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

Policy Background

From 01/01/2026, tax policies for business households will fundamentally change. According to Resolution No. 198/2025/QH15 of the National Assembly, the fixed tax method will cease to apply, replaced by tax obligations under tax administration laws.

Accordingly, business households and individual businesses 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 regulations in 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, with a declared period determined as monthly or quarterly.

From 2026, following the tax policy reform roadmap, the declaration method will become the unified applicable method for 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 regulations in Circular 40/2021/TT-BTC, business households and individual businesses paying taxes under the declaration method shall declare taxes on a monthly basis.

This is the default declaration method applied when a business household does not fall under the category permitted to declare quarterly or does not opt for quarterly declaration.

Cases Permitted for Quarterly Declaration

Business households are only permitted to apply quarterly declaration if they simultaneously meet all conditions specified in Article 9 of Decree No. 126/2020/ND-CP:

First, they fall under the category permitted for quarterly tax declaration as stipulated by tax administration laws.

Second, they have a valid document or choice regarding the application of quarterly declaration with the directly managing tax authority.

Conclusion on Declaration Period

• Monthly Declaration: This is the default applicable method for business households from 2026.
• Quarterly Declaration: Only applicable if all conditions are met and a declaration choice has been made in accordance with legal regulations.

Deadlines for Tax Declaration and Tax Payment

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

For quarterly declaration: The deadline for submitting the tax declaration 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 tax payment coincides with the deadline for submitting the tax declaration, 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 office or via the postal system

Tax Declaration Documents Include:

• Tax declaration form according to Form No. 01/CNKD
• Appendix of business activities during the period (if required by law)

Some Notes on Tax Declaration from 2026

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

Second, if the declared revenue does not reflect actual generated revenue, 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: What Expenses Are Tax Deductible When Doing Business?

Update on New Policy: VND 500 Million Threshold

On December 10th, the National Assembly passed the Personal Income Tax Law (amended). 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 should be noted:

• The above provision falls within the scope of the Personal Income Tax Law (amended).
• It should not be automatically understood 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 remain responsible for declaring taxes fully, truthfully, and on time in accordance with current legal provisions.

Conclusion

From 2026, business households will enter a period of tax management under the actual declaration mechanism, completely replacing the fixed tax method. In this regard:

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