Revenue of business households in construction and installation activities is determined according to the value of the project, project item or actual acceptance volume. In case of not bidding for materials, revenue does not include the value of raw materials, machinery, and equipment according to new regulations in Decree 68/2026/ND-CP.
Revenue calculated according to the value of project acceptance
According to Article 5 of Decree 68/2026/ND-CP, for construction and installation activities, revenue to determine personal income taxable income of business households is determined as:
- Construction value;
- Value of the project item;
- Or the value of the volume of construction and installation works that have been accepted.
This regulation applies according to the principle of determining revenue based on the actual value of completion and acceptance, instead of relying on the amount of advance or payment in installments.
Construction and installation revenue determined in the form of material bidding
In case business households carry out construction and installation in the form of bidding for raw materials, machinery, and equipment, the taxable revenue is the entire value of the accepted project, including: labor costs; raw materials; machinery; equipment serving construction.
This means that the materials provided by business households are still included in revenue to determine tax obligations.
Conversely, if a business household only performs the construction part without bidding for raw materials, machinery, and equipment, the taxable revenue is determined to be the amount from construction and installation activities, excluding the value of materials provided by the investor.
This regulation helps to accurately determine the actual revenue generated, avoiding duplication of tax obligations for the part of expenses that are not the responsibility of business households.
According to the provisions of Decree 68/2026/ND-CP, revenue is the direct basis for determining personal income taxable income of business households in the field of construction and installation.
Determining the correct revenue according to the acceptance value of the project helps business households to accurately declare tax obligations, while ensuring uniformity in tax management in the direction of managing actual revenue from 2026.
