Vietnam to Scrap Business Licence Fees for Enterprises, Households from 2026

Taxpayers in Vietnam will no longer be required to declare or pay business license fees from January 1, 2026, following a new directive aimed at easing costs and supporting the growth of the private sector.

The policy was announced in Urgent Official Dispatch No. 645/CT-CS, issued by the Department of Taxation under the Ministry of Finance on Saturday, January 24. The abolition will be implemented uniformly across the country and will apply to all enterprises, organisations, business households and individual traders.

Under the directive, tax authorities in all provinces and centrally administered cities have been instructed to step up communication efforts to ensure taxpayers are fully informed of the change, including the removal of declaration and payment obligations related to business license fees from 2026.

Previously, the business license fee was a compulsory annual charge imposed on entities engaged in the production and trading of goods and services. For organisations, the fee was calculated based on charter or investment capital, while for business households and individuals, it was determined by annual revenue.

Tax officials said the new policy is expected to significantly lower compliance costs, particularly for small and micro-enterprises as well as household businesses, which are more sensitive to fixed yearly expenses. The move is also expected to streamline administrative procedures and reduce the workload for both corporate accounting teams and tax authorities.

By eliminating the need for annual declarations and payments, the change is expected to reduce risks associated with late submissions or procedural errors. In the longer term, authorities view the measure as a strategic step to encourage entrepreneurship, promote business expansion and enhance Vietnam's investment environment by making it more transparent and conducive to growth.