Private tutoring as a business is a taxable activity. Individuals or organizations providing tutoring services must declare and pay taxes according to legal regulations. Applicable taxes may include personal income tax (PIT) for tutors and value-added tax (VAT) if the service qualifies as a business activity. The specific tax rate depends on income and current tax policies. Complying with tax obligations ensures the legitimacy of tutoring activities and helps avoid legal risks.
I. For Household Businesses
There are two cases: contract-based household businesses and declared household businesses.
+ Household businesses and individual businesses with an annual revenue of 100 million VND or more are subject to PIT.
+ No PIT or VAT is required for revenues below 100 million VND per year.
Note:From January 1, 2026, the PIT threshold for individuals and household businesses increases to 200 million VND as per Article 5, Article 17, Clause 2, Article 18 of the 2024 VAT Law.
Tax officers determine the estimated revenue and tax amount based on business scale, declared initial revenue, and tax levels of similar businesses in the same area.
*) Business License Fee (Levy):
Household businesses providing tutoring services are exempt from business license fees in the following cases:
Individuals, groups of individuals, or households engaged in production and business activities with an annual revenue of 100 million VND or less.
Exemption in the first year of establishment or operation (from January 1 to December 31) for newly established individuals, groups of individuals, or households.
According to Clause 2, Article 4 of Decree 139/2016/ND-CP and Point c, Clause 1, Article 1 of Decree 22/2020/ND-CP, the business license fee for individual household businesses is based on annual average revenue:
Revenue over 500 million VND/year → 1,000,000 VND/year
Revenue from 300 to 500 million VND/year → 500,000 VND/year
Revenue from 100 to 300 million VND/year → 300,000 VND/year
Revenue below 100 million VND/year → Exempt from business license fee
II. For Business Enterprises
Formula: Corporate Income Tax = Taxable Income × Tax Rate
Taxable income calculation: Taxable income = Revenue – Deductible Expenses + Other Income
Taxable Income: Taxable Income = Taxable Revenue – Tax-Exempt Income + Carried-Forward Losses (if any)
Corporate Income Tax Rate:
According to Article 10 of Decree 218/2013/ND-CP (amended by Decree 57/2021), businesses with an annual total revenue of 20 billion VND or less are subject to a 20% tax rate.
The total annual revenue used to determine eligibility for the 20% tax rate is based on the total sales and service revenue from the previous year.
Income from socialized activities in education and training is eligible for a preferential 10% tax rate, as per Article 15 of Decree 218.
Business License Fee:
Based on charter capital/investment capital, the business license fee is:
Above 10 billion VND → 3,000,000 VND/year
10 billion VND or less → 2,000,000 VND/year
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Contact:
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