Policy context

From January 1st, 2026, the tax policy for household businesses will undergo fundamental changes. According to Resolution No. 198/2025/QH15 of the National Assembly, the lump-sum tax method will cease to be applied, replaced by fulfilling tax obligations according to the law on tax administration.

Accordingly, household businesses and individual business owners no longer pay taxes at a fixed rate, but must declare, calculate, and pay taxes based on actual revenue generated.

Tax declaration methods for household businesses

According to Circular No. 40/2021/TT-BTC of the Ministry of Finance, the tax declaration method is the method by which taxpayers declare, calculate, and pay taxes based on actual revenue generated, according to a defined declaration period of either a month or a quarter.

From 2026, according to the tax policy reform roadmap, the declaration method will become the unified method applied to household businesses.

Read more: Guide to Registering a Household Business: Process, Documents, and Things You Need to Know

The tax filing period will apply from 2026.

General principle: Monthly declarations

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

This is the default declaration method applied when a business household does not fall under the category of being allowed to declare quarterly or has not registered to choose quarterly declaration.

Cases that are declared quarterly.

Household businesses are only allowed to apply the quarterly reporting period if they simultaneously meet all the conditions in Article 9 of Decree No. 126/2020/ND-CP:

Firstly , they are eligible to file tax returns quarterly according to the tax administration laws.

Secondly , there must be a valid written document or option regarding the application of quarterly filing with the directly managing tax authority.

Conclusion regarding the reporting period

• Monthly tax filing: This is the default filing method for household businesses starting from 2026.
• Quarterly filing: This only applies if all eligibility requirements are met and the option is registered in accordance with legal regulations.

Deadline for filing tax returns and paying taxes

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

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

The deadline for paying taxes coincides with the deadline for filing tax returns, unless otherwise stipulated by law.

Where and how to submit tax returns

Where to submit the application: The Tax Team directly managing the area where the household business or individual business conducts its production and business activities.

Application method:

• Through the Electronic Tax Portal
• Through the National Public Service Portal
• If electronic submission is not possible, the documents can be submitted directly to the tax office or via postal service.

Tax return documents include:

• Tax return form No. 01/CNKD
• Appendix: Statement of business activities during the period (if required by law)

Some things to note when filing taxes from 2026 onwards.

Firstly , business households that pay taxes using the declaration method do not carry out year-end tax settlements.

Secondly , if the declared revenue does not accurately reflect the actual revenue generated, the tax authorities have the right to determine the taxable revenue in accordance with the provisions of the Law on Tax Administration.

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

Read more: Which Business Expenses Are Tax Deductible?

New policy update: The threshold is 500 million VND.

On December 10th, the National Assembly passed the amended Personal Income Tax Law. Accordingly, the revenue threshold for exemption from personal income tax for household businesses and individual businesses has been adjusted upwards from VND 200 million/year to VND 500 million/year.

However, it should be noted:

• The above regulations fall within the scope of the Law on Personal Income Tax (amended).
• It should not be assumed that business households with annual revenue under 500 million VND are exempt from all tax obligations.

While awaiting the full guidance document, business households remain responsible for filing taxes fully, truthfully, and on time according to current legal regulations.

Conclude

From 2026, household businesses will enter a tax management phase based on actual declarations, completely replacing the lump-sum tax method. Specifically:

Monthly reporting is the general principle, quarterly reporting is only a conditional exception, and preparing revenue data, invoices, and supporting documents from the beginning of the business period is a mandatory requirement.