Tax industry divides business households into 3 management groups from 2026

The Ministry of Finance has just issued Decision 3389 approving the Project on transforming the model and method of tax management for business households when eliminating lump-sum tax. Accordingly, from January 1, 2026, the operator will completely stop collecting lump-sum tax from business households and switch to management by self-declaration and tax payment method.

The project clearly defines 3 groups of business households and new points in converting tax calculation methods after abolishing lump-sum tax.

Group 1 is for business households with annual revenue of less than 200 million VND. This group is exempt from VAT and personal income tax. They also do not need to apply complicated accounting books but still have to make periodic declarations. These households can choose to declare twice a year at the beginning and middle/end of the year or choose a suitable time.

Group 2 is for business households with revenue from 200 million to less than 3 billion VND. This group applies the current method of calculating direct tax on revenue. Tax rates by industry are clearly defined, including: 1% for distribution and supply of goods; 5% for services, construction without contracted materials; 3% for production, transportation, services associated with goods, construction with contracted materials; and 2% for other business activities.

This business household does not need to follow a complicated accounting regime, but still has to keep simple books with prescribed forms. They have to declare taxes 4 times a year (quarterly).

In case a business household has a revenue of over 1 billion VND in a year, and belongs to the retail industry, the service directly to consumers will have to issue electronic invoices from a cash register connected to the tax authority. Other households with a revenue of less than 1 billion VND are not required to issue invoices, but the Ministry of Finance notes that they should still record their revenue.

For businesses with revenue of over 3 billion VND per year for 2 consecutive years, they will move to group 3 from the 3rd year.

Group 3 is business households with revenue of over 3 billion VND per year. This group is required to apply the VAT deduction method, in which the amount payable is equal to output VAT minus input VAT. The personal income tax rate is calculated at 17% of total profit. In which, profit is equal to revenue minus reasonable expenses.

Regarding the declaration method, business households with revenue of over 50 billion VND per year must declare monthly, and those with revenue of less than 50 billion VND must declare quarterly. They must issue invoices and open separate bank accounts for business activities. These households are required to use electronic invoices with codes or invoices generated from cash registers.

By the end of 2024, the country will have about 3.6 million households and individuals doing business. The number of households doing business stably (contracting and declaring households) is 2.2 million. The number of households with revenue above the taxable threshold (over 100 million a year) is 1.3 million, accounting for 59% of the total number of households.

In 2024, the total state budget revenue from households and individual businesses will be about 26,000 billion VND. In the first half of the year, the revenue from households and individual businesses is estimated at over 17,000 billion VND.

Source: https://baohatinh.vn/nganh-thue-chia-ho-kinh-doanh-thanh-3-nhom-quan-ly-tu-2026-post297609.html