What is licensing fee? Which entities are required to pay licensing fee in Vietnam?
What is licensing fee?
Licensing fee is a common term in daily life. However, according to the regulations of the law, specifically Clause 2, Article 3 of the 2015 Law on Fees and Charges, the concept of fees is explained as follows: Fees are the determined amounts that organizations or individuals must pay when state agencies provide public services and perform state management tasks.
Therefore, licensing tax, also known as licensing fee, is a determined amount that organizations or individuals must pay to fulfill tax obligations to state agencies.
What is licensing fee? Which entities are required to pay licensing fee in Vietnam? (Image from the Internet)
Which entities are required to pay licensing fee in Vietnam?
According to Article 4 of Decree 10/2022/ND-CP regarding the entities required to pay the licensing fee:
Organizations and individuals with assets subject to licensing fee as stipulated in Article 3 of Decree 10/2022/ND-CP must pay the licensing fee when registering ownership or use rights with the competent state agency, except for cases exempt from licensing fee as specified in Article 10 of Decree 10/2022/ND-CP.
Which goods are subject to licensing fee in Vietnam?
As explained above, licensing fee is referred to as a licensing fee according to legal regulations. Based on Article 3 of Decree 10/2022/ND-CP, the following entities are subject to licensing fee:
[1] Houses and land.
[2] Hunting rifles; sports training and competition guns.
[3] Boats as stipulated by the law on inland waterway transport and maritime law (hereinafter referred to as ships), including barges, canoes, tugboats, pushboats, submarines, submersibles; excluding floating docks, floating storage tanks, and mobile rigs.
[4] Boats, including yachts.
[5] Aircrafts.
[6] Motorcycles (two-wheeled), tricycles, scooters, and similar vehicles required to be registered and numbered plates issued by competent state agencies (hereinafter referred to as motorcycles).
[7] Automobiles, trailers, or semi-trailers pulled by automobiles, and similar vehicles required to be registered and numbered plates issued by competent state agencies.
[8] Hulls, main frames, engines, and bodies (blocks) of the assets specified in Clauses 3, 4, 5, 6, and 7, Article 3 of Decree 10/2022/ND-CP that are replaced and must be registered with competent state agencies.
The Ministry of Finance provides detailed regulations in Article 11 of Decree 10/2022/ND-CP.
Simultaneously, entities required to pay licensing fee are also stipulated in Article 2 of Circular 13/2022/TT-BTC as follows:
Entities subject to licensing fee follow Article 3 of Decree 10/2022/ND-CP. Some details are specified as follows:
- Houses and land as stipulated in Clause 1, Article 3 of Decree 10/2022/ND-CP.
+ Houses include residential houses; office buildings; houses used for other purposes.
+ Land includes various types of agricultural and non-agricultural land as regulated by the Land Law (irrespective of whether buildings have been constructed on the land).
- Boats, including yachts as stipulated in Clause 4, Article 3 of Decree 10/2022/ND-CP are types of boats, including yachts, requiring registration of ownership or usage rights with competent state agencies.
- Hulls, main frames, engines, and bodies (blocks) of the properties stipulated in Clause 8, Article 3 of Decree 10/2022/ND-CP are replacement parts that alter the chassis number, engine number of the property for which a certificate of ownership or use rights has been issued by competent state agencies.
Thus, we have a summary table of entities required to pay licensing fee as follows:
| No. | Entities subject to licensing fee |
|---|---|
| 1 | - Houses include: residential houses; office buildings; houses used for other purposes. - Land includes various types of agricultural and non-agricultural land according to the Land Law (irrespective of whether buildings have been constructed on the land). |
| 2 | Hunting rifles; sports training and competition guns. |
| 3 | Boats as stipulated by the law on inland waterway transport and maritime law (hereinafter referred to as ships), including barges, canoes, tugboats, pushboats, submarines, submersibles; excluding floating docks, floating storage tanks, and mobile rigs. |
| 4 | Boats (including yachts) requiring registration of ownership or use rights with competent state agencies. |
| 5 | Aircrafts. |
| 6 | Motorcycles (two-wheeled), tricycles, scooters, and similar vehicles required to be registered and have numbered plates issued by competent state agencies (hereinafter referred to as motorcycles). |
| 7 | Automobiles, trailers, or semi-trailers pulled by automobiles, and similar vehicles required to be registered and have numbered plates issued by competent state agencies. |
| 8 | Hulls, main frames, engines, and bodies (blocks) of the assets are replacement parts that alter the chassis number or engine number of properties for which a certificate of ownership or use rights has been issued by competent state agencies. |
- Are hazardous allowances subject to personal income tax in Vietnam?
- Shall the TIN be deactivated due to bankrupcy in Vietnam?
- What are guideline for paying the registration fees through VCB bank app? When is the time of payment for registration fees in Vietnam?
- Vietnam: Is tax liability imposed when failing to present accounting books?
- What is the Notice form for e-tax transaction account in Vietnam (Form 03/TB-TDT)?
- Where to download the latest form 04/HGDL for delivery notes for goods sent to sales agents in Vietnam?
- What is the guidance on first-time taxpayer registration for foreign subcontractors who directly declare and pay contractor tax in Vietnam?
- What are cases where a 10% PIT is withheld in Vietnam?
- How to submit the dependant registration application for persons with income from wages and salaries in Vietnam?
- What are guidelines for first-time taxpayer registration for dependants declared directly at the tax authority in Vietnam?
