Do Household Businesses Still Pay Business License Tax in 2026?

Quick answer: No longer payable. From 01/01/2026, business license tax for household businesses and individual businesses has been abolished under Resolution No. 198/2025/QH15 (implemented by Decree No. 362/2025/ND-CP). This is the biggest change to household businesses’ financial obligations in 2026.

What financial obligations remain for household businesses in 2026?

After the abolition of business license tax and lump-sum tax, household businesses perform the following obligations:

• VAT and PIT under the declaration method or per-incurrence basis (Circular No. 40/2021/TT-BTC), calculated on actual revenue;
• Other fees and charges as provided by specialized laws (if any, e.g., fees in conditional sectors);
• Obligations on invoices, documents, and the simplified accounting regime when paying tax under the declaration method.

Distinguishing the abolition of business license tax and lump-sum tax

Resolution No. 198/2025/QH15 simultaneously abolished two policies from 01/01/2026: (1) business license tax — the previously fixed annual charge by revenue tier; (2) lump-sum tax — the method of determining tax by the tax authority’s lump-sum assessment. Household businesses need to understand both changes to properly fulfill their new declaration and tax payment obligations.

Applicable legal basis

• Resolution No. 198/2025/QH15: abolishing business license tax and lump-sum tax from 01/01/2026.
• Decree No. 362/2025/ND-CP: abolishing the decrees on business license tax.
• Circular No. 40/2021/TT-BTC: tax calculation method for household businesses.

Note on Applying Current Legal Regulations

This article is part of the Business & M&A Knowledge series and is presented for reference purposes, helping readers understand the legal issue at a general level before preparing documents or entering into transactions.

Legal regulations may change depending on timing, locality, document type, and specific circumstances. If you need to determine the exact legal basis applicable to your file, please contact ANT Legal’s lawyers at 0966.475.966 for verification and advice before proceeding.

Common Risks to Note

• Applying an outdated, amended, or replaced legal instrument.
• Preparing incomplete dossiers, documents, or evidence.
• Misunderstanding the conditions, procedures, time limits, or competent authorities.
• Signing, filing, or entering into transactions without fully assessing legal risks.

How Can ANT Legal Help?

ANT Legal supports reviewing specific situations, checking dossiers, identifying the applicable legal basis, advising on handling options, and representing clients in dealings with individuals, organizations, or competent authorities when necessary.

For prompt advice, please contact our lawyers at 0966.475.966.

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