Decision 3389/QD-BTC approves the Project "Transformation of the model and method of tax management for business households when abolishing lump-sum tax".

DECISION

APPROVAL OF THE PROJECT "TRANSFORMING THE MODEL AND METHOD OF TAX MANAGEMENT FOR HOUSEHOLD BUSINESSES WHEN THE LAYOUT TAX IS ABOLISHED"

MINISTER OF FINANCE

Based on Resolution No. 68-NQ/TW dated May 4, 2025, of the Politburo on the development of the private economy;

Based on Resolution No. 198/2025/QH15 dated May 17, 2025, of the National Assembly on some special mechanisms and policies for the development of the private economy;

Based on Resolution No. 138/NQ-CP dated May 16, 2025 of the Government on the issuance of the action plan to implement Resolution No. 68-NQ/TW dated May 4, 2025 of the Politburo on the development of the private economy;

Based on Resolution No. 139/NQ-CP dated May 17, 2025, of the Government promulgating the Government's Plan to implement Resolution No. 198/2025/QH15 dated May 17, 2025, of the National Assembly on a number of special mechanisms and policies for the development of the private economy;

Based on Government Decree No. 29/2025/ND-CP dated February 24, 2025, regulating the functions, tasks, powers, and organizational structure of the Ministry of Finance; and Government Decree No. 166/2025/ND-CP dated June 30, 2025, amending and supplementing a number of articles of Government Decree No. 29/2025/ND-CP dated February 24, 2025, regulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Based on Decision No. 2260/QD-BTC dated June 30, 2025, of the Minister of Finance on the promulgation of the Action Plan to implement Resolution No. 138/NQ-CP dated May 16, 2025, of the Government promulgating the Government's Action Plan to implement Resolution No. 68-NQ/TW dated May 4, 2025, of the Politburo on the development of the private economy and Resolution No. 139/NQ-CP dated May 17, 2025, of the Government promulgating the Government's Plan to implement Resolution No. 198/2025/QH15 dated May 17, 2025, of the National Assembly on some special mechanisms and policies for the development of the private economy;

As requested by the Director of the Tax Department.

DECISION:

Article 1. Approve the Project “Transformation of the model and methods of tax management for household businesses when abolishing lump-sum tax” (hereinafter referred to as the Project) with the following main contents:

I. PERSPECTIVES AND OBJECTIVES

1. Perspective

The model and methods for tax management of household businesses are developed in close adherence to the viewpoints, objectives, tasks, and solutions for the development of the private economy as outlined in Resolution No. 68-NQ/TW of the Politburo, Resolution No. 198/2025/QH15 of the National Assembly, Resolutions No. 138/NQ-CP and No. 139/NQ-CP of the Government, and Decision No. 2260/QĐ-BTC dated June 30, 2025, of the Minister of Finance.

2. Objectives

2.1. Overall Objectives

Continue to modernize tax management for household businesses, eliminate lump-sum taxes, establish an equal business environment between household businesses and enterprises, promote administrative procedure reform and digital transformation, reduce compliance costs, focus on supporting taxpayers, and create all favorable conditions for the comprehensive development of the private economy.

2.2. Specific Objectives

– Legal regulations and implementing guidelines related to the management of household business taxes are supplemented or newly issued according to plan.

– Ensure that household businesses apply the self-declaration and self-payment tax method from January 1, 2026.

– Simplify and reduce administrative procedure processing time by at least 30%, legal compliance costs by at least 30%, and continue to significantly reduce them in the following years, in accordance with the spirit of Resolution No. 68-NQ/TW.

– Ensure that 100% of business households have access to information and receive support from the tax authorities regarding the transition from the lump-sum tax method to the declaration-based tax method, and the conversion from business households to enterprises.

– Ensure that 100% of entities subject to the application of electronic invoices generated from cash registers according to Government Decree No. 70/ND-CP register and use them.

– Ensure that 100% of business households can conveniently and easily complete tax procedures electronically.

II. Tasks and Solutions

1. Regarding the improvement of tax institutions and policies.

– Amend the Law on Tax Administration and its guiding documents to abolish the lump-sum tax system for business households; review and amend the guiding decrees and circulars to ensure consistent implementation and achieve results.

– Amend personal income tax (PIT) and value-added tax (VAT) policies and implementing regulations and guidelines to adjust the tax-exempt revenue threshold to suit practical realities; revise the method of calculating PIT for "large-scale" business households to be equivalent to that of small and medium-sized enterprises, so that it is consistent with corporate income tax for businesses; consider applying PIT on income (revenue minus expenses) for business households with complete accounting records, in order to encourage business households to transparently disclose expenses and invest in business expansion without being disadvantaged compared to businesses in terms of taxation; add regulations on PIT exemption/reduction to encourage innovation and promote the private economy in accordance with Resolution No. 68-NQ/TW.

– Review and amend the Law on Fees and Charges, the Law on Support for Small Enterprises; propose the development of a Law on Individual Business to concretize the policies stipulated in Resolution No. 68-NQ/TW dated May 4, 2025 on the development of the private economy.

– Amending and supplementing Circular No. 88/2021/TT-BTC dated October 11, 2021, guiding the accounting regime for household businesses and individual businesses; Circular No. 132/2018/TT-BTC guiding the accounting regime for micro-enterprises; and Circular No. 133/2016/TT-BTC guiding the accounting regime for small and medium-sized enterprises.

– Research and develop a new tax management model for household businesses after the abolition of lump-sum tax, focusing on grouping by revenue size to determine appropriate tax calculation methods/tax management models, identifying revenue thresholds for the application of electronic invoices and cash registers; clearly defining the roles and functions of departments within the tax authority in managing household businesses, avoiding gaps or overlaps in responsibilities when the management method changes.

– Develop tax management procedures for household businesses using the declaration method, tax inspection procedures at the tax office and inspections at the household business premises, in accordance with the overall program for redesigning tax industry processes.

2. Improve modern tax management methods, replacing the lump-sum tax method and shifting to a declaration method where taxpayers self-declare and self-pay taxes.

– Innovate and diversify the communication and support work for business households before and during the transition from the lump-sum tax method to the declaration method; develop and implement appropriate support programs for business households according to industry and scale; develop training materials on simplified accounting procedures for business households to facilitate tax declaration, in accordance with the issued amended accounting circular. Research and apply advanced and modern technologies (AI, chatbot, etc.) to improve the quality of system and application support and meet support requirements quickly, promptly, and modernly.

– Promote reforms in tax administrative procedures for business households, simplify forms and declarations to reduce administrative processing time by at least 30%, legal compliance costs by at least 30%, and continue to significantly reduce them in the following years in accordance with the spirit of Resolution No. 68-NQ/TW; strengthen the provision of electronic tax services, aiming to apply smart electronic declaration forms with pre-suggested revenue data from the invoice system, creating convenience and reducing compliance costs for business households.

– Monitoring compliance for household businesses based on risk management methods to detect violations of tax laws and prevent commercial fraud through enhanced inspection and supervision of sales invoices of household businesses, combating invoice trading; developing specialized inspection programs by industry and geographical area for household businesses; developing and implementing effective debt collection measures and applying appropriate enforcement measures against household businesses. Researching solutions for tax management specifically for household and individual businesses engaged in e-commerce, tailored to the unique characteristics of this type of business.

– Research and develop a new tax management model for household businesses after the abolition of lump-sum tax; streamline the organizational structure and personnel to suit the tax management model for household businesses using the declaration method. Compile professional documents and organize training to improve the skills of tax officials managing and supporting household businesses; strengthen discipline and order among tax officials.

– Strengthen the application of digital technology, electronic invoices, and develop shared digital platforms to support household businesses, ensuring that 100% of household businesses can easily carry out procedures electronically. Develop and provide free or low-cost digital platforms and accounting software for household businesses and micro-enterprises to encourage and support the transformation of household businesses and micro-enterprises. Develop an automated tax calculation system using electronic invoice data to reduce the burden of tax declaration for household businesses and increase the accuracy of tax calculations. Apply information technology to manage risks based on building a database of household businesses with relevant parties, ensuring close monitoring of household business activities after the abolition of lump-sum tax, creating a foundation for modern management and preventing tax evasion. Upgrade IT systems to meet new regulations, minimize manual intervention, enhance transparency in tax management, and improve taxpayer compliance.

3. Strengthen coordination with relevant parties in tax management for household businesses.

– Coordinate with relevant ministries and agencies to implement effective policies and technical solutions; closely cooperate with the Ministry of Public Security in standardizing personal tax identification numbers to unify the use of personal identification numbers instead of tax identification numbers for individuals and business households.

– Strengthen connectivity, integration, and data sharing with relevant ministries, departments, and units to closely monitor the operations of household businesses after the transition from the lump-sum tax method to the declaration method, promptly detecting and identifying cases with tax risks or violations of the law.

– Coordinate with People's Committees at all levels to issue regulations on coordination in managing household business taxes after the abolition of lump-sum tax, review and prevent omissions of households; share and update information on registration, temporary suspension, and cessation of business of household businesses; coordinate in enforcing tax debt; coordinate in establishing a one-stop mechanism to support households in converting to enterprises; propose to the Provincial/City People's Committee a program to support credit and premises for newly established household businesses.

– Coordinate with local organizations and associations to encourage young business owners and small traders to comply with tax laws and policies; the Vietnam Chamber of Commerce and Industry (VCCI) local branch will support connecting networks of large, medium, and small businesses to create synergistic strength and ensure that the new method of managing household business taxes is implemented synchronously and smoothly.

III. IMPLEMENTATION ORGANIZATION

1. Assigning tasks

– The Tax Department shall preside over and organize the implementation of this Project; coordinate with press agencies to proactively disseminate and explain the content of the Project; and promote the spirit, creativity, and initiative of civil servants throughout the tax sector to strive for the successful achievement of the goals and specific tasks set out in the Project.

– Heads of units under and directly affiliated with the Ministry of Finance must closely adhere to the overall objectives, specific objectives, and main tasks of the Project to implement the contents according to their assigned functions and duties; coordinate and organize the implementation of the plan according to the set roadmap; and direct, inspect, and supervise the implementation of the plan.

– The Tax Department, based on its assigned tasks, shall report the results of the implementation of the Project to the Ministry of Finance no later than December 31st of each year.

– During the implementation process, if necessary, the units under and directly affiliated with the Ministry of Finance shall proactively propose additions, amendments, or updates to specific contents of this Project to the Tax Department for compilation and reporting to the Minister for consideration and decision, in order to ensure the synchronized and effective implementation of this Project.

2. Funding for the Project

Funding for the project will be in accordance with current laws and regulations.

Article 2. This decision takes effect from the date of signing.

Article 3. The Director of the Tax Department, the Chief of the Office of the Ministry of Finance, the heads of units under and directly affiliated with the Ministry of Finance, and relevant organizations and individuals are responsible for implementing this Decision.

📥 LIST OF ATTACHED DOCUMENTS TO THE DECISION ISSUING THE PROJECT PROPOSAL