Vietnam replaced the presumptive tax with a self-declaration system for business households.
The Vietnamese Ministry of Finance (MoF) has issued Decision No. 3389/QĐ-BTC on 6 October 2025, confirming that the presumptive tax collection method for business households will be abolished from 1 January 2026.
All business households will move to a self-declaration and self-payment system under the Law on Tax Administration.
Under the approved scheme, tax administration will shift to three revenue-based groups:
- Group 1: Annual revenue below VND 200 million
Exempt from VAT and personal income tax, but still required to submit periodic declarations. - Group 2: Annual revenue from VND 200 million to below VND 3 billion
Tax continues to be calculated directly on revenue, with quarterly declarations. Retail and consumer service providers earning at least VND 1 billion annually must adopt e-invoicing via cash registers linked to tax authorities. - Group 3: Annual revenue exceeding VND 3 billion
Applies credit-method VAT and a 17% PIT rate on profits. E-invoicing and separate business bank accounts are required, with monthly or quarterly filings depending on revenue size.
The reform is designed to modernise tax management, enhance transparency, and align tax obligations with actual income. E-commerce sellers will also be brought under tighter oversight, with platforms that process payments required to withhold and remit taxes.
In addition, from 1 July 2025, household business owners will be subject to mandatory social insurance contributions based on declared income levels.
