In 2026, Will Business Households Declare Taxes Monthly or Quarterly?

Policy Context

From January 1, 2026, the tax policy for business households will undergo a fundamental change. According to Resolution No. 198/2025/QH15 of the National Assembly, the lump-sum tax method will cease to apply, replaced by tax obligations in accordance with tax administration laws.

Accordingly, business households and individual business owners will no longer pay taxes based on a fixed amount but must declare, calculate, and pay taxes based on actual revenue generated.

Tax Declaration Method for Business Households

According to Circular No. 40/2021/TT-BTC of the Ministry of Finance, the tax declaration method is a method where taxpayers declare, calculate, and pay taxes based on actual revenue generated, within a determined declaration period of monthly or quarterly.

From 2026, as part of the tax policy reform roadmap, the declaration method will become the unified method applied to business households.

Read more: Guide to Registering a Business Household: Procedures, Documents, and What You Need to Know

Tax Declaration Period Applicable from 2026

General Principle: Monthly Declaration

According to Circular 40/2021/TT-BTC, business households and individual business owners paying taxes using the declaration method shall declare taxes on a monthly basis.

This is the default declaration form applied when a business household does not qualify for quarterly declarations or has not registered to opt for quarterly declarations.

Cases Eligible for Quarterly Declaration

Business households are only eligible for quarterly declaration periods if they simultaneously meet all the conditions stipulated in Article 9 of Decree No. 126/2020/ND-CP:

First, they fall under the category of entities permitted to declare taxes quarterly as per tax administration laws.

Second, they have a valid document or choice to apply quarterly declarations with the directly managing tax authority.

Conclusion on Declaration Period

• Monthly Declaration: This is the default form applicable to business households from 2026.
• Quarterly Declaration: This is only applicable if all conditions are met and a declaration option has been registered in accordance with legal regulations.

Deadlines for Tax Declaration and Tax Payment

For monthly declarations: The deadline for submitting tax declarations is no later than the 20th day of the month following the month in which the tax obligation arises.

For quarterly declarations: The deadline for submitting tax declarations is no later than the last day of the first month of the quarter following the quarter in which the tax obligation arises.

The deadline for tax payment is the same as the deadline for submitting tax declarations, unless otherwise stipulated by law.

Place and Method of Submitting Tax Declarations

Place of Submission: The direct tax department managing the location where the business household or individual business owner conducts production and business activities.

Method of Submission:

• Via the Electronic Tax Portal
• Via the National Public Service Portal
• If electronic submission is not feasible, it can be submitted directly at the tax authority or through the postal system.

Tax declaration documents include:

• Tax declaration form according to mẫu số 01/CNKD
• Appendix of business activities ledger for the period (if required by law)

Important Notes on Tax Declaration from 2026

First, business households paying taxes via the declaration method will not perform year-end tax finalization.

Second, if the declared revenue does not accurately reflect the actual generated revenue, the tax authority has the right to determine the taxable revenue in accordance with the Tax Administration Law.

Third, business households must comply with regulations on invoices and supporting documents.

Read more: What Business Expenses Are Tax Deductible?

Update on New Policy: 500 Million VND Threshold

On December 10, the National Assembly passed the Personal Income Tax Law (amended). Accordingly, the revenue threshold for exemption from personal income tax for business households and individual business owners has been increased from VND 200 million/year to VND 500 million/year.

However, it is important to note:

• The above regulation falls under the scope of the amended Personal Income Tax Law.
• This does not automatically mean that business households with revenue below VND 500 million/year will be exempt from all tax obligations.

While waiting for comprehensive guiding documents, business households are still responsible for declaring taxes fully, truthfully, and on time as per current legal provisions.

Conclusion

From 2026, business households will enter a tax management phase based on actual declaration mechanisms, completely replacing the lump-sum tax method. In this phase:

Monthly declarations are the general principle, quarterly declarations are an exception with conditions, and preparing revenue data, invoices, and supporting documents from the beginning of the business period is a mandatory requirement.