Business tax 2026 There have officially been major turning points since the Government issued the regulations. Decree 68/2026/ND-CP, Replacing old regulations to suit the economic context is crucial. Raising the tax-free revenue threshold and adjusting the progressive tax rate schedule for large-scale household businesses are key points that household owners and accountants need to pay special attention to.
The promulgation of Decree 68/2026/ND-CP and Value Added Tax Law 2024 It's not just about changing the numbers, but also about a roadmap for transparency in the individual business sector. Understanding the 2026 business tax regulations helps businesses proactively plan their finances, avoid legal risks, and maximize government incentives.
Overview of the 2026 Tax Framework for Household Businesses
The year 2026 marks the synchronization between the Value Added Tax Law No. 44/2024/QH15 and the new tax management guiding decrees. The subjects to which the 2026 regulations on business household tax apply include business households and individual businesses engaged in production, trade, and services within the territory of Vietnam.
The current legal system focuses on classifying business households based on actual revenue thresholds. This helps management agencies apply appropriate tax calculation methods such as lump-sum, declaration, or calculation on a transaction-by-transaction basis, ensuring fairness and efficiency in state budget revenue collection.
The latest regulations on business household tax in 2026 according to Decree 68/2026/ND-CP.
Based on Chapter 2 of Decree 68/2026/ND-CP, the tax policy for business households has been clearly differentiated. The most notable point is the establishment of a revenue threshold of 500 million VND/year as a basis for VAT exemption and personal income tax, This is a significant step up from the previous amount of 100 million VND.
Value Added Tax (VAT) Policy
Regarding the business tax for 2026, VAT This is determined based on a direct calculation method using revenue. The percentage multiplied by revenue will vary depending on the specific business sector of the household business, as stipulated by current tax laws.
| Annual revenue threshold | Value Added Tax obligations | Note |
| From 500 million VND or less | Not subject to VAT | Based on the Value Added Tax Law 2024 |
| Over 500 million VND | Calculated at a ratio of % to revenue | Applicable to each industry group |
Applying the % ratio to revenue simplifies administrative procedures for household businesses. Household owners do not need to perform complex input tax deductions like businesses, thereby reducing the burden of monthly tax accounting and allowing them to focus on core business activities.
Personal Income Tax Policy
Regarding personal income tax, the 2026 household business tax is divided into different revenue tiers to apply appropriate tax rates. This ensures that large-scale household businesses, approaching the corporate model, will contribute a tax amount commensurate with their actual economic capacity.
| Annual revenue | How to calculate tax | Applicable tax rate |
| Not exceeding 500 million VND | No personal income tax payable. | Completely waived |
| > 500 million to 3 billion VND | Taxable income X Tax rate | 15% or according to industry ratio |
| > 3 billion to 50 billion VND | Fixed tax rate X Revenue | 17% |
| > 50 billion VND | Fixed tax rate X Revenue | 20% |
For businesses with revenue ranging from over 500 million to 3 billion VND, household businesses can choose to pay taxes at a rate of 1% tax and 3% tax depending on the type of business:
- Goods distribution: 0.5%.
- Services and construction without material procurement: 2% (Excluding property leasing: 5%).
- Manufacturing, transportation, and construction contracts included: 1.5%.
- Digital content, digital advertising: 5%.
- Other activities: 1%.
How is revenue used to determine personal income tax for household businesses?
Accurately determining revenue is a crucial step in calculating business tax for household businesses in 2026. According to Article 5 of Decree 68/2026/ND-CP, taxable revenue is the total amount of money from sales, processing, and provision of services, including surcharges and subsidies, that the household business actually receives.
Components of taxable revenue
Revenue for calculating household business tax in 2026 is not limited to the amount shown on sales invoices. It includes bonuses, sales support, promotions, payment discounts received, and compensation for breach of contract related to the household business's operations.
Please note that trade discounts, sales rebates, and the value of returned goods will be deducted when determining the taxable revenue of a business household in 2026. This is a point that accountants at MAN – Master Accountant Network always carefully advise clients on to ensure accuracy and completeness.
Regulations on revenue for special cases.
Decree 68/2026/ND-CP provides detailed guidance on how to calculate business tax for specific business models in 2026:
- Processing: Revenue includes labor costs and expenses for fuel and auxiliary materials used in processing.
- Installment: This calculation is based only on the one-time payment price, excluding late payment interest.
- Dealer with fair prices: Revenue is the commission earned.
- Property for rent: Revenue is calculated based on the amount paid in each installment or allocated if paid in advance for multiple years.
- Transportation: All shipping fees incurred during the period.
Time of determining taxable revenue for household businesses in 2026
Incorrectly determining the timing of revenue recognition can lead to late tax payments and penalties. For the 2026 business tax regulations, this timing is stipulated as follows:
- Selling goods: The time when ownership or usage rights are transferred to the buyer.
- Service provision: The time of completion of the service or parts of the service.
Understanding this timeframe helps business owners control their cash flow and fulfill their 2026 business tax obligations on time. If you encounter difficulties in revenue breakdown, experts at MAN are ready to assist through professional tax reporting services and accurate tax settlement.
The latest business registration methods in 2026.
To begin fulfilling tax obligations, individuals must register their business as required. According to Article 94 of Decree 168/2025/ND-CP, the registration process for paying business taxes in 2026 has been simplified to the maximum extent through three modern transaction methods.
Register in person and by mail.
Household owners can prepare paper documents and submit them directly to the commune-level business registration agency or send them via public postal services. This method is suitable for business households that want direct guidance or are located far from the administrative center but still want to fulfill all their obligations.
Register online
This is the method most encouraged by the government to promote digital transformation. Through the public service portal, you can submit applications online 24/7. Digitization helps make the process of issuing tax identification numbers and tracking taxes for household businesses in 2026 more transparent, faster, and less cumbersome.
Instructions for declaring and paying taxes for household businesses in 2026
The 2026 tax declaration process for household businesses requires a high degree of accuracy in comparing accounting records and supporting documents. Especially for household businesses applying the declaration method, storing and using electronic invoices is a mandatory requirement for tax authorities to monitor revenue.
Types of tax returns and payment deadlines:
Household businesses need to submit tax return form No. 01/CNKD periodically (monthly or quarterly) via the Etax Mobile application. The deadline for submitting the 2026 household business tax return is as follows:
- By month: No later than the 20th of the following month.
- By quarter: No later than the last day of the first month of the following quarter.
- Settlement: The last day of the fourth month after the Gregorian calendar year.
Delays can lead to unnecessary administrative penalties for businesses. The support of a reputable tax accounting service provider like MAN – Master Accountant Network will give you peace of mind regarding progress, accuracy, and optimized tax payments.
Common mistakes when calculating business tax in 2026
Many business owners often make mistakes when self-determining their 2026 business tax, leading to the risk of being subject to back taxes. The most common mistakes are failing to clearly separate taxable and non-taxable income sources, or omitting supplier bonuses when calculating total revenue.
Another mistake is incorrectly determining the tax rate based on the actual business activity. For example, a household that both sells goods and provides installation services declares everything at a lower rate. During an audit, the difference and late payment interest for the 2026 business tax will become a significant financial burden for the household owner.
Conclude
The 2026 business tax offers opportunities for tax reductions for small businesses but also tightens management for large-scale businesses. With a tax exemption threshold of 500 million VND, most households will see a reduction in their financial burden. However, businesses with revenues exceeding 3 billion VND will need professional financial management to avoid high progressive tax rates.
To ensure legal compliance and maximize profits, seek out a partner with in-depth tax consulting expertise. MAN – Master Accountant Network providing comprehensive solutions regarding audit, tax accounting, tax consulting services, tax settlement and tax reporting. We are committed to helping you resolve any issues related to business tax in 2026 as quickly as possible.
Let MAN be your partner in sustainable growth for the future. Contact us today for professional advice on the most suitable tax and accounting roadmap for your business model in 2026.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Business Taxes 2026
According to the 2026 business tax regulations, even if your income is below the tax threshold, you must still file an initial declaration so that the tax authorities can confirm your official tax-exempt or fixed revenue level as per regulations.
The government always encourages conversion. When this happens, you are exempt from business license fees and enjoy preferential corporate income tax rates for small businesses, often more favorable than the 2026 tax rate for household businesses if your revenue is very high. Do businesses with revenue under 500 million VND need to file a tax return?
Can I convert to a business to qualify for the benefits?
