The Ministry of Finance (MOF) has announced a summary, explanation and acceptance of comments on the Tax Administration Law amendment project.

VASS, suggesting opinions to the draft Tax Administration Law, affirmed that removing the presumptive tax scheme is a necessity.

However, the impact assessment report noted that the initial phase (2025-2026) of implementation could lead to the overload to the system as millions of household businesses transition simultaneously. 

Many business households reported that compliance costs for the new regulations could range from a few hundred thousand to tens of millions VND annually. Thus, support in technology, technical assistance, and financing is needed.

The draft, however, does not address solutions to overcome these problems.

VASS proposed a three-phase transition from presumptive tax to declaration-based tax.

Phase 1 (Years 1-2) should focus on preparation and pilot implementation. The government should finalize the legal framework, provide free simple accounting software and electronic invoices to small household businesses, and organize training on bookkeeping and tax declaration skills.

Financial support in this phase includes free software, assistance with input devices (tablets, internet access), and training for business households in remote areas.

In Phase 2 (Years 2-4), mandatory tax declaration will be expanded to business households exceeding a certain revenue threshold, accompanied by temporary tax incentives (20-30 percent tax reduction in the first year), support for accounting service costs, and access to preferential microcredit.

Technically, local tax management systems should be upgraded, integrating declaration, payment, and tax submission platforms, with continued training on digital financial skills for household businesses.

Phase 3 (Years 4-5) will be the time for standardizing the system and fully phasing out the presumptive tax scheme nationwide.

Household businesses will be integrated into the national tax management system like small enterprises, supported with automated digital accounting tools and continued tax incentives for transitioning to enterprise models.

Additionally, the government should provide financial support to business households in disadvantaged areas during the transition and promote social insurance, credit, and labor training policies for formalized businesses.

MOF replied that Resolution No198/2025 mandates the abolition of presumptive tax scheme from January 1, 2026. Thus, the Tax Administration Law will have to amend tax management policies for household businesses to adopt self-declaration from that date.

The draft law will specify a tax management model suited to the characteristics of these business households.

Meanwhile, Hanoi authorities have proposed adding a regulation requiring household businesses to register a bank account or electronic transaction account dedicated to business activities.

Applying the rule of creating separate trading accounts for business activities helps control cash flow more conveniently.

Hanoi also proposed adding regulations on connecting business registration and tax registration for business households, similar to enterprise registration, reducing administrative procedures for taxpayers.

At the same time, it is necessary to amend the tentative detailed regulations on the revenue threshold for business households to apply electronic invoices generated from cash registers to: "The Government shall specify this in detail".

Hanoi believes that the requirement that business households with taxable revenue thresholds must apply electronic invoices generated from cash registers is not consistent with determining the actual business activities of business households in the context of economic changes.

Citing Resolution 198/2025/QH15 on special mechanisms and policies for private sector development, which states that household businesses and individual entrepreneurs will cease using presumptive tax from January 1, 2026, Hanoi proposed adding regulations on tax declaration, declaration frequency, and simplified declaration forms for easier compliance.

The Ministry of Culture, Sports, and Tourism (MCST) also suggested that the drafting agency develop a suitable implementation roadmap to avoid “shock.”

Many people lack the time to gain sufficient knowledge to adapt to new regulations or prepare the necessary material conditions, especially those unable to use information technology.

Given uneven economic conditions, with many areas still reliant on subsistence economies, exemptions should be considered to align with reality.

Under Decree 70, from June 1, household businesses with annual revenue exceeding VND1 billion in certain fields (e.g., food and beverage, hospitality, retail, passenger transport, beauty, entertainment) must use electronic invoices generated from cash registers connected to tax agency.

Resolution 68 of the Politburo mandates phasing out presumptive tax for household businesses by 2026 at the latest.

The tax authority always encourages business households to convert to micro-enterprise models. Business households will receive policy support from state agencies. If the business is profitable, they will contribute to the state budget; otherwise, they do not have to pay.

Tam An