Taxpayers will no longer be required to declare or pay business license fees, starting January 1, 2026.
This abolition will be implemented uniformly nationwide, applying to all enterprises, organizations, households, and individual businesses, with the aim of creating more room to support the growth of the private economic sector.
This directive is the highlight of Urgent Official Dispatch No. 645/CT-CS, issued by the Department of Taxation under the Ministry of Finance on January 24.
Accordingly, the Department requires tax authorities in all provinces and centrally-run cities to intensify communication and dissemination efforts to ensure taxpayers are fully informed of their obligations—and the subsequent exemptions—regarding business license fees starting from 2026.
Previously, the business license fee was a direct annual fee imposed on organizations, households, and individuals engaged in the production and trade of goods and services. The fee amount was determined based on charter or investment capital (for organizations) or annual revenue (for business households and individuals).
According to tax authorities, the implementation of this new policy will significantly reduce compliance costs, particularly for small and micro-enterprises and business households—groups that are highly sensitive to fixed annual expenses.
Furthermore, the removal of the license fee will contribute to simplifying administrative procedures and reducing the workload for both corporate accounting departments and tax authorities. This shift is expected to minimize risks related to late filings or procedural errors in tax declarations.
In the long term, this is viewed as a strategic move to foster entrepreneurship, encourage the expansion of production and business activities, and improve the national investment climate by making it more transparent and favorable for growth.
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