A new decree will authorize enforcement agencies to seize not just shared business property but also individual assets of household business members if penalties go unpaid.

Beginning January 1, 2026, nearly 5 million business households will stop paying lump-sum tax and switch to revenue-based self-declaration.

Starting January 1, 2026, as business households transition to revenue-based tax declarations, the requirement for bank account notification has become a focal point. Experts say this is a necessary step toward ensuring cash flow transparency.

Stocktaking is one of the issues that concerns many business households as they transition from presumptive tax to declaration-based tax starting in 2026 and begin using e-invoices for sales activities.

Business households have sighed with relief as the tax-free revenue threshold has been raised to VND500 million per year as stipulated in the new PIT Law, but they are still concerned about invoices, accounting books and penalty levels.

Experts recommend setting the tax-exempt revenue threshold based on regional coefficients, similar to the minimum wage mechanism, and adjusting it periodically according to the CPI or average income growth.

Starting from 2026, business households with average revenue of at least VND553,000 per day will have to pay tax. This would mean, for example, that a small vendor who sells only 28 boxes of sticky rice a day would be subject to a 4.5 percent tax.

Vietnam’s Ministry of Finance has proposed raising the annual revenue threshold for household businesses to be exempt from personal income tax from 200 million VND to 500 million VND (approximately USD 8,200 to USD 20,500).

The Ministry of Finance (MOF) has announced that it will amend the Law on Value Added Tax (VAT) by raising the level of VAT-exempt revenue.

Authorities are now looking ahead to revising the Law on Tax Administration to ensure fair, convenient and transparent tax policies for all business models, especially household businesses.

According to senior tax officials, the fixed-rate tax model is no longer suited to current realities due to the evolving nature and scale of business operations.

Contributing 30% of GDP, household businesses are vital - yet legal burdens deter them from transitioning into enterprises.