Shall the licensing fee declaration be resubmitted when there is a change in charter capital in Vietnam?

Shall the licensing fee declaration be resubmitted when there is a change in charter capital in Vietnam?

Based on Clause 1, Article 10 of Decree 126/2020/ND-CP, regulations on the licensing fee are as follows:

Deadline for submitting tax declaration files for land charges, licensing fees, registration fees, licensing fees, and other charges in accordance with the management and use of public assets law

Taxpayers shall comply with the regulations on the deadline for submitting tax declaration files as specified in Article 44 of the Law on Tax Management. As for the deadline for submitting the declaration files of land charges, licensing fees, registration fees, licensing fees, and other charges in accordance with the management and use of public assets law particularly specified in Clause 5, Article 44 of the Law on Tax Management, it shall be conducted as follows:

1. licensing fee

a) Taxpayers (excluding business households and individual businesses) newly established (including small and medium enterprises converting from business households) or establishing additional dependent units, business locations, or commencing manufacturing and business activities must submit a licensing fee declaration by no later than January 30 of the year following the establishment or commencement year.

In case there is a capital change during the year, the taxpayer must submit the licensing fee declaration by no later than January 30 of the year following the year the change information occurs.

b) Business households and individual businesses are not required to submit a licensing fee declaration. The tax authority shall base itself on the tax return, the tax management database to determine the revenue as a basis for calculating the payable licensing fee amount and notify the taxpayer according to the provisions of Article 13 of this Decree.

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Therefore, when a company has a change in charter capital during the year, it must fulfill the obligation to resubmit the licensing fee declaration. The deadline for submission of this declaration is January 30 of the following year after the change information has taken place.

Shall the licensing fee declaration be resubmitted when there is a change in charter capital in Vietnam? (Image from Internet)

Where to submit the licensing fee declaration in Vietnam?

Pursuant to Article 11 of Decree 126/2020/ND-CP, regulations on locations for submitting tax declaration files are as follows:

Locations for submitting tax declaration files

Taxpayers shall comply with the regulations on locations for submitting tax declaration files as specified in Clauses 1, 2, and 3, Article 45 of the Law on Tax Management and as follows:

1. Locations for submitting tax declaration files for taxpayers with multiple activities, businesses across several provincial localities as prescribed in Points a, b Clause 4, Article 45 of the Law on Tax Management are the tax authorities where the business activities are conducted different from the province or city where the main office is located in the following cases:

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k) File the licensing fee declaration at the location of the dependent unit or the business location.

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Based on Article 45 of the Law on Tax Management 2019, specifying locations for submitting tax declaration files as follow:

Locations for submitting tax declaration files

1. Taxpayers shall submit tax declaration files at the directly managing tax authority.

2. In case of submitting tax declaration files according to the one-stop-shop mechanism, the location to submit tax declaration files shall follow the provisions of that mechanism.

3. Locations for submitting tax declaration files for export and import goods shall follow the regulations of the Customs Law.

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Thus, locations for submitting the licensing fee declaration include:

- Taxpayers submit tax declaration files at the directly managing tax authority.

- In case of submitting the licensing fee declaration according to the one-stop-shop mechanism, the submission location must comply with the regulations of that mechanism.

- The submission location for the licensing fee declaration for export and import goods shall follow the regulations of the Customs Law.

- The submission location for the licensing fee declaration for taxpayers with multiple activities and businesses across different provincial localities is at the site where the dependent unit or business location is situated.

What is the penalty for late submission of licensing fee in Vietnam?

According to Clause 2, Article 59 of the Law on Tax Management 2019, it is stipulated as follows:

Handling of late tax payment

1. Cases required to pay late fees include:

a) Taxpayers submit late tax payments compared to the prescribed deadline, the extended tax payment deadline, the deadline stated in the notification of the tax management authority, the deadline in the decision on tax determination, or the handling decision of the tax management authority;

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2. The calculation and duration of late fees are stipulated as follows:

a) The delay fee calculated at 0.03%/day on the late tax payment amount;

b) The period for calculating the delay fee is continuous from the day following the day the late fee occurs stipulated in Clause 1 of this Article to the day immediately preceding the day the tax debt, refund recovery, additional tax, determined tax, late transferred tax has been paid into the state budget.

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Thus, the penalty for late submission of the licensing fee is currently calculated as follows:

Penalty amount = Late licensing fee amount x 0.03% x Number of late days

Note: The time for calculating the penalty is continuous from the day following the day the late fee occurs to the day immediately preceding the day the tax debt, refund recovery, additional tax, determined tax, late transferred tax has been paid into the state budget.