Tips received via business bank accounts: how shop owners should report taxes

On April 10, the Ho Chi Minh City Tax Department, in cooperation with Pháp Luật TP.HCM, held a roundtable on hands-on guidance for household businesses to comply with tax laws. At the event, many household businesses said they are concerned that limited accounting skills could lead to errors under new tax declaration regulations, potentially resulting in penalties.

Concerns over tips and revenue matching in bank deposits

Ms. Ngoc Dung, owner of a service-oriented household business, said her annual revenue is under 500 million VND. She noted that customers often transfer money to the business account, including tips for staff. After receiving the transfers, she passes the full amount to the staff. She worries that if the tax authorities later conduct a post-audit, they may find a mismatch between the total money deposited in the bank and the revenue she declares.

Without clear guidance, Ms. Dung warned that tip-related payments could be misinterpreted as incorrect revenue declarations intended to evade taxes.

Tax treatment of tips: depends on whether they are mandatory

Responding to the issue, Ms. Mai Thi Nghia Le, Head of the Personal Tax, Household Businesses and Other Taxes Division at the Ho Chi Minh City Tax Department, said household businesses must record all revenue used for production and business activities (including wages, labor costs, and related expenses) in their books as a basis for evaluating tax thresholds.

Regarding tips, Le said taxation depends on the nature of the money. If tips are equivalent to wages, salaries, or mandatory commissions (such as in brokerage activities), the business result should be included in personal income tax and recognized as revenue. If the tips are voluntary gratuities and not mandatory, they do not necessarily need to be included in personal income.

Le emphasized that household businesses should identify receipts with a mandatory character and fully declare them under the law.

Bank account registration requirements and deadlines

Le also stated that opening a bank account to support production and business activities is mandatory. The account may be in the name of the household business or the individual head of the household, but it must be registered and notified to the tax authorities.

For households with revenue under 500 million VND per year (like Ms. Dung), the deadline to file the bank account notice (Form 01 of Circular 88/2021/TT-BTC) is April 20.

For groups with revenue from 500 million to 3 billion VND (or taxed according to revenue percentage), bank account information must be submitted together with the Q1/2026 tax return and listing, with a deadline of May 4.

For groups with revenue from over 3 billion to 50 billion VND, account notification and the Q1 2026 return and stock inventory listing must be completed by May 4.

Meanwhile, groups with revenue over 50 billion VND must complete tax procedures by April 20.

Accounting book guidance for smaller household businesses

On accounting records, Ho Chi Minh City Tax Department representatives advised households with revenue under 500 million VND to open a simple accounting book according to Form S1 (Circular 132/2018/TT-BTC) to record revenue and keep it available for inspection when needed.

Support measures to reduce compliance risks

Mr. Nguyen Van Thanh, Deputy Head of the Ho Chi Minh City Tax Department, said many household businesses still fear technology and the tax declaration process. He added that the tax agency will continue strengthening support, including cooperation with solution providers to provide hands-on guidance, helping household businesses comply with tax declaration, payment, and legal requirements.