What is a Household Business?

Based on Clause 1, Article 3 of Circular 40/2021/TT-BTC (Effective from August 01, 2021), provisioned as follows:

In addition to the terms already explained in the Law on Tax Management, the Tax Laws, and the relevant Decrees, certain other terms in this Circular are understood as follows:

“Household business” refers to a production or business establishment registered for establishment by an individual or members of a household and takes responsibility with all its assets for the business activities of the household as stipulated in Article 79 of Decree No. 01/2021/ND-CP dated January 04, 2021, of the Government of Vietnam on enterprise registration and the guiding documents or amendments, supplements, or replacements (if any). In case the household members register the household business, they authorize one member to act as the representative of the household business. The individual registering the household business, or the person authorized by the household members to represent the household business, is the owner of the household business. Households engaged in agriculture, forestry, fishery, salt production and itinerant sellers, street vendors, mobile businesses, seasonal businesses, and service providers with low income are not required to register as a household business unless they are conducting business in sectors or trades that require conditional business investments. The People’s Committee of provinces and centrally-run cities stipulates the low-income level applicable within the local area.

Respectfully!