Are public preschools required to pay licensing fee in Vietnam?

Are public preschools required to pay licensing fee in Vietnam?

Based on Clause 10, Article 3 of Decree 139/2016/ND-CP, amended and supplemented by points a, b, c of Clause 1, Article 1 of Decree 22/2020/ND-CP, it is stipulated as follows:

Exemption from licensing fee

Cases exempt from licensing fee include:

1. Individuals, groups of individuals, and households engaged in production and business activities with an annual revenue of 100 million VND or less.

2. Individuals, groups of individuals, and households engaged in non-regular production and business activities; without a fixed location as guided by the Ministry of Finance.

3. Individuals, groups of individuals, and households engaged in salt production.

4. Organizations, individuals, groups of individuals, and households engaged in aquaculture, fishing activities, and fishery logistics services.

5. Postal service points in communes; press agencies (print, radio, television, electronic newspapers).

6. Cooperatives, cooperative alliances (including branches, representative offices, and business locations) operating in agriculture as stipulated by law on agricultural cooperatives.

7. People's credit funds; branches, representative offices, and business locations of cooperatives, cooperative alliances, and private enterprises operating in mountainous areas. Mountainous areas are determined as per the regulations of the Committee for Ethnic Minority Affairs.

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10. Public general education institutions and public preschool education establishments.

Therefore, public preschools are exempt from licensing fee and are not required to pay licensing fee.

Are public preschools required to pay licensing fee in Vietnam? (Image from Internet)

How to calculate the late payment interest for licensing fee in Vietnam in 2025?

According to Clause 2, Article 59 of the Law on Tax Administration 2019, amended by Clause 7, Article 6 of the Law Amending Laws on Securities, Accounting, Independent Auditing, State Budget, Management and Use of Public Property, Tax Administration, Personal Income Tax, National Reserve, Handling Administrative Violations 2024, the calculation of late payment interests for the 2025 license fee and the calculation period for late payment is as follows:

Handling of Late Tax Payment

1. Cases subject to late payment interests include:

a) Taxpayers delay payment of taxes compared to the prescribed deadline, the extended deadline for tax payment, the deadline specified in the notice from the tax management authority, the deadline in the tax imposition decision, or the handling decision of the tax management authority;

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2. The calculation rate and period for late payment are specified as follows:

a) The calculation rate for late payment is 0.03% per day based on the amount of overdue tax;

b) The period for calculating late payment interests is continuous, starting from the day after the last day of the tax payment deadline, the extended deadline, the deadline specified in the notification or tax imposition decision, or the handling decision of the tax management authority, until the day before the overdue tax amount, recovered tax, additional tax, tax imposition, or delayed transfer is deposited into the state budget.

3. Taxpayers self-determine the amount of late payment interest according to Clauses 1 and 2 of this Article and pay it into the state budget as prescribed. In case taxpayers have overpaid taxes, late payment interests, or fines, they shall proceed according to Clause 1, Article 60 of this Law.

4. In the case of 30 days since the end of the tax payment deadline, if taxpayers have not paid taxes, late payment interests, or fines, the tax management authority shall notify the taxpayer of the owed tax amount, fine, and number of late payment days.

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Thus, the late payment interest for the 2025 license fee is determined as follows:

Late Payment Amount = Overdue License Fee x 0.03% x Number of Late Days

Note: The calculation period for late payment begins continuously from the day after the final day of the tax payment deadline, extended deadline, or deadline specified in the notification or tax imposition decision, or handling decision of the tax management authority, until the day before the overdue tax amount, recovered tax, additional tax, imposed tax, or delayed transfer is deposited into the state budget.

Which entities are licensing fee payers in Vietnam?

Pursuant to Article 2 of Decree 139/2016/ND-CP, individuals liable to pay licensing fee are specified as follows:

Entities subject to licensing fee are organizations and individuals engaged in the production and trade of goods and services, except for cases specified in Article 3 of Decree 139/2016/ND-CP, including:

- Enterprises established in accordance with the law.

- Organizations established pursuant to the Law on Cooperatives.

- Public service units established by law.

- Economic organizations of political organizations, sociopolitical organizations, social organizations, socioprofessional organizations, and people's armed units.

- Other organizations engaging in production and business activities.

- Branches, representative offices, and business locations of organizations prescribed in Clauses 1, 2, 3, 4, and 5, Article 2 of Decree 139/2016/ND-CP (if any).

- Individuals, groups of individuals, and households engaged in production and business.