What are guidelines on preparing the Form 01/LPMB on license fee declaration in Vietnam in 2024?

What are guidelines on preparing the Form 01/LPMB on license fee declaration in Vietnam in 2024?

The 2024 License Fee Declaration Form is applicable according to Form 01/LPMB stipulated in Appendix 2 issued together with Circular 80/2021/TT-BTC.

DOWNLOAD >> Latest 2024 License Fee Declaration Form

Below is a guide on how to prepare the New 2024 License Fee Declaration Form:

[1] Declare the year of the license fee calculation.

[2] Only check for the first time declaration.

[3] Only fill in if the fee payer has submitted the declaration but later found changes in the declaration obligations and performs a re-declaration of information for the declared fee calculation period. Note, the fee payer should select only one of the two indicators [02] and [03], not both simultaneously.

[4] Declare the information according to the taxpayer registration of the taxpayer.

[5] Declare the information according to the taxpayer registration of the taxpayer.

[6] Declare the information of the tax agent (if any).

[7] Declare the information of the tax agent (if any).

[8] Declare the information of the tax agent (if any).

[9] Only check if the fee payer has declared the license fee, then establishes a new business location.

What are guidelines on preparing the Form 01/LPMB on license fee declaration in Vietnam in 2024? (Image from the Internet)

When is the submission deadline for the license fee declaration in 2024 in Vietnam?

Based on the provisions of Clause 1, Article 10 of Decree 126/2020/ND-CP regarding the submission deadline for the license fee declaration as follows:

(1) Newly established license fee payers (except business households and individual businesses) (including small and medium enterprises converted from business households) or with the establishment of additional dependent units, business locations, or starting production and business activities shall submit the license fee declaration dossier no later than January 30 of the year following the year of establishment or commencement of production and business activities.

In case of capital changes during the year, the license fee payer shall submit the license fee declaration dossier no later than January 30 of the year following the year the information changes occurred.

(2) Business households and individual businesses are not required to submit license fee declaration dossiers. The tax authority shall base on tax declaration dossiers, tax management databases to determine revenue as a basis for calculating the payable license fee amount and notify the license fee payer according to the provisions of Article 13 of Decree 126/2020/ND-CP.

Thus, the deadline for submitting the 2024 license fee declaration is January 30, 2025, for enterprises and organizations.

Business households and individual businesses are not required to submit license fee declaration dossiers. The tax authority shall base on tax declaration dossiers, tax management databases to determine revenue as a basis for calculating the payable license fee amount.

What is the latest license fee rate in Vietnam in 2024?

Based on Article 4 of Decree 139/2016/ND-CP (amended and supplemented by Clause 2, Article 1 of Decree 22/2020/ND-CP), the latest 2024 license fee rates are as follows:

[1] License fee rates for organizations engaged in production and business of goods and services are as follows:

- Organizations with charter capital or investment capital over VND 10 billion: VND 3,000,000 per year.

- Organizations with charter capital or investment capital of VND 10 billion or less: VND 2,000,000 per year.

- Branches, representative offices, business locations, public service providers, other economic organizations: VND 1,000,000 per year.

The license fee rate for organizations defined in items (i) and (ii) is based on the charter capital stated in the business registration certificate; if there is no charter capital, it is based on the investment capital stated in the investment registration certificate.

[2] License fee rates for individuals and households engaged in production and business of goods and services are as follows:

- Individuals, groups of individuals, households with annual revenue over VND 500 million: VND 1,000,000 per year.

- Individuals, groups of individuals, households with annual revenue from over VND 300 million to VND 500 million: VND 500,000 per year.

- Individuals, groups of individuals, households with annual revenue from over VND 100 million to VND 300 million: VND 300,000 per year.

Revenue used to determine the license fee rate for individuals, groups of individuals, and households is according to the guidelines of the Ministry of Finance.

[3] Small and medium enterprises converted from business households (including branches, representative offices, business locations) at the end of the exemption period for license fees (fourth year from the establishment of the enterprise): if ending within the first 6 months of the year, the entire annual license fee rate is paid; if ending within the last 6 months of the year, 50% of the annual license fee rate is paid.

Households, individuals, groups of individuals engaged in production and business that have dissolved and resume operations within the first 6 months of the year pay the full annual license fee rate; if resuming within the last 6 months of the year, 50% of the annual license fee rate is paid.

[4] Organizations with charter capital or investment capital over VND 10 billion and organizations with charter capital or investment capital of VND 10 billion or less in cases of capital changes shall base the license fee rate determination on the charter capital or investment capital of the year preceding the license fee calculation year.

If the charter capital or investment capital is registered in foreign currency on the business registration certificate or the investment registration certificate, it shall be converted into Vietnam Dong based on the buying exchange rate of the commercial bank or credit institution where the license fee payer has an account at the time of payment into the state budget.

[5] Fee payers who are operating and have a written notification to the tax authority regarding the temporary cessation of production and business activities in the calendar year are exempt from the license fee for the year they temporarily ceased operations under the condition that: the written notification is sent to the tax authority before the license fee payment deadline (January 30 each year) and the license fee for the year they applied for a temporary cessation of operations is not yet paid.

In cases of temporary cessation of production and business activities without meeting the above conditions, the entire annual license fee rate shall be paid.