Do Household Businesses Paying Presumptive Tax Have to Keep Accounting Records?

Short answer: From 01/01/2026, the presumptive tax policy for household businesses has been abolished under Resolution 198/2025/QH15. From this point, household businesses pay tax under the declaration method or the per-transaction method — no longer under the presumptive method.

Is presumptive tax for household businesses still applicable?

No longer applicable. Resolution 198/2025/QH15 of the National Assembly has abolished the presumptive tax policy for household businesses and business individuals from 01/01/2026. Accordingly, the VND 100 million/year revenue threshold for determining subjects not subject to VAT and PIT under the old Law on VAT and Law on PIT no longer has meaning in the presumptive tax mechanism.

Household businesses now have their tax obligations determined based on actual revenue, and implement the accounting, invoice, and document regime as prescribed.

Under which methods do household businesses now pay tax?

Under Circular 40/2021/TT-BTC, household businesses and business individuals pay tax under one of the following methods:

• Declaration method: applicable to large-scale household businesses and household businesses not yet meeting large scale but choosing to pay tax under the declaration method;
• Per-transaction declaration method: applicable to business individuals who operate irregularly and have no fixed business location.

What must household businesses switching from presumptive to declaration tax do?

Household businesses need to: implement the simplified accounting regime as prescribed; use e-invoices; declare and pay tax on time under Circular 40/2021/TT-BTC. Where it is necessary to determine exactly the applicable tax calculation method and declaration deadlines for a specific case, you should contact a lawyer for review before proceeding.

Applicable legal basis

• Resolution 198/2025/QH15: abolition of presumptive tax for household businesses from 01/01/2026.
• Circular 40/2021/TT-BTC: Article 5 (tax calculation methods for household businesses and business individuals).

Notes when applying current legal regulations

This article belongs to the Corporate & M&A Knowledge group and is presented for reference, helping readers understand the legal issue at an overview level before preparing dossiers or conducting transactions.

Legal regulations may change according to time, locality, dossier type, and specific circumstances. Where it is necessary to determine exactly the applicable legal basis for your dossier, you should contact the lawyers of ANT Legal at 0966.475.966 for verification and advice before proceeding.

Common risks to note

• Applying legal documents that have been amended, supplemented, or replaced.
• Preparing insufficient dossiers, documents, or evidence.
• Misunderstanding conditions, procedures, time limits, or competent authorities.
• Signing, submitting dossiers, or conducting transactions without fully assessing legal risks.

How can ANT Legal assist?

ANT Legal assists in reviewing specific situations, checking dossiers, determining the applicable legal basis, advising on courses of action, and representing clients in working with individuals, organizations, or competent authorities when necessary.

For quick advice, you can contact a lawyer at 0966.475.966.

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