What are the subsections for licensing fee in Vietnam in 2024?

What are the subsections for licensing fee in Vietnam in 2024?

Currently, according to regulations, the licensing tax will be referred to as the licensing fee.

According to Point b, Clause 1, Article 4 of Circular 324/2016/TT-BTC, a subsection is a detailed classification of a section, used to classify the state budget revenues and expenditures in detail according to management subjects within each section.

Based on Appendix 3 of the List, subsection issued with Circular 324/2016/TT-BTC, the subsections for the licensing fee in 2024 are specified as follows:

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What are the subsections for licensing fee in Vietnam in 2024? (Image from the Internet)

Which entities are licensing fee payers in Vietnam?

According to the provisions of Article 2 Decree 139/2016/ND-CP, the persons liable for the licensing fee (also called the licensing fee) are organizations and individuals engaged in the production and trading of goods and services, except for the cases specified in Article 3 Decree 139/2016/ND-CP, including:

(1) Enterprises established under the law.

(2) Organizations established under the Cooperative Law.

(3) Public service units established under the law.

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

(5) Other organizations engaged in production and business activities.

(6) Branches, representative offices, and business locations of the organizations specified in (1), (2), (3), (4), and (5) (if any).

(7) Individuals, groups of individuals, and households engaged in production and business activities.

What are the current licensing fee rates in Vietnam?

(1) Licensing fee rates for organizations engaged in the production and trading of goods and services

The licensing fee rates for organizations engaged in the production and trading of goods and services are specified in Clause 1, Article 4 Decree 139/2016/ND-CP. To be specific:

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

(1.2) Organizations with charter capital or investment capital from 10 billion VND downward: 2,000,000 VND/year;

Note: The licensing fee rates for the above two types of organizations are based on the charter capital recorded in the business registration certificate; if there is no charter capital, based on the investment capital recorded in the investment registration certificate.

If there is a change in charter capital or investment capital, the basis for determining the licensing fee rate is the charter capital or investment capital of the year immediately preceding the year in which the licensing fee is calculated.

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

(2) Licensing fee rates for individuals and households engaged in the production and trading of goods and services

The licensing fee rates for individuals and households engaged in the production and trading of goods and services are specified in Clause 2, Article 4 Decree 139/2016/ND-CP (as supplemented by Point a, Clause 2, Article 1 Decree 22/2020/ND-CP). To be specific:

(2.1) Individuals, groups of individuals, and households with revenue over 500 million VND/year: 1,000,000 VND/year.

(2.2) Individuals, groups of individuals, and households with revenue over 300 to 500 million VND/year: 500,000 VND/year.

(2.3) Individuals, groups of individuals, and households with revenue over 100 to 300 million VND/year: 300,000 VND/year.

The revenue used as the basis for determining the licensing fee rates for individuals, groups of individuals, and households is guided by the Ministry of Finance.

(3) Licensing fee rates for some other cases:

According to the provisions of Clause 3, Article 4 Decree 139/2016/ND-CP (as amended by Point b, Clause 2, Article 1 Decree 22/2020/ND-CP)

(3.1) Small and medium enterprises converted from household businesses (including branches, representative offices, and business locations) when the period of licensing fee exemption ends (the fourth year from the establishment year of the enterprise):

- If the exemption period ends in the first 6 months of the year, the full annual licensing fee is payable.

- If the exemption period ends in the last 6 months of the year, 50% of the annual licensing fee is payable.

Households, individuals, and groups of individuals that have dissolved but resumed production and business activities within the first 6 months of the year are to pay the full annual licensing fee; if resuming in the last 6 months of the year, 50% of the annual licensing fee is payable.

(3.2) Fee payers who are operating and submit a written notice to the direct tax authority on the temporary cessation of production and business activities during the calendar year are exempt from paying the licensing fee for the temporary business suspension year, provided that the written notice of the temporary cessation of production and business activities is submitted to the tax authority before the deadline for the fee payment (January 30 every year) and the licensing fee for the year of the temporary cessation has not yet been paid.

If the temporary cessation of production and business activities does not meet the above conditions, the full annual licensing fee must be paid.