What are the methods for paying licensing fees in Vietnam?

What are the methods for paying licensing fees in Vietnam?

The licensing tax has been changed to the licensing fee.

Under Article 45 of the Law on Tax Administration 2019, the places to submit tax declaration dossierrs are prescribed as follows:

- Taxpayers shall submit tax declaration dossierrs at their supervisory tax authorities.

- Receiving authorities of tax declaration dossierrs submitted through the single-window system shall be specified by the regulations of the single-window system.

- Receiving authorities of customs dossierrs of exports and imports are specified by the Law on Customs 2014

- The Government shall specify receiving authorities of tax declaration dossierrs submitted by:

+ A taxpayer who has more than one business activities;

+ A taxpayer who is running business in more than one administrative division; tax declared upon incurrence

+ Taxpayers who incur tax on revenue from land; grant of the right to water resource extraction or mineral extraction;

+ Taxpayers who have to complete their own personal income tax declaration dossiers;

+ Taxpayers who declare tax electronically, and other cases.

Additionally, according to point k, clause 1, Article 11 of Decree 126/2020/ND-CP, the regulation is as follows:

Licensing fees shall be declared where the dependent units and business locations are located.

Therefore, the method for paying the licensing fee will comply with the above provisions and the place for paying the licensing fee will follow where the dependent units or business locations performing the declaration and payment are located.

What are the methods for paying licensing fees in Vietnam? (Image from the Internet)

What is the fine for delaying the submission of tax declaration dossiers for 30 days in Vietnam?

According to Article 13 of Decree 125/2020/ND-CP, the penalties for violations against regulations on time limits for submission of tax declaration dossiers are prescribed as follows:

Penalties for violations against regulations on time limits for submission of tax declaration dossiers

1. Penalties imposed in form of cautions shall be imposed for violations arising from filing tax declaration dossiers from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances.

2. Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for the act of submitting tax declaration dossiers from 01 to 30 days after expiration of the prescribed time limits, except the cases specified in clause 1 of this Article.

3. Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for the act of submitting tax declaration dossiers from 31 to 60 days after expiration of the prescribed time limits.

4. Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following violations:

a) Filing tax declaration dossiers from 61 to 90 days after expiration of the prescribed time limits;

b) Filing tax declaration dossiers at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;

c) Failing to submit tax declaration dossiers if none of additional taxes is incurred;

d) Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossierrs.

5. Fines ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing tax declaration dossiers more than 90 days after the prescribed deadline if such act results in additional taxes to be paid, and the taxpayer has fully paid taxes, deferred amounts into the state budget before the time of the tax authority’s announcement of the decision on tax inspection and examination, or before the time of the tax authority’s issuance of the report on the deferred submission of tax declaration dossiers under the provisions of clause 11 of Article 143 in the Law on Tax Administration.

In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax return, the maximum amount of fine for this act shall be equal to the tax amount payable specified in the tax return and shall not be less than the average of fine amounts in the range prescribed in clause 4 of this Article.

6. Remedies:

a) Compelling the full payment of deferred tax amounts into the state budget with respect to the commission of the acts prescribed in clause 1, 2, 3, 4 and 5 of this Article if the taxpayer delays filing their tax return, leading to the late payment of taxes;

b) Compelling the submission of tax declaration dossiers, enclosing annexes, in case of committing the acts specified in point c and d of clause 4 of this Article.

Thus, according to the above regulations, a fine ranging from 2,000,000 VND to 5,000,000 VND will be imposed for delaying the submission of tax declaration dossiers for 30 days in Vietnam.

Additionally, the taxpayer is required to pay the full amount of late payment interest to the state budget and submit the tax declaration dossier.

Note: According to clause 4, Article 7 of Decree 125/2020/ND-CP, the above fine applies to organizations. For individuals who violate, the fine will be 1/2 of that for organizations.

When is the deadline for paying the licensing fees in Vietnam?

According to clause 9, Article 18 of Decree 126/2020/ND-CP, the licensing fee is prescribed as follows:

- Licensing fee shall be paid annually by the 30th of January.

- For medium and small enterprises converted from household businesses (including their dependent units and business locations), upon expiration of the licensing fee exemption period (3 years from the establishment date):

+ If the expiration date is in the first 6 months of the year, licensing fee shall be paid by the 30th of July of the same year.

+ If the expiration date is in the last 6 months of the year, licensing fee shall be paid by the 30th of January of the succeeding year.

- Household businesses and individual businesses that shut down and subsequently resume their business operation shall pay licensing fee as follows:

+ If the resumption date is in the first 6 months of the year, licensing fee shall be paid by the 30th of July of the same year.

+ If the resumption date is in the last 6 months of the year, licensing fee shall be paid by the 30th of January of the succeeding year.

Thus, the deadline for paying the licensing fee is no later than January 30 each year.