Detailed Tax Declaration Guide for Household Businesses 2025

Tax declaration is one of the important obligations of household businesses. This article provides a detailed guide on the tax declaration process, helping you fulfill your tax obligations correctly and comprehensively according to the latest regulations.

1. Overview of Tax Obligations for Household Businesses

1.1. Types of Taxes to Be Declared

• Business License Tax (Clause 2, Article 4 of Decree 139/2016/ND-CP, amended and supplemented by Point a, Clause 2, Article 1 of Decree 22/2020/ND-CP)

Household businesses must pay an annual business license fee based on their revenue level, specifically:

• Revenue over VND 500 million/year: Pay VND 1,000,000/year.
• Revenue over VND 300 to 500 million/year: Pay VND 500,000/year.
• Revenue over VND 100 to 300 million/year: Pay VND 300,000/year.
• Revenue up to VND 100 million/year: Exempt from business license tax.

• Value Added Tax (VAT) and Personal Income Tax (PIT) (Article 10 of Circular 40/2021/TT-BTC)

Household businesses with annual revenue exceeding VND 100 million must pay VAT and PIT. The tax calculation method is as follows:

• VAT payable = Taxable revenue × VAT rate
• PIT payable = Taxable revenue × PIT rate

VAT and PIT are calculated as a percentage of revenue. The applicable tax rates for different sectors and industries are detailed in Appendix I issued with Circular 40/2021/TT-BTC.

1.2. Tax Declaration Subjects (Article 4 of Circular 40/2021/TT-BTC; Clause 2, Article 4 of Decree 139/2016/ND-CP)

Household businesses with annual revenue from goods production and business activities exceeding VND 100 million must declare taxes periodically.

Household businesses and individual businesses with an annual revenue of up to VND 100 million are not required to pay business license tax, VAT, and PIT. The revenue threshold of VND 100 million/year applies to a single representative of a group of individuals or a household for the tax year.

2. Detailed Guidance on Tax Declaration Forms

2.1. Common Tax Declaration Forms (Issued with Appendix II of Circular 40/2021/TT-BTC and Appendix VIII of Circular 80/2021/TT-BTC)

• Form 01/CNKD: Tax declaration form for household businesses.
• Form 01-2/BK-HĐKD: Appendix listing business activities during the period for household businesses declaring tax using the declaration method.
• Form 01/TBTDK-CNKD: Notification form on estimated revenue and tax amount for household businesses using the presumptive tax method.
• Form 01/LPMB: Business license tax declaration form.

2.2. How to Fill Out the Tax Declaration Form

When filling out the tax declaration form, pay attention to the following key information:

• Identification Information:
  • Household business/individual business name: Clearly and accurately state the name as per the business registration certificate.
  • Tax identification number: The tax code issued by the tax authority.
  • Business address: Provide the complete and accurate address of the business location.
  • Business sector: List specific industries in operation, consistent with business registration.
• Revenue and Tax Rate Information:
  • Taxable revenue: Declare the total revenue from business activities during the tax period, classified by business sector and corresponding tax rate.
  • Applicable tax rates: Determine and apply the correct tax rate for each business type per legal regulations.
• Tax Period (Article 5 of Circular 40/2021/TT-BTC)
  • Monthly declaration: Household businesses and individual businesses paying tax under the declaration method must declare tax monthly.
  • Quarterly declaration: Newly established businesses and those meeting quarterly declaration criteria can choose to declare tax quarterly as per Article 9 of Decree 126/2020/ND-CP dated October 19, 2020, by the Government.
• Tax Declaration Submission Deadlines (Article 44 of the Law on Tax Administration; Article 9 of Decree 126/2020/ND-CP; and Article 11 of Circular 40/2021/TT-BTC)
  • Monthly declaration: Submit no later than the 20th of the following month.
  • Quarterly declaration: Submit no later than the last day of the first month of the following quarter.

3. Online Tax Declaration Process

3.1. Registering an Electronic Tax Account

To declare taxes online, you need to:

1. Register an account on the General Department of Taxation’s electronic portal:

• Access the electronic tax website: Open a browser and visit https://thuedientu.gdt.gov.vn/.
• Select “Register an account”:
• Enter the tax identification number and verification code, then click “Continue.”
• Fill in the required information such as the taxpayer’s name, phone number, email, login password, and confirm the password.
• After the taxpayer completes the information, the system will display the “Electronic Transaction Declaration with the Tax Authority.” The taxpayer needs to review the declared information once more to avoid errors, then click “Complete Registration.”
• Upon completion, the system will send a notification to the registered email and phone number.

Note: In some cases, you may need to visit the tax office in person for information verification.

2. Prepare a digital signature for authentication:

• Purchase a digital signature from a certified service provider: Choose a reputable provider and complete the purchase procedure. The registration documents usually include a notarized copy of the business registration certificate, tax registration certificate, and the legal representative’s identification documents.
• Install the digital signature:
  • Plug the USB Token containing the digital signature into the computer.
  • Install the digital signature management software provided by the service provider.
  • Activate the digital signature and change the PIN code to ensure security.

3.2. Steps for Online Tax Declaration

Step 1: Log in to the system: Access thuedientu.gdt.gov.vn, log in with the registered account, and select “Households, individuals doing business with e-commerce activities.”

Step 2: Prepare the tax declaration form

• Use the HTKK software to enter data and prepare the appropriate tax declaration form.
• After completion, export the declaration form in XML format and save it on your computer.

Step 3: Submit the electronic tax declaration

• On thuedientu.gdt.gov.vn, select “Tax Declaration” > “Submit XML Declaration.”
• Upload the prepared XML declaration file, then digitally sign it and submit the declaration.

Step 4: Confirm and check the declaration

• After submission, the system will send a confirmation notification of receipt to the registered email.
• To check the declaration status, go to “Lookup” > “Declaration” on the electronic tax portal.

4. Tax Payment Deadlines and Regulations

4.1. Periodic Tax Payment Schedule

Important tax payment deadlines:

• Lump-sum tax payment method (Point b, Clause 8, Article 13 of Circular 40/2021/TT-BTC):
  • Based on the tax payment notification, lump-sum taxpayers must pay VAT and personal income tax (PIT) within the deadline specified in the payment notification form 01/TB-CNKD issued under Decree 126/2020/ND-CP.
  • If the lump-sum household business uses invoices issued for each transaction by the tax authority, the tax payment deadline for revenue on the invoice is no later than the 10th day from the date of revenue occurrence with an invoice request.
• Declaration-based tax payment method (Clause 4, Article 11 of Circular 40/2021/TT-BTC):
  • The tax payment deadline for businesses using the declaration method follows Clause 1, Article 55 of the Tax Administration Law, specifically:
  • The latest tax payment deadline is the last day of the tax declaration submission deadline.
  • If a tax declaration is amended, the tax payment deadline is the submission deadline for the tax period with errors or omissions.
• Business license tax: The deadline for license tax payment is no later than January 30 each year (Clause 9, Article 18 of Decree 126/2020/ND-CP).

4.2. Late Tax Payment Handling

In case of late tax payment, penalties will apply: (Clause 2, Article 59 of the Tax Administration Law)

• Late payment penalty: 0.03% per day of delay.
• The late payment period is continuously calculated from the day after the final tax payment deadline, the extended payment deadline, the deadline stated in the notification or tax assessment decision, or the decision of the tax authority until the day before the overdue tax amount, tax refund recovery, additional tax, assessed tax, or delayed tax is fully paid to the state budget.

5. Important Notes When Declaring Taxes

• Keep complete invoices and documents: Household businesses must maintain accounting records, invoices, and documents as required. Carefully store purchase and sales invoices, payment receipts, and other relevant documents. This ensures transparency in accounting and serves as a basis for tax authority inspections.
• Declare taxes honestly and accurately: Taxpayers are responsible for declaring taxes accurately, honestly, and fully and submitting tax documents on time. They bear legal responsibility for the accuracy, honesty, and completeness of their tax documents. Ensure that all declared information, including revenue, expenses, and deductions, accurately reflects the actual business situation. Incorrect declarations may result in tax reassessment and penalties.
• Pay taxes on time to avoid penalties: The tax declaration and payment deadlines are clearly defined depending on the declaration method and tax type. Late payment may result in administrative penalties. Monitor and strictly comply with tax deadlines. Use reminder tools or professional services to ensure compliance with important deadlines.

Stay updated on new tax regulations: Tax laws are frequently updated to align with economic and social conditions. Taxpayers should stay informed and apply the latest regulations promptly. Regularly check official sources such as the General Department of Taxation’s website, and the Ministry of Finance, or consult tax experts to stay updated and correctly apply tax policy changes.