Vietnam tightens business registration and tax enforcement

Vietnam is implementing stricter business registration and tax management regulations. Under Circular 121/2026/TT-BTC, effective August 21, 2026, new registration forms will require more detailed information regarding beneficial owners. This shift moves management from merely recording company information to identifying the actual individuals who own or control the business, including indirect ownership layers.

Simultaneously, the Tax Department is intensifying efforts to eliminate ‘ghost’ companies. Authorities are targeting taxpayers who are inactive at their registered addresses or who use new legal entities to evade tax obligations. Officials emphasized that owners, legal representatives, and managers are responsible for fulfilling tax obligations of previous businesses before registering new ones. Under Decree 168/2025 and Decree 252/2026, businesses that cease operations for over a year without notification may face the revocation of their business registration certificates.