Is the licensing fee declared monthly, quarterly, or annually? What are the current licensing fee rates in Vietnam?

Is the licensing fee declared monthly, quarterly, or annually in Vietnam?

Based on Clause 3, Article 8 of Decree 126/2020/ND-CP, which stipulates taxes declared monthly, quarterly, annually, per tax obligation occurrence, and for tax finalization as follows:

Types of Taxes Declared Monthly, Quarterly, Annually, Per Tax Obligation Occurrence, and for Tax Finalization

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

a) licensing fee.

b) Personal income tax for individuals working as lottery agents, insurance agents, multi-level sales without deductions due to not reaching the taxable threshold yet determine taxable status by year-end.

c) Types of taxes and revenue for business households, individuals paying tax according to the presumptive method, individuals choosing to declare tax annually for leasing assets.

d) Non-agricultural land use tax.

Taxpayers declare annually for each parcel and consolidate declarations for homestead land in cases where they have land use rights for multiple parcels within one district, or across many districts within the same provincial area. Taxpayers are not required to consolidate in the following cases:

d.1) Taxpayers having land use rights for one or several parcels within a district, with total taxable land area not exceeding the homestead land limit where the land use right is held.

d.2) Taxpayers having land use rights for several parcels across different districts without any parcel exceeding the threshold, and the total taxable land area not exceeding the homestead land limit where the land use right is held.

dd) Agricultural land use tax.

e) Annual payments for land and water surface lease.

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Based on the above regulation, it can be concluded that the licensing fee is declared annually.

Is the licensing fee declared monthly, quarterly, or annually? What are the current licensing fee rates in Vietnam? (Image from the Internet)

What are the current licensing fee rates in Vietnam?

The licensing fee rates are stipulated in Article 4 of Decree 139/2016/ND-CP (amended and supplemented by Clause 2, Article 1 of Decree 22/2020/ND-CP) as follows:

- licensing fee rates for organizations engaged in production and business activities as follows:

+ Organizations with charter capital or investment capital above 10 billion VND: 3,000,000 VND/year;

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

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

The licensing fee rates for organizations with charter capital or investment capital above 10 billion VND and those with charter capital or investment capital of 10 billion VND or less are based on the charter capital registered in the business registration certificate; if there is no charter capital, it is based on investment capital recorded in the investment registration certificate.

- licensing fee rates for individuals, households engaged in production and business activities as follows:

+ Individuals, groups of individuals, households with revenue over 500 million VND/year: 1,000,000 VND/year;

+ Individuals, groups of individuals, households with revenue from over 300 to 500 million VND/year: 500,000 VND/year;

+ Individuals, groups of individuals, households with revenue from over 100 to 300 million VND/year: 300,000 VND/year.

+ Revenue to determine licensing fee rates for individuals, groups of individuals, households is guided by the Ministry of Finance.

- Small and medium enterprises converting from business households (including branches, representative offices, business locations) after the fee exemption period (the fourth year from the company's establishment): if ending in the first 6 months of the year, the full annual fee is paid, if ending in the last 6 months, 50% of the annual fee is paid.

Households, individuals, groups of individuals engaged in production and business who have dissolved and resumed production and business in the first 6 months of the year pay the full annual fee, in the last 6 months pay 50% of the annual fee.

- Organizations with charter capital or investment capital above 10 billion VND and those with charter capital or investment capital of 10 billion VND or less that have changes in charter capital or investment capital will have the licensing fee based on the charter capital or investment capital of the year preceding the fee calculation year.

If the charter capital or investment capital is denominated in foreign currency in the business registration certificate or investment registration certificate, it should be converted into VND based on the buying rate of the commercial bank or credit institution where the fee payer holds their account at the time of fee payment into the state budget.

- Fee payers who are active and send written notice to the direct tax authority about suspending production and business in the calendar year are not required to pay the licensing fee for the year of suspension provided that: the suspension notice is sent to the tax authority before the fee payment deadline as prescribed (January 30 each year) and the fee for the suspended year has not been paid.

In cases of suspension without meeting the aforementioned conditions, the full yearly fee must be paid.

When is the licensing fee exempt in Vietnam?

Based on Article 3 of Decree 139/2016/ND-CP (amended and supplemented by Clause 1, Article 1 of Decree 22/2020/ND-CP) stipulating the cases of licensing fee exemption as follows:

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

- Individuals, groups of individuals, households engaged in production and business not regularly; without a fixed business location as guided by the Ministry of Finance.

- Individuals, groups of individuals, households producing salt.

- Organizations, individuals, groups of individuals, households engaged in aquaculture, seafood catching, and related fishing logistics services.

- Communal cultural postal points; press agencies (print, audio, visual, and electronic).

- Cooperatives, cooperative unions (including branches, representative offices, business locations) engaged in agriculture in accordance with the law on agricultural cooperatives.

- People's credit funds; branches, representative offices, business locations of cooperatives, cooperative unions, and private businesses operating in mountainous areas. The mountainous areas are determined based on the regulations of the Committee for Ethnic Minority Affairs.