Knowledge base

The Ministry of Finance (answered via Ca Mau Provincial Tax Department) clarified how household businesses should handle tax declarations after the taxable revenue threshold was raised from VND 500 million to VND 1 billion per year under Decree 68/2026/ND-CP (dated March 5, 2026), as amended by Decree 141/2026/ND-CP (dated April 29, 2026). For household businesses with annual revenue between VND 500 million and under VND 1 billion that already filed a Q1 return under the old rules, they no longer need to file quarterly tax returns from Q2 onward. Instead, they only need to notify the tax authority of their actual revenue for the year by January 31 of the following year. Regarding tax amounts already assessed or paid for Q1 under the old threshold, if a household business filed a return but has not yet paid the tax, it should contact its managing tax office for guidance. If tax was already paid and year-end revenue remains under VND 1 billion, the business may request a refund of the overpaid tax under the Law on Tax Administration. On the question of how local tax authorities will nationally standardize the process of updating tax obligations, the responding authority (Ca Mau Provincial Tax Department) stated this issue lacks specific guidance and it cannot answer on behalf of the relevant authority. For household businesses with revenue under VND 1 billion per year that are not required to use e-invoices and have already notified a suspension of e-invoice use starting Q2/2026, they do not need to continue filing quarterly VAT and personal income tax returns for Q2/2026 onward, provided annual revenue does not exceed the VND 1 billion threshold; they only need to report actual revenue by January 31 of the following year. For household businesses with revenue of VND 1 billion or less that voluntarily register to use e-invoices to serve their business and customer needs, tax declaration is still done annually (reporting actual revenue by January 31 of the following year), not quarterly.

Tay Ninh Tax Department No. 8 clarifies: the household has two activities - selling animal feed (a VAT and personal income tax taxable activity) and farming fish in ponds for sale to traders (aquaculture produce exempt from VAT and personal income tax under Decree 181/2025/ND-CP and VAT law). When filing Form 01/CNKD, revenue from fish sales is not declared as taxable revenue (it is exempt); only feed trading revenue is declared. For aquaculture business registration, Tax Department No. 8 Tay Ninh advises the household to contact the commune-level economic office directly for guidance.

The Hanoi Tax Department provided guidance to a household transport business with annual revenue exceeding VND 3 billion (subject to PIT on revenue under Circular 18/2026/TT-BTC) on deductible expenses. Vehicle depreciation, fuel costs, and bank loan interest for purchasing the business vehicle are all recognized as reasonable expenses if adequately documented. Invoices issued in the individual owner's name (Nguyen Van A) are accepted because the household business name 'Ho Kinh Doanh Nguyen Van A' identifies the same legal person. Bank loan contracts under the individual's name are accepted provided the loan purpose is clearly for business use with supporting evidence. Required documentation includes: vehicle purchase invoice, depreciation schedule, fuel receipts, loan contract, and bank statements.

The Ho Chi Minh City Tax Department (Long Bien - Gia Lam area tax sub-department) provides guidance on a case where a business filed its 2024 PIT annual settlement on 25 March 2025 but issued 11 withholding tax receipts to employees on 15 April 2025, after the settlement deadline. Under Decree 70/2025/ND-CP amending Decree 125/2020/ND-CP, late issuance of withholding receipts (after the settlement date) may attract administrative tax penalties. However, if Official Letter 1992/CT-CS applies and no actual tax loss occurred, the authority may exercise discretion on penalty level. The business is advised to proactively contact the local tax authority for specific guidance on whether penalties apply and at what level, and to ensure correct electronic tax filing going forward.

The Ministry of Finance provided guidance on three common issues in enterprise personal income tax (PIT) finalization: (1) when an employee has delegated authorization but is later found to be required to self-file (due to additional tax payable); (2) how to complete withholding certificates in this scenario; (3) employees needing to re-file independently when eTax Mobile does not yet support this function. Per Ministry of Finance guidance (based on Circular 80/2021/TT-BTC and Decree 126/2020/NĐ-CP), enterprises must amend their PIT finalization returns when an individual is found to be ineligible for delegation. The withholding certificate records the amount withheld/provisionally paid during the year. Individuals must physically attend the tax authority to re-file if the application does not support this. Enterprises are not subject to late payment penalties if they properly fulfill withholding and declaration obligations based on actual income paid during the period.

The Ministry of Finance (through Tay Ninh Tax Department) provided guidance on VAT and PIT calculation methods for a household business registered in October 2025 that selected the percentage-of-revenue method from the start. If total 2026 revenue exceeds VND 3 billion by year-end, can the household business continue using this method? Per Decree 141/2026/NĐ-CP dated December 6, 2026 and the VAT and Tax Administration Laws: A household business that selected the percentage-of-revenue method in the previous year continues to apply this method for the entire 2026 tax year, even if revenue exceeds VND 3 billion during that year. Only from the following tax year must it consider switching to another method if conditions are met. The Tay Ninh Tax Department responded for Mr. Nguyen Van Hai's reference and implementation.

The Ministry of Finance provided a general-principle response to an individual who buys live pigs, separates them into cuts (meat, bones, offal) and sells them retail. The activity falls under the category of distribution and supply of goods, so the VAT flat rate is 1% of revenue, per Article 12(2) of the VAT Law and Appendix I of Circular 69/2025/TT-BTC. For personal income tax (PIT), the applicable rate is 0.5% of revenue for distribution and supply of goods, per Article 10 of the PIT Law No. 04/2007/QH12 (as amended by Clause 4, Article 2 of Law No. 71/2014/QH13) and Appendix I of Circular 40/2021/TT-BTC. The Ministry noted that, as no specific dossier was provided, this guidance is based on general principles only; the questioner should verify against actual circumstances and consult the directly managing tax authority for specific guidance.

The Ministry of Finance responded to a question about whether an individual whose only activity is property rental (using tax declaration form 01/BDS) must notify the tax authority of their bank account number (form 01/BK-STK), pursuant to Article 13(4) of Decree 68/2026/ND-CP and Article 4(1)(d) of Circular 18/2026/TT-BTC. Based on the Ministry of Finance's written response shown in the official image: The MoF cited Article 13(4) of Decree 68/2026/ND-CP and Article 4 of Circular 18/2026/TT-BTC to indicate that the bank account notification requirement applies to household businesses and individual traders using form 01/CNKD. Individuals whose only activity is property rental and who use form 01/BDS fall under a different category; they should refer specifically to the guidance in Circular 18/2026/TT-BTC and contact the local Tax Department for specific guidance.

The Ministry of Finance clarified where individuals with income from multiple employers across different provinces must file their personal income tax (PIT) finalization return (Form 02/QT-TNCN). Under Article 11 of Circular 105/2020/TT-BTC and Article 11 of Decree 24/2025/ND-CP on tax administration: individuals filing their own PIT finalization must submit the return to the tax authority directly managing the income-paying organization that withheld the largest amount of PIT during the year. Applied to the scenario: an individual with 30 income sources in Province A (total 3 billion VND, 100 million each) and 5 income sources in Province B (one source at 600 million VND). The individual must identify which paying organization withheld the most PIT - if that is an organization in Province B, the return is filed in Province B; if it is an organization in Province A, the return is filed in Province A. The tax authority directly managing the income-paying organization (not the individual's place of residence) determines the filing location. Additional tax payable is remitted there; tax refund claims are also processed at that location.

The Ministry of Finance clarified PIT obligations for sole proprietor households (HKD) in software programming (industry code 6201) classified under Group 3 of Decree 68/2026/ND-CP. Under Circular 40/2021/TT-BTC, software programming and application publishing activities are classified as IT services, with PIT calculated at a 2% rate on revenue. Decree 68/2026/ND-CP on household business management does not change how Group 3 household businesses calculate PIT - they continue to pay PIT at the percentage-of-revenue rate under Circular 40/2021/TT-BTC. For software programming activities, the 2% rate still applies. Taxable income is calculated as revenue multiplied by 2%, then subjected to the progressive tax schedule (17% rate on the corresponding income bracket). The Ministry of Finance acknowledged the unique characteristics of the software sector (no physical input invoices, intellectual product nature) and requested the household business report specific business circumstances to the Provincial Tax Department for further guidance.

The Ho Chi Minh City Tax Department responds to a query about whether overtime pay earned in December 2025 but paid in January 2026 qualifies for PIT exemption under the new Personal Income Tax Law. Under Clause 8, Article 4 of PIT Law No. 109/2025/QH15, overtime pay and night-shift pay are exempt from PIT. Since the payment was made in January 2026 (the 2026 tax period), the tax authority determines this income falls under Law No. 109/2025/QH15 and is therefore PIT-exempt.