The Ministry of Finance has just issued Circular 18/2026/TT-BTC regulating the documentation and procedures for tax management for business households and individual businesses.
Accordingly, from March 5, business households and individual businesses must notify the directly managing tax authority in four cases:
– Establishing a new business location
– Changing information about the business location
– Temporarily suspending business at the registered location
– Terminating operations at the registered location
In addition, according to Decree 68/2026/NĐ-CP of the Government on tax policies and tax management for business households and individual businesses, these notifications must be made within 10 working days from the date the location begins operations or when changes occur. After receiving the notification, the tax authority will respond to the taxpayer.
Also from March 5, according to Decree 68/2026/NĐ-CP, individual businesses with annual revenue exceeding 500 million VND must fulfill tax obligations according to the provisions of the Personal Income Tax Law of 2025. The method for calculating personal income tax includes:
Personal income tax = Tax rate x Taxable revenue. Applicable to individuals with revenue from over 500 million VND to 3 billion VND per year.
The tax rates applied by sector are as follows: distribution and supply of taxable goods at 0.5%; services or construction without including materials at 2%. Specifically, activities such as leasing assets, insurance agents, lottery agents, or multi-level marketing apply a tax rate of 5%.
Manufacturing, transportation, or services associated with goods and construction that include materials have a tax rate of 1.5%. Digital content services such as video games, digital films, digital music, or digital advertising are taxed at 5%. Other business activities apply a tax rate of 1%.
Personal income tax = Tax rate x Taxable income. Applicable to individuals with revenue over 3 billion VND per year.
Taxable income is the remaining amount after subtracting business expenses from revenue. For revenue from 3 billion VND to 50 billion VND, the tax rate is 17%; for revenue over 50 billion VND, the tax rate is 20%.
This formula can also be applied to individual businesses with revenue from over 500 million VND to 3 billion VND per year. At this point, the general tax rate applied is 15%, without differentiation by sector.
| Revenue/year | Method | Tax rate |
| 500 million VND to 3 billion VND | Tax rate x Revenue | 0.5-5% by sector |
| 500 million VND to 3 billion VND | Tax rate x Income (revenue – expenses) | 15% |
| 3-50 billion VND | Tax rate x Income (revenue – expenses) | 17% |
| Over 50 billion VND | Tax rate x Income (revenue – expenses) | 20% |
The decree also stipulates that individual businesses must maintain a stable tax calculation method for at least two consecutive years from the first year of application. In cases where an individual is calculating tax based on a revenue ratio but the actual revenue exceeds 3 billion VND in a year, they must switch to the income tax calculation method in the following year.
Business households and individual businesses with annual taxable value-added revenue of 1 billion VND or more must apply electronic invoices with codes from the tax authority, and electronic invoices generated from cash registers connected to the tax authority as prescribed.