3 main taxes applied to business households
According to current regulations, business households must fulfill tax obligations with three basic types of taxes and fees: Business license tax; Value added tax; Personal income tax. In addition, business households may have to pay other types of taxes such as resource tax, environmental protection tax if they trade in taxable items according to the provisions of specialized laws.
How much revenue is taxable?
Regarding value added tax and personal income tax, business households with annual revenue of VND100 million or less are exempted from paying. This revenue level applies to one representative in the case of a business household in a group of individuals or households. However, if the revenue exceeds the threshold of VND100 million/year, the business household is required to pay value added tax, personal income tax and business license tax.
According to current regulations, business households must fulfill tax obligations with three basic types of taxes and fees: Business license tax; Value added tax; Personal income tax. (Illustration photo)
Details of tax payable in 2025
Business license tax is determined based on annual revenue: households with revenue over 500 million VND/year pay 1 million VND; revenue from over 300 to 500 million VND/year pay 500,000 VND; revenue from over 100 to 300 million VND/year pay 300,000 VND.
For value added tax and personal income tax, business households declare according to the lump sum method or declare according to actual revenue depending on the operating model.
Tax is calculated based on taxable revenue multiplied by the tax rate corresponding to each industry. Taxable revenue includes all revenue from sales, service provision, bonuses, discounts, trade support, including cases where money has not been collected.
The calculation formula is as follows:
Value Added Tax (VAT) payable = VAT rate × Taxable revenue
Personal income tax (PIT) payable = PIT rate × Taxable revenue
Abolishing lump-sum tax, how do business households pay taxes?
From June 1, 2025 to December 31, 2025, the policy of abolishing lump-sum tax will be applied to business households with revenue of 1 billion VND/year or more, in industries that sell goods and provide services directly to consumers such as: shopping malls, supermarkets, retail, food and beverage, restaurants, hotels, passenger transport, arts, entertainment, cinemas, personal services...
According to regulations: from January 1, 2026 onwards, lump-sum tax will be officially abolished for all business households and individuals.
After the lump-sum tax is abolished, business households have two options for paying taxes.
Tax declaration method: Applicable to households and individuals doing business with revenue of 100 million VND/year or more.
Method of paying tax on each occurrence: Applicable to individuals who do business irregularly and do not have a fixed business location.
How to calculate tax by declaration method
According to Circular 40/2021 of the Ministry of Finance : Taxable revenue: Includes all revenue from sales, service provision, commissions, promotional values, discounts, sales support... including both collected and uncollected amounts.
Tax rate on revenue: Including value added tax rate and corporate income tax rate prescribed for each industry (Appendix I Circular 40).
Tax calculation formula
Value Added Tax (VAT) = VAT taxable revenue × VAT rate %
Personal income tax (PIT) = Taxable revenue × PIT rate
In case a business household operates in multiple industries, the tax rate will be applied separately based on the revenue of each industry. If the revenue cannot be determined, the tax authority has the right to determine it based on reality.
Source: https://baolaocai.vn/nhung-loai-thue-ho-kinh-doanh-phai-nop-nam-2025-post403809.html
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