Business Households in Vietnam: New 2026 Tax Regulations
There are currently over 5.2 million business households in Vietnam. In 2024, the total state budget revenue from this group was estimated at approximately VND 26,000 billion. From 2026 onwards, business households will switch from paying taxes using the lump-sum method to paying via the declaration method. Many new tax regulations will also apply to business households. The experts at ECOVIS AFA Vietnam summarise the key regulatory changes below.
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Switching the tax method from lump-sum tax to declaration and self-payment
Traditionally, the majority of business households have paid taxes using the lump-sum method, whereby the Tax Authority sets a fixed revenue level for the entire year and the business household pays taxes based on this amount.
From January 1, 2026, for business households, the lump-sum tax method will be abolished and the declaration method will instead be applied.
Abolishing business license fees, business households only pay value added tax (VAT) and personal income tax (PIT)
Before 2026, business households paid three types of taxes and fees when conducting business, including:
- VAT;
- PIT;
- Business Licence Fee.
However, from 1 January 2026, the business licence fee will be officially abolished under Resolution 198/2025/QH15. Therefore, from 2026 onwards, business households will only be subject to VAT and PIT.
Adjusting the tax-exempt revenue threshold for household and individual businesses to vnd 500 million per year
Previously, business households and individuals with revenue from production and business activities in a calendar year of VND 100 million or less were exempt from VAT and PIT. At the same time, according to Article 18 of the Value-added Tax Law 2024, from January 1, 2026, business households with revenue of VND 200 million per year or more must pay VAT and PIT.
However, according to the new regulations of the amended Law on Personal Income Tax 2025, released on December 10, 2025, the following will take effect from January 1, 2026:
- The tax-exempt revenue threshold for business households and individuals will be adjusted from VND 200 million per year to VND 500 million per year. This amount will be deducted before tax is calculated based on a percentage of revenue (i.e. no tax will be payable on the entire revenue).
- This method of calculating tax will only apply to the portion of revenue exceeding VND 500 million, rather than taxing the entire revenue as before.
Adding a method for calculating tax based on income (revenue – expenses)
A notable point of the Law on Personal Income Tax 2025 is the addition of a method of calculating tax based on income (revenue minus expenses), whereby the profit portion is taxed for business households and individuals with annual revenue exceeding VND 500 million and up to VND 3 billion.
A tax rate of 15%, similar to the corporate income tax rate, will apply to businesses with annual revenue below 3 billion VND. Furthermore, these individuals will be permitted to select either a percentage-based tax calculation method based on revenue or a method based on total income.
2026 Tax calculation for business households in Vietnam
According to the new regulation stipulating that only business households with annual revenue of VND 500 million or more are required to pay taxes, from 1 January 2026, the tax calculation method for business households will be divided into groups based on revenue for tax calculation purposes as follows:
| Case | Tax base | PIT rate (%) | VAT rate (%) |
| Able to determine the costs | Revenue ranges from VND 500 million to VND 3 billion per year | 15% | Similar to the “unable to determine the costs” group |
| Revenue ranges from VND 3 to 50 billion per year | 17% | Similar to the “unable to determine the costs” group | |
| Revenue exceeding VND 50 billion per year | 20% | Similar to the “unable to determine the costs” group | |
| Unable to determine the costs (Only applied for revenue group ranging from VND 500 million to VND 3 billion per year) |
Distribution and supply of goods | 0,5% | 1% |
| Production, transportation and services related to goods, as well as construction involving material procurement | 1,5% | 3% | |
| Services and construction without material procurement | 2% | 5% | |
| Providing digital content products and services related to entertainment, video games, digital movies, digital photos, digital music, and digital advertising | 5% | 5% | |
| Leasing of real estate, excluding accommodation business activities. | 5% | 5% | |
| Other business activities | 1% | 2% |
The above contents were researched and summarized by ECOVIS AFA VIETNAM from widely published legal documents and articles. If you would like to discuss any of the issues in more depth, please contact us at the details below.
