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VOL. 12, ISSUE 1 (2026)
Presumptive taxation for household businesses – International experiences from Indonesia, South Korea and lessons for Vietnam from the legal perspective
Authors
Tran Thi Thao Nguyen, Pham Thao Ngoc, Vu Nguyen Dung Nhi
Abstract
The presumptive tax regime has long been a traditional tax administration
method applied to millions of household businesses in Vietnam. However, due to
existing drawbacks such as causing budget revenue losses, lacking fairness and
transparency, and hindering the development of the private sector, the Party
and the State have decided to abolish this method from January 1, 2026. The
rapid transition of millions of household businesses from the presumptive tax
regime to the declaration-based tax regime presents significant challenges for
tax administration and raises questions about the feasibility of the proposed
roadmap. This paper focuses on analyzing the presumptive tax policies of
several countries in the region that share similarities with Vietnam, such Indonesia and South Korea. From these comparative
insights, the paper derives lessons learned and proposes legal reforms to ensure effectiveness for the
upcoming transition to the declaration-based tax method.
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Pages:281-285
How to cite this article:
Tran Thi Thao Nguyen, Pham Thao Ngoc, Vu Nguyen Dung Nhi "Presumptive taxation for household businesses – International experiences from Indonesia, South Korea and lessons for Vietnam from the legal perspective". International Journal of Law, Vol 12, Issue 1, 2026, Pages 281-285
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