How to determine revenue to calculate personal income tax for business households

Legal Consulting Office of Lao Dong Newspaper answers:

Clauses 1, 2, Article 5 of Decree 68/2026/ND-CP Regulating tax policies and tax management for business households and individual businesses (effective from March 5, 2026), stipulating revenue to determine personal income tax as follows:

1. Revenue is the entire amount of sales money, processing money, service supply money, including subsidies, surcharges, surpluses that business households and individual businesses enjoy, regardless of whether money has been collected or not; including bonuses received, amounts received from sales performance support, promotions, payment discounts, support received in cash or not in cash, compensation for contract violations, other compensation related to business activities, other revenues that individual businesses receive regardless of whether money has been collected or not, excluding commercial discounts, discounts on goods sold and returned value of goods sold.

2. Revenue for some cases is specified as follows:

a) For goods processing activities, the money collected from processing activities includes wages, fuel costs, power, auxiliary materials and other costs for processing goods;

b) In case of selling goods and providing services in installment or deferred payment methods, the money from selling goods and services is paid in one lump sum, excluding installment interest and deferred interest;

c) The case of delivering goods to agents is the total amount of goods sold;

d) In case of accepting to be an agent to sell goods at the regulated price of the agent handover party, the commission is enjoyed according to the agent contract;

e) For property leasing activities, it is the amount of money the lessee pays each period according to the lease contract. In case the lessee pays in advance for many years, the revenue to calculate taxable income is allocated to the number of years of advance payment or is determined according to the revenue paid in one lump sum;

e) For other service business activities where customers pay in advance for many years, the revenue to calculate taxable income is allocated to the number of years of advance payment or determined according to one-time payment revenue;

g) For transport activities, it is the entire revenue from passenger, cargo, and baggage transportation incurred in the tax period;

h) For construction and installation activities, it is the value of the project, the value of the project item or the value of the volume of construction and installation works accepted, including the value of raw materials, machinery, and equipment; in case of construction and installation without bidding for raw materials, machinery, and equipment, it is the amount from construction and installation activities excluding the value of raw materials, machinery, and equipment.

Thus, from March 5, 2026, the method of determining revenue to calculate personal income tax for business households will be implemented according to the above regulations.