What documents are included in the List of documents prescribing the license fee in Vietnam?

What documents are included in the List of documents prescribing the license fee in Vietnam?

The list of documents regulating license fees in 2024 includes:

- Law on Fees and Charges 2015

- Decree 139/2016/ND-CP on the regulation of license fees

- Decree 22/2020/ND-CP amending Decree 139/2016/ND-CP

- Decree 126/2020/ND-CP guiding the Law on Tax Administration 2019

- Circular 302/2016/TT-BTC on the guidance of license fees

- Circular 65/2020/TT-BTC amending Circular 302/2016/TT-BTC on the guidance of license fees

What documents are included in the List of documents prescribing the license fee in Vietnam? (Image from the Internet)

Who are required to pay license fees in Vietnam?

According to Article 2 of Decree 139/2016/ND-CP, those who are required to pay license fees are organizations and individuals engaged in the production and trading of goods and services, except following cases specified in Article 3 of Decree 139/2016/ND-CP:

- Enterprises established in accordance with the law.

- Organizations established under the Law on Cooperatives.

- Public service providers established in accordance with the law.

- Economic organizations of political organizations, socio-political organizations, social organizations, professional social organizations, and armed units.

- Other organizations engaged in production and business activities.

- Branches, representative offices, and business locations of the above-mentioned organizations (if any).

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

What is the rate of license fees in Vietnam?

According to Article 4 of Decree 139/2016/ND-CP (amended and supplemented by points a, b, c, clause 2, Article 1 of Decree 22/2020/ND-CP), the license fee rates are as follows:

- The fee rates for organizations engaged in the production and trading of goods and services are:

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

+ Organizations with charter capital or investment capital of VND 10 billion or less: VND 2,000,000/year;

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

The license fee rates for organizations stipulated in points a and b, clause 1, Article 4 of Decree 139/2016/ND-CP are based on the charter capital recorded on the business registration certificate; if there is no charter capital, it is based on the investment capital recorded on the investment registration certificate.

- The fee rates for individuals and households engaged in the production and trading of goods and services are:

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

+ Individuals, groups of individuals, households with an annual revenue of more than VND 300 million to VND 500 million: VND 500,000/year;

+ Individuals, groups of individuals, households with an annual revenue of more than VND 100 million to VND 300 million: VND 300,000/year.

+ The revenue to determine the license fee rate for individuals, groups of individuals, and households follows the Ministry of Finance’s guidance.

- Small and medium-sized enterprises transitioning from household businesses (including branches, representative offices, business locations) required to pay license fees after the exemption period (fourth year from the enterprise establishment year): If ending in the first 6 months of the year, pay the full year fee; if ending in the last 6 months of the year, pay 50% of the full year fee.

Households, individuals, and groups of individuals who have ceased business activity but resume production and business within the first 6 months of the year, pay the full year fee; if resuming in the last 6 months of the year, pay 50% of the full year fee.

- For organizations stipulated in points a, b, clause 1, Article 4 of Decree 139/2016/ND-CP that change their charter capital or investment capital, the license fee rate is based on the charter capital or investment capital of the year immediately preceding the year of fee calculation.

In cases where the charter capital or investment capital recorded in the business registration certificate or investment registration certificate is in foreign currency, it should be converted to Vietnamese Dong based on the buying exchange rate of the commercial bank or credit institution where the license fee payer holds an account at the time of paying the fee into the state budget.

- Fee payers who notify the tax authority in writing of their temporary suspension of production and business activities during the calendar year are exempt from the license fee for the suspension year if the suspension notification is submitted before the annual fee payment deadline (January 30) and if the fee for the suspension year has not yet been paid.

In cases where the conditions for temporary suspension of production and business activities are not met, the full year license fee applies.