I/ RESOLUTION 198/2025/QH15 ON SPECIAL MECHANISMS AND POLICIES FOR THE DEVELOPMENT OF THE PRIVATE ECONOMY – IMPLEMENTING THE GUIDELINES OF RESOLUTION NO. 68-NQ/TW DATED MAY 4, 2025 OF THE POLITBURO ON PRIVATE ECONOMIC DEVELOPMENT
A/ Summary of support policies for household businesses under Resolution 68-NQ/TW and Resolution 198/2025/QH15, including: abolishing fixed tax for household businesses, supporting household businesses in transitioning into enterprises…
On May 4, 2025, the Central Executive Committee issued Resolution 68-NQ/TW on the development of the private economy. Following that, on May 17, 2025, the National Assembly passed Resolution 198/2025/QH15. Accordingly, in the coming time, household businesses (HBs) and small and medium-sized enterprises (SMEs) will receive strong government support through the following sixpreferential policies.
A.1/ HOUSEHOLD BUSINESSES (HBs)
A.2/ SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)
B/ Comparison of Key Aspects Between Household Businesses Using the Declaration Method and Enterprises Using the VAT Credit Method
II/ DECREE NO. 168/2025/NĐ-CP BY THE GOVERNMENT ON BUSINESS REGISTRATION
The Government issued Decree No. 168/2025/NĐ-CP on business registration. This decree takes effect from July 1, 2025. It includes provisions on registering the establishment of enterprises based on the conversion from household businesses. Specifically:
III. GUIDANCE ON ACCOUNTING TREATMENT FOR INVENTORIES AND ASSETS WITHOUT INVOICES WHEN A HOUSEHOLD BUSINESS CONVERTS INTO AN ENTERPRISE
1/ According to Official Dispatch No. 3612/TCT-DNNCN regarding the determination of asset value when a household business converts into an enterprise, specifically for fixed assets, tools, and inventories of the household business, the accounting and tax-deductible expense recognition shall be handled as follows:
a. In cases where valid invoices and documents are available: These assets can be registered as initial investment capital of the newly established enterprise, in accordance with tax laws and current accounting regulations.
b. In cases where invoices and documents are missing or incomplete: The household business must re-evaluate the assets as prescribed. The newly established enterprise shall base its accounting records on the valuation results provided by an authorized appraisal agency. These assets may then be recorded and included as deductible expenses (e.g., depreciation of fixed assets, allocation of tools) when calculating taxable income.
=> However, this guidance was issued in 2019, and up to now, there have been no new specific instructions regarding the accounting treatment of fixed assets, tools, and inventories without invoices when a household business converts into an enterprise.
2/ Other Handling Guidelines
