The following article will provide information on the abolition of lump-sum tax for business households with annual revenue of 01 billion VND or more and instructions on how to comply with business household tax obligations.
First, we need to understand what is the lump-sum tax for business households?
According to the provisions of Circular No. 40/2021/TT-BTC, Clauses 7 and 9, Article 3 stipulate as follows:
Article 3. Interpretation of terms:
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7. “Lump sum method” is the method of calculating tax based on the rate of lump sum revenue determined by the tax authority to calculate the lump sum tax rate as prescribed in Article 51 of the Law on Tax Administration.
9. “Lump sum tax rate” is the tax amount and other amounts payable to the state budget by business households and business individuals paying taxes according to the lump sum method as determined by the tax authority in accordance with the provisions of Article 51 of the Law on Tax Administration.
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It can be understood that lump-sum tax is a type of tax. calculated as a percentage of contract revenue determined by the tax authority, applicable to business households and individuals paying taxes according to the lump-sum method.
Eliminate lump-sum tax for business households with revenue from 1 billion VND/year from June 01, 6
In Clause 8, Article 1 Decree 70 / 2025 / ND-CP Amending and supplementing Clause 1, Article 11 of Decree 123/2020/ND-CP regulating invoices and documents required from June 01, 6 as follows:
“Article 11. Electronic invoices generated from cash registers
1. Business households and individuals doing business as prescribed in Clause 1, Article 51 with annual revenue of VND 01 billion or more, Clause 2, Article 90, Clause 3, Article 91 of the Law on Tax Administration No. 38/2019/QH14 and enterprises with activities of selling goods and providing services, including selling goods and providing services directly to consumers (commercial centers; supermarkets; retail (except for cars, motorbikes, motorbikes and other motor vehicles); food and beverage; restaurants; hotels; passenger transport services, direct support services for road transport, art services, entertainment, film screening activities, other personal services as prescribed in the Vietnam Economic Sector System) use electronic invoices generated from cash registers connected to transfer electronic data to tax authorities.
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Thus, from June 01, 6, business households have Annual revenue from 01 billion VND or more will have to issue electronic invoices generated from cash registers connected to data with tax authorities, no longer paying taxes by lump sum method.
Officially abolish lump-sum tax for business households and individual businesses from January 01, 01
Clause 6, Article 10 of Resolution 198/2025/QH15 stipulates the tax and fee policy to promote private economic development as follows:
Article 10. Support for taxes, fees and charges
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6. Business households and business individuals shall not apply the lump-sum tax method from January 01, 01. Business households and business individuals shall pay taxes in accordance with the law on tax administration.
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Thus, from January 01, 01, the lump-sum tax for business households and individual businesses will be officially abolished and tax payment will be switched to according to the tax administration law.
