Resolution No68-NQ/TW of the Politburo on private sector development sets the goal of abolishing the lump-sum tax regime for household businesses no later than 2026. In a draft decree on tax administration for household and individual businesses, which the Ministry of Finance has submitted to the Ministry of Justice for appraisal, household and individual businesses are classified by revenue thresholds to apply appropriate tax obligations. For household and individual businesses with annual revenue above VND500 million, tax obligations arise. Regarding personal income tax, tax payable by household and individual businesses with annual revenue above VND500 million is calculated as taxable income multiplied by the applicable tax rate. Once a tax calculation method is selected, it will be applied consistently for two consecutive years, to limit frequent changes that could disrupt household businesses’ tax obligations.

Source: VietNamNet News January 06, 2026 10:13 UTC