply a deduction of 500 million VND before calculating personal income tax.
This selection should be based on the most beneficial option for business people. In case the deduction at the first location is not enough 500 million VND, business households are allowed to continue to choose other industries or locations to deduct until the prescribed limit is met.
Determine revenue and deductible expenses for business households
Accurately determining revenue and expenses is a key condition for business households to fulfill their tax obligations accurately:
Regarding revenue: Including all sales revenue, processing costs, service provision, subsidies, surcharges, surpluses. In addition, there are bonuses, sales performance support, payment discounts, contract violation compensation and other revenues.
Exclusions: Excluding commercial discounts, discounts on goods sold and returned goods sold.
Regarding deductible expenses: They must be actual incurred expenses directly related to business, with full invoices and valid documents.
Payment notes: Expenditures of 5 million VND or more at a time must have non-cash payment vouchers.
Tax-exempt income from July 1, 2026
The 2025 Personal Income Tax Law brings a long list of non-taxable incomes, widely applied from mid-2026. Some key contents include:
Agriculture and fisheries: Income of households and individuals directly producing crop products, livestock, aquaculture and fishing that have not been processed or are only ordinarily pre-processed.
Family real estate: Income from transfer and inheritance of real estate between relatives (husband, wife, parents, children, siblings...).
Interest on savings deposits, interest on government bonds, remittances, overtime pay, overnight work and pensions paid by the Social Insurance Fund.
Income after corporate income tax payment of individuals who are private business owners or owners of one-member limited liability companies.
*It should be noted that, although the Law takes general effect from July 1, 2026, separate regulations on income from business and salaries of resident individuals will be applied immediately from the tax period of 2026.
