The General Department of Taxation recently issued an official dispatch, urging provincial and city tax authorities to disseminate information regarding the declaration and payment of business license fees starting in 2026.

From 1/1/2026, taxpayers will no longer be required to pay the business license fee or submit related declaration documents for 2026 and subsequent years.

This fee's abolition aligns with National Assembly Resolution 198/2025, which outlines special mechanisms and policies for private economic development.

The tax sector will review and implement appropriate management measures to ensure the correct and full collection of business license fees due for 2025 and earlier, remitting these funds to the state budget.

The abolition of the business license fee aims to reduce compliance costs, simplify administrative procedures, and align with the policy of promoting private economic development. Previously, this annual fee was levied on businesses, cooperatives, public service units engaged in business, and household or individual businesses. Businesses paid 2-3 million VND, while household businesses paid 300,000-1 million VND upon establishment and during their operational activities. The fee amount was determined by charter capital, investment capital, or revenue, irrespective of whether the entity made a profit or incurred a loss.

Phuong Dung