The year 2026 marks a significant shift in tax and accounting management for household businesses and individual business owners. Many new legal regulations have been issued to optimize tax management and support taxpayers in fulfilling their financial obligations transparently and efficiently. Accordingly, From 2026 onwards, household businesses and individual business owners will be divided into four separate groups. Based on revenue scale, different tax calculation methods and accounting systems apply. This article will summarize the latest regulations to help business owners easily identify their tax bracket and comply with the law.
I. New updates to Decree 141/2026/ND-CP
On April 29, 2026, the Government issued... Decree 141 / 2026 / ND-CP Amendments and additions to some regulations on tax policy for household businesses. A highlight of the Decree is the... Raise the taxable income threshold for household businesses from 500 million VND to 01 billion VND.
This Decree takes effect. từ ngày 01 tháng 01 năm 2026.
II. Detailed classification of 04 groups of household businesses from 2026
Based on annual revenue, household businesses and individual business owners are classified into 04 groups with specific criteria for tax management, bookkeeping, invoice requirements, and reporting frequency as follows:
Classification table for household businesses and individual businesses from 2026
(According to Decree 141/2026/ND-CP and Circular 152/2025/TT-BTC)
| Household business / Individual business |
Tax | Accounting books | Request an invoice. | Tax declaration |
| Group 1 (Revenue ≤ 01 billion VND/year) |
Exempt from VAT and personal income tax. | Form S1a-HKD 📥 | Optional |
Once a year Once a year |
| Group 2 (Revenue > 01 - 03 billion VND/year) |
VAT: Calculated as a percentage of revenue. Personal income tax: Calculated as a percentage of revenue OR based on profit (tax rate 15%). |
If personal income tax is paid as a percentage of revenue: If personal income tax is paid based on profit: |
Mandatory use as per regulations | According to Quy |
| Group 3 (Revenue > 03 - 50 billion VND/year) |
VAT: Calculated as a percentage of revenue. Personal income tax: Calculated based on profit (tax rate 17%). |
Form S2b-HKD 📥 Form number S2c-HKD 📥 Form number S2d-HKD 📥 Form number S2e-HKD 📥 Form S3a-HKD 📥 |
Mandatory use as per regulations | According to Quy |
| Group 4 (Revenue > 50 billion VND/year) |
VAT: Declared based on revenue. Personal income tax: Calculated based on profit (tax rate 20%). |
Similar to Businesses:
|
Mandatory use as per regulations | By Month |
Group 1: Revenue of 01 billion VND/year or less
💰 Regarding Taxes: Completely exempt from Value Added Tax (VAT) and Personal Income Tax (PIT).
???? Accounting records:
| Form S1a-HKD 📥 | Sales revenue register for goods and services sold to household businesses. Not subject to VAT or personal income tax. |
(I.e. Bill: It is not mandatory to use.
???? Tax filing:
- Submit once a year (Deadline: January 31st of the following year).
- For newly established businesses, this must be done twice a year (Deadline for submission: July 31st of the establishment year and January 31st of the following year).
Group 2: Revenue from over 01 billion to 03 billion VND/year
💰 Regarding Taxes:
- Value Added Tax (VAT): Calculated as a percentage of revenue.
- Personal income tax: Calculated as a percentage of revenue OR based on profit. (15% tax rate).
???? Accounting records:
If personal income tax is paid as a percentage of revenue:
| Form S2a-HKD 📥 | Sales revenue register for goods and services sold to household businesses. Pay VAT and personal income tax at a percentage (%) rate on revenue. |
If you choose to pay personal income tax based on profits:
| Form S2b-HKD 📥 | Sales revenue register for goods and services sold to household businesses. Pay personal income tax based on profits. |
| Form number S2c-HKD 📥 |
Detailed ledger of revenue and expenses |
| Form number S2d-HKD 📥 | Detailed register of materials, tools, products, and goods. |
| Form number S2e-HKD 📥 |
Cash register |
| Form S3a-HKD 📥 | Other tax obligation tracking register |
(I.e. Bill: It is mandatory to use invoices as prescribed by regulations.
???? Tax filing: Complete periodic declarations. by quarter.
Group 3: Revenue from over 03 billion to 50 billion VND/year
💰 Regarding Taxes:
- Value Added Tax (VAT): Calculated as a percentage of revenue.
- Personal income tax: Calculated based on profit. (17% tax rate).
???? Accounting records:
| Form S2b-HKD 📥 | Sales revenue register for goods and services sold to household businesses. Pay personal income tax based on profits. |
| Form number S2c-HKD 📥 |
Detailed ledger of revenue and expenses |
| Form number S2d-HKD 📥 | Detailed register of materials, tools, products, and goods. |
| Form number S2e-HKD 📥 |
Cash register |
| Form S3a-HKD 📥 | Other tax obligation tracking register |
(I.e. Bill: It is mandatory to use invoices as prescribed by regulations.
???? Tax filing: Complete periodic declarations. by quarter.
Group 4: Revenue exceeding 50 billion VND/year
💰 Regarding Taxes:
- VAT: Declared based on revenue.
- Personal income tax: Calculated based on profit. (20% tax rate).
???? Accounting records: Similar to Businesses:
- Diary.
- Ledger.
- Detailed ledger.
- Trial balance.
- Financial report.
(I.e. Bill: It is mandatory to use invoices as prescribed by regulations.
???? Tax filing: Complete periodic declarations. by month.
💡 Tax management is similar to that of a business.
For Group 4 household businesses, the tax management methods and accounting record standardization requirements are now completely equivalent to those of a fully-fledged enterprise.
III. Organizing accounting work for household businesses
According to the regulations at Article 2 Circular 152 / 2025 / TT-BTC:
" The representative of a household business or individual business owner shall keep their own accounting records, or appoint an accountant, or hire accounting services for the household business or individual business owner in accordance with the law."
Therefore, business owners can consider assigning someone else or hiring a professional service to handle their accounting if they cannot do it themselves.
👉 See more: When should you outsource accounting services? 7 signs businesses should consider.
Classifying household businesses and individual business owners into four groups from 2026 onwards will facilitate and reduce the financial burden on small-scale households, standardize tax management processes for medium and large-scale households, and encourage them to transform into enterprises.
Business owners need to proactively review their accounting records and documents and plan to file declarations on time. Early preparation will help businesses adapt quickly and fully meet legal requirements in the new management era.