Shall taxpayers declare tax to tax authorities in cases of licensing fee exemption for enterprise establishment in Vietnam?

How many types of enterprises in Vietnam in 2025?

Based on the provisions of the Law on Enterprises 2020, when establishing a company in 2025, the following types of companies can be chosen:

(1) Single-member Limited Liability Company;

(2) Multi-member Limited Liability Company;

(3) Joint-stock Company;

(4) Partnership;

(5) Sole proprietorship.

Shall taxpayers declare tax to tax authorities in cases of licensing fee exemption for enterprise establishment in Vietnam?

Pursuant to Clause 1, Article 10 of Decree 126/2020/ND-CP:

Deadline for filing tax declaration dossiers for land use fees, licensing fee, registration fees, fees for granting rights, and other revenues under the law on management and use of public assets

Taxpayers shall comply with the regulations on the deadline for filing tax declaration dossiers as stipulated in Article 44 of the Law on Tax Administration. Regarding the deadline for submitting tax declaration dossiers related to land use fees, licensing fee, registration fees, fees for granting rights, and other revenues under the law on management and use of public assets as prescribed in Clause 5, Article 44 of the Law on Tax Administration shall be implemented as follows:

1. licensing fee

a) New licensing feepayers (excluding business households, individual businesses), including small and medium enterprises transitioning from business households or establishing new branches, business locations, or commencing production and business activities, must submit licensing fee declaration dossiers no later than January 30 of the year following the year of establishment or commencement of production and business activities.

If there is a change in capital during the year, the taxpayers must submit licensing fee declaration dossiers no later than January 30 of the following year when the change occurred.

b) Business households and individual businesses are not required to submit licensing fee declaration dossiers. The tax authorities, based on tax declaration dossiers and tax management databases, determine the revenue as a basis for calculating the payable licensing fee and notifying the taxpayers according to the provisions in Article 13 of this Decree.

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Based on the provision, licensing feepayers (excluding business households, individual businesses) newly established, including small and medium enterprises transitioning from business households or establishing new branches, business locations or commencing production and business activities must submit licensing fee declaration dossiers no later than January 30 of the year following the year of establishment or the start of production and business activities.

Thus, newly established companies in 2025, which are exempted from licensing fee, must also conduct licensing fee declarations and submit the Declaration to the directly managing tax authority by January 30, 2026.

Note: If there is a change in capital during the year, taxpayers must submit the licensing fee declaration dossiers no later than January 30 of the following year when the change occurred.

Shall taxpayers declare tax to tax authorities in cases of licensing fee exemption for enterprise establishment in Vietnam? (Image from the Internet)

What is the licensing fee rate for companies in Vietnam in 2025?

According to Clause 1, Article 4 of Decree 139/2016/ND-CP and Clause 1, Article 4 of Circular 302/2016/TT-BTC, the licensing fee rates for organizations engaging in the production and trading of goods and services are stipulated as follows:

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

(ii) Organizations with charter capital or investment capital up to 10 billion VND: 2,000,000 VND/year;

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

The licensing fee rate for the aforementioned organizations is based on the charter capital stated in the business registration certificate or enterprise registration certificate or stated in the cooperative charter. In the absence of charter capital, it is based on the investment capital noted in the investment registration certificate or the decision document on investment policy.

Organizations mentioned in points (i) and (ii) that alter their charter capital or investment capital will have their licensing fee determined by the charter capital or investment capital of the year immediately preceding the year for which the licensing fee is calculated.

If the charter capital or investment capital is recorded in the business registration certificate or investment registration certificate in foreign currency, it must be converted to Vietnamese dong to determine the licensing fee rate according to the buying rate of the commercial bank or credit institution where the licensing feepayer opens an account at the time when the taxpayer pays the fee into the state budget.

Thus, the licensing fee rate for a company in 2025 is determined as follows: