Do non-regularly operating public service providers need to pay the licensing fee in Vietnam?

Do non-regularly operating public service providers pay the licensing fee in Vietnam?

Based on Article 2 of Decree 139/2016/ND-CP, the regulations are as follows:

Licensing fee payers

licensing fee payers are organizations, individuals engaged in production, trading of goods and services, except for cases specified in Article 3 of this Decree, including:

1. Enterprises established under the provisions of the law.

2. Organizations established under the Cooperative Law.

3. public service providers established under the provisions of the law.

4. Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, people's armed units.

5. Other organizations engaged in production and business activities.

6. Branches, representative offices, and business locations of organizations specified in Clauses 1, 2, 3, 4, and 5 of this Article (if any).

7. Individuals, groups of individuals, households engaged in production, business activities.

Additionally, according to point c, clause 1, Article 4 of Decree No. 139/2016/ND-CP on the rate of licensing fee collection, it is stated:

Rate of licensing fee collection

1. The rate of licensing fee collection for organizations engaged in production, trading of goods and services is as follows:

a) Organizations with charter capital or investment capital over 10 billion VND: 3,000,000 VND/year;

b) Organizations with charter capital or investment capital of 10 billion VND or less: 2,000,000 VND/year;

c) Branches, representative offices, business locations, public service providers, other economic organizations: 1,000,000 VND/year

...

Thus, from the above regulations, it can be seen that public service providers engaged in non-regular business activities also have to pay the licensing fee.

Do non-regularly operating public service providers need to pay the licensing fee in Vietnam? (Image from the Internet)

When is the deadline to submit the licensing fee declaration for public service providers in Vietnam?

Based on clause 9, Article 18 of Decree 126/2020/ND-CP, the following is stipulated:

Tax submission deadline for state budget revenues from land, rights to exploit water resources, mineral resources, sea area use fees, registration fees, licensing fees

...

7. Sea area use fees:

a) For the case of annual sea area use fee payment:

The deadline for the first sea area use fee payment or adjustment according to documents of the competent state agency: No later than 30 days from the notification date.

From the second year onward, taxpayers can choose to pay sea area use fees once or twice a year. If taxpayers choose to pay sea area use fees once a year, the payment deadline is no later than May 31.

If taxpayers choose to pay sea area use fees twice a year, the payment deadlines for each installment are as follows: the first installment is 50% no later than May 31; the second installment must be paid in full no later than October 31.

b) For one-time sea area use fee payment for the entire allocation period: The deadline for payment is no later than 30 days from the notification date.

8. Registration fee: The deadline for registration fee payment is no later than 30 days from the notification date, unless the taxpayer is eligible for deferred payment.

9. licensing fee:

a) The deadline for licensing fee payment is no later than January 30 annually.

b) For small and medium enterprises transitioning from household businesses (including dependent units, business locations of the enterprise) when the licensing fee exemption period ends (fourth year from the establishment year), the deadline is as follows:

b.1) If the exemption period ends in the first six months of the year, the deadline is no later than July 30 of the exemption ending year.

b.2) If the exemption period ends in the last six months of the year, the deadline is no later than January 30 of the subsequent year.

c) Household businesses, individual businesses that have ceased production, and business activities that resume later, the deadline is as follows:

c.1) If resuming in the first six months of the year: No later than July 30 of the resumption year.

c.2) If resuming in the last six months of the year: No later than January 30 of the subsequent year.

Thus, according to the above regulation, the deadline for licensing fee submission for public service providers is no later than January 30 annually.

What is the licensing fee rate for public service providers in Vietnam?

According to clause 1, Article 4 of Decree 139/2016/ND-CP, the licensing fee rates are stipulated as follows:

Rate of licensing fee collection

1. The rate of licensing fee collection for organizations engaged in production, trading of goods and services is as follows:

a) Organizations with charter capital or investment capital over 10 billion VND: 3,000,000 VND/year;

b) Organizations with charter capital or investment capital of 10 billion VND or less: 2,000,000 VND/year;

c) Branches, representative offices, business locations, public service providers, other economic organizations: 1,000,000 VND/year.

The rate of licensing fee collection for organizations specified in points a and b of this clause shall be based on the charter capital recorded in the business registration certificate; if there is no charter capital, it shall be based on the investment capital recorded in the investment registration certificate.

Thus, for public service providers, the current licensing fee rate is 1 million VND per year.