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Household Business Tax Calculator

Calculate tax for household businesses in Vietnam using either the presumptive (khoán) method or the revenue-based method per Circular 40/2021.

Written by CalcVault Editorial Team
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Fill in the fields above and click Calculate to see your results.

How to use

To calculate the tax obligations for your household business (Hộ kinh doanh) in Vietnam, start by selecting your primary business sector, as different sectors attract different VAT and PIT rates. Next, input your estimated monthly or annual revenue. Note that if your annual revenue is under 100 million VND, you are exempt from these taxes. The calculator will automatically apply the specific VAT percentage and PIT percentage based on your chosen sector to determine your total tax amount. This helps household business owners remain compliant and accurately forecast their net income after tax.

How it's calculated

Annual Presumptive Tax

presumptive_tax * 12

Total annual tax under the presumptive method

VAT Amount

annual_revenue * vat_rate / 100

Value-added tax on annual revenue

Personal Income Tax

annual_revenue * pit_rate / 100

Personal income tax on annual revenue

Revenue-Based Total Tax

vat_amount + pit_amount

Total tax (VAT + PIT) under the revenue-based method

Total Annual Tax

(mode == 1) * annual_presumptive_tax + (mode == 2) * revenue_based_total

Total annual tax payable based on selected method

Examples

Presumptive method — 500,000 VND/month

  • Tax Method:1
  • PIT Rate (%):0.5
  • VAT Rate (%):1
  • Annual Revenue:300,000,000
  • Monthly Presumptive Tax:500,000

Result

  • Total Annual Tax:15,000,000
  • Personal Income Tax:5,000,000
  • VAT Amount:10,000,000

For a trading business with 1 billion VND in annual revenue, the VAT rate is typically 1% (10M VND) and the PIT rate is 0.5% (5M VND). The total tax burden is 15M VND for the year, which is significantly lower than standard corporate rates.

Revenue-based — 300 million VND revenue, 1% VAT + 0.5% PIT

  • Tax Method:2
  • PIT Rate (%):0.5
  • VAT Rate (%):1
  • Annual Revenue:300,000,000
  • Monthly Presumptive Tax:500,000

Result

  • Total Annual Tax:4,500,000
  • Personal Income Tax:1,500,000
  • VAT Amount:3,000,000

A household business with 300 million₫ annual revenue paying 1% VAT and 0.5% PIT owes 4.5 million₫ total per year — just 1.5% of revenue. This is the flat-rate presumptive tax method, the simplest option for most small traders. Keep invoices to document revenue accurately.

Industry Benchmarks

Metric Typical Range
Most service-based household businesses pay a combined 7% (5% VAT + 2% PIT). 7 %

Data source: Vietnam Tax Regulations

Frequently Asked Questions

What is the difference between presumptive and revenue-based tax methods?

Under the presumptive (khoán) method, the tax authority and the household business agree on a fixed monthly tax amount based on estimated revenue. Under the revenue-based method, tax is calculated as a percentage of actual declared revenue each period.

What VAT and PIT rates apply to household businesses?

Rates vary by business sector. Common VAT rates are 1% (distribution/supply), 3% (production/construction), and 5% (services). PIT rates are typically 0.5% (distribution), 1.5% (production/construction), and 2% (services). Check Circular 40/2021 for your specific sector.

Do household businesses with low revenue need to pay tax?

No. Household businesses with annual revenue of 100 million VND or less are exempt from VAT and PIT under Circular 40/2021/TT-BTC.

Are there any other fees besides VAT and PIT?

Yes, household businesses must also pay a yearly licensing fee (Lệ phí môn bài) which depends on the revenue level. If revenue is over 500M, it's 1M/year; 300M-500M is 500k/year; and 100M-300M is 300k/year.

What if my business operates in multiple sectors?

If a household business operates in multiple sectors, it must declare and pay tax according to the specific rate for each sector based on its actual revenue. If it cannot separate the revenue, the highest applicable tax rate will be applied.
CalcVault Editorial Team

CalcVault Editorial Team

Verified Content Team

The CalcVault Editorial Team is a group of finance, health, and mathematics specialists dedicated to producing accurate, bilingual calculator content for Vietnamese and global small business owners. Every formula on CalcVault undergoes rigorous source verification against authoritative bodies including the IRS, CFPB, CDC, WHO, and NIST before publication. Our process includes independent peer review, structured fact-checking, and scheduled content audits to ensure every calculator remains up-to-date with the latest regulatory and scientific standards. We are committed to editorial independence from our advertising partners.

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