Farewell to Presumptive Tax, Welcoming a New Era for Business Households from January 1, 2026
Dear Readers,
Vinasc Accounting and Tax Consulting Co., Ltd. is pleased to bring you this week’s newsletter with particularly important information that promises to create a major turning point in tax management for millions of business households across the country.
On October 6, 2025, the Ministry of Finance officially issued Decision No. 3389/QD-BTC, approving the Project on “Transforming the model and method of tax management for business households upon the abolition of presumptive tax.”
On October 6, 2025, the Ministry of Finance officially issued Decision No. 3389/QD-BTC, approving the Project on “Transforming the model and method of tax management for business households upon the abolition of presumptive tax.”
In simple terms, the method of fixed monthly/quarterly tax calculation (presumptive tax) that business households have been familiar with for many years will be officially abolished from January 1, 2026. Instead, business households will switch to the method of self-declaring revenue, expenses, and self-paying taxes, similar to enterprises.
This is a revolutionary change. Let’s join Vinasc to explore the core contents and what business household owners need to prepare for starting now.
1. Why this major change?
The main objective of the Project is not to create difficulties for business households, but to:
- Create a level playing field: Eliminate the differences in tax obligations between business households and enterprises, creating a fairer business environment.
- Modernize tax administration: Apply digital technology and e-invoices to make management more transparent, efficient, and reduce negative practices.
- Reduce administrative burdens: Aim to cut at least 30% of the time and compliance costs for business households.
- Encourage growth: Create favorable conditions for business households to grow stronger and easily transition to the enterprise model.
2. Specific changes business households need to know
- Shift from “presumptive tax” to “self-declaration, self-payment”: This is the biggest change. Business households will have to determine their own revenue and expenses to calculate the tax payable, instead of having a fixed amount assessed by the tax authorities.
- More flexible tax calculation methods: VAT and Personal Income Tax (PIT) policies will be amended. Notably, the tax authorities are considering applying a PIT calculation method based on income (revenue minus expenses) for business households that maintain proper accounting books. This encourages clear bookkeeping and will be fairer for businesses with high input costs.
- Mandatory adoption of e-invoices: 100% of business households required to use e-invoices initiated from cash registers must register and implement them.
- Maximum support from technology: The government will develop digital platforms and provide free or low-cost accounting software for business households and micro-enterprises to support the transition. Electronic tax returns will be designed intelligently, capable of pre-filling data from the e-invoice system.
What is the implementation roadmap?
From now until the end of 2025
Preparation phase. Relevant laws and guiding documents will be amended. Tax authorities will step up communication and support to ensure business households are well-informed.
From January 1, 2026
Official implementation of the new management model. All business households will declare and pay taxes according to the new method.
Advice from Vinasc for business household owners
This change is inevitable to align with the development of the digital economy. To avoid being caught unprepared, business household owners should start preparing now:
- Learn about bookkeeping and records: Start getting familiar with systematically recording and storing purchase and sales invoices and documents. This is the foundation for determining eligible expenses.
- Research e-invoices: If you are not already using them, proactively research providers and e-invoice solutions suitable for your business model.
- Stay continuously updated: Follow announcements and guidance programs from tax authorities and professional consulting firms like Vinasc.
- No need to worry excessively: Tax authorities will have support, training programs, and tools to help the transition go smoothly.
This is an important step towards transparency and professionalism. Vinasc believes that with thorough preparation, business households will not only comply well with the new regulations but also have the opportunity to manage their finances more effectively, creating momentum for sustainable future growth.
If you have any questions about the content above, please do not hesitate to contact us for timely advice and support.
Sources
- Decision No. 3389/QD-BTC dated October 6, 2025, of the Minister of Finance on Approving the Project “Transforming the model and method of tax management for business households upon the abolition of presumptive tax.”
- Resolution No. 68-NQ/TW dated May 4, 2025, of the Politburo on developing the private economic sector.
- Resolution No. 198/2025/QH15 dated May 17, 2025, of the National Assembly on a number of special mechanisms and policies for private economic development.