Ensuring Full Transition of Household Businesses to New Tax Model

With the message “60 Days of Action, Real Transformation, Elevating Household Businesses to Transparent, Modern Reporting,” Vietnam’s tax authorities have launched a nationwide campaign to end the presumptive tax system and adopt a fair, transparent, self-declaration model.

This represents a key step in modernizing tax administration and lays the foundation for sustainable growth and deeper integration of the private sector into the digital economy.

The tax information portal is integrated with AI through a business advisory chatbot

Real transformation, elevating household business reporting

On October 31, 2025, the Department of Taxation issued Decision 3352/QD-CT, launching the nationwide “60-Day Campaign to Transition Household Businesses from Presumptive Tax to Self-Declaration.” The campaign runs from November 1 to December 30, 2025, implementing the Politburo’s Resolution 68-NQ/TW dated May 4, 2025, the Law on Tax Administration 38/2019/QH14, and National Assembly Resolution 198/2025/QH15.

Starting January 1, 2026, household businesses currently paying presumptive tax will transition to self-declaration or may choose to upgrade to small and medium-sized enterprise status to access preferential policies. This represents a fundamental shift in tax administration, promoting transparency, fairness, and an accurate reflection of each business’s actual capacity.

Decision 3352/QD-CT also implements the national plan “Transformation of Tax Models and Management Methods for Household Businesses after Eliminating Presumptive Tax” under Ministry of Finance Decision 3389/QD-BTC dated October 6, 2025. The campaign covers all regions, focusing on areas with many presumptive taxpayers, including traditional markets, commercial streets, and business lodging zones.

Under the Department of Taxation’s guidance, all units are responsible for promoting awareness and instructing household and individual taxpayers on the benefits and obligations of switching to self-declaration or upgrading to enterprise status.

Tax authorities will set up mobile support points in markets and commercial areas and organize direct and online guidance sessions with a hands-on approach to ensure all businesses receive practical assistance.

Technical infrastructure, electronic data systems, and digital management tools are being prioritized for completion, allowing taxpayers to register, declare, and pay taxes in a single electronic transaction. Tax authorities at all levels are responsible for resolving all household business issues within 24 hours and maintaining dedicated 24/7 contact points for timely support.

The Department of Taxation requires all units to avoid creating any costs during the transition. Processes, forms, and guidance must be publicly accessible, transparent, and consistent across all areas. Local authorities must set clear targets, assign responsible officers for each area, and ensure implementation of electronic invoices generated from cash registers in compliance with Government Decree 70/2025/ND-CP.

Ensuring 100% of household businesses transition before 2026

During the 60-day campaign, the Department of Taxation aims for 100% of household businesses to access information and receive support to transition from presumptive tax to self-declaration, or to register for electronic invoices in full compliance with regulations.

Provincial and municipal tax departments are tasked with implementing key communications programs focused on four areas: the benefits of switching to self-declaration, the goal of transparency and fairness, the advantages of upgrading to enterprise status, and detailed guidance on using electronic invoices.

The Department of Taxation emphasized that the transition is not just a technical change in tax calculation but a fundamental reform of the management model, fostering voluntary, proactive, and transparent tax compliance. The campaign helps create a fair business environment, supports sustainable development for household businesses, and gradually integrates them into the formal economy.

With a “support first, supervise later” approach, the tax authorities place taxpayers at the center of all reforms. The 60-day campaign represents a key step in modernizing Vietnam’s tax system, aiming for transparent and fair management without relying on rigid administrative measures, instead using consensus as a driving force.

The Department of Taxation expected that, following the campaign, household businesses nationwide will undergo a strong transformation, forming a unified management data foundation that will play an important role in building a modern, digital, and sustainable national financial system.

The Department of Taxation expected that, following the campaign, household businesses nationwide will undergo a strong transformation, forming a unified management data foundation that will play an important role in building a modern, digital, and sustainable national financial system.

By Huong Hau, Vietnam Business Forum