Personal Income Tax Method for Newly Established Business Households with Revenue Exceeding VND 3 Billion in 2026
RegHub explainer by New MarketerLast updated:
Based on:Nghị định số 68/2026/NĐ-CP ngày 05/3/2026, Điều 10 - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
Newly established business households (HKD) in 2026 with no prior-year revenue data are governed by Article 10 of Decree 68/2026/ND-CP. Once cumulative revenue exceeds VND 500 million, the HKD must file quarterly and may elect either the percentage-of-revenue method or the net-income method. The elected method is applied stably for the first two years of operation. For the specific situation described: If the HKD elects the percentage-of-revenue method from the start of 2026 and cumulative revenue at year-end exceeds VND 3 billion, the HKD retains that method for all of 2026 and continues it stably through 2027 (no mid-year switch to the net-income method is required). From 2028 onwards, the actual 2027 revenue determines which tax-method group applies under the applicable regulations.
Ministry of Finance Guidance on PIT for Newly Established Business Households (22 May 2026)
Question: A household business (HKD) newly starting in 2026 on an e-commerce platform has no prior-year revenue data. Once cumulative revenue exceeds VND 500 million, the HKD elects the percentage-of-revenue method. By year-end, actual cumulative revenue exceeds VND 3 billion. Questions: (1) Is the HKD required to switch methods mid-year in 2026? (2) In 2027, can it continue the percentage method, or must it switch to the net-income method?
Legal basis: Article 10, Decree 68/2026/ND-CP dated 5 March 2026
Tax authority conclusions:
Question 1 — Year 2026
A newly established HKD (with no prior-year revenue data) is entitled to a two-year stability period for the elected tax method from the first year of operation. Accordingly, even if actual cumulative revenue exceeds VND 3 billion at year-end 2026, the HKD is not required to switch to the net-income method or recompute the full year on that basis.
Question 2 — Year 2027
The two-year stability policy for newly established businesses means the HKD continues the percentage-of-revenue method in 2027 (the second stable year). From 2028 onwards, actual 2027 revenue (which exceeded VND 3 billion) is used to determine the applicable tax-method group under Decree 68/2026/ND-CP.