Vietnam Abolishes Business License Tax Starting 2026

According to Vietnam’s Resolution No. 198/2025/QH15, the Vietnamese government officially abolished the Business License Tax (BLT) effective 1 January 2026. This resolution introduces special mechanisms and policies aimed at promoting private sector development, while reducing initial operating costs and regulatory burdens for businesses.

Previously, all enterprises in Vietnam were required to pay Business License Tax on an annual basis. Although tax rates varied depending on company size, the tax represented a fixed yearly compliance cost, placing a relatively heavier burden on small and medium-sized enterprises (SMEs) and individual business operators.

Following the abolition of the BLT, the Vietnamese government expects further improvements in the business environment and anticipates increased Vietnam company set up. In particular, the removal of this annual tax obligation significantly reduces start-up costs, providing meaningful relief for newly established businesses.

It is important to note, however, that Business License Tax liabilities incurred in or before the 2025 fiscal year remain subject to existing filing and payment requirements. The tax is officially discontinued only from 2026 onward.

Source: Vietnam Briefing