According to the current business trend, besides large enterprises such as joint stock companies, limited liability companies, private enterprises, partnerships, etc. The business household is still a popular choice. With a small and medium scale, individual business households, although not a type of business, still have to fulfill the tax declaration and payment obligations, but the law on taxes of individual business households as well as the procedures are somewhat simpler and faster than other forms of business.
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According to Article 4.2 of Decree 139/2016/ND-CP and Point c, Article 1.1 of Decree 22/2020/ND-CP, the license fee for individual business households is calculated according to the average revenue annually in the following cases:
|License tax rate
|Revenue over 100-300 million VND/year
|Revenue over 300-500 million VND/year
|Revenue over 500 million VND/year
However, business households in the following cases may still be exempt from paying license fees:
Business household established in 2023, exempt from license fee for the first year such business is also exempted from license fees for the period of time together with the household business. Therefore, the time to determine the taxable turnover is from January of the year following the year of establishment.
In case a business household is newly established and is granted a tax registration and tax identification number, in the first 6 months of the year, the license tax must be paid for the whole year. pay 50% license tax for the whole year. However, according to Decree 139/2016/ND-CP, individual business households that do not declare and pay this tax when detected by the agency will have to pay the license tax rate for the whole year.
Presumptive tax is a fixed tax for each month/quarter that individual business households are obliged to perform. This tax is assigned by the Tax Authority based on the declared information or the revenue from the actual business activities of the business household.
As the presumptive tax is called, value added tax and personal income tax are calculated according to the presumptive method.
Special cases for individual business households to pay these two taxes:
According to Article 3 of Circular 92/2015/TT-BTC, individual business households can also be exempted from paying this tax when they are business households, individuals who have just started doing business, individuals doing regular seasonal business, individuals who stop or stop doing business with a turnover of 100 million VND/year or less.
The presumptive tax for individual business households is calculated according to the following formula:
For individual business households using invoices:
Taxable revenue = Presumptive revenue + Invoice revenue.
For individual business households without using invoices:
Taxable revenue = Presumptive revenue.
|List of business lines
|Value added tax rate
|Personal income tax rate
|Distribution and supply of goods
· Accommodation services include: Activities of providing short-term accommodation facilities for tourists and other visitors; the activity of providing long-term accommodation for students, workers and the like; activities that provide accommodation, food service and/or recreational facilities. Accommodation activities do not include: Activities of providing long-term accommodation facilities that are considered as permanent establishments such as monthly or annual apartment rentals are classified in the real estate industry in accordance with the law on the economic system of Vietnam.
· Loading and unloading services and other supporting services related to transportation such as yard business, ticketing, vehicle maintenance;
· Postal services, delivery of letters and parcels;
· Brokerage, auction and agency commission services;
· Legal consulting services, financial consulting, accounting, auditing; tax and customs administrative services;
· Data processing services, portal rental, information technology and telecommunications equipment;
· Office support services and other business support services;
· Services of sauna, massage, karaoke, discotheque, billiards, internet, games;
· Tailoring and laundry services; Haircut, hairdressing, hair washing;
· Other repair services include: repair of computers and household appliances;
· Consulting services, design, supervision of basic construction;
· Other services;
|Construction, installation excluding raw materials (including installation of industrial machinery and equipment)
|Lease of property, including:
· Lease of houses, land, shops, factories, warehouses, except accommodation services
· Leasing means of transport, machinery and equipment without operator
· Lease other property without service
|Producing, processing and processing products and goods;
· Mining and processing of minerals;
· Cargo and passenger transport;
· Services attached to the sale of goods such as training, maintenance and technology transfer services accompanied by the sale of products;
· Food Service;
· Repair and maintenance services for machinery, equipment, means of transport, automobiles, motorcycles, motorbikes and other motor vehicles;
· Construction and installation including raw materials (including the installation of industrial machinery and equipment).
|Production, transportation, services associated with goods, construction including raw materials
|Other business activities
Customers who need advice on taxes for individual business households to pay, tax declaration advice, tax reporting services, tax accounting services, please contact Viet An Tax Agent to best supported.
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