What is deferred licensing fee? What are procedures for deferment of licensing fee in Vietnam?

What is deferred licensing fee in Vietnam?

Licensing tax, also known as licensing fee

Pursuant to the provisions of Clause 1, Article 9 Decree 10/2022/ND-CP, deferred licensing fee for land and houses attached to the land of households and individuals subject to deferred land levy is stipulated as follows:

When paying deferred licensing fee, households and individuals must pay the licensing fee based on the value of the house and land prescribed by the People's Committees of provinces and centrally-run cities at the time of tax declaration. (Clause 1, Article 9 Decree 10/2022/ND-CP).

In cases where households and individuals are allowed to defer licensing fee as mentioned above, if they transfer, assign, or gift house ownership, land use rights to other organizations or individuals (except for transfer, assignment, or gifting of houses and land among the subjects specified in Clause 10, Article 10 Decree 10/2022/ND-CP), they must pay the full deferred licensing fee before the transaction (Clause 2, Article 9 Decree 10/2022/ND-CP).

Thus, deferred licensing fee is a form only applied to households and individuals (including those who contributed to the revolution; poor households; households and individuals who are ethnic minorities; households and individuals with permanent residence in communes recognized as difficult socio-economic areas, especially difficult socio-economic areas) allowed to defer land levy when allocated resettlement land when the State recovers land according to the provisions of land law.

What is deferred licensing fee? What are procedures for deferment of licensing fee in Vietnam? (Image from the Internet)

What are procedures for deferment of licensing fee in Vietnam​?

Based on Clause 3, Article 9 Decree 10/2022/ND-CP, the procedures for deferment  of licensing fee are as follows:

Step 1: Households and individuals subject to deferred licensing fee on houses and land declare the licensing fee and submit the licensing fee declaration dossier as prescribed by the law on tax administration.

Step 2: The competent agency issuing the certificate of land use rights, house ownership, and other assets attached to the land will check the dossier. If it is determined that the subject is eligible for deferred licensing fee on houses and land, the agency will note on the certificate of land use rights, house ownership, and other assets attached to the land: “Deferred licensing fee” before issuing it to the owner.

*Note: In case of receiving dossiers for the transfer, assignment, or gifting of house ownership, land use rights by households and individuals with deferred licensing fee:

The competent agency issuing the certificate of land use rights, house ownership, and other assets attached to the land is responsible for forwarding the dossier, along with the “Transfer note to determine financial obligations on land” to the Tax Authority for calculation and notification so that the household or individual with the land and house can pay the full deferred licensing fee before transferring, assigning, or gifting.

What are responsibilities of agencies and sectors in managing licensing fee in Vietnam?

Based on the provisions of Article 13 Decree 10/2022/ND-CP, the responsibilities of agencies and sectors in managing licensing fee are as follows:

* For the Ministry of Finance:

- Develop and issue Decisions on the Price Table for calculating licensing fees, revised and supplementary Price Tables for licensing fees, and specify details of assigned contents as stipulated in Decree 10/2022/ND-CP.

- Summarize and evaluate the results of implementation and propose amendments to the licensing fee rates for electric battery-powered cars 6 months before the end of the period specified in point c, Clause 5, Article 8 Decree 10/2022/ND-CP.

* For the Ministry of Transport, Ministry of Natural Resources and Environment, Ministry of Construction, Ministry of Public Security, and other competent state agencies:

- Develop a system for connection and data sharing, direct related organizations to access and exploit electronic data on licensing fees on the National Public Service Portal to handle administrative procedures related to asset registration.

- Connect and share data on information about assets subject to licensing fees according to criteria specified in the licensing fee declaration form issued by the Ministry of Finance and regulations on electronic interconnection.

* For the Ministry of Transport (Vietnam Register): Responsible for classifying vehicles as the basis for collecting licensing fees as prescribed.

* For the People's Committees of provinces and centrally-run cities:

- Issue the Price Table for calculating licensing fees for houses as a basis for calculating licensing fees as specified in Decree 10/2022/ND-CP.

- Submit to the provincial People’s Council and city directly under central government for decision on the fee rates for cars with up to 9 seats in the locality according to point a, Clause 5, Article 8 Decree 10/2022/ND-CP.

* For the Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government of Vietnam, Chairpersons of the People's Committees of provinces and centrally-run cities, and other relevant organizations and individuals to implement Decree 10/2022/ND-CP.