The Government has issued Decree No. 68/2026/ND-CP dated March 5, 2026, and the Ministry of Finance has issued Circular No. 18/2026/TT-BTC to guide implementation. The regulations introduce new rules on tax declaration and payment, the use of electronic invoices, and tax management for households and individuals conducting business, with the stated aim of clarifying tax obligations and strengthening information technology application in line with the digital economy and e-commerce development.
Tax declaration and payment rules for HKD/CNKD
The new framework sets out different declaration and payment schedules for households and individual business entities (HKD/CNKD) based on annual revenue levels.
Annual revenue up to 500 million VND
- HKD/CNKD with annual revenue from production and business activities of up to 500 million VND must notify actual revenue and declare related taxes by January 31 of the following calendar year.
- If actual revenue exceeds 500 million VND in a year, they must declare and pay tax starting from the quarter in which the revenue above 500 million VND arises.
Annual revenue from 500 million VND upwards
- HKD/CNKD with annual revenue of 500 million VND or more (including revenue already withheld or declared by others; and where they elect tax under the personal income tax rate method based on tax on revenue) must file and pay VAT, personal income tax and other taxes quarterly.
- Quarterly filing deadlines are set for the last day of the first month of the following quarter.
Personal income tax under the “income-based tax calculation” method
- Where HKD/CNKD are subject to personal income tax using the “income-based tax calculation” method, VAT and other taxes are filed monthly.
- Personal income tax advance payments may be required monthly if annual revenue exceeds 50 billion VND; otherwise, VAT and other taxes are filed quarterly and PIT advances are filed quarterly.
- PIT final settlement is due by March 31 of the following calendar year.
Strengthening electronic invoicing requirements
Decree No. 68/2026/ND-CP introduces electronic invoicing requirements for HKD/CNKD, tied to VAT base thresholds and operational conditions.
Mandatory electronic invoicing
- Electronic invoicing is required for households and individuals with an annual VAT base of 01 billion VND or more.
Revenue from 500 million VND to under 1 billion VND
- For revenue with VAT between 500 million VND and under 1 billion VND, electronic invoicing is not mandatory, but may be used if conditions are met.
- Registration options include e-invoices with a tax authority code or e-invoices generated by a cash register connected to the tax authority.
HKD/CNKD not registered for e-invoicing but needing to use it
- HKD/CNKD that are not registered for electronic invoicing but need to use it must declare and pay tax before the tax authority issues an e-invoice with a code from the tax authority for each transaction.
New businesses and year-end VAT payable thresholds
- If a new HKD/CNKD starts business or has year-end VAT payable above 1 billion VND in the previous year but below 1 billion VND in that year, they must apply electronic invoicing with a tax authority code or use an e-invoice generated by a cash register connected to the tax authority.
- They must register for electronic invoicing within 30 days from the end of the taxable period that accumulates VAT of 1 billion VND or more.
Transitional provisions and taxpayer responsibilities
The decree and circular also include transitional rules and additional compliance responsibilities.
Tax already declared and paid under Circular 40/2021/TT-BTC
- Cases that have already declared and paid tax under Circular 40/2021/TT-BTC will not be re-assessed.
- Those who have not yet declared must follow the procedures in Circular 18/2026/TT-BTC without penalties.
Transition from a lump-sum method to a declared regime from 2026
- HKD/CNKD shifting from a lump-sum method to a declared regime from 2026 will not have 2026 revenue used to determine obligations for previous years.
- Penalties will not apply for prior lump-sum compliance unless concealment is detected.
Electronic notification of bank accounts and e-wallets
- HKD/CNKD must electronically notify the tax authority of all bank accounts and e-wallets used in production and business to support tax administration and enhance transparency.
Expected impact
The issuance of Decree No. 68/2026/ND-CP and Circular No. 18/2026/TT-BTC is expected to improve the tax policy framework, accelerate digital transformation in tax administration, and help create a more transparent and level playing field for HKD/CNKD.
