Household businesses required to declare payment accounts to tax authorities

In the spirit of proactiveness, transparency, and compliance, household businesses are required to declare all payment accounts opened with payment service providers, as well as electronic wallet numbers registered with intermediary payment service providers, related to their production and business activities.

Household businesses register tax declarations at Tax Office No. 10 in Binh Phuoc ward under the Dong Nai Tax Department. Photo: Ngoc Lien

This regulation was recently issued by the Government and took effect on March 5, 2026, under Decree No. 68/2026/ND-CP (Decree 68) on tax policies and tax administration for household businesses. It is also considered one of the measures to accelerate the implementation of digital transformation in tax administration and prevent losses in state budget revenues in the coming period. Under this regulation, nearly 100 household businesses in Dong Nai will be required to file declarations.

Controlling cash flow in the digital space

In recent years, as production and business activities have increased, household businesses have increasingly adopted cashless payment methods, including bank transfers through the banking system and electronic wallets, for both in-store and e-commerce or social media transactions. Therefore, strengthening control over money flows on digital platforms is one of the solutions that help ensure accurate tax administration and guarantee the full and correct collection of tax revenues for the state budget.

Bank accounts must match registered business names

In addition to the requirement for household businesses to declare bank accounts to tax authorities, the State Bank of Vietnam previously issued Circular No. 25/2025/TT-NHNN on August 31, 2025, amending and supplementing several provisions of Circular No. 17/2024/TT-NHNN regarding the naming of payment accounts. Under Circular 25, effective from March 1, 2026, payment accounts of individuals and organizations must be registered in accordance with the official name of the individual or the name stated in the organization’s registration certificate. As a result, when household businesses declare their bank accounts to tax authorities, the account names must also comply with the naming regulations stipulated in the State Bank’s circular.

 

Tran Thi Phuong, owner of Mai Phuong grocery store in Tan Trieu ward, has used both cash and bank transfer for more than 2 years. She is also one of the household businesses actively carrying out the transition in tax declaration during the peak campaign titled “60 days of transition in the tax management model for household businesses”.

Phuong shared that customers have been paying by bank transfer more often recently than in cash. As a result, Mai Phuong store has had to implement payments via bank account to meet customer demand. In addition to adapting to market trends, Phuong has strictly complied with new regulations in recent times, including registering bank accounts under the household business name and filing tax declarations. Although she still faces difficulties in the process because she is not familiar with digital devices and equipment, she has continued to apply these methods to ensure more transactions occur in the digital environment and to comply with the tax authority's policies and regulations.

According to the Dong Nai Tax Department, by the end of 2025, the tax sector had implemented numerous support measures and communication campaigns to encourage household businesses to actively comply with new operational regulations, particularly in the application of electronic tax systems. Specifically, more than 96 percent of household businesses in the province had used the eTax Mobile application by the end of 2025, while 71 percent had paid taxes electronically. The rate of household businesses registering and using electronic invoices generated from cash registers reached 90 percent. In addition, the tax sector completed database standardization and guided nearly 47,000 households on implementing new tax policies.

Tax thresholds for household businesses

According to Decree 68, household businesses must fulfill tax obligations related to two types of taxes: value-added tax (VAT) and personal income tax (PIT). Accordingly, household businesses with annual revenue of 500 million VND or less are exempt from both VAT and PIT.

For VAT, the household businesses with annual revenue exceeding 500 million VND are required to pay VAT under the direct method based on revenue. The applicable tax rates will be in accordance with the regulations stipulated in the Law on Value-Added Tax and relevant guiding documents.

Regarding personal income tax, household businesses with annual revenue exceeding 500 million VND must pay PIT in accordance with the Law on Personal Income Tax and related regulations. In cases where individuals operate multiple business sectors with different tax rates or have multiple business locations, they may apply a deduction of 500 million VND before calculating PIT. This deduction may be applied to one or several business sectors or locations chosen by the taxpayer under the most beneficial option. However, the total deduction must not exceed 500 million VND per year, based on the overall revenue from all business activities. If the selected business sector or location does not fully utilize the 500 million VND deduction, the remaining amount may be applied to revenue from other business sectors or locations until the total deduction reaches the allowable threshold.

By the end of 2025, the Dong Nai Tax Department launched a 60-day peak campaign to convert the tax management model for household businesses from the lump-sum tax method to the tax declaration system. To date, 100 percent of household businesses with annual revenue of more than 500 million VND (more than 4,200 households) and 100 percent of household businesses with annual revenue from 100 million to 500 million VND (nearly 44,000 households) have completed the transition or committed to transitioning from the lump-sum tax registration system to the declaration-based system. State budget revenue from household businesses reached nearly 1.1 trillion VND, up 16 percent compared to 2024.

Nguyen Minh Hai, Deputy Head of the Dong Nai Tax Department, said that to support taxpayers in the transition from the lump-sum tax method to tax declaration, which will begin to be applied from 2026, the tax sector has issued specific guidance clarifying the principle that there will be no administrative sanctions and no retroactive tax collection for tax obligations that were properly fulfilled under the lump-sum tax method in previous years.

By Ngoc Lien – Translated by M.Nguyet, Minho