Abolishing lump-sum taxation is a key step in reforming tax administration. More than 18,300 household businesses paying lump-sum tax have voluntarily shifted to the self-declaration method ahead of January 1, 2026.

Vietnam is entering a new chapter in tax administration as it abolishes the lump-sum tax regime for household businesses.

Under the amended Law on Personnal Income Tax, the personal deduction will rise to 15.5 million VND (590 USD) per month from 11 million VND at present.

Raising the annual revenue threshold for mandatory e-invoice issuance from $40,000 to $120,000 could lead to harmful consequences, experts caution.

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

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.

Vietnam’s National Assembly has officially passed sweeping changes to the Personal Income Tax Law, reducing the number of tax brackets and raising deductions in a move expected to benefit millions of taxpayers starting in 2026.

The Ministry of Finance (MOF) has submitted a draft to amend and supplement the Value Added Tax (VAT) Law to remove bottlenecks in tax refunds, helping to unblock capital flow for businesses.

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.

Experts argue that applying a 35% tax rate to monthly incomes over $4,120 is excessive and recommend raising the threshold to $12,360.

Amid recent suggestions to carefully consider taxing gold bar transactions - particularly regarding tax rates and appropriate application methods - the Ministry of Finance has offered a detailed explanation.

From 2026, Vietnamese small business owners earning as little as 553,000 VND (22 USD) per day could be subject to tax - equivalent to selling just 28 boxes of sticky rice.

The National Assembly recently discussed the draft Population Law, with many deputies focusing on the proposal to maintain replacement fertility levels, particularly from financial support for women who have two children.

The founder of Ba Huan affirms she and her family are no longer involved in the company’s operations after a recent tax enforcement decision.

The Department of Taxation is preparing to launch a pilot version of its online tax declaration portal later this month, a move seen as pivotal in replacing the decades-old lump-sum tax system with a digital self-declaration model from Jan. 1, 2026.

As gold prices in Vietnam climb past US$6,300 per tael, the government considers new tax measures and their broader market impact.

The personal deduction level of VND15.5 million per month is considered appropriate for the 2025 tax year, but if not implemented soon, it will quickly become outdated, experts say.

Personal income tax deduction thresholds will be increased in 2026, aiming to reflect higher living costs and ease financial burdens.

National Assembly deputies continued the ongoing 10th session on November 5 by debating three bills, namely the Law on Tax Administration (revised), the Law on Personal Income Tax (revised), and the Law on Thrift Practice and Wastefulness Combat.