On August 6, 2026, the Ministry of Finance proposed tax support solutions for households, individual businesses, and enterprises. Accordingly, the Ministry of Finance proposed raising the revenue threshold for applying the simplified tax calculation method from VND 3 billion to VND 10 billion; this content is expected to be included in the draft Law on Supporting Small and Medium-Sized Enterprises (amended) to amend and supplement some provisions in the Corporate Income Tax Law and the Personal Income Tax Law, to be submitted to the National Assembly for consideration and approval at the 2nd Session, expected in October 2026.
While awaiting the competent authority's review and amendment of regulations on revenue thresholds for applying the simplified tax calculation method, in order to facilitate and help business households and individuals confidently maintain production and business activities and fulfill their tax obligations, the Tax Department requests the Large Enterprise Tax Sub-department, the E-commerce Tax Sub-department, and the Tax Departments of provinces and cities to strengthen propaganda efforts; and at the same time, direct local tax offices to disseminate information and guide business households and individuals to make provisional personal income tax (PIT) payments using the simplified method (tax rate X revenue) as stipulated in Decree No. 68/2026/ND-CP, focusing on the following contents:
1. Regarding the declaration and provisional payment of personal income tax.
According to point b, clause 2, Article 10 of Government Decree No. 68/2026/ND-CP dated March 5, 2026, households and individuals engaged in business activities subject to personal income tax under the method of taxable income multiplied by tax rate shall declare and make provisional personal income tax payments monthly or quarterly on the same value-added tax return. The amount of provisional personal income tax payable shall be determined using the simplified method:
PROVISIONAL PERSONAL INCOME TAX PAYMENT AMOUNT = MONTHLY/QUARTERLY TAXABLE REVENUE x TAX RATE
In which:
– Taxable revenue is the revenue generated during the period from the production, business, goods, and services activities;
– Tax rates: applied according to each industry and business sector as stipulated by law.
Note: The deadline for filing tax returns and paying taxes is in accordance with the tax administration laws. At the end of the tax year, households and individual businesses must file their personal income tax returns as prescribed.
2. In cases where there are multiple business locations.
According to Clause b, Point 4, Article 8 of Decree No. 68/2026/ND-CP, in cases where households or individuals conduct business at multiple locations, they must declare revenue and pay value-added tax at each business location; personal income tax is paid at the head office.
3. When settling taxes at the end of the year
According to point a, clause 5, Article 10 of Decree No. 252/2026/ND-CP, households and individuals engaged in business activities who are required to file personal income tax returns must submit their tax return documents no later than the last day of the third month from the end of the tax settlement period.
If the amount of personal income tax already paid provisionally is lower than the amount payable upon final settlement, according to the provisions of point b, clause 2, Article 10 of Decree No. 68/2026/ND-CP, the business household or individual shall pay the difference and shall not be charged late payment penalties on the additional tax paid. If the amount of tax already paid provisionally is greater than the amount payable upon final settlement, the overpaid tax amount shall be handled according to the provisions of Article 12 of Decree No. 68/2026/ND-CP.
The Tax Department requests that provincial and city tax authorities widely disseminate the above-mentioned information through appropriate means; proactively guide households and individual businesses to correctly implement regulations on declaring, provisionally paying, and settling personal income tax, avoiding anxiety while awaiting the competent authority's review and amendment of regulations on the revenue threshold for applying the simplified tax calculation method.