Business households encouraged to transform into enterprises
![]() |
Support policies of the State motivate business households and individuals to transform into enterprises. Photo: Thuy Linh |
Seriously reviewing business households
According to the General Department of Taxation, from 2018 to the end of this September, revenue from business households nationwide reached VND 50,607 billion.
In major tax departments, the review and strengthening of management for business households has been a focus.
In Hanoi, to strictly manage individual business households in the city and to standardise the database of business households, the Hanoi Tax Department has instructed its affiliated tax branches to regularly verify taxpayer's operational status at the addresses registered with tax agencies. Following this directive, Ha Dong Tax branch reviewed and advised the People's Committee of Ha Dong District to assign divisions and units to review the operation ofbusiness households under the business registration licenses. As a result, the tax branch made a list and sent it to the District Finance and Planning Division to revoke 14,976 business household registration licenses because the six-month limit from the issuing date ended but these business households no longer operated at the addresses registered with competent agencies.
Not only that, this shows that the tax sector has issued many measures to strengthen the management of business households and prevent tax losses. For example, in 2019, the tax sector continued to review mechanisms and policies related to business households not only in the tax field but also in others like the Enterprise Law and the Law on Support for Small and Medium Enterprises. Along with that, the General Department of Taxation has issued decisions to pilot tax collection authorisation for business individuals who pay tax using the poll-tax method.
Many support policies for transformation
The Government has set a target that by 2020 the whole country will have1million enterprises. To achieve this target, household businesses are an important factor because there are nearly 5million individual business households in operation, of which 11% use regular employees from 10 people or more. If they are transformed into enterprises, this will be a great resource for the country's development.
Business and production activities of business households and individuals in Vietnam have had many advantages, from the establishment to reform of tax administration by poll-tax without invoices, recording and encouraging them to develop strongly. However, to promote production and business activities towards professionalism, the integration and expansion isan inevitable trend. Therefore, the support and facilitation for business households and individuals to transform into enterprises is an important policy of focus by the State. Support policies from the State drive business households and individuals to develop into businesses.
Regarding the license fee exemption policy, according to Article 16 of the Law on Support for Small and Medium Enterprises, small and medium-sised enterprises that have recently transformed from business households are exempt from license fees for three years from the issuing date of first certificate of business registration.
Regarding tax declaration and accounting, the enterprises can choose the tax declaration method suitable to their production and business activities.
![]() | Tax extension: Enterprises must wait for the Government's official decision |
According to the Hanoi Association of Small and Medium Enterprises, transformation into enterprises is like “maturation”. When having legal status, business households have conditions to access preferential capital sources. The VAT refund also helps them plan their finances, helping reduce production and business costs and improving competitiveness. In particular, an unlimited quantity of employees will help business households develop on a larger scale and join associations and access to modern accounting management systems and improve management capacity. Only when transforming into enterprises, business households can join the supply chain and production links, bringing high economic efficiency and sustainable development.
So far, there are 321 of 711 tax branches under 29 provincial and municipal tax departments participating in pilot tax collection authorisation for business households and individuals who pay taxes under poll-tax method and there are three organisations participating in the pilot acceptance of tax collection authorisation. |
Related News

Researching and proposing amendments to 2014 Customs Law to meet the requirements of innovation
11:18 | 20/01/2025 Customs

Flexible and proactive when exchange rates still fluctuate in 2025
11:03 | 30/12/2024 Finance

Halal Market: The Door is Wide Open, How to Exploit It
14:23 | 29/12/2024 Import-Export

Enterprises focus on Tet care for employees
18:59 | 22/12/2024 Headlines
Latest News

Embracing green exports: a pathway to enter global supply chains
10:33 | 20/02/2025 Import-Export

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises
10:32 | 20/02/2025 Import-Export

Việt Nam’s durian exports to China plummet by 80%
16:18 | 19/02/2025 Import-Export

Coconut exports reach 14-year high
15:29 | 18/02/2025 Import-Export
More News

Shrimp exports grow in the first month of 2025
15:28 | 18/02/2025 Import-Export

Rice export prices drop, but decline expected to be short-term
08:10 | 17/02/2025 Import-Export

Key agro products expected to maintain export growth this year
08:08 | 17/02/2025 Import-Export

EU issues 12 warnings against Việt Nam’s food and agricultural exports
08:07 | 17/02/2025 Import-Export

Việt Nam to impose VAT on low-value express-imported goods
08:06 | 17/02/2025 Import-Export

Exchange rate risks need attention in near future
16:31 | 15/02/2025 Import-Export

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month
16:30 | 15/02/2025 Import-Export

Import and export turnover reaches about US$29 billion in the second half of January 2025
14:52 | 14/02/2025 Import-Export

Market edges up slightly as liquidity remains low
14:48 | 14/02/2025 Import-Export
Your care

Embracing green exports: a pathway to enter global supply chains
10:33 | 20/02/2025 Import-Export

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises
10:32 | 20/02/2025 Import-Export

Việt Nam’s durian exports to China plummet by 80%
16:18 | 19/02/2025 Import-Export

Coconut exports reach 14-year high
15:29 | 18/02/2025 Import-Export

Shrimp exports grow in the first month of 2025
15:28 | 18/02/2025 Import-Export