VI Business Licence Fee in Vietnam Abolished From 2026: What Companies Should Update
Updated: October 28, 2026
The business licence fee in Vietnam was abolished from January 1, 2026. Businesses are no longer required to declare or pay this annual fee for 2026 and subsequent years, following a significant change in Vietnam’s tax and fee framework.
The change affects Vietnamese enterprises, foreign-invested companies, branches, representative offices, business locations and household businesses that were previously subject to the fee under the applicable regulations.
However, the abolition does not automatically cancel outstanding liabilities from earlier years. Companies may still need to review amounts payable for 2025 and previous periods, particularly where historical tax obligations have not been fully reconciled.
For CFOs, chief accountants and foreign business owners, the practical implications extend beyond removing an annual payment. Tax calendars, accounting records, internal procedures and service agreements may still contain references to a fee that is no longer applicable.
This article explains the legal basis for abolishing the business licence fee in Vietnam, the difference between the rules before and after January 1, 2026, how to review outstanding obligations and six common mistakes businesses should avoid.
1. Is the Business Licence Fee in Vietnam Still Payable in 2026?
No. The collection and payment of the business licence fee officially ended on January 1, 2026.
The principal legal basis is Clause 7, Article 10 of Resolution No. 198/2025/QH15 on Special Mechanisms and Policies for Private Economic Development, adopted by the National Assembly on May 17, 2025.
The resolution’s official Vietnamese title is Nghị quyết số 198/2025/QH15 về một số cơ chế, chính sách đặc biệt phát triển kinh tế tư nhân.
Clause 7, Article 10 establishes that the collection and payment of the business licence fee cease from January 1, 2026.
This change was subsequently reflected in Decree No. 362/2025/ND-CP detailing certain provisions of and measures for implementing the Law on Fees and Charges, issued by the Government on December 31, 2025.
The decree’s official Vietnamese title is Nghị định số 362/2025/NĐ-CP quy định chi tiết một số điều và biện pháp để tổ chức, hướng dẫn thi hành Luật Phí và lệ phí.
Under Clause 4, Article 6 of Decree No. 362/2025/ND-CP, the Government repealed Decree No. 139/2016/ND-CP governing the business licence fee and Decree No. 22/2020/ND-CP, which had amended the earlier decree.
Decree No. 362/2025/ND-CP took effect on January 1, 2026.
The Tax Department further clarified the implementation of these provisions in Official Letter No. 645/CT-CS dated January 23, 2026, confirming that taxpayers are not required to submit business licence fee declarations or make payments for 2026 and subsequent years.
This means that a company established in 2026 does not incur an annual business licence fee merely because it has obtained business registration or commenced operations.
Similarly, an existing business is no longer required to prepare its previous annual payment for the 2026 financial year.
For reference, businesses can consult the following official sources:
- Resolution No. 198/2025/QH15 – Government of Vietnam
- Decree No. 362/2025/ND-CP – Government Legal Documents Portal
- Government guidance on Official Letter No. 645/CT-CS
2. Business Licence Fee in Vietnam: Before and After January 1, 2026
Before its abolition, the business licence fee was an annual charge generally determined by a company’s charter capital or investment capital, or by the type of business unit.
Under the former Decree No. 139/2016/ND-CP, as amended by Decree No. 22/2020/ND-CP, businesses could be subject to different rates depending on their legal and operational characteristics.
For companies, the principal annual rates were VND 3 million where charter or investment capital exceeded VND 10 billion, and VND 2 million where capital was VND 10 billion or less.
Branches, representative offices and business locations generally fell within a separate annual rate of VND 1 million, subject to the applicable rules and exemptions.
The following table summarizes the main historical rates and the position from January 1, 2026.
| Business category | General annual rate until 2025 | From January 1, 2026 |
|---|---|---|
| Company with charter or investment capital above VND 10 billion | VND 3,000,000 | No business licence fee |
| Company with charter or investment capital of VND 10 billion or less | VND 2,000,000 | No business licence fee |
| Branch, representative office or business location | VND 1,000,000 | No business licence fee |
| Household or individual business | VND 300,000–1,000,000, depending on applicable revenue thresholds | No business licence fee |
| Annual payment for the relevant fee year | Required where a liability arose | Not required from 2026 |
| Business licence fee declaration | Required in applicable circumstances under the former rules | Not required for 2026 or later years |
Historical rates are provided for reference when reviewing earlier periods. Exemptions and other relevant conditions may affect whether a particular amount was actually payable.
Under the former rules, newly established enterprises generally benefited from an exemption during their first year of establishment.
That exemption remains relevant when reviewing the historical position of a company formed in 2025 or earlier, but it should not be confused with the permanent abolition of the fee beginning in 2026.
A business reviewing an outstanding balance should therefore examine the applicable rules for the year in which the obligation originally arose.
3. Which Businesses Benefit From the Abolition?
The abolition is not limited to one industry or a particular company size.
Official Letter No. 645/CT-CS confirms that taxpayers are no longer required to declare or pay the business licence fee for 2026 and subsequent years.
In practical terms, the change benefits companies operating under different ownership structures, including foreign-invested enterprises, as well as business units that were previously subject to the fee.
3.1. Vietnamese and Foreign-Invested Companies
A foreign-owned company operating in Vietnam previously needed to consider its business licence fee obligations alongside other compliance requirements following establishment and during subsequent financial years.
From January 1, 2026, the annual fee no longer applies.
Nevertheless, foreign-invested enterprises must continue to comply with other applicable requirements, including tax registration, accounting, financial reporting and any sector-specific licensing obligations.
The removal of one annual fee does not remove those separate responsibilities.
3.2. Branches, Representative Offices and Business Locations
The change also simplifies compliance for companies operating through multiple business units.
Previously, a company with branches or business locations in different provinces might have needed to manage separate business licence fee obligations associated with those units.
From 2026, the business licence fee is no longer payable for these units.
This reduces the number of annual administrative tasks that finance teams must monitor, especially in corporate groups with several locations.
However, businesses should not assume that historical balances associated with those units have automatically disappeared.
3.3. Newly Established Companies
Companies established in 2026 or later do not need to include business licence fee declarations or payments in their initial compliance checklist.
This represents a practical simplification for business owners and foreign investors planning to establish a company in Vietnam.
For further information about incorporation and post-establishment requirements, businesses may refer to PHAM CONSULT’s guide to setting up a foreign-owned company in Vietnam.
3.4. Household and Individual Businesses
The abolition also removes the business licence fee from the relevant obligations of household and individual businesses.
This change should be distinguished from other reforms affecting household business taxation.
For example, Clause 6, Article 10 of Resolution No. 198/2025/QH15 also provides for the discontinuation of the presumptive tax method for household and individual businesses from January 1, 2026.
These are separate measures. Businesses should assess their continuing tax obligations under the rules applicable to their circumstances rather than assuming that the abolition of the licence fee eliminates other taxes.
4. What Happens to Unpaid Business Licence Fees From 2025 and Earlier?
One of the most important points is that the abolition applies to 2026 and subsequent fee years; it does not automatically cancel amounts that became payable in earlier periods.
Official Letter No. 645/CT-CS instructs provincial tax authorities to review taxpayer records and apply the relevant tax administration measures to collect business licence fee liabilities that arose for 2025 and earlier years.
For example, a company established in an earlier year may have an unpaid fee associated with 2024 or 2025.
Although the annual fee no longer applies from January 1, 2026, the company should still investigate whether that historical amount was legally payable and remains outstanding.
This distinction is particularly important during tax reconciliation, company restructuring, business closure or the transfer of accounting responsibilities to a new service provider.
4.1. Review the Company’s Electronic Tax Account
The finance team should review the company’s available tax account information to identify any outstanding business licence fee balances.
Where an amount appears, the company should check the relevant year, the basis of calculation, payment history and any applicable exemption.
A figure shown as outstanding should not be treated as automatically correct without verification, particularly where payment documents or exemption records indicate otherwise.
If there is a discrepancy, the company should reconcile the records with the relevant tax authority.
4.2. Check Historical Obligations of Branches and Business Locations
A company operating multiple business locations may need to review historical obligations associated with each unit.
Under the former regulations, separate compliance arrangements could apply to business units located in different provinces.
Consequently, checking only the head office’s tax account may not always provide a complete picture of historical obligations.
Where relevant, finance teams should verify the tax identification details and records associated with dependent units.
4.3. Confirm Applicable Exemptions
Not every company established before 2026 necessarily owed the business licence fee for every year.
Decree No. 22/2020/ND-CP introduced a first-year exemption for newly established organizations meeting the relevant conditions.
For instance, a qualifying company established in 2025 would generally have benefited from the first-year exemption for 2025.
If an amount appears payable for a year covered by an exemption, the business should review its establishment documents and tax records before making a payment.
4.4. Resolve Genuine Outstanding Amounts
If an earlier-year liability is confirmed, the business should arrange settlement in accordance with the applicable tax administration rules.
Any late payment amount should be determined under the legislation relevant to the liability and the particular circumstances, rather than applying an assumed rate without verification.
The company should retain the payment confirmation and supporting reconciliation with its historical tax records.
Abolition of the annual fee is therefore not a reason to ignore old balances. Instead, it provides an opportunity to resolve them and bring historical records up to date.
5. What Should Companies Update After the Business Licence Fee Is Abolished?
The business licence fee in Vietnam may have ended, but related references can remain in internal documents and accounting procedures.
Finance teams should review the areas most likely to be affected.
| Area | Recommended action | Practical purpose |
|---|---|---|
| Tax compliance calendar | Remove business licence fee filing and payment tasks for 2026 onward | Avoid unnecessary compliance work |
| Electronic tax records | Reconcile historical balances and investigate unexpected entries | Identify genuine outstanding obligations |
| Accounting records | Review provisions and entries relating to the fee | Prevent inaccurate expense recognition |
| Annual budget | Remove the fee from future forecasts | Improve budget accuracy |
| Tax service agreements | Update the scope of work where current-year fee filing remains listed | Align services with current obligations |
| Branch establishment checklist | Remove the obsolete fee requirement | Keep operational procedures current |
| Group reporting | Notify the overseas parent company of the change | Explain the removal of the expense |
| Internal guidance and company websites | Update outdated descriptions of the fee | Avoid giving incorrect compliance instructions |
These adjustments are generally administrative, but they can be overlooked when the amount involved is relatively small.
A company may, for example, continue including the fee in its annual budget simply because the expense was recorded in previous years.
Similarly, an accounting services agreement prepared using an older template may still list business licence fee declaration and payment as recurring tasks.
Reviewing these documents helps ensure that the company’s procedures reflect the law currently in effect.
6. Accounting Considerations for the 2025 and 2026 Financial Years
The abolition also has implications for financial reporting, particularly when companies close historical accounts or prepare their 2026 financial statements.
The relevant accounting treatment depends on the company’s actual transactions, existing records and applicable accounting regime.
6.1. Historical Liabilities Should Be Reviewed Separately
Where a business licence fee liability properly arose in 2025 or an earlier period and remains unpaid, the company should not remove it from its records solely because the fee was abolished for later years.
The finance team should examine the relevant supporting documents, account balances and payment information.
Any adjustment to a historical payable must have an appropriate basis.
6.2. Avoid Recognizing a New 2026 Fee Expense
Because the fee is no longer imposed for 2026, businesses should not automatically continue recognizing an annual business licence fee expense using their previous accounting templates.
Where a 2026 expense or accrual was recorded in error, the company should review the appropriate correction under its applicable accounting procedures.
However, care should be taken not to reverse legitimate unpaid obligations from earlier years simply because they remain in the accounts during 2026.
6.3. Review Payments Made in Error
If a payment was mistakenly made as a business licence fee for 2026, the business should investigate how that payment has been recorded and whether it qualifies for treatment as an overpayment.
The company should then follow the applicable tax administration procedures for reconciliation, offset or refund, as appropriate.
It should not assume that the payment automatically becomes a deductible business expense or that a refund can be obtained without following the relevant process.
6.4. Prepare Supporting Records for Audit and Group Reporting
During an audit or group reporting review, management may be asked to explain why an expense appearing in previous years is absent from the 2026 accounts.
A brief internal note referring to Resolution No. 198/2025/QH15, Decree No. 362/2025/ND-CP and Official Letter No. 645/CT-CS can help document the reason.
The supporting file may also include the relevant tax account reconciliation, payment records for earlier years and any adjustments made during the year.
For foreign-invested enterprises, this documentation can be useful when explaining changes in local compliance costs to an overseas finance department.
7. A Practical Checklist for Finance Teams
A structured review can help businesses confirm that the abolition has been reflected in both tax compliance and accounting records.
The company should begin by identifying its historical business licence fee obligations. This includes reviewing the head office and, where relevant, branches or other business units.
The next step is to compare amounts appearing in tax records with available payment documents and exemption evidence.
Once historical liabilities have been reconciled, finance teams should update their compliance calendar and remove business licence fee tasks that no longer apply from 2026.
Accounting staff should also review current-year expense entries, while management should check that future budgets and service agreements do not include obsolete obligations.
Finally, the results should be documented in an internal record that can be reviewed by management, auditors or a subsequent accounting service provider.
For a company with a straightforward organizational structure, these updates may require relatively limited administrative work.
A larger group with multiple legal entities and branches may need a more detailed review to ensure that historical liabilities are correctly identified across its operations.
8. Six Mistakes to Avoid After the Business Licence Fee Was Abolished
Although the legal change is straightforward, companies may still encounter unnecessary administrative problems if their internal procedures are not updated.
8.1. Assuming Outstanding Fees From Previous Years Were Cancelled
The abolition does not automatically remove liabilities that arose for 2025 or earlier years.
A company should verify historical balances and resolve any confirmed outstanding obligations under the applicable rules.
8.2. Continuing to Prepare Business Licence Fee Declarations for 2026
Official Letter No. 645/CT-CS confirms that taxpayers are no longer required to submit business licence fee declarations for 2026 and subsequent years.
Businesses should therefore remove obsolete declaration tasks from their current compliance procedures.
8.3. Keeping the Fee in Current Budgets and Accounting Templates
Recurring expense templates may still contain an annual business licence fee line.
If the entry is automatically carried forward, the company may recognize or budget an expense that no longer arises.
Finance teams should review these templates while preserving the records of genuine historical liabilities.
8.4. Assuming Other Business Taxes Have Also Been Abolished
The change concerns the business licence fee. It does not eliminate corporate income tax, value-added tax, personal income tax or other applicable taxes and charges.
Companies must continue to comply with their respective tax obligations under the relevant legislation.
8.5. Overlooking Historical Branch-Level Liabilities
Businesses with operations in more than one province may have historical obligations associated with separate tax records.
A review limited to the head office could overlook an outstanding amount connected with another business unit.
8.6. Relying on Tax Guides Published Before 2026
Older guidance may still describe the business licence fee as a recurring annual payment and include former filing deadlines.
Such information may be useful when reviewing historical obligations, but it should not be presented as the current rule for 2026 or later years.
Businesses should use up-to-date legal sources and periodically review their own compliance documentation.
9. Does the Abolition Affect Other Taxes and Incentives?
Resolution No. 198/2025/QH15 contains other measures intended to support private economic development.
These measures are separate from the abolition of the business licence fee and may have their own eligibility requirements and implementing regulations.
For example, Clause 4, Article 10 addresses a corporate income tax exemption for qualifying small and medium-sized enterprises during the specified initial period following their first enterprise registration.
Clause 6, Article 10 provides for the discontinuation of the presumptive tax method for household and individual businesses from January 1, 2026.
Businesses should not assume that qualification for one measure automatically establishes eligibility for another.
The abolition of the business licence fee is broadly relevant to previous payers, whereas other tax incentives may depend on company characteristics, eligibility conditions and the applicable implementing rules.
A broader tax review may therefore be useful for businesses seeking to understand how different legislative changes affect their overall compliance obligations.
10. Frequently Asked Questions About the Business Licence Fee in Vietnam
10.1. Is the business licence fee in Vietnam still payable in 2026?
No. Clause 7, Article 10 of Resolution No. 198/2025/QH15 ended its collection and payment from January 1, 2026. Official Letter No. 645/CT-CS confirms that taxpayers are not required to declare or pay the fee for 2026 or subsequent years.
10.2. Must a company pay an outstanding business licence fee for 2025?
Yes, if the amount legally arose and remains payable. The Tax Department has instructed tax authorities to review and collect outstanding business licence fee obligations from 2025 and earlier periods. Companies should verify any applicable exemption and payment history before settling a reported balance.
10.3. Does a branch established in 2026 need to declare or pay the fee?
No. The business licence fee is no longer payable for 2026 or later years. A new branch does not need a business licence fee declaration merely because it was established in 2026.
Other establishment, registration and operational requirements may still apply.
10.4. Is the business licence fee the same as business license tax?
The terms are commonly used to refer to the historical Vietnamese charge known as lệ phí môn bài. The term “business license tax” appears in older English-language guidance, while “business licence fee” more closely reflects the Vietnamese legal terminology.
Both expressions may still appear in historical documents, but the recurring charge ceased from January 1, 2026.
10.5. Did companies established in 2025 have to pay the fee for that year?
Under the former regulations, qualifying newly established organizations generally received a first-year exemption.
Therefore, a company established in 2025 may have been exempt for that year. The company should verify its particular circumstances and tax records before concluding whether any historical amount is payable.
10.6. Does the abolition remove corporate income tax or VAT obligations?
No. Corporate income tax, VAT and other taxes are governed by their respective laws.
The abolition of the business licence fee does not remove the need to maintain accounting records, submit other required tax returns or comply with applicable financial reporting obligations.
10.7. What should a company do if its tax account still shows a fee for 2026?
The company should review the description, tax period and payment details associated with the entry.
If the amount appears to represent an incorrectly recorded current-year business licence fee, the company should contact the relevant tax authority to clarify and correct the record under the applicable procedures.
It should also confirm that the entry is not a historical obligation from an earlier year.
11. How PHAM CONSULT Can Support Your Tax Compliance Review
The abolition of the business licence fee in Vietnam simplifies one aspect of recurring tax compliance, but companies must still maintain reliable tax records and monitor changes affecting their operations.
For foreign-invested enterprises and businesses with multiple locations, a periodic review can help identify historical balances, confirm compliance responsibilities and maintain consistency between tax information and accounting records.
PHAM & ASSOCIATES CONSULTING COMPANY LIMITED (PHAM CONSULT) provides tax consulting and accounting support for businesses operating in Vietnam.
Depending on the agreed scope of engagement, professional assistance may include reviewing tax-related documents, assessing outstanding obligations, supporting communication with relevant authorities and advising on tax compliance procedures.
Businesses can learn more about PHAM CONSULT’s Tax Consulting Services and its broader Tax Services in Vietnam.
If your company needs assistance reviewing historical business licence fee obligations or updating its tax compliance arrangements, please contact PHAM CONSULT to discuss your requirements.
PHAM & ASSOCIATES CONSULTING COMPANY LIMITED (PHAM CONSULT)
Ho Chi Minh City Office: Trilimex Building, 487–489 Dien Bien Phu Street, Ward Ban Co, Ho Chi Minh City, Vietnam.
Hanoi Office: 6th Floor, 54 Lang Ha Street, Hanoi, Vietnam.
Phone: +84 28 3930 2487
Email: info@phamconsult.com
Website: https://phamconsult.com/
Disclaimer: This article provides general information about the abolition of the business licence fee in Vietnam as of October 28, 2026. The treatment of historical liabilities, accounting adjustments, overpayments and other tax obligations depends on the applicable legislation and each company’s circumstances. This material does not replace professional tax or accounting advice for a specific case.
