Vietnam: Shall enterprises submit a new licensing fee declaration when changing charter capital?
When do enterprises pay the licensing fee in Vietnam for 2025?
Based on Clause 9, Article 18 of Decree 126/2020/ND-CP governing the deadline for the payment of the 2025 licensing fee as follows:
Deadline for payment of taxes on revenue sources belonging to the state budget from land, water resource exploitation rights fees, mineral resource fees, foreign use fees, registration fees, and licensing fees
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9. licensing fee:
a) The deadline for payment of the licensing fee is no later than January 30 each year.
b) For small and medium enterprises transitioning from business households (including dependent units, business locations of enterprises) at the end of the licensing fee exemption period (the fourth year since the establishment of the enterprise), the licensing fee payment deadline is as follows:
b.1) In case the fee exemption period ends in the first 6 months of the year, the deadline for payment is no later than July 30 of the end year of the exemption period.
b.2) In case the fee exemption period ends in the last 6 months of the year, the deadline for payment is no later than January 30 of the following year after the exemption ends.
c) Business households and individual businesses that have ceased production and business activities and then resumed operations shall have the following payment deadlines:
c.1) In case of resuming operations in the first 6 months of the year: No later than July 30 of the resuming year.
c.2) In case of resuming operations in the last 6 months of the year: No later than January 30 of the following year after resuming.
Furthermore, Article 86 of Circular 80/2021/TT-BTC stipulates the deadline for filing tax declarations and tax payments as follows:
Deadline for Filing Tax Declarations and Tax Payment
The deadline for submitting tax declarations follows the regulations in Clauses 1, 2, 3, 4, and 5 of Article 44 of the Tax Administration Law and Article 10 of Decree 126/2020/ND-CP. The tax payment deadline is implemented according to Clauses 1, 2, and 3 of Article 55 of the Tax Administration Law and Article 18 of Decree 126/2020/ND-CP. In cases where the deadline coincides with a holiday as regulated, the deadline is considered the next working day after the holiday as per the Civil Code.
Thus, the deadline for the payment of the 2025 licensing fee by enterprises is no later than January 30 each year, which is January 30, 2025. However, January 30, 2025, coincides with the Lunar New Year holiday of 2025 (the second day of Tet At Ty 2025), so the deadline for the 2025 licensing fee will be extended to the next working day, which is February 3, 2025.
Note:
- For small and medium enterprises transitioning from business households (including dependent units, business locations of the enterprise) when they finish the licensing fee exemption period (the fourth year from the establishment of the enterprise), the licensing fee payment deadline is as follows:
+ If the exemption period ends in the first 6 months of the year, the deadline for payment is no later than July 30 of the exemption-ending year.
+ If the exemption period ends in the last 6 months of the year, the licensing fee payment deadline is no later than January 30 of the following year after the exemption ends.
- Business households, individual businesses that have ceased production and business activities and then resumed operations shall have the following payment deadlines:
+ In case of resuming operations in the first 6 months of the year: No later than July 30 of the resuming year.
+ In case of resuming operations in the last 6 months of the year: No later than January 30 of the following year after resuming.
Vietnam: Shall enterprises submit a new licensing fee declaration when changing charter capital?
Based on Article 10 of Decree 126/2020/ND-CP, the deadline for filing a licensing fee declaration is as follows:
Deadline for Submitting Tax Declarations for Land-related Revenues, licensing fees, Registration Fees, Licensing Fees, and Other Revenues as per Management and Utilization of Public Assets Law
Taxpayers comply with the regulations on the deadline for submitting tax declarations as per Article 44 of the Tax Administration Law. For land-related revenues, licensing fees, registration fees, licensing fees, and other revenues as per the Management and Utilization of Public Assets Law, compliance with Clause 5, Article 44 of the Tax Administration Law is as follows:
- licensing fee
a) Taxpayers of licensing fees (excluding business households, individuals) that are newly established (including small and medium enterprises transitioning from business households) or establish dependent units, business locations, or begin production and business operations must submit the licensing fee declaration file no later than January 30 of the year following the year of establishment or the start of production and business activities.
In case of capital changes during the year, the taxpayer must submit the revised licensing fee declaration no later than January 30 of the year following the year the change occurs.
b) Business households, individual businesses are not required to submit a licensing fee declaration. The tax authority will base on tax declaration dossiers, tax management databases to determine revenue for calculating the licensing fee to be paid and notify taxpayers of licensing fees in accordance with Article 13 of this Decree.
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Therefore, if there is a change in capital during the year, the enterprise must submit a revised licensing fee declaration no later than January 30 of the year following the change occurrence.
Vietnam: Shall enterprises submit a new licensing fee declaration when changing charter capital? (Image from Internet)
How to calculate late payment interest on the licensing fee in Vietnam?
Based on Clause 2, Article 59 of the Tax Administration Law 2019 governing the handling of late tax payments as follows:
Handling of Late Tax Payments
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- Calculation of late payment interest and the time for calculating late payment interest are specified as follows:
a) Late payment interest is calculated at 0.03% per day on the late-paid tax amount;
b) The time for calculating late payment interest is continuously counted from the day following the day the late payment occurs as stipulated in Clause 1, Article 59 of this Law until the day immediately preceding the day the outstanding tax, refunded tax recovery, additional tax, determined tax, delayed transferred tax is paid into the state budget.
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Accordingly, if the enterprise pays the licensing fee late, it must pay late payment interest according to the following formula:
Late payment interest = Amount of late-paid licensing fee x 0.03% x Number of late days
Note: The time for calculating late payment interest is continuously counted from the day following the day the late payment occurs as stipulated in Clause 1, Article 59 of the Tax Administration Law 2019 until the day immediately preceding the day the outstanding tax, refunded tax recovery, additional tax, determined tax, delayed transferred tax is paid into the state budget.
