Decree No. 68/2026/ND-CP: Key Highlights for Household and Individual Businesses

On March 5, 2026, the Government officially issued Decree No. 68/2026/ND-CP, regulating tax policies and tax administration for household businesses and individual business operators. This Decree represents a landmark legal instrument, replacing and supplementing previous regulations. The core objective of the Decree is to standardize tax obligations for the individual economic sector and tighten tax collection management on digital platforms, such as e-commerce.

Through this article, Võ & Associates summarizes the key new points that business owners and individuals need to note:

1. Establishing a VND 500 Million/Year Revenue Threshold for Tax Obligations

One of the most notable contents of Decree 68/2026/ND-CP is the clear definition of the revenue threshold to determine tax obligations for household and individual businesses. Accordingly:

• Based on Clause 1, Article 3 and Clause 1, Article 4 of Decree 68/2026/ND-CP, HBs and IBs with revenue of VND 500 million/year or less are not required to pay Value Added Tax (VAT) or Personal Income Tax (PIT).
• Based on Clause 2, Article 3 and Clause 2, Article 4 of this Decree, in cases where revenue exceeds VND 500 million/year, the businessperson must fulfill tax obligations as regulated.

This threshold is designed to facilitate small household businesses with limited operations while allowing authorities to focus resources on managing businesses with larger revenues and more stable operations.

2. Finalizing Tax Calculation Methods for Household Businesses

Decree 68/2026/ND-CP continues to refine tax calculation methods to suit the scale and operational characteristics of each subject.

2.1. For Value Added Tax (VAT)

According to Article 12 of the VAT Law 2024 and Article 3 of Decree No. 68/2026/ND-CP, HBs/IBs with revenue over VND 500 million/year subject to VAT will pay tax using the direct method based on revenue. The percentage rates vary by as provided in Appendix I issued together with Circular No. 69/2025 of the Ministry of Finance.

Industry Sector	VAT Rate (%)
Distribution and supply of goods	1%
Production, transport, services attached to goods, construction with supply of materials	3%
Services and construction without supply of materials	5%
Supply of digital content products and services (entertainment, games, digital film/music/photos, digital advertising)	5%
Real estate leasing (excluding accommodation services)	5%
Remaining industries	2%

2.2. For Personal Income Tax (PIT)

Based on Article 7 of the PIT Law 2025 and Article 4 of Decree No. 68/2026/ND-CP:

• For revenue between VND 500 million – 3 billion/year: Two methods may be applied:
  • Tax Rate × Taxable Revenue: Taxable revenue is determined as the portion of revenue exceeding the VND 500 million threshold.
  • Taxable Income × Tax Rate: Taxable income is determined by the revenue from goods and services sold minus costs related to production and business activities.
• For revenue of VND 3 billion/year or more: The following method is mandatory: Taxable Income × Tax Rate.

Note: If calculating tax using the “Taxable Income × Tax Rate” method, it must be applied consistently for a minimum period of two consecutive years. If an HB/IB currently using the “Revenue × Tax Rate” method finds their actual annual revenue exceeds VND 3 billion, they must switch to the “Taxable Income × Tax Rate” method in the following year.

3. Strengthening Tax Management for Digital Platform Businesses

Decree 68/2026/ND-CP adds regulations regarding the responsibilities of e-commerce and digital platforms in tax coordination. According to Article 11, e-commerce and digital platforms (domestic or foreign) with online ordering and payment functions must:

• Perform withholding, declaration, and payment of tax on behalf of the HB or IB generating revenue on the platform.
• Provide transaction and revenue information of sellers upon request from tax authorities.
• Coordinate with tax authorities to build and operate data management systems related to online business activities.

For resident HBs/IBs operating on platforms without ordering and payment functions, they remain responsible for self-declaring and paying tax as regulated.

4. Revenue Notification Regulations for New Businesses

For HBs/IBs newly starting operations with actual annual revenue of VND 500 million or less, the businessperson is responsible for notifying the tax authority of their revenue according to specific milestones.

Case 1: Starting Business in the First 6 Months of the Year

HBs must perform 02 revenue notifications:

• First Notification: Revenue from the start date to June 30. Deadline: July 31 of the same year.
• Second Notification: Revenue generated in the last 6 months of the year. Deadline: January 31 of the following year.

Case 2: Starting Business in the Last 6 Months of the Year

HBs only need to perform 01 revenue notification:

• Content: Revenue from the start date to the end of the year.
• Deadline: January 31 of the following year.

Important Milestone: If cumulative revenue exceeds VND 500 million during the year, the business must immediately switch to quarterly tax filing starting from the quarter in which the threshold was exceeded

From the following year onward, HBs and IBs with actual annual revenue of VND 500 million or less must submit an annual revenue notification to the tax authority no later than January 31 of the subsequent calendar year; where revenue exceeds this threshold, tax declaration shall be conducted in accordance with Article 10 of Decree 68/2026/ND-CP.

5. Tax Declaration Regulations for Individuals Leasing Real Estate

For individuals earning income from real estate leasing who directly fulfill tax declaration obligations, Decree 68/2026/ND-CP offers flexible methods. Specifically, in cases of individual-to-individual leases, the lessor must declare directly to the tax authority and may choose one of the following two options:

• Option 1: Twice-yearly declaration:
  • First period: Submit the tax declaration dossier no later than July 31 of the tax year.
  • Second period: Submit no later than January 31 of the following year.
• Option 2: Once-yearly declaration:
  • Individuals may choose to declare once for the entire year.
  • Deadline: No later than January 31 of the year following the tax year.

This regulation facilitates lessors of houses, premises, or other assets to select a declaration method that best fits their operational scale and characteristics.

6. Transitional Deadlines for Tax Filing in Early 2026

To facilitate taxpayers’ adaptation to the new regulations, Decree No. 68/2026/ND-CP provides specific deadlines for certain tax periods at the beginning of 2026.

Specifically, Article 18 stipulates that for household businesses and individual businesspersons who perform monthly tax declarations, the tax dossiers for January 2026, February 2026, and March 2026 are permitted to be submitted together, with a final deadline of April 20, 2026.

This regulation aims to support taxpayers during the transitional phase as they implement the new tax administration rules.

7. Non-Retroactive Tax Policy When Switching Methods

A critical highlight of the Decree is the principle of non-retroactive tax collection for obligations previously fulfilled under the fixed-rate (khoán) method. For HBs and IBs who paid taxes under the fixed method through the end of 2025:

• Upon switching to the declaration method from January 1, 2026, tax authorities will not use the 2026 declared revenue to re-determine tax obligations for previous years.
• No administrative penalties will be applied to tax obligations correctly performed under the fixed method.

Note: This provision does not apply if authorities discover acts of concealing revenue leading to tax shortfalls. This mechanism ensures peace of mind for businesses as they transition to a more transparent declaration-based system.

8. Inventory and Asset Listing Requirements

Decree 68/2026/ND-CP establishes requirements for preparing asset lists for specific household businesses during the transition of tax calculation methods.

Specifically, this regulation applies to:

• Household businesses (HBs) and individual businesspersons (IBs) with a 2025 revenue of VND 3 billion or more; OR

• Those who opt to pay personal income tax based on the taxable income method starting from 2026.

These subjects must conduct an inventory and determine the value of assets as of December 31, 2025, including:

• Inventory value;

• Machinery and equipment used for production and business activities.

Preparation and Retention of Asset Lists: Businesspersons must prepare inventory and asset lists according to the templates prescribed in Circular 18/2026/TT-BTC. These lists must:

• Be retained at the business premises of the HB or IB;

• Be submitted electronically to the direct managing tax authority.

Submission Deadlines:

• For quarterly tax declaration: Submit along with the Q1/2026 tax declaration dossier.

• For monthly tax declaration: Submit no later than April 20, 2026.

This regulation provides the tax authorities with a basis for determining reasonable expenses when calculating taxable income under the declaration method.

9. Electronic Invoice (E-invoice) Regulations

Revenue < VND 500 million/year: E-invoices are not mandatory; tax is declared per transaction.

Revenue from VND 500 million to < VND 1 billion/year: E-invoices are encouraged but not mandatory; tax is declared per transaction.

Revenue > VND 1 billion/year: Mandatory use of e-invoices with tax authority codes or e-invoices generated from cash registers connected to the tax authority’s data system.

10. Business Bank Accounts

Regarding the bank accounts of Household Businesses, Clause 4, Article 13 of Decree No. 68/2026/ND-CP stipulates:”4. Household businesses and individual businesspersons shall electronically notify the tax authorities of all account numbers opened at payment service providers and e-wallet numbers opened at intermediary payment service providers related to production and business activities.”

Additionally, Clause 1, Article 13 of Circular No. 17/2024/TT-NHNN (as supplemented by Article 4 of Circular No. 25/2025/TT-NHNN) provides as follows:”For organizational payment accounts, the account name must include the name of the organization as stated on the establishment license, establishment decision, business registration certificate, or documents proving the organization is legally established and operating.”

Consequently, Household Businesses should take note of the following:

• Standardization of Account Names: Bank accounts of Household Businesses (HBs) must be registered under the exact name stated on the Business Registration Certificate. Using only the personal name of the household head, as previously permitted, is no longer allowed (per Circular 25/2025/TT-NHNN).
• Full Disclosure Obligation: HBs are required to electronically notify the tax authorities of all bank accounts and e-wallets utilized for business purposes (per Decree 68/2026/ND-CP).
• Mandatory Revenue Threshold: Given that the new tax law has increased the tax exemption limit, HBs with an annual revenue exceeding VND 500 million must be particularly diligent in opening separate accounts. This ensures that business cash flows pass through these dedicated accounts to maintain transparency (replacing the previous VND 200 million threshold

Conclusion and Recommendations

The new provisions in Decree 68/2026/ND-CP reflect a clear shift toward a modern, data-driven tax management model based on the “self-declaration, self-responsibility” principle. To ensure full compliance, Võ & Associates recommends that business households:

• Actively monitor and record annual revenue to fulfill notification or declaration obligations on time.
• Maintain full documentation and information regarding business activities and assets.
• Follow detailed guiding documents from the Ministry of Finance and tax authorities.
• Consult with legal or tax experts when facing difficulties in applying new tax methods.

In an increasingly digitized and transparent tax environment, timely compliance not only limits legal risks but also builds a foundation for stable and sustainable business growth.

The above are the sharing of lawyers, providing information not for consulting purposes and not consulting opinions, Vo & Associates is not responsible in all cases.

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