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Business License Tax Rules under Vietnamese Law: Abolished 2026

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Short answer: From 01/01/2026, the State terminates the collection and payment of the business license tax under Clause 7, Article 10 of Resolution 198/2025/QH15. Thus, from 2026, enterprises, household businesses, and business organizations and individuals no longer need to declare or pay the annual business license tax. The decrees on the business license tax (Decree 139/2016/ND-CP, Decree 22/2020/ND-CP) have been abolished by Decree 362/2025/ND-CP.

Legal basis

  • Resolution 198/2025/QH15 on special mechanisms and policies for private economic development — Clause 7, Article 10: termination of business license tax collection and payment from 01/01/2026;
  • Decree 362/2025/ND-CP abolishing Decrees 139/2016/ND-CP and 22/2020/ND-CP on the business license tax;
  • Decree 168/2025/ND-CP on enterprise registration (regarding post-establishment obligations).

What was the business license tax? (context before abolition)

The business license tax was a state budget revenue levied on organizations and individuals engaged in production and business of goods and services. Before abolition, the amount was determined by charter capital/investment capital (for organizations) or revenue (for household businesses), declared once upon establishment and paid annually.

Abolishing the business license tax is one of the policies to reduce administrative burdens and compliance costs for the private economic sector under Resolution 198/2025/QH15.

From 01/01/2026: what must enterprises do?

  • No longer declare the business license tax when newly established from 2026;
  • No longer pay the annual business license tax from 2026 onward;
  • Business license tax amounts for 2025 and earlier (if still owed) must still be settled under the rules in force when the obligation arose;
  • Enterprises newly established from 2026 do not submit business license tax declarations.

Other tax obligations must still be fully performed

Abolishing the business license tax does not change enterprises’ other tax obligations:

  • Declare and pay value-added tax and corporate income tax as prescribed;
  • Register and declare personal income tax (withholding at source for employees);
  • Perform obligations on e-invoices, digital signatures, and reports as prescribed;
  • Household businesses: declare tax under the declaration method (the presumptive tax policy has been abolished).

Frequently asked questions

I already paid the business license tax for 2025; must I pay again for 2026?

No. From 01/01/2026, business license tax collection and payment are terminated nationwide; the amount paid for 2025 was the 2025 obligation, and no new obligation arises for 2026.

Must an enterprise established in December 2025 submit a business license tax declaration?

The business license tax obligation is determined under the rules in force when it arose. Enterprises established before 01/01/2026 perform their 2025 obligations under the old rules (exempted in the first year of establishment under the previous policy if eligible); from 2026 this obligation no longer exists.

Does abolishing the business license tax affect the tax code?

No. Tax codes of enterprises and household businesses are still managed and used normally; the abolition only concerns the business license tax revenue item.

Notes on applying current laws

The business license tax abolition comes with many other major changes effective around 2025–2026 (abolition of presumptive tax for household businesses, new tax frameworks). Enterprises should review all declaration and tax payment obligations to avoid both missing still-effective obligations and over-performing abolished ones. Contact an ANT Legal lawyer at 0966.475.966 for a review of your enterprise’s tax obligations.

Common risks to watch out for

  • Continuing to declare and pay the business license tax for 2026 after abolition;
  • Confusing the business license tax abolition with abolition of other taxes — VAT, CIT, and PIT obligations remain in full;
  • Household businesses not yet switching from presumptive tax to declaration under the new rules.

How ANT Legal can help

ANT Legal advises on and reviews tax, fee, and charge obligations of enterprises and household businesses under the current legal framework, and supports initial tax declarations and post-establishment compliance. For quick advice, please contact our lawyers at 0966.475.966.

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