Small business tax is becoming a headache for many solo entrepreneurs. In the context of rising operating costs and constantly changing regulations, choosing a minimal tax model is a matter of survival.

According to market reports, more than 70% SMEs in Vietnam increased spending on digital operations in 2026 (according to Statista 2026), while legal compliance costs also increased significantly. At the same time, more than 60% small businesses face difficulties in financial and tax management (according to a Google Vietnam 2026 survey).

This article will help you understand the current tax system, compare suitable models, and choose the optimal solution for a one-person business.

How are small business taxes changing?

The shift away from presumptive tax

Vietnam's tax policy is undergoing major changes. Under the new regulations, the presumptive tax method will gradually be eliminated from 2026. This requires household businesses to switch to more transparent tax filing.

This transition increases transparency but also raises financial management requirements. One-person businesses need to prepare an accounting system early.

Example: Minh sells household goods online in Ho Chi Minh City and previously paid a fixed presumptive tax. When switching to tax filing, his accounting costs increased by 30%, but in return he gained better control over profits and reduced losses.

In contrast, Lan sells cosmetics online and did not prepare an accounting system. When inspected, she was fined VND 20 million due to filing errors. She then had to hire a professional accounting service to resolve the issue.

• Presumptive tax will gradually be eliminated from 2026
• High-revenue businesses must use e-invoices
• Increased financial transparency requirements
• Businesses must file their own taxes
• The risk of errors increases without a system

New revenue thresholds and tax obligations

Revenue is the key factor determining tax obligations. Under the new regulations, revenue below VND 100 million per year is exempt from VAT and personal income tax.

From 2026, the VAT threshold will increase to VND 200 million per year, reducing the burden on small businesses.

Example: A marketing freelancer with annual revenue of VND 180 million will not have to pay VAT. This significantly reduces operating costs.

Meanwhile, an online shop generating VND 1.2 billion per year must use e-invoices and file taxes fully.

Impact on one-person businesses

These changes create pressure but also open up opportunities for optimization. Small businesses can design a minimal tax system to reduce costs.

According to DPS. MEDIA's experience, many SMEs fail not because of poor marketing but because of weak financial management. Combining a simple tax system with a digital growth strategy is a decisive factor.

• Understand revenue thresholds clearly
• Choose the right legal structure
• Use accounting technology
• Avoid complete dependence on outsourced accountants
• Control monthly cash flow

3 minimal tax models for one-person businesses

Individual household business

This is the simplest model. It is suitable for individuals who are just starting out or have annual revenue below VND 1 billion.

The advantages are fast procedures and low costs. However, the limitation is that personal and business assets are not separated.

Example: A small coffee shop in District 3 operating as a household business can save 40% in management costs.

Private enterprise

This model is suitable when you want to expand while maintaining simplicity.

The business owner is fully liable with all personal assets. However, financial control is better than with a household business.

Example: A photography studio that switched from a household business to a private enterprise increased revenue by 60% thanks to easier B2B contract signing.

Single-member LLC

This is the optimal long-term model. It separates personal and business assets.

The corporate tax rate can be lower if the business belongs to the small-revenue group (15–17%).

• Choose a household business if revenue is small
• Choose a private enterprise if contracts are needed
• Choose an LLC if you want to expand
• Prioritize a flexible model
• Always plan for conversion

Minimal accounting – design a streamlined operating system

Minimum required records

Minimal accounting does not mean ignoring records. A business needs at least 3 types: revenue, expenses, and receivables/payables.

Simple but consistent record-keeping helps avoid major errors when filing taxes.

Digital accounting tools

Online accounting software can reduce data processing time by 50–70%. This is a suitable option for a one-person business.

DPS. MEDIA recommends combining accounting tools with a marketing measurement system to control advertising cost efficiency and profitability.

When to hire an accounting service

When revenue exceeds VND 1 billion or there are many complex transactions, you should hire an accounting service.

Example: An online fashion shop reduced errors by 25% after hiring a periodic accounting service.

• Use Excel when starting out
• Switch to software as you grow
• Hire a service when things become complex
• Self-check figures monthly
• Store data for at least 5 years

Compliance costs and how to optimize them for each model

Comparing tax & operating costs

Hidden costs that are often overlooked

Many businesses only calculate taxes while overlooking the costs of time, errors, and missed opportunities.

Example: A startup spent 3 months correcting tax reports, affecting cash flow.

Practical ways to reduce compliance costs

DPS. MEDIA recommends that businesses standardize processes from the beginning instead of correcting mistakes later. This can save up to 30% in operating costs.

• Standardize processes from the start
• Use automated software
• Train in basic knowledge
• Periodic check
• Optimize according to growth stages

How to choose the right model for a one-person business

Based on revenue

Revenue below VND 500 million: choose a household business. From VND 500 million to VND 3 billion: consider a private enterprise. Above VND 3 billion: choose a company.

Based on development goals

If you only operate a small business, choose a simple model. If you want to scale, you need a more professional structure.

Based on legal risks

An LLC provides better protection for personal assets than other models.

• Set 1–3 year goals
• Forecast revenue
• Risk assessment
• Maintain flexibility to change models
• Seek expert advice when needed

Small business tax is not only an obligation but also a strategic tool. Choosing the right model helps optimize costs and achieve sustainable growth.

Key takeaways:

• Presumptive tax will be eliminated from 2026
• Revenue determines tax obligations
• Minimal accounting helps reduce risk
• Compliance costs need to be controlled
• Each model suits a different stage

In the context of strong digital transformation, combining a minimal tax system with an effective marketing strategy is the key. DPS. MEDIA is a trusted partner that helps SME businesses optimize growth and operate sustainably.