What are 10 cases of licensing fee exemption in Vietnam?

Who must pay the licensing fee in Vietnam?

According to Article 2 of Decree 139/2016/ND-CP, entities liable for licensing fee are organizations and individuals engaged in production, business of goods and services (excluding cases exempted from licensing fee), including:

- Enterprises established in accordance with the law.

- Organizations established under the Cooperative Law.

- Non-business units established in accordance with the law.

- Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, and people's armed units.

- Other organizations engaged in production and business activities.

- Branches, representative offices, and business locations of organizations stipulated in clauses 1, 2, 3, 4, and 5 of Article 2 of Decree 139/2016/ND-CP (if any).

- Individuals, groups of individuals, households engaged in production and business activities.

What are 10 cases of licensing fee exemption in Vietnam? (Image from the Internet)

What are 10 cases of licensing fee exemption in Vietnam?

licensing fee exemptions are outlined in Article 3 of Decree 139/2016/ND-CP (as amended and supplemented by points a, b clause 1 Article 1 of Decree 22/2020/ND-CP), including:

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

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

- Individuals, groups of individuals, households producing salt.

- Organizations, individuals, groups of individuals, households engaged in aquaculture, fishing, and fishery logistics services.

- Cultural postal points; press agencies (printed newspapers, radio, television, electronic newspapers).

- Cooperatives, cooperative alliances (including branches, representative offices, business locations) engaged in agricultural activities as prescribed by the law on agricultural cooperatives.

- People's credit funds; branches, representative offices, business locations of cooperatives, cooperative alliances, and private enterprises operating in mountainous areas. Mountain areas are identified according to the regulations of the Committee for Ethnic Minorities Affairs.

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

+ Newly established organizations (issued a new tax code or business code).

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

+ During the licensing fee exemption period, if organizations, households, individuals, groups of individuals establish branches, representative offices, or business locations, such branches, representative offices, or business locations are exempt from licensing fee during the same exemption period of the primary entities.

- Small and medium enterprises transitioning from household businesses (according to Article 16 of the Law on Supporting Small and Medium Enterprises 2017) are exempt from licensing fee for 3 years from the first issuance date of the business registration certificate.

+ During the licensing fee exemption period, if small and medium enterprises establish branches, representative offices, or business locations, such branches, representative offices, or business locations are exempt from licensing fee during the exemption period of the primary enterprises.

+ Branches, representative offices, business locations of small and medium enterprises (eligible for licensing fee exemption under Article 16 of the Law on Supporting Small and Medium Enterprises 2017) established before the effective date of Decree 139/2016/ND-CP, have their licensing fee exemption period calculated from the effective date of this Decree to the end of the exemption period of the primary enterprises.

+ Small and medium enterprises transitioning from household businesses before the effective date of this Decree shall have licensing fee exempted in accordance with Articles 16 and 35 of the Law on Supporting Small and Medium Enterprises 2017.

- Public primary education institutions and public kindergartens.

What is the deadline for submitting licensing fee declarations in Vietnam?

According to clause 1 of Article 10 of Decree 126/2020/ND-CP, the deadline for submitting licensing fee declarations is as follows:

- Licensing feepayers (excluding household businesses and individual businesses) newly established (including small and medium enterprises transitioning from household businesses) or establishing additional dependent units, business locations, or commencing production and business activities must submit their licensing fee declarations no later than January 30 of the year following the year of establishment or commencement of production and business activities.

In the event of a capital change during the year, the licensing feepayer must submit the licensing fee declaration no later than January 30 of the year following the year in which the change occurred.

- Household businesses and individual businesses are not required to submit licensing fee declarations. Tax authorities shall base on tax declarations, tax management databases to determine revenue as a basis for calculating the licensing fee payable and notify licensing feepayers to comply according to the provisions of Article 13 of Decree 126/2020/ND-CP.