VI How is the taxable revenue of individual business households determined according to Notice 85? Let’s find out more with Pham Consult!
How is the taxable revenue of individual business households determined according to Notice 85?
On January 29, 2026, the Tax Department issued Notice 85/TB-CT of 2026 on the dissemination of tax policies and tax management for household businesses and individual businesses, including guidance on the deadline for tax declaration for household businesses and individual businesses from 2026.
Accordingly, the taxable income for personal income tax of household businesses and individual businesses is guided in Section 4 of the document on disseminating tax policies and tax management for household businesses and individual businesses issued with Notice 85/TB-CT of 2026 as follows:
Revenue is the total amount of money from sales, processing fees, service provision fees, including subsidies, surcharges, and additional fees that individual businesses receive, regardless of whether the money has been collected or not; Includes:
– Bonuses received
– Amounts received from sales support, promotions, and payment discounts
– Support received in cash or in kind
– Subsidies, surcharges, additional fees received as per regulations (excluding: trade discounts, sales price reductions, returned goods)
– Compensation for breach of contract, other compensation related to business operations,
– Other revenue received by the business entity, regardless of whether the money has been collected or not.
Deductible expenses
These are actual expenses incurred related to production and business activities, with sufficient invoices and supporting documents as prescribed by law on invoices and supporting documents, accounting law, and non-cash payment documents for individual payments of 5 million VND or more according to value-added tax law.
*The above information concerns “How is the taxable income of individual business households determined according to Notice 85?”.
Can business households use personal accounts? What are the regulations regarding bank accounts for business households from March 1, 2026?
Based on Clause 1, Article 13 of Circular 17/2024/TT-NHNN, supplemented by Article 4 of Circular 25/2025/TT-NHNN, the following is stipulated:
Agreement on opening and using payment accounts
- The agreement on opening and using payment accounts between a bank, a branch of a foreign bank, and a customer must include at least the following contents:
- c) Information about the customer opening the payment account as stipulated in Article 14 of this Circular;
c1) Payment account number, payment account name. The payment account names are as follows:
(i) For individual payment accounts, the account name is based on the full name on the customer’s identification documents;
(ii) For organizational payment accounts, the account name must include the name of the organization as stated on its establishment license, establishment decision, business registration certificate, or other documents proving the organization’s legal establishment and operation;
(iii) For joint payment accounts, the account name is determined by the bank or foreign bank branch, reflecting the names of the account holders and not duplicating the account names of other individuals or organizations.
According to the above regulations, from the effective date of Circular 25/2025/TT-NHNN, from March 1, 2026, business households are not allowed to use individual accounts.
Instead, business households must use a bank account in the name registered on the business registration certificate.
*Note: Circular 17/2024/TT-NHNN takes effect from February 3, 2026.
What are the principles of decentralization and delegation of authority in the field of tax management?
Based on Article 2 of Decree 122/2025/ND-CP, the decentralization and delegation of authority in the field of tax management shall be implemented according to the following principles:
(1) Ensuring compliance with the provisions of the Constitution; compliance with the principles and regulations on decentralization and delegation of authority of the Law on Organization of the Government and the Law on Organization of Local Governments.
(2) Ensure thorough decentralization of tasks between central government agencies and local governments, ensuring the unified management authority of the Government, the operational authority of the head of the Government over the state management field of tax administration, and promoting the initiative, creativity, and self-responsibility of local governments in performing state management tasks in the field of tax administration.
(3) Ensure that the Government, the Prime Minister, ministries, and ministerial-level agencies focus on performing state management tasks at the macro level;
Build a synchronized and unified institutional framework, strategy, plan, and program, playing a constructive role and strengthening inspection, examination, and supervision.
(4) Promote decentralization and clearly define the authority of the People’s Council, People’s Committee, and Chairman of the People’s Committee;
Clearly define the general authority of the People’s Committee and the specific authority of the Chairman of the People’s Committee;
Ensure compliance with the assigned tasks, powers, and capabilities of the agency and the person authorized to perform the assigned tasks and powers.
(5) Implement decentralization and delegation of authority among relevant sectors and fields to ensure synchronization, overall coherence, interconnectedness, and to avoid omissions, overlaps, or conflicts in tasks;
Ensure a legal basis for the normal, continuous, and smooth operation of agencies;
Prevent work interruptions, overlaps, duplications, and omissions of functions, tasks, fields, and geographical areas.
(6) Ensure human rights and civil rights;
Ensure transparency and openness, creating favorable conditions for individuals and organizations to access information, exercise their rights and obligations, and follow procedures as prescribed by law;
Do not affect the normal functioning of society, citizens, and businesses.
(7) Ensuring that it does not affect the implementation of international treaties and agreements to which the Socialist Republic of Vietnam is a member.
(8) The resources for carrying out the delegated and decentralized tasks are guaranteed by the state budget as prescribed.
