In 2026, will sole proprietorships file taxes monthly or quarterly?

Policy Background

Starting January 1, 2026, there will be fundamental changes to the tax policy for business households. According to Resolution No. 198/2025/QH15 of the National Assembly, the presumptive tax method will cease to be applied, replaced by tax obligations under the tax administration law.

Accordingly, business households and individual businesses will no longer pay taxes at a fixed rate but must declare, calculate, and pay taxes based on their actual revenue.

Tax Declaration Method for Business Households

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

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: Process, 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 businesses paying taxes under the declaration method must declare taxes monthly.

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

Cases Eligible for Quarterly Declaration

Business households are only eligible for quarterly declaration periods if they fully meet 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 law.

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

Conclusion on Declaration Periods

• Monthly Declaration: This is the default method for business households from 2026.
• Quarterly Declaration: Only applicable if all conditions are met and a declaration option has been registered according to legal regulations.

Deadlines for Tax Declaration Submission and Tax Payment

For monthly declarations: The deadline for submitting tax declarations is 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 the last day of the first month of the quarter following the quarter in which the tax obligation arises.

The tax payment deadline is the same as the tax declaration submission deadline, unless otherwise stipulated by law.

Place and Method of Submitting Tax Declarations

Place of Submission: The directly managing Tax Department where the business household or individual business conducts its production and business activities.

Method of Submission:

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

Tax Declaration Documents include:

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

Important Notes for Tax Declarations from 2026

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

Second, if the declared revenue does not reflect the actual revenue generated, the tax authority has the right to determine the taxable revenue according to the provisions of the Tax Administration Law.

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

Read more: Which Expenses Are Tax-Deductible for Businesses?

Update on New Policy: 500 Million VND Threshold

On December 10, the National Assembly passed the amended Personal Income Tax Law. Accordingly, the revenue threshold for personal income tax exemption for business households and individual businesses 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 mean that business households with revenue below VND 500 million/year will be exempt from all tax obligations.

While waiting for full guiding documents, business households are still responsible for declaring taxes fully, truthfully, and on time according to current legal provisions.

Conclusion

From 2026, business households will enter a tax management phase under a real declaration mechanism, completely replacing the presumptive tax method. In this context:

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