Abolishing business license fees from 2026 is one of the most significant legal changes recently passed by the National Assembly aimed at boosting the strength of the private sector. Resolution 198/2025/QH15 On May 17, 2025, this policy is not simply about cutting a fee, but also a strong message about institutional reform, reducing the administrative and financial burden for millions of businesses and households nationwide.
The elimination of business license fees from 2026 is based on the direction set out in Resolution 68-NQ/TW of the Politburo, aiming for a more transparent and fair business environment. For accountants, auditors, and business administrators, understanding this roadmap is crucial to adjusting financial plans and fulfilling reporting obligations during the transition period from 2025 to 2026.
Legal basis for abolishing business license fees from 2026.
The decision to abolish business license fees from 2026 is not a temporary policy but the result of a systematic reform roadmap. The starting point is Resolution 68-NQ/TW of the Politburo, issued on May 4, 2025, which sets the goal of abolishing outdated fees to support the development of small and medium-sized enterprises (SMEs) according to market principles.
To concretize this policy, on May 17, 2025, the National Assembly issued Resolution 198/2025/QH15. Clause 7, Article 10 of this Resolution clearly states: "The collection and payment of business license fees shall cease from January 1, 2026." This is the highest legal document confirming the legal status of abolishing this long-standing fee in the Vietnamese tax and fee system.
Economic objectives and implications of the policy
The abolition of business license fees from 2026 brings dual benefits to both the State and businesses. For the State, this helps streamline the tax collection system, reducing administrative costs for small-value revenues but with a large number of payers. For businesses, especially start-ups, this is practical support for cash flow from the very beginning of their establishment.
The direct beneficiaries
The policy to abolish business license fees from 2026 will be widely applied to all organizations and individuals currently subject to these fees. This includes businesses established under the Enterprise Law, economic organizations, business households, and individual businesses. No longer having to track and pay this fee annually will significantly save accounting departments time in processing documents.
The roadmap for eliminating business license fees starts in 2026 and mandates their elimination in 2025.
Although the roadmap for eliminating business license fees from 2026 is clear, businesses need to note that their obligations for the 2025 fiscal year must still be fulfilled according to current regulations. This means that 2025 will still be the last year that this tax is actually effective on the balance sheets of businesses.
Below is a summary of the transition roadmap and key timelines that tax accountants need to remember:
| Stage | Content of implementation | Legal basis |
| Before January 30, 2025 | Pay the business license fee and submit the declaration (if there is a change in capital) for the year 2025. | Decree 139/2016/ND-CP |
| 2025 | Continue monitoring and settling business license fees as usual. | Tax Administration Law 2019 |
| Before January 30, 2026 | You still need to submit the business license declaration for 2025 (if you haven't already submitted it or if there are any changes). | Resolution 198/2025/QH15 |
| From January 1, 2026 | All activities related to collecting and paying business license fees have been officially suspended. | Clause 7, Article 10 of Resolution 198 |
Note regarding the final business license fee declaration form.
Although we aim to abolish business license fees from 2026, tax records for 2025 must still be accurate. Many accountants mistakenly believe that because the fee is about to be abolished, they don't need to file a 2025 tax return. In reality, the tax authorities will still inspect and audit this obligation until the end of its validity period.
Handle any overpayments (if any).
In cases where businesses have already made provisional or overpayments of business license fees for periods after 2026, they should proactively carry out tax offsetting or refund procedures as stipulated in the Tax Administration Law before the policy of abolishing business license fees from 2026 officially takes full effect.
Tax support policies accompanying Resolution 198/2025/QH15
The abolition of business license fees from 2026 is only one part of the National Assembly's special "package of solutions." To optimize benefits, businesses need a comprehensive view of other tax incentives also stipulated in Article 10 of Resolution 198. This helps accounting professionals accurately advise management on the tax roadmap.
Corporate Income Tax (CIT) incentives
Alongside the abolition of business license fees from 2026, the State is implementing a policy... Corporate income tax exemption Extremely attractive:
- Free 100% corporate income tax for small and medium-sized enterprises during the first 3 years of establishment.
- For innovative startups: Tax exemption for 2 years and a reduction of 50% for the following 4 years on income from core operations.
Tax incentives for individuals and professionals
Not only will the government eliminate business license fees for household businesses from 2026, but it will also encourage talent through exemptions. personal income tax This allows experts and scientists to work at innovation centers for a period of two years. This is an important leverage for private enterprises to attract high-quality human resources.
Changes to the tax calculation method for household businesses.
Notably, coinciding with the abolition of business license fees from 2026, from January 1st, 2026, household businesses and individual business owners will no longer apply the lump-sum tax method. Instead, tax payments will be based on modern tax management laws, requiring greater transparency in accounting records. This necessitates that household businesses prepare a solid accounting foundation now.
Analysis of the impact on businesses and accounting from 2026
The abolition of business license fees from 2026 will change the annual workflow for tens of thousands of tax accountants. Instead of rushing to review registered capital levels and pay business license fees before January 30th each year, accountants can focus their resources on... corporate income tax settlement and personal income tax.
Reduce the risk of administrative penalties.
Although the business license fee is not a large sum, the penalties for late filing are often very high compared to the fee itself. Therefore, abolishing the business license fee from 2026 will help businesses completely eliminate the risk of being penalized for administrative violations related to late filing of business license declarations – a "classic" mistake that many novice accountants often make.
Optimizing operating costs
Although the current highest fee is only VND 3,000,000 per year for businesses with capital exceeding 10 billion VND, when combined with millions of businesses, this figure is enormous. Abolishing business license fees from 2026 will directly contribute to reducing compliance costs, creating favorable conditions for businesses to reinvest in production and business activities.
Challenges in the digital transformation of books
It's important to note that the elimination of business license fees from 2026 coincides with the abolition of lump-sum taxes for household businesses. This creates a wave of conversion from household businesses to enterprises. Accounting experts at MAN – Master Accountant Network believe this is a golden opportunity for businesses to standardize their internal accounting systems to meet the new tax audit standards.
Accounting guidelines for handling the transition when business license fees are abolished from 2026.
To ensure there are no errors during this phase, the accounting department needs to implement the following control steps. Although the goal is to eliminate business license fees from 2026, the continuity of tax data is essential.
- Review of data 2024-2025: Review all previous business license fee payment receipts to ensure there are no outstanding debts.
- Update your accounting software: Adjust the list of taxes and fees payable from the 2026 accounting period, eliminating account 3338 (other taxes/fees) related to business license fees.
- Inform the management: Proactively report on the abolition of business license fees from 2026 to adjust tax budget estimates for subsequent years.
- Record keeping: Retain old business license declarations for at least 10 years, as required by the Accounting Law, to facilitate future inspections for periods prior to 2026.
Conclude
The abolition of business license fees from 2026 is a major step forward in tax administration reform in Vietnam. It demonstrates the government's willingness to listen to the difficulties faced by private businesses. However, abolishing a fee often comes with tighter management of other taxes such as Corporate Income Tax or Value Added Tax to ensure budget revenue. Therefore, businesses should not be complacent but should focus on improving their financial and accounting management capabilities.
MAN – Master Accountant Network proudly stands as a leading network of auditing and tax accounting professionals, ready to support businesses in adapting to the latest legal changes. We offer: auditing services Independent, in-depth tax consulting and accounting review services help businesses optimize costs and minimize legal risks.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
FAQ – Frequently Asked Questions about the Abolition of Business License Fees from 2026
Yes. According to current regulations and the roadmap in Resolution 198, the abolition of business license fees will officially begin in 2026. Therefore, businesses established in 2025 will still comply with the regulations in Decree 22/2020/ND-CP (which usually exempt them in the first year of establishment but still require them to submit declarations).
That's right. Clause 7 of Article 10 of Resolution 198 applies to all entities. However, business households should note that the transition from lump-sum tax to the declaration and payment method under tax management law will also take effect from January 1, 2026.
No. The policy to abolish business license fees from 2026 only applies to obligations arising from January 1, 2026 onwards. Old debts will still be collected and late payment penalties will be calculated according to the provisions of the Tax Administration Law.
No need. Once a tax/fee has been abolished by a National Assembly resolution, taxpayers are no longer obligated to declare that fee. Do businesses established in 2025 have to pay business license fees?
Will household businesses be completely exempt from business license fees starting in 2026?
If I pay my business license fee late in 2024, will my debt be forgiven in 2026?
Is it necessary to file a blank tax return for 2026?
