Three main types of taxes apply to business households
According to current regulations, business households must fulfill tax obligations with three basic types of taxes and fees:
Card taxes;
Value Added Tax (VAT);
Personal income tax (PIT).
In addition, business households may have to pay other taxes such as resource tax and environmental protection tax if they do business in taxable goods according to the provisions of specialized laws.
How much revenue does it have to pay tax?
With VAT and personal income tax, business households with a revenue of VND100 million/year or less are exempted from paying. This revenue level applies to a representative in the case of a business household in a group of individuals or households.
However, if the revenue exceeds 100 million VND/year, the business household is required to pay VAT, personal income tax and card tax.
Details of the tax rate payable in 2025:
Taxes applied to business households in 2025. Photo: Ha Vy
cards tax is determined according to annual revenue: households with a revenue of over VND 500 million/year pay VND 1 million; revenue from over VND 300 to VND 500 million/year pay VND 500,000; revenue from over VND 100 to VND 300 million/year pay VND 300,000.
For VAT and personal income tax, business households must declare according to the contract method or declare according to actual revenue depending on the operating model.
Tax is calculated based on the taxable revenue with the tax rate corresponding to each industry, according to the instructions in Appendix I of Circular 40/2021/TT-BTC. Taxable revenue includes all revenue from sales, service provision, bonuses, discounts, and trade support, even in cases where no money has been collected.
The calculation formula is as follows:
VAT payable = VAT rate × Taxable revenue
Pending personal income tax = Tax rate of personal income tax × Revenue for tax calculation
Abolish contract tax, how do business households pay taxes?
From June 1, 2025 to December 31, 2025, the policy of eliminating contract tax will be applied to business households with a revenue of VND 1 billion/year or more, in industries with sales, providing direct services to consumers such as: shopping malls, supermarkets, retail, dining, restaurants, hotels, passenger transport, art, entertainment, film screening, personal service services...
From January 1, 2026 onwards, contract tax will be officially abolished for all business households and individuals.
After eliminating contract tax, business households have two options to pay taxes:
Tax declaration method: applied to households and individuals doing business with a revenue of VND 100 million/year or more.
Method of tax payment for each arising case: applied to individuals doing business infrequently, without a fixed business location.
How to calculate tax according to the declaration method:
According to the provisions of Circular 40/2021/TT-BTC:
Taxable revenue: Including all revenue from sales, service provision, commissions, promotional values, discounts, sales support... including collected and uncollected fees.
Tax rate on revenue: Including VAT rate and personal income tax rate prescribed for each industry ( Appendix I of Circular 40).
Tax calculation formula:
VAT amount = VAT revenue × VAT rate
Northern property tax = Northern property tax revenue × Northern property tax rate
In case the business household operates in multiple industries, the tax rate will be applied separately according to the revenue of each industry. If the revenue cannot be determined, the tax authority has the right to determine it in practice.
