Abolition of Business License Fee from 2026: Key Notes for Enterprises

Abolition of business license fee from 2026 is a significant legal change that enterprises should closely monitor as Vietnam enters a new compliance phase. Pursuant to Decree No. 362/2025/ND-CP, which takes effect from 1 January 2026, the Government has officially abolished all regulations relating to the business license fee, including obligations to declare and pay this fee. This article analyzes the legal basis, effective timeline, scope of application, and clarifies the distinction between “abolition” and “exemption”, thereby helping enterprises correctly understand and apply the new regulations in practice.

Legal basis for the abolition of business license fee from 2026

Under Decree No. 362/2025/ND-CP, the Government has completely abolished Decree No. 139/2016/ND-CP dated 4 October 2016 on business license fees, as well as Decree No. 22/2020/ND-CP dated 24 February 2020, which amended and supplemented several provisions of Decree No. 139/2016/ND-CP.

These decrees previously constituted the sole legal framework governing business license fees, including liable entities, fee rates, payment timing, and notably the obligation to declare business license fees pursuant to Article 5 of Decree No. 139/2016/ND-CP. Once these decrees are abolished, the entire legal framework for business license fees ceases to have effect.

In parallel, Decree No. 120/2016/ND-CP and Decree No. 82/2023/ND-CP, which provided guidance on the Law on Fees and Charges, also expire upon the effective date of Decree No. 362/2025/ND-CP. This confirms the establishment of a new regulatory framework in which the business license fee is no longer recognized as a lawful charge.

Effective date and scope of application

Decree No. 362/2025/ND-CP takes effect from 1 January 2026. From this date onward, the business license fee no longer exists within Vietnam’s legal system on fees and charges.

This change applies uniformly to domestic enterprises, foreign-invested enterprises (FDIs), branches, representative offices, business locations, and other economic organizations that were previously subject to business license fee obligations.

Distinguishing “abolition” from “exemption”: Is declaration still required?

A common practical concern among enterprises and accounting teams is whether a declaration with a zero payable amount is still required from 2026.

From a legal standpoint, it is essential to distinguish between an exemption and an abolition. In exemption cases, the fee still exists legally, and enterprises must declare in order to establish eligibility for exemption. This approach previously applied to newly established enterprises during their first year of operation.

However, from 2026, the business license fee is not exempted but fully abolished. With the repeal of Decree No. 139/2016/ND-CP, Article 5 thereof regarding fee declaration automatically loses effect. Declaration obligations only arise when a lawful fee exists. Once the fee is abolished, no declaration obligation can arise.

Under legal logic and principles of state budget administration, there is no legal basis to require enterprises to declare a fee that no longer exists.

Obligations of enterprises and accountants from 2026

From 1 January 2026, enterprises are no longer required to pay or declare business license fees in any form. Failure to declare or pay such fees during this period does not constitute a legal violation, as no governing regulation exists.

In practice, enterprises and accounting departments should review internal tax and compliance procedures to remove business license fee declaration from recurring obligations, while monitoring any administrative guidance during the initial implementation phase to ensure consistency with tax authority practices.

For foreign-invested enterprises, the abolition of the business license fee from 2026 not only eliminates a financial obligation but also directly affects the overall approach to legal and tax compliance in Vietnam.
👉 See the detailed analysis: The impact of the abolition of the business license fee on FDI enterprises.

General assessment

The abolition of the business license fee reflects the Government’s clear policy direction toward reducing compliance costs, simplifying administrative procedures, and improving the business environment. For enterprises, particularly SMEs, startups, and foreign investors, this change removes an unnecessary legal burden and supports more efficient operations.

Green NRJ will continue to monitor and update key legal developments relating to taxes, fees, and financial obligations, assisting clients in ensuring full compliance and proactive operational planning from 2026 onward.