Readers reflect on whether business households must participate in compulsory social insurance (BHXH), in the context that from January 1, 2026, the form of fixed tax will be abolished and all business households must pay taxes according to the declaration method.
Readers quoted the provisions in Clause 2, Article 3 of Decree No. 158/2025/ND-CP, according to which business households are subject to compulsory social insurance participation including: Business households pay taxes according to the declaration method from July 1, 2025; and from July 1, 2029, business households not belonging to the above group are also subject to compulsory social insurance participation.
Readers also raised questions about the information that business households with revenue over 1 billion VND/year must participate in social insurance, while revenue is only determined at the end of the year, which may lead to retroactive collection.
Vietnam Social Security answers as follows:
Based on point d, clause 5, point c, clause 7, Article 2 of the 2024 Social Insurance Law; clause 2 and point a, clause 3, Article 3 of Decree No. 158/2025/ND-CP dated June 25, 2025 of the Government; Article 3, Article 4 and point a, clause 1, Article 8 of Decree No. 68/2026/ND-CP dated March 5, 2026; clause 1, Article 1 of Decree No. 141/2026/ND-CP dated April 29, 2026; and the provisions of Circular No. 40/2021/TT-BTC and Circular No. 18/2026/TT-BTC of the Ministry of Finance.
Accordingly, from July 1, 2025, business households of business households registered to pay taxes according to the declaration method are subject to compulsory social insurance.
In which, business households paying taxes according to the declaration method (value added tax, personal income tax) before January 1, 2026 are implemented according to Circular No. 40/2021/TT-BTC; from January 1, 2026, it is implemented according to Decree No. 68/2026/ND-CP and Decree No. 141/2026/ND-CP.
From July 1, 2029, business households of registered business households (the rest) are subject to compulsory social insurance participation.
In case business household owners have reached retirement age according to Clause 2, Article 169 of the Labor Code (except in cases where there is a maximum shortage of 06 months of social insurance contribution time according to Clause 7, Article 33 of the 2024 Social Insurance Law), or are receiving pensions, social insurance allowances, monthly allowances, they are not subject to compulsory social insurance participation.
In case they simultaneously belong to other groups of subjects according to the Law on Social Insurance, they must participate in compulsory social insurance according to the corresponding subjects specified.
For business households, in case it is determined that there is annual revenue from production and business of goods and services from 1 billion VND or less, they must notify the tax authority of actual revenue generated in the year, no later than January 31 of the following calendar year.
