How many times is the license fee paid annually in Vietnam?

How many times is the license fee paid annually in Vietnam?

Currently, the term "license tax" is no longer used in legal documents; instead, the term "license fee" is used.

Based on the provisions of Clause 3 Article 8 Decree 126/2020/ND-CP as follows:

Types of taxes declared monthly, quarterly, annually, per time of tax obligation arising, and final tax declaration

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3. Types of taxes and other revenues belonging to the state budget declared annually include:

a) License fee.

b) Personal income tax for individuals acting as lottery agents, insurance agents, multi-level marketers who have not yet withheld tax during the year because it did not reach the tax payable level but at the end of the year determine to belong to the tax payable category.

c) Types of taxes and revenues for business households, individual businesses paying tax under the prescriptive method, individuals renting property choosing to declare tax annually.

d) Non-agricultural land use tax.

Taxpayers declare annual taxes for each parcel and total declaration for homestead land in cases where they have land use rights for many parcels within the same district or in many districts within the same provincial area. Taxpayers are not required to make a combined declaration for the following cases:

d.1) Taxpayers who have land use rights for one parcel or multiple parcels within the same district, but the total taxable land area does not exceed the homestead lot limit at the place where they have the land use rights.

d.2) Taxpayers who have land use rights for multiple parcels in different districts, but no parcel exceeds the limit, and the total area of taxable parcels does not exceed the homestead lot limit at the place where they have the land use rights.

dd) Agricultural land use tax.

e) Land rent, water surface rent in the form of annual payment.

Thus, according to the above regulations, the license fee is a revenue belonging to the state budget declared annually, meaning the license fee must be paid once every year.

Which entities are license fee payers in Vietnam?

Based on the provisions of Article 2 Decree 139/2016/ND-CP, entities liable to license fee are organizations, individuals engaged in the production, business of goods, services, except for cases specified in Article 3 Decree 139/2016/ND-CP (as amended and supplemented by Clause 1 Article 1 Decree 22/2020/ND-CP) regarding cases exempted from license fee, including:

(1) Enterprises established under the law.

(2) Organizations established under the Cooperative Law.

(3) Public service units established under the law.

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

(5) Other organizations engaged in production, business.

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

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

How many times is the license fee paid annually in Vietnam? (Image from the Internet)

What is the latest deadline to pay the license fee in Vietnam?

Based on the provisions of Clause 9 Article 18 Decree 126/2020/ND-CP regarding the deadline for paying the license fee as follows:

Deadline for paying taxes and revenues belonging to the state budget from land, water resource exploitation rights, mineral resource exploitation rights, sea area use fees, registration fees, license fees

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9. License fee:

a) The deadline for paying the license fee is no later than January 30 every year.

b) For small and medium enterprises converted from business households (including dependent units, business locations of the enterprise) at the end of the license fee exemption period (the fourth year from the establishment of the enterprise), the deadline for paying the license fee is as follows:

b.1) In case the exemption period ends in the first 6 months of the year, the deadline for paying the license fee is no later than July 30 of the year the exemption period ends.

b.2) In case the exemption period ends in the last 6 months of the year, the deadline for paying the license fee is no later than January 30 of the year following the year the exemption period ends.

c) Business households, individual businesses that have ceased production, business activities then resume operations, the deadline for paying the license fee is as follows:

c.1) In case of resumption in the first 6 months of the year: No later than July 30 of the resumption year.

c.2) In case of resumption in the last 6 months of the year: No later than January 30 of the year following the resumption year.

Thus, the latest deadline to pay the license fee is January 30 every year. However, for some special cases, the payment deadline can be extended to July 30 or the following year, depending on the end of the tax exemption period or the resumption of business activities.