Hanoi to roll out AI tax app for 356,000 small businesses

THE HANOI TIMES — Hanoi is fast-tracking its 2026 phase-out of fixed taxes with an AI app launching in ten days to support tax filing for more than 356,000 household businesses and complete the shift to a declaration-based tax system.

Vice Chairman of the Hanoi People’s Committee Nguyen Xuan Luu shared the information at a meeting on November 28 on shifting tax management methods for household businesses as the city phases out the fixed-tax regime.

At the meeting, Deputy Director of the Hanoi Tax Department Nguyen Tien Minh said the city now has more than 356,000 active household businesses and individual traders, up 52.1% from 2024 and 77% from 2023.

Minh added that registration, declaration, payment, refund and tax-debt enforcement procedures have all been digitized.

To date, more than 14,500 household businesses have registered to use e-invoices generated from cash registers and moved to the declaration method, including 9,615 that adopted it voluntarily after seeing the benefits of digital transformation.

Declared revenue after applying e-invoices from cash registers has risen 55% compared with the previous fixed-tax level.

According to Minh, from November 1 to December 31, 2025, the Hanoi Tax Department will help household businesses shift from the fixed-tax regime to declaration.

Phase two begins on January 1, 2026 with support for filing and paying taxes under the declaration method and preparing eligible households for upgrading into enterprises.

By January 1, 2026, all household-tax records must be fully standardized in terms of operational status, identification information and electronic transaction accounts.

Taxpayers must also be classified accurately by business scale, model and income source, he noted.

Households above the taxable threshold must reach an on-time filing rate of at least 90%, achieve full electronic filing and make all tax payments without cash. Meanwhile, those below the taxable threshold must have eTaxMobile installed to prepare for their first expected filing in January 2027.

In recent months, the city tax authority has carried out a “60-day intensive plan,” mobilizing all resources to assist household businesses even during weekends.

It has held training and direct dialogues at its headquarters with nearly 200 household businesses and organized 133 training sessions across the city for 22,800 business households and individual traders to raise awareness, address concerns and explain new policies through varied communication channels.

AI taking central role

Leaders from wards/communes such as Hai Ba Trung, Cau Giay, Hoan Kiem, Noi Bai, Son Tay and Chuong My said expanded communication efforts have helped businesses better understand the phase-out of fixed taxes and led to high rates of eTaxMobile installation.

Some challenges, however, remain, including concerns among small traders and older business owners about the new system.

Local authorities suggested simplifying the solution and considering initial device support for household businesses.

Hanoi Tax Department Director Vu Manh Cuong said the department is developing an AI application to support household businesses, which is expected to launch in the next ten days. The app will make tax filing easier, simpler and more convenient for users.

In closing, Vice Chairman of the Hanoi People’s Committee Nguyen Xuan Luu said phasing out fixed taxes and shifting to a modern declaration-based tax system from January 1, 2026 is a major strategic task for the capital.

Implementation is progressing well, with many components reaching more than 50% of their targets within a month.

“Tax agencies should continue to support taxpayers, resolve issues quickly, strengthen administrative reform and streamline procedures for upgrading household businesses into enterprises,” Luu stressed.

Hanoi's state budget revenue in the first ten months of 2025 was estimated at VND564.2 trillion (US$23.51 billion), exceeding the annual target by 9.8% and rising 35.8% from the same period in 2024. Of this amount, domestic revenue reached VND531.4 trillion (US$22.14 billion), up 10.2% from the target and 36.5% higher than a year earlier. Direct collections through the E-Commerce Portal reached VND1.21 trillion (US$50.6 million), accounting for 53% of the national total of VND2.31 trillion (US$96.3 million), the highest share in the country. Revenue from organizations, enterprises, household businesses and individual traders engaged in e-commerce activities is expected to total VND36.3 trillion (US$1.51 billion) in 2025, up 15.5% from 2024 and 37.7% from 2023.