Proposal to manage business household tax according to 3 revenue thresholds

The Department of Taxation (Ministry of Finance) has just officially proposed a completely new tax management model for business households, divided according to 3 revenue thresholds, moving towards the goal of completely ending the lump-sum tax mechanism on January 1, 2026.

Notably, according to statistics, there are nearly 1,500 business households with revenue of over 50 billion VND/year, showing the need to change management methods to ensure fairness and prevent tax losses.

Nearly 1,500 business households achieve revenue of over 50 billion VND/year

For many years, lump-sum tax has been a familiar management method for millions of business households in Vietnam. However, this model has increasingly revealed its shortcomings as the economy has developed more dynamically. Applying a fixed tax rate, often based on estimates, no longer reflects the business reality, easily creating unfairness between households in the same industry but of different sizes and potentially causing loss of revenue to the state budget.

The Tax Department ( Ministry of Finance ) has just officially proposed a completely new tax management model for business households, divided according to 3 revenue thresholds, moving towards the goal of completely ending the lump-sum tax mechanism on January 1, 2026. Photo: PV

Faced with that situation, the project "Converting the model and method of tax management for business households when eliminating lump-sum tax" was issued by the Ministry of Finance, marking a modern step in tax management. The focus of the project is to classify business households according to scale to apply appropriate policies. Based on statistics for the first 7 months of 2025, the new model is proposed according to 3 distinct revenue thresholds.

Specifically, threshold 1 is for business households with revenue of 200 million VND or less. This is the majority group with about 1.5 million households (65.7%), mainly small retail stores, family businesses, playing an important role in solving local employment.

Threshold 2 applies to households with revenue of over 200 million VND to 3 billion VND. This group has about 791,000 households and contributes a significant part to the total revenue. Threshold 3 includes business households with revenue of over 3 billion VND. Although only accounting for a very small proportion in terms of quantity (about 0.7%), this group has a very large revenue scale. Notably, there are up to 1,464 business households with revenue of over 50 billion VND/year, operating no differently than a small and medium-sized enterprise, showing that the lump-sum tax model is completely inappropriate.

Solutions in e-commerce tax management

The explosion of the digital economy has posed a major challenge to traditional tax management methods for households and individuals doing business on e-commerce platforms. This is a field with completely different operational characteristics with millions of small transactions taking place every day, the order value is not high but the frequency of exchange, return and cancellation of orders is very high. Requiring sellers to manually issue invoices for each transaction is impossible, causing a huge administrative burden and unable to accurately reflect actual revenue.

To solve this problem, the tax industry proposed a solution: instead of manual checking, the system will directly collect order data from e-commerce platforms (Shopee, Lazada, Tiki...), cross-check with payment data from banks and e-wallets.

Based on this big data source, the system will automatically synthesize and generate a "suggested tax return". Taxpayers only need to double-check the numbers and confirm. This approach not only reduces the compliance burden for businesses but also helps tax authorities manage effectively on a large scale, ensuring that no revenue is missed.

Maximum support for people during the transition process

The policy change that has been incorporated into practice is a complex process, the Tax Department has built a careful and focused transformation roadmap. Instead of applying it uniformly, the tax authority will classify all business households to have a plan suitable for each group of subjects. The priority strategy will focus on large-scale business households with revenue of over 1 billion VND/year. This is a group with enough human resources and technology to adapt faster, and their successful transformation will be a model, creating motivation for smaller businesses to follow.

Along with the campaign, the tax sector pledged to provide maximum support to people during the transition process. "Support working groups" will be established in key areas, operating under the motto of "hand-holding", directly instructing household owners on how to prepare documents, install and use software, and get familiar with electronic invoices. Meanwhile, for the group of micro-business households with revenue under 100 million VND/year (not subject to tax), the tax authority affirmed that it will continue to maintain a simple management method, creating stable conditions for them to develop their business, demonstrating a flexible and reasonable approach.

Overall, this reform is expected to create a level playing field where all business activities are recognized and tax obligations are fulfilled fairly. This is an important step in the journey to modernize Vietnam's tax system, in line with the development trend of the digital economy and international integration.

Source: https://daibieunhandan.vn/de-xuat-quan-ly-thue-ho-kinh-doanh-theo-3-nguong-doanh-thu-10390556.html