Previously, on May 4, 2025, the Central Executive Committee issued... Resolution 68-NQ/TW The Politburo's plan for 2025 on the development of the private economy, as stipulated in Point 7, Section III of Resolution 68-NQ/TW, is as follows.
Household businesses and individual business owners will not be subject to the lump-sum tax method from January 1, 2026.
In Clause 8, Article 1 Decree 70/2025/ND-CP Amend and supplement Clause 1, Article 11 of Decree 123/2020/ND-CP regulating invoices and documents required from June 1, 2025 as follows:
III- TASKS AND SOLUTIONS
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7. Provide substantive and effective support to small and micro enterprises and household businesses.
– Review and improve the legal framework for individual businesses; minimize disparities and create favorable conditions in terms of organizational management and financial and accounting systems to encourage household businesses to convert into enterprises. Promote digitalization, transparency, simplification, and ease of compliance and implementation of accounting, tax, and insurance regulations to encourage the conversion of household businesses to operate under the enterprise model. The lump-sum tax system for household businesses will be abolished no later than 2026.
– Providing free digital platforms, shared accounting software, legal consulting services, and training in business management, accounting, taxation, human resources, and law for small and micro enterprises, household businesses, and individual entrepreneurs.
– Effectively implement the National Comprehensive Financial Strategy, promoting access to and use of financial products for small and micro enterprises, household businesses, prioritizing business owners and household businesses who are young people, women, vulnerable groups, ethnic minorities, people in mountainous, border, and island areas, and inclusive business models that create social impact.
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At the same time, on May 17, 2025, the National Assembly issued... Resolution 198/2025/QH15 Regarding some special mechanisms and policies for developing the private economy.
Accordingly, in Clause 6 of Article 10 Resolution 198/2025/QH15 The regulations on tax, fee, and levy policies to promote the development of the private economy are as follows:
Article 10. Support for taxes, fees, and charges
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6. Household businesses and individual business owners will not apply the lump-sum tax method from January 1, 2026. Household businesses and individual business owners will pay taxes in accordance with the law on tax administration.
7. The collection and payment of business license fees will cease from January 1, 2026.
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See also: What is lump-sum tax for household businesses?
According to Circular No. 40/2021/TT-BTC, Clauses 7 and 9 of Article 3 stipulate the following:
Article 3. Definition of terms:
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7. "The lump-sum method" is a method of calculating tax based on a percentage of the lump-sum revenue determined by the tax authority to calculate the lump-sum tax amount as stipulated in Article 51 of the Law on Tax Administration.
9. "Lump-sum tax" refers to the amount of tax and other revenues payable by business households and individual business owners paying taxes using the lump-sum method, as determined by the tax authority in accordance with Article 51 of the Law on Tax Administration.
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Therefore, it can be understood that lump-sum tax is a type of tax. calculated as a percentage of contracted revenue Determined by the tax authorities, applicable to business households and individual business owners paying taxes using the lump-sum method.