On May 17, 2025, the National Assembly issued Resolution No. 198/2025/QH15 on several special mechanisms and policies to promote the development of the private sector. One of the most notable highlights of this resolution is the abolition of the business license fee starting from January 1, 2026. This reform forms part of a broader tax policy overhaul aimed at reducing compliance burdens and costs for taxpayers, particularly small and micro enterprises.
Below are the key impacts of this policy change that businesses should take note of:
🔹 1. Reducing financial burden and compliance pressure, especially for small and micro businesses
For households, small, and micro enterprises, saving any cost is always meaningful—particularly for newly established businesses that may not yet fully understand compliance requirements. The abolition of the business license fee will significantly ease the compliance pressure on new businesses and household enterprises
🔹 2. Encouraging business registration and enterprise formation
The removal of the business license fee eliminates a psychological barrier to business registration, encouraging individuals to take bolder steps in starting new businesses and expanding existing ones. At the same time, this policy allows enterprises to allocate more resources toward innovation, investment, and business development.
🔹 3. Ensuring consistency with other business support policies
This resolution aligns with other supportive measures—such as corporate income tax exemptions for small and medium-sized enterprises (SMEs) for three years from the date of their first business registration certificate—thereby creating a comprehensive policy framework to foster private sector growth.
Conclusion: The abolition of the business license fee in Vietnam from 2026 marks a decisive and progressive step in tax policy reform, delivering tangible benefits to the business community. This policy not only reduces financial and administrative burdens but also serves as a strong catalyst for the growth and dynamism of the domestic private sector.
