What are the licensing fees in Vietnam for 2024? Which entities are licensing fee payers?

What are the licensing fees in Vietnam for 2024?

Based on Clauses 1 and 2, Article 4 of Decree 139/2016/ND-CP, supplemented by Point a, Clause 2, Article 1 of Decree 22/2020/ND-CP, the specific regulations on the rates for licensing fees are as follows:

Rates for licensing fees

1. The rates for licensing fees for organizations engaged in the production and business of goods and services are as follows:

a) Organizations with charter or investment capital over 10 billion VND: 3,000,000 VND/year;

b) Organizations with charter or investment capital up to 10 billion VND: 2,000,000 VND/year;

c) Branches, representative offices, business locations, public service providers, and other economic organizations: 1,000,000 VND/year.

The licensing fee rates for organizations stipulated at points a and b of this clause are based on the charter capital recorded in the business registration certificate; if there is no charter capital, it is based on the investment capital recorded in the investment registration certificate.

2. The rates for licensing fees for individuals and households engaged in the production and business of goods and services are as follows:

a) Individuals, groups of individuals, households with an annual revenue of over 500 million VND: 1,000,000 VND/year;

b) Individuals, groups of individuals, households with an annual revenue of over 300 to 500 million VND: 500,000 VND/year;

c) Individuals, groups of individuals, households with an annual revenue of over 100 to 300 million VND: 300,000 VND/year.

d) Revenue as a basis for determining the licensing fee rate for individuals, groups of individuals, households is guided by the Ministry of Finance.”

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Thus, according to the above regulations, the licensing fees for 2024 are divided into 3 specific steps as follows:

For individuals and households engaged in the production and business of goods and services

For organizations engaged in the production and business of goods and services

What are the licensing fees in Vietnam in 2024? (image from the Internet)

Which entities are licensing fee payers in Vietnam?

According to Article 2 of Decree 139/2016/ND-CP, specific regulations on those subject to paying the licensing fee are as follows:

Those subject to the licensing fee are organizations and individuals engaged in the production and business of goods and services, except for cases stipulated in Article 3 of Decree 139/2016/ND-CP, including:

- Enterprises established according to the provisions of the law.

- Organizations established under the Cooperative Law.

- Public service units established according to the provisions of 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.

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

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

What cases are exempt from the licensing fee in Vietnam?

According to Article 3 of Decree 139/2016/ND-CP, supplemented and amended by Clause 1, Article 1 of Decree 22/2020/ND-CP, specific regulations are as follows:

Cases exempt from the licensing fee include:

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

- Individuals, groups of individuals, households engaged in irregular production and business; having no fixed location as guided by the Ministry of Finance.

- Individuals, groups of individuals, households involved in salt production.

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

- Commune cultural post offices; press agencies (printed newspapers, audio newspapers, visual newspapers, electronic newspapers).

- Cooperatives, cooperative unions (including branches, representative offices, and business locations) operating in agriculture according to the provisions of 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. Mountainous areas are determined according to the regulations of the Committee on Ethnicity.

- Exemption from licensing fees in the first year of establishment or operation (from January 1 to December 31) for:

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

+ Households, individuals, groups of individuals first engaged in production and business.

+ In the period of licensing fee exemption, if organizations, households, individuals, groups of individuals establish branches, representative offices, or business locations, those branches, representative offices, or business locations are exempt from the licensing fee during the exemption period of the organization, household, individual, or group of individuals.

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

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

+ Branches, representative offices, and business locations of small and medium enterprises (subject to licensing fee exemption according to Article 16 of the Small and Medium Enterprise Support Law) established before this Decree's effective date will have their licensing fee exemption period calculated from this Decree's effective date to the end of the period during which small and medium enterprises are exempt from the licensing fee.

+ Small and medium enterprises transitioning from household businesses before the effective date of this Decree shall implement licensing fee exemption according to Articles 16 and 35 of the Small and Medium Enterprise Support Law 2017.

- Public primary and preschool educational institutions.