What are penalties for failing to pay the licensing fee in Vietnam in 2025?

What are penalties for failing to pay the licensing fee in Vietnam in 2025?

Based on Article 24 of Decree 109/2013/ND-CP, amended by Clause 2, Article 2 of Decree 49/2016/ND-CP, it regulates penalties for violations related to the payment of fees and charges as follows:

Violations of regulations on payment of fees and charges

1. A warning shall be issued for failing to comply with the fee or charge payment notice issued by a competent authority.

2. A fine ranging from 1 to 3 times the evaded or dodged fee or charge amount shall be imposed for fraudulent or evasive acts. The maximum fine is 50,000,000 VND.

3. Measures to rectify the consequences

The violator is forced to pay the full amount of evaded or dodged fees and charges.

Thus, the penalty for failing to pay the licensing fee in 2025 is as follows:

- A warning shall be issued for not complying with the fee or charge payment notice by the competent authority.

- A fine ranging from 1 to 3 times the evaded or dodged fee or charge amount is imposed for fraudulent or evasive acts. The maximum fine is 50 million VND for individuals and 100 million VND for organizations (as stipulated in Point a, Clause 5, Article 3 of Decree 109/2013/ND-CP).

Additionally, individuals and organizations committing violations will also be compelled to pay back the amount of evaded or dodged fees.

Note: The fine mentioned is applicable to individuals; the penalty for organizations is double the penalty for individuals (Point a, Clause 5, Article 3 of Decree 109/2013/ND-CP)

What are penalties for failing to pay the licensing fee in Vietnam in 2025? (Image from Internet)

What is the deadline for paying the licensing fee in Vietnam in 2025?

According to Clause 9, Article 18 of Decree 126/2020/ND-CP, the deadline for paying the licensing fee in 2025 is regulated as follows:

Tax payment deadlines for government revenue from land use fees, natural resource exploration rights, sea area usage fees, registration fees, and licensing fees

…

9. licensing fee:

a) The latest deadline for paying the licensing fee is January 30 annually.

b) For small and medium enterprises transitioning from household businesses (including dependent units and business locations of enterprises) at the end of the exemption period (the fourth year from the establishment year), the deadline is as follows:

b.1) If the exemption period ends within the first 6 months, the latest payment deadline is July 30 of the ending year.

b.2) If the exemption period ends within the last 6 months, the latest payment deadline is January 30 of the year following the exemption.

c) For household businesses and individual businesses that have ceased operations but resumed, the deadline is as follows:

c.1) Resuming within the first 6 months: The latest deadline is July 30 of the resuming year.

c.2) Resuming in the last 6 months: The latest deadline is January 30 of the year following the resuming.

The latest deadline for paying the licensing fee is January 30 annually.

However, for 2025, since January 30 falls on the 2nd day of the Lunar New Year, the latest deadline for payment is February 3, 2025 (Monday).

Note: For small and medium enterprises transitioning from household businesses at the end of their exemption period and household/invididual businesses that have ceased and resumed operations, the payment deadline for the 2025 licensing fee follows Point b and Point c, Clause 9, Article 18 of Decree 126/2020/ND-CP.

What are cases exempted from licensing fee in Vietnam in 2025?

Based on Article 3 of Decree 139/2016/ND-CP (supplemented by Clause 1, Article 1 of Decree 22/2020/ND-CP), the cases exempted from the 2025 licensing fee include:

- Individuals, groups of individuals, households with an annual revenue of 100 million VND or less.

- Individuals, groups of individuals, households conducting irregular business activities without a fixed location as guided by the Ministry of Finance.

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

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

- Commune cultural post offices; press agencies (print, radio, television, electronic).

- Cooperatives, cooperative unions (including branches, representative offices, business locations) operating in agriculture as governed by the laws on agricultural cooperatives.

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

- Exemptions in the first year of formation or commencement of business activities (from January 01 to December 31) include:

+ Newly established organizations (granted new tax or business registration codes).

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

+ During the exemption period, new branches, representative offices, business locations established by organizations, households, individuals, or groups of individuals are also exempted from the licensing fee.

- Small and medium enterprises transitioning from household businesses are exempted from the licensing fee for 3 years from the date they receive their first business registration certificate.

+ During the exemption period, small and medium enterprises establishing new branches, representative offices, or business locations also enjoy an exemption.

+ Branches, representative offices, business locations of small, medium enterprises (under the exemption provisions of Article 16 of Law on Support for Small and Medium Enterprises 2017) established before the decree came into effect will have their exemption period calculated from the date the decree became effective until the end of the enterprise's exemption period.

+ Small and medium enterprises transitioning from household businesses prior to the efficacy of this decree will execute their exemptions according to Articles 16 and 35 of Law on Support for Small and Medium Enterprises 2017.

- Public educational facilities and public pre-school education facilities.