Approving the project of model conversion and tax management for business households when eliminating lump-sum tax

Photo caption — Hai Phong tax officials guide business households to abolish lump-sum tax, declare revenue and use electronic invoices. Photo: Hoang Ngoc/VNA

The project's objective is to continue modernizing tax management for business households, eliminate lump-sum taxes, establish an equal business environment between business households and enterprises, promote administrative procedure reform and digital transformation, reduce compliance costs, focus on supporting taxpayers, and create all favorable conditions for the private economy to develop comprehensively.

At the same time, ensure that business households apply the method of self-declaration and self-payment of taxes from January 1, 2026, simplify and reduce at least 30% of administrative procedure processing time, at least 30% of legal compliance costs and continue to reduce sharply in the following years. In addition, ensure that 100% of business households have access to information and receive support from tax authorities on the content of converting from lump-sum tax method to declaration method, converting from business households to enterprises; 100% of subjects subject to applying electronic invoices generated from cash registers according to Decree No. 70/ND-CP of the Government must register and use; 100% of business households carry out tax procedures electronically in a convenient and easy manner.

The project also clearly states that compliance monitoring for business households is based on the application of risk management methods to detect tax law violations, prevent commercial fraud through strengthening inspection and supervision of business household sales invoices, combating invoice trading; developing inspection programs by topic, by industry, by location for business households; developing and implementing effective debt collection measures and applying appropriate enforcement measures for business households. Researching separate tax management solutions for groups of households and individuals doing e-commerce business in accordance with the specific operations of this type of business.

Along with that, research and develop a new tax management model for business households after abolishing lump-sum tax; perfect the organizational structure and personnel in accordance with the tax management model for business households according to the declaration method.

To ensure effective implementation, the Project requires increased coordination with relevant ministries and branches to deploy effective policies and technical solutions; close coordination with the Ministry of Public Security in standardizing personal tax codes to unify the use of personal identification numbers instead of tax codes of individuals and business households.

In addition, strengthen connection, integration and data sharing with relevant ministries, branches and units to closely monitor the activities of business households after the end of the lump-sum tax method and switching to the declaration method, promptly detect and identify cases with tax risks or violations of the law.

In addition, coordinate with People's Committees at all levels to issue regulations on coordination in tax management for business households after the tax is abolished, review and prevent missing households; share and update information on registration, suspension and cessation of business of business households; coordinate in enforcing tax debts; coordinate in establishing a one-stop mechanism to support households to become enterprises; propose to the People's Committees of provinces/cities to have a program to support credit and premises for newly established business households.

At the same time, coordinate with local organizations and associations to participate in mobilizing young business households, small traders... to comply with tax laws and policies; Vietnam Federation of Commerce and Industry local branches support connecting networks of large, medium and small enterprises..., to create synergy, ensuring that tax management of business households according to the new method is carried out synchronously and smoothly.

Source: https://baotintuc.vn/kinh-te/phe-duyet-de-an-chuyen-doi-mo-hinh-va-quan-ly-thue-doi-voi-ho-kinh-doanh-khi-xoa-bo-thue-khoan-20251010175341613.htm