Updated on 28/10/2026. This article recounts information and proposals on household business tax put forward in 2025. This is the content at that time, not a compilation of currently applicable regulations: the revenue levels of 200 million dong and 500 million dong, the milestone date of 1/7/2026, the grouping method, and the tax tables below all belong to 2025 content. Subsequent developments: Personal Income Tax Law 109/2025/QH15, passed on 10/12/2025, stipulates that the annual revenue threshold not subject to personal income tax is 500 million dong (Article 7, Clause 1); Law 09/2026/QH16, passed on 24/04/2026, amends this clause and authorizes the Government to stipulate the revenue level (Article 1); The Government has stipulated this level as 01 billion dong (Decree 68/2026/NĐ-CP, amended by Decree 141/2026/NĐ-CP). Current regulations on revenue level, tax rates, tax declaration period, and electronic invoices:
- From January 1, 2026, business households and self-employed individuals with annual revenue up to 1 billion dong are not subject to VAT and do not have to pay personal income tax; those with revenue exceeding 1 billion dong are subject to VAT and must pay personal income tax (Decree 68/2026/ND-CP, Articles 3 and 4, amended by Decree 141/2026/ND-CP).
- Personal income tax: business households and self-employed individuals with annual revenue from over 1 billion dong to 3 billion dong may choose to pay based on taxable income (revenue minus expenses) multiplied (x) by the 15% tax rate, or based on the portion of revenue exceeding 1 billion dong multiplied (x) by the industry/occupation tax rate ranging from 0.5% to 5%; annual revenue exceeding 3 billion dong is calculated based on taxable income (Law on Personal Income Tax 109/2025/QH15, Article 7 paragraphs 2 and 3; Law 09/2026/QH16, Article 1, mandates the Government to stipulate this revenue level, which is set at 1 billion dong according to Decree 68/2026/ND-CP, Article 4 paragraphs 1 and 5, amended by Decree 141/2026/ND-CP). This regulation applies from the 2026 tax year (Law on Personal Income Tax 109/2025/QH15, Article 29 paragraph 2). If you choose to calculate based on taxable income, you must maintain that method consistently for 2 consecutive years starting from the first year of application (Decree 68/2026/ND-CP, Article 4 paragraph 5 point d, amended by Decree 141/2026/ND-CP). For real estate rental specifically: please consult with your accountant.
- VAT: business households and self-employed individuals with annual revenue exceeding 1 billion dong pay VAT using the direct calculation method, calculated as a percentage (x) multiplied by revenue; the percentage and taxable revenue are implemented according to the Law on Value Added Tax 48/2024/QH15 and implementing guidance documents (Decree 68/2026/ND-CP, Article 3 paragraph 2, amended by Decree 141/2026/ND-CP). Please consult with your accountant about the applicable rate for your industry or occupation.
- From March 5, 2026 (Decree 68/2026/ND-CP, Article 19), business households and self-employed individuals with annual revenue up to 1 billion dong do not file tax on a periodic basis but instead report actual revenue generated during the year to the tax authority no later than January 31 of the following year (Decree 68/2026/ND-CP, Article 8 paragraph 1 point a, amended by Decree 141/2026/ND-CP); business households and self-employed individuals with annual revenue from over 1 billion dong to 50 billion dong file tax quarterly, and those with annual revenue exceeding 50 billion dong file tax monthly (Decree 68/2026/ND-CP, Article 10 paragraph 1, amended by Decree 141/2026/ND-CP).
- Business households and self-employed individuals with annual revenue exceeding 1 billion dong, or those selling assets subject to ownership or use rights registration, must use electronic invoices with tax authority codes or electronic invoices generated from cash registers connected to the tax authority's data system (Decree 254/2026/ND-CP, Article 6 paragraph 1 point d, effective from July 1, 2026; Decree 68/2026/ND-CP, Article 8 paragraph 5, amended by Decree 141/2026/ND-CP). Certain cases are exempt from using electronic invoices, for example, income from real estate rental, or acting as an agent for lottery, insurance, or multilevel sales where the enterprise has already withheld tax (Decree 254/2026/ND-CP, Article 7). Business households and self-employed individuals with annual revenue up to 1 billion dong, if they meet the conditions and have the need, may register to use electronic invoices (Decree 68/2026/ND-CP, Article 8 paragraph 5 point b, amended by Decree 141/2026/ND-CP). Specifically for the activity of selling goods and providing services directly to consumers (retail sales, excluding cars, motorcycles, motorbikes and other motor vehicles; food and beverage; restaurants; hotels and other activities mentioned in the documents), Decree 254/2026/ND-CP, Article 6 paragraph 1 point c requires the use of electronic invoices from cash registers. Please consult with your accountant to determine whether your case requires the use of electronic invoices.
In 2025, the Ministry of Finance proposed tax exemption for business households with annual revenue below 500 million dong, expected to apply from July 1, 2026. This is information of interest to many business households, promising a significant reduction in the tax burden and creating conditions to promote more stable development of small-scale business activities.
The proposal to raise the tax exemption threshold from 200 million to 500 million dong/year is considered an important step in supporting the individual business economy sector. According to 2025 estimates, approximately 90% of business households will no longer have to pay taxes, helping households maintain operations with peace of mind and reinvest in a volatile market context.
2025 tax information for business households (not current regulations)
According to Decision 3389/QĐ-BTC in 2025, from 1/1/2026, the tax lump-sum collection method for business households will be completely discontinued and replaced with self-declaration and self-payment management. Business households will be divided into 3 main groups:
Group 1: Revenue under 200 million dong/year
- Exempt from VAT and personal income tax
- No need to apply complex accounting records
- File declarations twice a year at the beginning and mid/end of year
Group 2: Revenue from 200 million to under 3 billion dong/year
- Apply direct tax calculation method on revenue
- Tax rates by industry:
- 1% for distribution and supply of goods
- 5% for services and construction without material contracting
- 3% for manufacturing, transportation, goods-related services, and construction with material contracting
- 2% for other business activities
- File taxes 4 times/year (quarterly)
- Households with revenue over 1 billion dong/year in retail and direct service sectors must issue electronic invoices from POS systems connected to the tax authority
Group 3: Revenue over 3 billion dong/year
- Apply VAT credit/debit method: VAT to pay = Output VAT – Input VAT
- Personal income tax: 17% on total profit (Profit = Revenue – Reasonable expenses)
- File monthly if revenue over 50 billion dong/year, quarterly if under 50 billion dong/year
Content of the Ministry of Finance proposal in 2025
At the end of November 2025, the Ministry of Finance issued Official Dispatch 18491/BTC-CST with notable points:
Raise tax exemption revenue threshold to 500 million dong/year
- Adjust from 200 million to 500 million dong/year
- Approximately 2.3 million households (90% of total 2.54 million business households) will be exempt from taxes
- Apply from 1/7/2026 if approved
Tax calculation based on actual income for households with revenue over 500 million
Households and individuals with business revenue from 500 million to 3 billion dong/year:
- Calculate tax based on actual income (revenue – expenses)
- Apply 15% tax rate, similar to micro enterprises
- If expenses cannot be determined, apply tax based on revenue ratio
Detailed tax table according to 2025 draft
Tax based on income (revenue – expenses):
| Annual revenue | Tax rate |
|---|---|
| Over 500 million – 3 billion | 15% |
| Over 3 – 50 billion | 17% |
| Over 50 billion | 20% |
Tax based on percentage of revenue (when expenses cannot be determined):
| Industry | Tax rate |
|---|---|
| Distribution and supply of goods | 0.5% |
| Services and construction without material contracting | 2% |
| Property rental, insurance agents, lottery, multi-level | 5% |
| Manufacturing, transportation, construction with material contracting | 1.5% |
| Digital content products/services | 5% |
| Other industries | 1% |
Special regulations for real estate rental
Individuals renting real estate occasionally (excluding accommodation business) with revenue over 500 million dong/year:
- Only apply the tax calculation method based on revenue ratio
- No need to determine expenses, no need to offset income, no need to settle annually
Benefits that the 2025 proposal is expected to bring
Reduce financial burden for most households and businesses
With 90% of households and businesses completely exempted from taxes, those with small or unstable revenue can rest assured to maintain operations, reinvest and recover better.
Fairer tax calculation based on actual income
Households with revenue above 500 million are taxed based on actual profit: only those with profit pay tax, and those with low profit pay little or no tax. This is especially beneficial for households with large input costs.
Create conditions for stable development
The new policy helps small business households stabilize their livelihoods, enhance competitiveness and contribute more positively to the economy. This is an important step to support the individual economic sector.
Encourage transparency and declaration
Business households are more motivated to declare and provide transparent revenue, helping to manage taxes effectively and easily access support and policies from the State.
Beneficiaries most clearly benefiting from the 2025 proposal
Small household businesses
Small grocery stores, food stalls, coffee shops, service shops, small online retail with revenue under 500 million dong/year are completely exempted from taxes.
Self-employed individuals
Small-scale entrepreneurs, online traders, seasonal sellers with unstable revenue benefit from higher tax exemption levels, helping them achieve better stability.
Households with revenue of 500 million – 3 billion dong/year
If they can track reasonable expenses, they are taxed based on actual income instead of revenue, which is beneficial for households with large input costs (purchasing goods, renting premises, labor...).
Service and small wholesale sectors
Sectors with input costs and operating expenses accounting for most of the revenue will benefit when taxes are calculated on profit, making tax obligations fairer.
Prepare for change with GTG CRM
With the shift from fixed-rate taxation to self-declaration, business households need to prepare clear sales management and accounting systems to track revenue and expenses accurately.
GTG CRM is an omnichannel sales management solution that helps shop owners and business households:
- Automatically sync orders from multiple e-commerce platforms (Shopee, Lazada, TikTok Shop, Facebook...)
- Manage revenue, expenses, and profit in real-time
- Export detailed revenue reports by day, month, quarter, year for tax declaration purposes
- Manage inventory, goods import and export transparently
- Integrate electronic invoices, helping meet invoice issuance requirements for households with revenue above 1 billion dong/year
With GTG CRM, tracking revenue and expenses becomes simple, helping you easily prepare data to determine the tax amount to be paid according to current regulations. Keep complete track of revenue, expenses and invoices to prepare data when declaring revenue or filing taxes.
Turn what you just read into real results — apply it now with GTG CRM, for free.
Apply Now
