How much revenue does a business household have to report for tax?
According to Clause 25, Article 5 of the Law on Value Added Tax 2024 effective from January 1, 2026: Goods and services of households and individuals producing and trading with annual revenue of VND 200 million or less; assets of organizations and individuals that are not in business, not taxpayers, selling value added tax...
Pursuant to Clause 1, Article 3 of the Law on Personal Income Tax 2007, amended by Article 17 of the Law on Value Added Tax 2024, effective from January 1, 2026: Income of production and business households and individuals with a revenue of less than VND 200 million/year is not subject to personal income tax.
According to the above regulations, from January 1, 2026, business households with a revenue of 200 million/year or more must declare to pay personal income tax and value added tax.
Recently, in the latest plan submitted to the Government, the Ministry of Finance proposed raising the threshold of tax-exempt revenue to VND500 million/year, and at the same time applying a new tax calculation method: Only collect tax on the revenue exceeding the threshold instead of calculating on the entire revenue. The Ministry also recommends adding a method of calculating tax based on income (revenue minus expenses) with a tax rate of 15%.
Instructions for reporting taxes to business households
According to the Project on converting models and methods of tax management for business households when abolishing contract tax of the Ministry of Finance in Decision 3389/QD-BTC, business households with a revenue of 200 million/year or more will have to declare taxes according to the declaration method.
In case of doing business on e-commerce platforms where the platform does not have the function of payment: Individuals must self-declare and pay taxes for each arising time, month or quarter.
Reporting tax to business households according to the declaration method
According to Clause 1, Article 11 of Circular 40/2021/TT-BTC, the tax declaration dossier of a business household paying tax according to the declaration method includes:
- Tax declaration for business households and individuals according to form No. 01/CNKD.
- Appendix to the List of business activities during the period of business households and individual businesses.
- Deadline for submitting tax declaration documents for business households and individuals paying taxes according to the declaration method guided in Clause 3, Article 11 of Circular No. 40/2021/TT-BTC:
+ The deadline for submitting tax declarations for business households and individuals to pay taxes according to the monthly declaration method is no later than the 20th of the month following the month of tax obligations.
- The deadline for submitting tax declarations to business households and individuals to pay taxes according to the quarterly declaration method is no later than the last day of the first month of the following quarter adjacent to the arising tax obligations.
Report tax to business households for each arising period
Pursuant to Clause 1, Article 12 of Circular No. 40/2021/TT-BTC, the tax declaration dossier of a business household paying tax according to the arising tax method includes:
- Tax declaration for business households and individuals according to form No. 01/CNKD
- Documents accompanying each arising tax declaration include:
+ copy of economic contract for the supply of goods and services;
+ copy of the record of acceptance and termination of the contract;
- Copies of documents proving the origin of goods such as: List of agricultural product purchases if domestic agricultural products; List of goods purchased and exchanged by border residents if imported border residents; Invoice of the seller for imported goods purchased by domestic business organizations and individuals; related documents to prove whether they are self-produced goods;...
- The tax authority has the right to request the presentation of the original for comparison, confirming the accuracy of the copy compared to the original.
- Deadline for submitting tax declarations for each arising application: no later than the 10th day from the date of tax obligations according to Clause 3, Article 12 of Circular 40.
