According to Circular 152, representatives of business households and individual business owners are responsible for maintaining accounting records. They can either handle the bookkeeping themselves, hire an accountant, or outsource accounting services as per legal requirements.
The Ministry of Finance has recently issued Circular 152, providing guidelines on accounting record-keeping for business households and individual business owners.
Business household representatives or individual business owners may appoint their biological parents, adoptive parents, spouse, children (biological or adopted), siblings, or individuals responsible for management, inventory, cash handling, or procurement to manage accounting tasks.
Regarding accounting books and document storage, Circular 152 allows business households and individual business owners to store accounting documents (invoices, accounting vouchers, ledgers, etc.) electronically or in physical form.
Accounting documents must be retained for a minimum of 5 years. However, invoices should be kept in accordance with tax regulations.
In addition to the ledgers specified in this circular, business households and individual business owners may create additional accounting books or modify existing templates to suit their needs. Any new or modified ledger must include the book’s name, establishment date, and the signature (with seal, if applicable) of the business representative.
For business households or individual business owners using electronic invoices, if the tax authority’s information system calculates and notifies them of their VAT, personal income tax, or other applicable taxes, they should use the ledger templates provided in this circular to monitor and cross-check tax liabilities.
The circular also provides accounting guidance for business households and individual business owners subject to VAT and personal income tax.
Recent amendments to personal income tax laws for business households and individual business owners include raising the annual revenue threshold exempt from tax from 200 million VND to 500 million VND. This amount is deducted before calculating tax based on revenue ratios.
A new tax calculation method based on income (revenue minus expenses) has been introduced. Business households or individual business owners with annual revenue between 500 million VND and 3 billion VND will be taxed at 15% on their income.
Those with annual revenue between 3 billion VND and 50 billion VND will be taxed at 17%, while those exceeding 50 billion VND will be taxed at 20%. Business households or individual business owners with annual revenue between 500 million VND and 3 billion VND may choose between tax calculation methods based on revenue ratios or income.
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