Supporting household businesses in shifting from presumptive tax to declaration-based tax

The tax sector is implementing a 60-day peak campaign to convert household businesses from the presumptive tax regime to declaration-based taxation, taking place from November 1 to December 31, 2025.

Nguyen Toan Thang, Head of the Dong Nai Department of Taxation (DoT).

Sharing information with Dong Nai Newspaper and Radio, Television reporters about the operations of household businesses and the sector’s preparation for this campaign, Head of the DoT Nguyen Toan Thang said:

The tax sector is making every effort, mobilizing all resources, and closely coordinating with local authorities and solution providers to implement the Government’s tax regulations in practice, while contributing to the Party and the State’s overarching policy of promoting sustainable development of the private sector as outlined in Resolution No. 68-NQ/TW, issued by the Politburo on May 4, 2025.

Could you elaborate on the current situation of household business operations and tax administration in Dong Nai?

Dong Nai currently has over 104,000 active household businesses, of which more than 4,600 have adopted tax declaration and use invoices. The 60-day peak campaign to convert household business from presumptive tax to declaration-based tax is one of the tasks aimed at implementing Resolution 68 of the Politburo, further detailed through Resolution No. 198/2025/QH of the National Assembly (May 17, 2025) on special mechanisms and policies to promote private-sector development, along with the Ministry of Finance (MoF)’s roadmap for converting household business tax administration and the DoT’s implementation plan.

Statistics show that around 31,000 household businesses in the province generate annual revenue above VND 200 million, making them subject to conversion from presumptive to declaration-based taxation. Following administrative restructuring, tax administration in certain border areas remains challenging, especially in providing support services for the conversion process. However, the DoT has proactively recognized these difficulties and is working to promote communication, mobilization, and assistance for household business during the transition.

To understand the challenges in detail, the tax sector has conducted surveys on each household business and classified them into two groups: those not yet using tax management applications, and those already using tools such as eTax Mobile or e-invoices. Based on this, tailored plans are being implemented according to local conditions, ensuring consistent execution of the 60-day campaign across the province.

Dong Nai is the fourth largest economy in Vietnam, so completing this 60-day campaign is not an easy task. What preparations has the tax sector made for this effort?

Tax officers from Taxation Office No.8 in Dong Nai province guide a shopkeeper at Phuoc Binh Trading Center (Phuoc Binh ward) in filing and paying taxes electronically. Photo: Truong Hien

With the goal that all eligible household businesses must comply with declaration-based taxation by January 1, 2026, the DoT has mobilized support from relevant departments, agencies, localities, and solution providers to simultaneously deploy training and guidance for household businesses.

In addition to establishing campaign implementation teams, the tax sector has also formed monitoring teams. Throughout November 2025, weekly monitoring was conducted. In this December, the final stretch, monitoring will take place daily to keep track of progress at each local unit and coordinate timely support. With such determination, the tax sector is confident it will achieve the targets set for the 60-day campaign in Dong Nai and nationwide.

Transitioning household businesses to declaration-based taxation requires applications, software, and digital tools. How has the sector prepared for this?

The DoT has signed cooperation agreements with VNPT Dong Nai and Vietcombank Bien Hoa Branch to strengthen communication, implementation, training, and guidance for household businesses on tax policies and the use of e-invoices, including those with tax authority’s codes and those generated from cash registers. The sector will coordinate with these units to provide training on bookkeeping requirements under the declaration method and offer service packages with fee incentives to support household businesses in the transition.

After half of the 60-day campaign, the conversion process has been vibrant and widespread, helping raise awareness, responsibility, and compliance among household businesses, ensuring the household businesses fully adopt the self-declaration and self-payment model from January 1, 2026.

Besides the newly signed units, the tax sector is also working with other service and solution providers including Viettel, Misa, and several banks to communicate new tax policies across all 11 local tax offices. These units are committed to offering preferential prices on services such as POS-based e-invoices, sales management software for household businesses, digital signatures, POS devices, e-invoices, and better access to the bank’s online financial services

To prevent household businesses from being exploited or misled by unqualified service providers, the DoT encourages household businesses to use providers approved and publicly announced by the MoF and the Tax Department on official mass media channels.

What benefits will household businesses gain when shifting from presumptive tax to declaration-based tax?

Household businesses will enjoy significant benefits. The foremost is fairness, transparency, and reduced business risks. Instead of paying a fixed monthly tax regardless of revenue fluctuations, household businesses will declare and pay based on their actual revenue. Under the current presumptive model, even when revenue drops, tax payments do not decrease.

Additionally, household businesses adopting declaration-based tax gain easier access to loans and new partners, as their invoices provide proof of origin and enhance business credibility. The declaration model also creates a foundation for household businesses to transition into small and medium-sized enterprises (SMEs), a long-term goal of the Party and the Government in promoting private-sector growth. Once upgraded to SMEs, businesses can access preferential policies and support programs, contributing to promoting the development of the private economic model.

The campaign has been halfway through, while many financial and tax policies are being revised or newly issued. What must the sector do to ensure timely completion?

After receiving instructions from the MoF and the Tax Department, the DoT advised the Provincial People's Committee to direct departments, agencies, and local authorities to coordinate with the tax sector in implementing the campaign.

The DoT has established implementation teams and instructed local tax offices to develop their own detailed plans, ensuring all household businesses fully understand the policy shift and their obligations under declaration-based taxation. After issuing unified guidance, mobile teams will directly meet household businesses, especially elderly business owners and those struggling with technology, to provide hands-on support and ensure full compliance from January 1, 2026.

Thank you for your time!

By Ngoc Lien – Translated by M.Nguyet, Thu Ha