No. From 1 January 2026, branches and business locations no longer pay or file license tax separately — just like the parent company and every other taxpayer. License tax has been fully terminated under Article 10(7) of Resolution 198/2025/QH15, implemented by Decree 362/2025/ND-CP. The question “how much does each branch pay separately” is meaningless from 2026.
Before 2026: each branch paid VND 1,000,000 per year separately
To answer “how was it before”, look at the old framework — now repealed:
- Branches and business locations paid a separate license tax of VND 1,000,000 per year per unit (Article 2.6 combined with Article 4.1.c of Decree 139/2016/ND-CP) — independent of the parent company’s license-tax obligation;
- Newly established branches and business locations were exempt for their first year (Decree 22/2020/ND-CP amending Decree 139/2016).
Note: both Decree 139/2016 and Decree 22/2020 were repealed in full from 1 January 2026 (Article 6(4) of Decree 362/2025/ND-CP). The figures above are history only — they must never be cited as current law.
From 2026: no payment, no filing — including newly established units
Resolution 198/2025/QH15 terminates license-tax collection for all taxpayers from 1 January 2026; Decree 362/2025/ND-CP clears away the old legal framework. The consequences:
- Branches and business locations incur no new license-tax obligation and file no license-tax return;
- Dependent units established from 2026 onwards likewise have no license-tax obligation — initial tax registration no longer includes a license-tax filing step.
Handling old debts and 2025 returns
Abolition from 2026 does not erase past obligations:
- License-tax arrears for 2025 and earlier years (of the parent company and of each branch/business location) must still be paid in full;
- Branches and business locations established during 2025: the 2025 license-tax return must be filed before 30 January 2026 — the “last license-tax return” of the old system.
Note for accountants: no license-tax budgeting from 2026
From fiscal year 2026, businesses should not budget license-tax expenses for the parent company or its dependent units. Internal tax-compliance templates and checklists need updating: remove the “declare and pay license tax in January” line and replace it with a review of the obligations that remain in force (license tax is dead, but VAT, CIT and PIT continue in full).
FAQs
1. A company with 5 branches — how much license tax is saved from 2026?
Under the old framework, each branch paid VND 1,000,000 per year separately (from the second year). From 2026, all of that drops to zero — but arrears for prior years must still be paid in full.
2. What about business locations (not branches)?
Exactly like branches: from 1 January 2026, no license-tax payment or filing.
3. The company forgot to pay 2025 license tax for a newly established branch — what now?
Distinguish by when the branch was established: (a) a branch established in 2025 is exempt from the 2025 license-tax amount — it only has to file the license-tax return (payable amount = 0); (b) a branch established in 2024 or earlier must file the return and pay the full 2025 license tax (VND 1,000,000 per unit) before 30 January 2026, and calculate late-payment interest if past the deadline under tax-administration rules. Basis: Clause 1, Article 10 of Decree 126/2020/ND-CP — the tax amount is waived but the return must still be filed.
Need help reviewing the tax obligations of your representative office or branch? Reach us via the Contact page of FLAT Law Firm.
Transparency note: This article was researched and reviewed by FLAT Law Firm’s AI Legal Council under its internal process; it has not been reviewed by a human lawyer. The content is for reference only, not legal advice.
