Hanoi proposes simpler tax rules for household businesses
The Ministry of Finance is collecting feedback on its proposal to tighten tax rules for household and individual businesses under the revised Tax Administration Law.
THE HANOI TIMES — Hanoi has proposed that the Ministry of Finance require household businesses to register dedicated bank accounts or electronic payment methods for commercial transactions to ensure transparency in cash flow and improve tax administration.
The proposal is part of Hanoi's feedback to the Ministry of Finance regarding the draft revised Law on Tax Administration, which various ministries and localities are currently reviewing.
Hanoi's tax authorities focus on digitizing e-commerce tax administration. Photo: Thanh Hai/The Hanoi Times
To reduce administrative burdens for taxpayers, the Hanoi People’s Committee recommended integrating business and tax registration for microenterprises.
Regarding the requirement for household businesses to issue e-invoices generated from cash registers if they exceed a certain revenue threshold, Hanoi called for a more flexible, principle-based approach.
"The mandatory use of e-invoices from cash registers under the draft law does not fully reflect the operational realities of household businesses amid an evolving economy," noted the Hanoi People’s Committee.
In preparation for the planned phase-out of the presumptive tax regime starting January 1, 2026, Hanoi requested that the ministry develop simple provisions for tax declarations and filing frequencies.
Meanwhile, the Vietnam Academy of Social Sciences (VASS) backed the removal of the presumptive tax but cautioned that the 2025 -2026 transition could overwhelm the system as millions of home-based businesses shift to the new regime.
The academy warned that compliance costs ranging from hundreds of thousands to tens of millions of Vietnamese dong annually require urgent technical and financial support to reduce. This support is missing from the current draft.
To ease the transition, the VASS proposed a three-phase rollout: initial pilot programs and free tools in the first two years, mandatory adoption for high-revenue businesses with incentives in the next two years, and full integration with support for formalization by the fifth year.
Meanwhile, the Ministry of Culture, Sports and Tourism urged a gradual, carefully staged rollout for microenterprises, citing limited digital skills, financial constraints, and the need for exemptions in areas of subsistence economy.
The Ministry of Finance said it has taken note of all feedback to refine the draft law.
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Tax revenues from organizations and individuals engaged in e-commerce totaled VND296 trillion (US$11.3 billion) from 2022 to 2024. In the first half of 2025, this segment generated VND98 trillion ($3.7 billion) in tax revenue, up 58% year-on-year. |
