Vietnam: How much is licensing fee for organizations with investment capital over 10 billion dong?

Vietnam: How much is licensing fee for organizations with investment capital over 10 billion dong?

According to Clause 1, Article 4 of Decree 139/2016/ND-CP, the licensing fee for organizations engaged in production, trading of goods and services is stipulated as follows:

- Organizations with charter capital or invested capital over 10 billion VND: 3,000,000 VND/year;

- Organizations with charter capital or invested 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.

Thus, an organization with charter capital over 10 billion VND is required to pay a licensing fees of 3,000,000 VND/year.

Vietnam: How much is licensing fee for organizations with investment capital over 10 billion dong? (Image from the Internet)

Which cases are exempt from licensing fees in Vietnam?

According to Article 3 of Decree 139/2016/ND-CP (as amended and supplemented by Clause 1, Article 1 of Decree 22/2020/ND-CP), the cases where licensing fees are exempt include:

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

- Individuals, groups of individuals, and households engaged in irregular production and business activities; without a fixed business location as guided by the Ministry of Finance.

- Individuals, groups of individuals, and households producing salt.

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

- Cultural post offices in communes; press agencies (printed newspapers, radio, television, electronic newspapers).

- Cooperatives, cooperative unions (including branches, representative offices, and business locations) operating in the agricultural sector according to the law on agricultural cooperatives.

- People's credit funds; branches, representative offices, business locations of cooperatives, cooperative unions, and private enterprises doing business in mountainous areas. The mountainous areas are determined according to the provisions of the Committee for Ethnic Minorities.

- Exemption from licensing fees in the first year of establishment or production and business activities (from January 01 to December 31) for:

+ Newly established organizations (granted a new tax code, new enterprise code).

+ Households, individuals, and groups of individuals starting production and business activities for the first time.

+ During the period of exemption from licensing fees, if organizations, households, individuals, and groups of individuals establish branches, representative offices, or business locations, these are also exempt from licensing fees during the exemption period of the main organization or household.

- Small and medium-sized enterprises transitioning from household businesses (as stipulated in Article 16 of the Law on Support for Small and Medium-sized Enterprises 2017) are exempt from licensing fees for 3 years from the date of receiving the first business registration certificate.

+ During the licensing fee exemption period, if small and medium-sized enterprises establish branches, representative offices, or business locations, these will also be exempt from licensing fees during the enterprise’s exemption period.

+ Branches, representative offices, or business locations of small and medium-sized enterprises (exempt from licensing fees as per Article 16 of the Law on Support for Small and Medium-sized Enterprises 2017) established before the effective date of Decree 139/2016/ND-CP will have their licensing fee exemption period calculated from the effective date of the decree until the end of the small and medium-sized enterprise’s exemption period.

+ Small and medium-sized enterprises transitioning from household businesses before this Decree takes effect will implement licensing fee exemption according to Articles 16 and 35 of the Law on Support for Small and Medium-sized Enterprises 2017.

- Public general education institutions and public preschool education institutions.

What is the deadline for paying the licensing fee in Vietnam?

According to Clause 9, Article 18 of Decree 126/2020/ND-CP, the deadline for paying the licensing fee is as follows:

- The deadline for paying the licensing fee is no later than January 30 each year.

- For small and medium-sized enterprises transitioning from household businesses (including dependent units and business locations of the enterprise) at the end of their licensing fee exemption period (the fourth year from the year of establishing the enterprise), the deadline is as follows:

+ If the exemption period ends in the first six months of the year, the deadline for paying the licensing fee is no later than July 30 of the year the exemption ends.

+ If the exemption period ends in the last six months of the year, the deadline for paying the licensing fee is no later than January 30 of the following year after the exemption ends.

- For household businesses and individual businesses that have ceased production and business activities but resumed operations, the payment deadlines are as follows:

+ If resuming operations in the first six months of the year: No later than July 30 of the year of resuming operations.

+ If resuming operations in the last six months of the year: No later than January 30 of the following year after resuming operations.