1. Classification of Household Businesses and Declaration
| Criteria | Group 1 | Group 2 | Group 3 | Group 4 |
|---|---|---|---|---|
| Annual Revenue | ≤ <=500 million VND | >500 million to 3 billion VND | >3 billion VND to 50 billion VND | > 50 billion VND |
| VAT | Tax-exempt | = Revenue x Rate (%) | Same as Group 2 | Same as Group 2 |
| PIT | Tax-exempt | Có 02 cách chọn: 1. (Doanh thu – 500tr) x tỷ lệ % Option 1: (Revenue - 500m) x Rate (%) Option 2: (Revenue - Expenses) x 15% | (Revenue - Expenses) x 17% | (Revenue - Expenses) x 20% |
| Filing Frequency | Once/year (2026: Twice/year) | Quarterly | Quarterly | Monthly |
| Payment Deadline | Jan 31st of the following year | Last day of the first month of the next quarter | Last day of the first month of the next quarter | 20th of the following month |
| Annual Finalization | None | If using Option 2 | Yes | Yes |
| E-Invoice | Not mandatory | >1 billion mandatory | mandatory | mandatory |
| Bank Account | Non-cash payments | mandatory | mandatory | mandatory |
| Accounting Books | Form S1a-HKD | Form S2a-HKD | S2b, S2c, S2d, S2e-HKD | Same as Group 3 |
2. Tax rates as a percentage of revenue
Depending on the business sector, the following tax rates apply:
- Distribution and supply of goods VAT 1%; PIT 0.5%.
- Services and construction without supply of materials: VAT 5%; PIT 2%.
- Manufacturing, transport, services associated with goods, and construction with supply of materials: VAT 3%; PIT 1.5%.
- Other business activities VAT 2%; PIT 1%.
3. Regulations on Revenue and Bank Accounts
Important Notes: Expenses of 5 million VND or more must have non-cash payment documents to be considered deductible expenses when determining taxable PIT income (for groups using the expense-deduction method)
Revenue Determination Revenue includes all proceeds from sales, processing fees, and service charges, including subsidies, surcharges, and additional fees entitled to the Household Business. It is recognized regardless of whether payment has been collected and excludes VAT
Bank Account: Household Businesses are mandated to open and use a dedicated business bank account HKD bắt buộc phải mở và sử dụng tài khoản ngân hàng riêng phục vụ kinh doanh.
Non-cash payments are highly encouraged.