Are cooperatives engaged in trading agricultural products exempt from licensing fees in Vietnam?
Are cooperatives engaged in trading agricultural products exempt from licensing fees in Vietnam?
Pursuant to Clause 6, Article 3 of Decree 139/2016/ND-CP (amended and supplemented by Decree 22/2020/ND-CP), regulations state:
Exemption from licensing fee
Cases exempt from licensing fee include:
1. Individuals, groups of individuals, households engaging in production and business activities with annual revenue of 100 million VND or less.
2. Individuals, groups of individuals, households engaging in infrequent production and business activities; without fixed locations as guided by the Ministry of Finance.
3. Individuals, groups of individuals, households producing salt.
4. Organizations, individuals, groups of individuals, households breeding, catching aquatic and marine products and fishery logistic services.
5. Commune cultural post offices; press agencies (print, audio, video, electronic newspapers).
6. Cooperatives, cooperative unions (including branches, representative offices, business locations) operating in the agricultural sector as regulated by the law on agricultural cooperatives.
Thus, cooperatives operating in the agricultural sector as regulated by the law on agricultural cooperatives are subjects exempt from licensing fee. This means activities involving the purchase and sale of agricultural products will be exempt from licensing fee.
Are cooperatives engaged in trading agricultural products exempt from licensing fees in Vietnam? (Image from the Internet)
How much is the licensing fee in case of enterprises changing charter capital over 10 billion VND?
Pursuant to Point c, Clause 1, Article 4 of Circular 302/2016/TT-BTC, which guides the licensing fee rates issued by the Minister of Finance, regulations are as follows:
licensing fee rates
1. licensing fee rates for organizations engaged in production, trade of goods, services are as follows:
a) Organizations with charter capital or investment capital over 10 billion VND: 3,000,000 (three million) VND/year;
b) Organizations with charter capital or investment capital of 10 billion VND or less: 2,000,000 (two million) VND/year;
c) Branches, representative offices, business locations, public service providers, other economic organizations: 1,000,000 (one million) VND/year.
Tax rates for organizations as directed in this clause depend on the charter capital recorded in the business registration certificate or recorded in the enterprise registration certificate or recorded in the cooperative's charter. If there is no charter capital, it will depend on the investment capital recorded in the investment registration certificate or decision document on investment policy.
Organizations stated at points a and b of this clause, upon changing their charter capital or investment capital, the basis for determining the licensing fee rate is the charter capital or investment capital of the year preceding the tax calculation year.
If the charter capital or investment capital recorded in the business registration certificate or investment registration certificate is in foreign currency, it will be converted to Vietnamese dong to determine the licensing fee rate based on the buying rate of the commercial bank, credit institution where the taxpayer opens an account at the time the taxpayer pays into the state budget.
For enterprises changing charter capital or investment capital, the basis for determining the licensing fee rate is the charter capital or investment capital of the year preceding the tax calculation year according to the regulations.
What are regulations on declaration, payment of licensing fee for individuals, groups of individuals, households engaging in production in Vietnam?
Pursuant to Clause 2, Article 5 of Circular 302/2016/TT-BTC, the regulations on declaration and payment of licensing fee for individuals, groups of individuals, households engaging in the production, business of goods, services are as follows:
a) Declaration of licensing fee
a.1) Individuals, groups of individuals, households conducting business and paying taxes by the presumptive method do not need to declare licensing fee. Tax authorities will base on the database concerning the total revenue of individuals, groups of individuals, households to determine the licensing fee rate for each place of production and business.
a.2) Individuals, groups of individuals, households leasing real estate declare licensing fee once for each real estate lease contract. If the real estate lease contract extends over many years, licensing fee is paid per year corresponding to the number of years the individual, group of individuals, or household declares and pays value-added tax, personal income tax. In case individuals, groups of individuals, households declare and pay value-added tax, personal income tax once for a real estate lease contract extending over many years, they pay the licensing fee for one year.
a.3) In cases where individuals, groups of individuals, households producing and conducting business do not directly declare, pay taxes with the tax authority but have an organization declaring and paying tax on their behalf, the organization responsible for tax payment on their behalf is obligated to pay the licensing fee of the individuals, groups of individuals, households engaging in business when this individual, group of individuals, or household has not paid.
b) Payment of licensing fee
Individuals, groups of individuals, households must pay the licensing fee no later than January 30 each year.
In cases where individuals, groups of individuals, households are newly engaging in production, business and paying taxes by the presumptive method, the deadline for paying licensing fee is no later than the last day of the month following the month of arising tax declaration obligations according to personal income tax law.
