Vietnam tax authorities review business dissolution hurdles

Vietnamese businesses facing dissolution are encountering significant financial hurdles due to accumulated tax obligations. Many companies that have ceased operations but failed to close their tax codes are being met with substantial costs, sometimes reaching hundreds of millions of dong. These expenses include license fees, penalties for late tax declaration filings, and accumulated late payment interest.

To address this, the Tax Department under the Ministry of Finance has been conducting a campaign to clean up tax codes. Since mid-May, authorities have focused on reviewing and standardizing taxpayer statuses. By August 2026, the tax authorities reported completing the closure of tax codes for nearly 72,000 organizations and businesses.

Nguyen Duc Huy, Deputy Head of the Tax Professional Board, stated that the Tax Department is continuing to review obstacles regarding tax policies, obligations, and sanctions. The goal is to propose suitable solutions to higher authorities to create better conditions for businesses to legally and efficiently complete their dissolution processes.