WAGES AND SALARIES FOR HOUSEHOLD BUSINESSES IN 2026 THAT WERE INCLUDED AS EXPENSES BUT NOT ACTUALLY PAID – ARE THEY DEDUCTIBLE WHEN CALCULATING PERSONAL INCOME TAX?

Are wages and salaries for household businesses in 2026 that were included as expenses but not actually paid deductible when calculating personal income tax? If a household business doesn’t have input invoices, can it issue invoices when selling goods? Let’s find out more with Pham Consult!

Are wages and salaries for household businesses in 2026 that were included as expenses but not actually paid deductible when calculating personal income tax?

According to Clause 2, Article 6 of Decree 68/2026/ND-CP, the following expenses are deductible and non-deductible when determining personal income tax:

Deductible and non-deductible expenses when determining personal income tax:

2. Non-deductible expenses when determining taxable income:
3. a) Expenses not related to production and business activities;
4. b) Expenses without sufficient invoices and supporting documents as prescribed by law;
5. c) Salaries, wages, and other expenses of a salary nature for individuals engaged in business, groups of individuals engaged in business, and members of household businesses, excluding mandatory insurance contributions; salaries, wages, and other expenses of a salary nature that have been included in expenses but are not actually paid or lack payment documentation;
6. d) The portion of depreciation expenses for fixed assets exceeding the prescribed limit or depreciation for fixed assets not used for production and business activities;
7. d) Administrative fines, contract violation fines, and compensation for errors made by individual business owners;
8. e) Residential land and structures on the land, automobiles and other assets registered in the name of an individual, except for automobiles and assets registered for the purpose of transportation or tourism business;
9. g) Expenses for personal and family needs. Individual business owners are responsible for separately tracking expenses for business operations and expenses for personal and family needs.

Accordingly, salaries and wages in 2026 that were included in expenses but not actually paid will not be deductible when calculating personal income tax for household businesses.

Can household businesses issue invoices when selling goods if they do not have input invoices? Based on Clause 1, Article 90 of the 2019 Tax Administration Law, the following is stipulated:

Principles for the creation, management, and use of electronic invoices:

1. When selling goods or providing services, the seller must create an electronic invoice to give to the buyer in the standard data format and must record all contents as prescribed by tax law and accounting law, regardless of the value of each sale of goods or provision of services.

Furthermore, based on Clause 1, Article 4 of Decree 123/2020/ND-CP, as amended by Point a, Clause 3, Article 1 of Decree 70/2025/ND-CP, the principles for establishing, managing, and using invoices and documents are stipulated as follows:

Principles for establishing, managing, and using invoices and documents

1. When selling goods or providing services, the seller must issue an invoice to the buyer (including cases where goods and services are used for promotions, advertising, samples; goods and services used for giving, gifting, exchanging, paying as wages to employees, and internal consumption (except for goods circulated internally to continue the production process); exporting goods in the form of loans, borrowing, or returning goods) and cases of invoice issuance as prescribed in Article 19 of this Decree. The invoice must contain all the contents as prescribed in Article 10 of this Decree. In cases where electronic invoices are used, they must conform to the standard data format of the tax authority as stipulated in Article 12 of this Decree.

According to the above regulations, the law does not impose a condition on the presence or absence of input invoices to determine the obligation to issue output invoices.

Organizations and individuals selling goods or providing services have the obligation to issue invoices and deliver them to buyers, regardless of whether the seller has input invoices or not.

What are the rights and responsibilities of business households under Decree 68 as stipulated by law?

Based on Article 13 of Decree 68/2026/ND-CP, the following is stipulated:

Rights and responsibilities of business households and individual businesses:

1. Business households and individual businesses have the right to request the tax authority to provide guidance, answer questions, and provide support regarding tax declaration, tax calculation, and tax payment.
2. Business households and individual businesses have the rights of taxpayers as stipulated by the law on tax management.
3. Household businesses and individual business owners must fully and accurately declare their revenue generated from production and business activities to determine the amount of tax payable in accordance with tax laws and are solely responsible before the law for the content of their declarations.
4. Household businesses and individual business owners must electronically notify the tax authorities of all account numbers opened at payment service providers and e-wallet numbers opened at intermediary payment service providers related to their production and business activities.

Therefore, the rights and responsibilities of household businesses and individual business owners are as follows:

– Household businesses and individual business owners have the right to request guidance, clarification, and support from the tax authorities regarding tax declaration, tax calculation, and tax payment.

– Household businesses and individual business owners have the rights of taxpayers as stipulated by tax management laws.

– Household businesses and individual business owners must fully and accurately declare their revenue generated from production and business activities to determine the amount of tax payable according to tax laws and are solely responsible before the law for the content of their declarations.

– Household businesses and individual business owners must electronically notify the tax authorities of all account numbers opened at payment service providers and e-wallet numbers opened at intermediary payment service providers related to their production and business activities.

– Household businesses and individual business owners are responsible for using accounting books in accordance with accounting laws and guidelines from the Minister of Finance; and using invoices as prescribed.

– Household businesses and individual business owners are responsible for providing accounting books, invoices, sales management software, and related documents as requested by the tax authorities during tax audits.

– Household businesses and individual business owners residing in Vietnam who conduct business on e-commerce platforms are responsible for declaring and paying excise tax, environmental protection tax, resource tax, environmental protection fees, and other payments due to the state budget as managed by the tax authorities in accordance with tax laws, tax administration laws, and other relevant laws.

– Household businesses and individual business owners conducting business on e-commerce platforms are responsible for providing the e-commerce platform owner with complete and accurate information including tax identification numbers or personal identification numbers for Vietnamese citizens; passport numbers or identification information issued by competent foreign authorities for foreign citizens; and information and documents related to determining tax obligations, as well as mandatory information for sellers as stipulated by e-commerce laws.