Official Letter No. 307/CT-PC dated January 19, 2026, issued by the Tax Department, regarding the non-imposition of penalties when converting from the presumptive tax method to the declaration method

From January 1, 2026, all business households and individual business operators shall switch to the tax declaration method in accordance with Resolution No. 68-NQ/TW of the Politburo, Resolution No. 198/2025/QH15 of the National Assembly, and the Law on Tax Administration.

In cases where business households and individual business operators have paid tax under the presumptive tax method in 2025 or earlier (including cases where changes in the scale of production and business activities result in a change of presumptive taxable revenue of 50% or more) and the tax authority has assessed revenue and determined presumptive tax amounts in accordance with Article 51 of the Law on Tax Administration, upon conversion to the tax declaration method from January 1, 2026, the tax authority shall not conduct tax audits or inspections and shall not use the declared revenue of business households and individual business operators in 2026 to retrospectively impose tax obligations for periods up to and including 2025 for which tax was paid under the presumptive method, except for the case specified below.

Where competent authorities detect that a business household or individual business operator has committed acts of fraud or concealed revenue resulting in underpayment of tax, such business household or individual business operator shall be subject to administrative penalties for tax evasion in accordance with Article 17 of Decree No. 125/2020/NĐ-CP, or, in cases of serious violations, may be subject to criminal liability for the offense of tax evasion in accordance with Article 200 of the Penal Code 2015 (as amended and supplemented in 2017).

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