Ensuring that business households carry out easy tax procedures
Decision No. 3389/QD-BTC approving the Project "Converting tax management models and methods for business households when eliminating contract tax" of the Ministry of Finance, to implement the policy of developing the private economy in the spirit of Resolution No. 68-NQ/TW of the Politburo.
According to the Ministry of Finance, the goal of the Project is to continue modernizing tax management for business households, eliminating contract tax, and establishing a fair business environment between business households and enterprises. The project also aims to promote administrative procedure reform, digital transformation, reduce compliance costs, focus on supporting taxpayers and creating favorable conditions for the comprehensive development of the private economic sector.
Accordingly, legal documents and guiding documents related to tax management of business households will be supplemented or newly issued according to plan.
From January 1, 2026, business households will apply self-declaration and self-payment of taxes instead of contracting. The project requires simplification, cutting at least 30% of administrative procedure processing time and 30% of compliance with the law, and continuing to reduce sharply in the following years in accordance with the spirit of Resolution 68-NQ/TW.
The Ministry of Finance also sets a target of 100% of business households having access to information and receiving support from tax authorities during the transition to the declaration method and when transferring to enterprises; 100% of households subject to electronic invoices generated from cash registers according to Decree 70/ND-CP must register and use; 100% of business households carry out tax procedures by electronic means conveniently and easily.
Completing tax institutions and policies
The project identifies the task of amending the Law on Tax Administration and guiding documents to abolish the form of contract tax for business households, and at the same time reviews and synchronously amends decrees and circulars to ensure effective implementation.
The personal income tax (PIT) and value-added tax (VAT) policies will be adjusted in accordance with reality, including reviewing the non-taxable revenue threshold, amending the method of calculating PIT for business households of similar scale to small and medium enterprises in the direction of similar to PIT; encouraging business households to be transparent in their books and costs to expand investment.
The project also requires reviewing the Law on Fees and Fees, the Law on Supporting Small Enterprises, researching and developing the Law on Individual Business to concretize private economic development policies; amending circulars on accounting regimes (88/2021/TT-BTC, 132/2018/TT-BTC, 133/2016/TT-BTC) to suit the business household model after abolishing contract tax.
The Ministry of Finance will build a new tax management model to classify business households according to revenue scale to apply appropriate tax calculation methods and management forms, while clearly defining the roles and functions of departments in the tax authority, avoiding overlapping tasks. The tax management and inspection process for business households according to the declaration method will also be redesigned, in accordance with the overall program for restructuring the tax sector's procedures.
Innovation in digital technology management and application methods
The project requires innovation in propaganda work, support for business households before and during the conversion period, development of support programs by industry and scale, and compilation of documents guiding simple accounting regimes for tax declaration. Modern technologies such as artificial intelligence (AI), Chatbot will be applied to improve the quality of support and prompt and timely handling for taxpayers.
The tax authority will promote administrative procedure reform, simplify declarations, and apply smart electronic form form formats with data suggestions from the invoice system to reduce compliance costs. Compliance supervision will be carried out on the basis of risk management, strengthening invoice inspection, preventing invoice trading, and having separate management solutions for households and individuals doing e-commerce business.
The project also clearly states the orientation of perfecting the tax management apparatus in accordance with the model of declaration, organization of training, improving the capacity of tax officials, and strengthening discipline and order in performing public duties.
Along with that, the Ministry of Finance will develop shared digital platforms, providing free or low-cost accounting software for business households and micro enterprises; building an automatic tax calculation application from electronic invoice data to reduce the burden of declaration, increase accuracy and transparency. The information technology system will be upgraded, data connections between parties will be connected to closely monitor the activities of business households, creating a foundation for modern tax management, preventing losses and improving compliance.
