The Tax Department has just issued Official Letter No. 4948/CT-NVT on organizing the implementation of the Project "Converting tax models and methods for business households when eliminating contract tax" under Decision No. 3389/QD-BTC (Project 3389).
Accordingly, in order to ensure success in the conversion from contract to declaration for business households and prevent loss of revenue during the conversion period, the Tax Department recommends that the Tax authorities of provinces and cities review and classify according to the revenue threshold as follows:
According to the draft Decree on tax management for business households (expected to be submitted to the Government for promulgation in December 2025), business households will be classified according to revenue scale to apply tax policies, management methods, accounting regimes, and appropriate invoice forms, including the following 04 groups:
Group 1: Business households with total annual revenue of less than 200 million VND;
Group 2: Business households with total annual revenue from 200 million VND to 3 billion VND;
Group 3: Business households with total annual revenue of over 3 billion VND to 50 billion VND;
Group 4: Business households with total annual revenue of over 50 billion VND.
The Tax Department recommends that the Tax Departments of provinces and cities review and control the expected revenue data for 2025 and the business lines of business households on the business household application to apply risk management and compliance management measures (such as: comparing tax obligations that have been implemented/declared in 2025 with the tax declaration of business households in the first declaration period of 2026 and subsequent declarations, to ensure that the declaration accurately reflects the actual production and business activities right from the time of conversion).
