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FACTORS AFFECTING TAX ACCOUNTING OF HANOI ‘S LARGE HOUSEHOLD
BUSINESSES IN CURRENT PERIOD

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Nguyen Thi Thu Thuy* , Nguyen Thanh Trang , Vu Thi Viet Thanh ,
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Pham Thi Thien Thanh , Nguyen Huong Hien , Nguyen Phuong Nhi 6
1, 2, 3, 4, 5, 6 Hanoi Open University, Hanoi, Vietnam.
(*E-mail: thuthuy.kt@hou.edu.vn)
ABSTRACT
Large household businesses in Hanoi currently play a significant role in the Capital's
digital economy and generate substantial revenue for the city's budget. Tax accounting
for large household businesses includes tax calculation, tax declaration and reporting of
tax-related issues, thus significantly impacting business's operational efficiency. Tax
accounting is influenced by relevant legal regulations, qualifications of tax accountants,
awareness of business owners, household information technology infrastructure, support
from Hanoi‘s management agencies, financial resources, etc. This article addresses the
issues of tax accounting in large household businesses in Hanoi today and assesses factors
influencing tax accounting to support these businesses in improving operational efficiency
and preventing risks in complying with current legal regulations.
Keywords: Tax accounting; influencing factors; Hanoi; large business households.

1. Introduction
Currently, household businesses are classified according to revenue size in order to
apply appropriate tax policies, management methods, accounting systems, and invoice
formats, into the following four groups:Group 1- Household businesses with total annual
revenue under 500 million VND; Group 2- Household businesses with total annual
revenue ranging from 500 million VND to 3 billion VND; Group 3- Household businesses
with total annual revenue ranging from over 3 billion VND to 50 billion VND; Group 4-
Household businesses with total annual revenue exceeding 50 billion VND.
Regarding taxes for household and individual businesses: amended Personal Income
Tax Law adjusts the tax-exempt revenue threshold for household and individual
businesses from VND 200 million/year to VND 500 million/year, and allows for this
deduction before calculating tax based on a percentage of revenue. Simultaneously, the
corresponding VAT-exempt revenue threshold is adjusted to VND 500 million. Based on
this, it can be understood that household and individual businesses with revenue below
VND 500 million/year are not subject to personal income tax or VAT. Therefore, within
the scope of this article, the group will focus on large household businesses with revenue
of VND 500 million or more.
According to the Hanoi Tax Department, the city currently has approximately
350,000 active business households, projected to increase to 400,000 in the near future.
Among these, a significant number have revenues of 500 million VND or more, due to the
capital's high population density and long-standing business traditions. These large
business households provide a stable and sustainable source of revenue for the city's
budget through value-added tax, personal income tax, and other fees and charges. The
strong development of the digital economy in Hanoi is forcing individuals and
organizations to adapt their operations to the new conditions. Business households are

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