For many years, the mechanism of paying taxes on behalf of household businesses has been commonly applied to bonuses, discounts, or trade support payments made by businesses to their household business partners. However, this mechanism has undergone a significant change starting in 2026.
According to Official Letter No. 241/SLA-QLDN issued on March 4, 2026, by the Son La Provincial Tax Department, organizations paying taxes are no longer required to declare and pay taxes on behalf of business households for many trade support expenses. This change stems from the complete abolition of the lump-sum tax method for business households from January 1, 2026, leading to adjustments in the related tax management mechanism.
This article will clearly analyze the legal basis, scope of application, and important notes for businesses and household businesses to comply with the new regulations.
New regulations on tax payment on behalf of household businesses according to Official Letter No. 241/SLA-QLDN
According to the guidelines in Official Letter No. 241/SLA-QLDN, from 2026 onwards, paying organizations will no longer be required to pay taxes on behalf of business households for certain common expenses incurred in commercial activities.
Expenses that are no longer subject to declaration and payment of taxes include:
- Sales bonuses or incentives as agreed upon in the commercial contract.
- A sales discount, payment discount, or promotional program in cash.
- Financial or in-kind support does not constitute wages or salaries.
- Compensation for breach of contract or other financial assistance arising from a business transaction.
This adjustment significantly reduces administrative procedures for businesses, while transferring the responsibility for tax declaration to the rightful entity: household businesses, the units directly generating revenue.
Why are businesses no longer required to pay taxes on behalf of household businesses?
Prior to 2026, the majority of household businesses applied the lump-sum tax method. Under this mechanism, the tax authority determined the revenue and the amount of tax payable. When businesses paid bonuses or support to household businesses, the businesses were responsible for declaring and paying taxes on behalf of the household businesses according to the guidelines. Decree 126/2020/ND-CP and Circular 40/2021/TT-BTC.
However, tax policy changed when Congress enacted legislation. Resolution 198/2025/QH15, which stipulates:
- From January 1, 2026, household businesses and individual business owners will no longer be subject to the lump-sum tax method.
- All businesses must switch to declaring taxes based on actual revenue and be responsible for their tax obligations.
When the lump-sum tax method was abolished, the regulations on tax payment on behalf of business households, which previously only applied to those subject to lump-sum tax, also became inappropriate. Therefore, the tax authorities issued guiding documents such as Official Letter No. 241/SLA-QLDN to standardize implementation.
Legal basis for abolishing tax payment on behalf of household businesses.
Resolution 198/2025/ND-CP is considered a turning point in tax management for the individual economic sector. Accordingly:
- The lump-sum tax method will be officially abolished from 2026.
- Household businesses must self-declare and self-pay taxes based on their actual revenue.
- The tax authorities are shifting to a management model based on electronic invoices.
This change aims to increase transparency and ensure the principle of self-declaration, self-payment, and self-responsibility for taxes.
New tax management system for household businesses.
Under the new management model, the tax obligations of household businesses will be determined based on actual revenue. Some key groups include:
- Revenue below the prescribed threshold: May be exempt from VAT and personal income tax.
- Average revenue: File tax returns quarterly or periodically.
High revenue: Implement stricter accounting and electronic invoicing procedures.
This mechanism completely replaces the previous fixed-rate tax system and requires business households to proactively declare their tax obligations.
What should businesses do when they can no longer pay taxes on behalf of household businesses?
Following the issuance of Official Letter No. 241/SLA-QLDN, businesses need to adjust their accounting procedures and document management when expenses are incurred for household businesses.
Some important points to note include:
Account for expenses correctly using supporting documents.
Bonuses, discounts, or subsidies are still considered reasonable expenses if they meet the following criteria:
- Commercial contract or agreement
- Valid payment voucher
- Electronic invoices issued by the business household (if any)
Businesses no longer need to provide tax payment documents as before.
Checking the legal status of a household business.
Businesses should check:
- Tax identification number of a household business
- Status of operation on the tax system
- Ability to issue electronic invoices
This helps reduce the risk during tax settlements or audits later on.
Responsibilities of household businesses when the company no longer pays taxes on their behalf.
Under the new system, household businesses become the direct entities responsible for declaring and paying taxes. This entails several important obligations:
Self-declaration of revenue
Household businesses must declare all actual revenue received, including:
- Revenue from the sale of goods or services
- Sales bonuses and incentives
- Contract discounts or compensation.
Issuing electronic invoices
Electronic invoices serve as the basis for:
- Household businesses file tax returns.
- The business recognizes the expense as a legitimate expense.
In the context of changes to regulations on tax payment on behalf of household businesses as per Official Letter No. 241/SLA-QLDN, proactively updating policies and standardizing tax documents is a key factor in helping businesses minimize risks. Referencing and utilizing these guidelines is essential. tax accounting services To ensure that declarations, accounting, and compliance with the new regulations are carried out accurately and promptly.
Comparing tax payment mechanisms before and from 2026.
To help businesses and household businesses clearly understand the changes in the tax payment mechanism for household businesses as per Official Letter No. 241/SLA-QLDN, the table below summarizes the core differences in tax responsibilities, documentation, and management methods, thereby highlighting the nature of the transition from a lump-sum tax mechanism to a self-declaration mechanism.
| Criteria | Before 2026 | From 2026 |
| Tax calculation method | Lump-sum tax | Declaration based on revenue |
| Paying taxes on behalf of household businesses. | The business performs | Household businesses pay themselves. |
| Expense voucher | Expense documents and tax payment receipts | Electronic payment vouchers and invoices |
| Management mechanism | Setting revenue targets | According to invoice data |
Thus, the changes in Official Letter No. 241/SLA-QLDN reflect the transition from a manual tax management model to a data-driven management system.
Notes on applying the regulation of paying taxes on behalf of household businesses.
Although the new regulations have been in effect since 2026, businesses still need to be aware of the principles of legal application:
- Transactions occurring before January 1, 2026, must still be conducted under the mechanism of tax payment on behalf of household businesses.
- Transactions from 2026 onwards will be subject to the new regulations as per Official Letter No. 241/SLA-QLDN.
Furthermore, in cases where multiple documents have different contents, businesses should prioritize the document with higher legal validity or the one issued later, in accordance with the principles of the Law on the Promulgation of Legal Documents.
Conclude
The issuance of Official Letter No. 241/SLA-QLDN has clarified a significant change in tax policy for 2026: businesses will no longer have to pay taxes on behalf of household businesses for trade support payments. This change stems from the complete abolition of the lump-sum tax mechanism and the shift to a self-declaration and self-payment tax model.
In the new context, businesses need to adjust their accounting processes and control documents more strictly, while household businesses must proactively fulfill their tax obligations. Understanding and accurately applying the regulations in Circular No. 241/SLA-QLDN will help all parties minimize legal risks and ensure full compliance with current tax regulations.
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Content is moderated by: Mr. Le Hoang Tuyen – Founder & CEO of Man, CPA Vietnam Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Source: Vietnam Law
