Vietnam Announces Abolition of Lump-Sum Tax Collection Method for Individuals, Business Households

The Vietnamese Government Oct. 24 announced the Ministry of Finance’s decision to switch from the lump-sum tax collection method for business households and individuals to a self-declaration and self-payment method, from Jan. 1, 2026. The announcement provides that: 1) business households and individuals with annual income up to 200 million Vietnamese dong (US$7,592) will be exempt from tax; 2) taxpayers with annual income exceeding 200 million dong but below 3 billion dong (US$113,884) will be subject to individual income tax rates ranging from 1 percent to 5 percent, depending on industry; 3) taxpayers with annual income exceeding 3 billion dong ...