What is the deadline for paying licensing tax in Vietnam in 2025?

What is the deadline for paying licensing tax in Vietnam in 2025?

Based on Clause 9, Article 18 of Decree 126/2020/ND-CP, the regulations are as follows:

Deadline for paying taxes on revenues to the state budget from land, rights to exploit water resources, mineral resources, sea area usage, registration fee, and business license fee

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9. Business license fee:

a) The deadline for paying the business license fee is no later than January 30 each year.

b) For small and medium enterprises converted from household businesses (including dependent units, business locations of the enterprise) upon the end of the exemption period for business license fee (the fourth year from the year the enterprise was established), the deadline for paying the fee is as follows:

b.1) If the exemption period ends in the first 6 months of the year, the deadline is no later than July 30 of the year the exemption period ends.

b.2) If the exemption period ends in the last 6 months of the year, the deadline is no later than January 30 of the following year.

c) For household businesses or individuals restarting a ceased production or business operation, the deadline is as follows:

c.1) If activities restart in the first 6 months of the year: No later than July 30 of the restart year.

c.2) If activities restart in the last 6 months of the year: No later than January 30 of the year following the restart year.

In normal circumstances, the latest deadline for paying the licensing tax for 2025 is January 30, 2025.

Taxpayers must clearly identify their specific case to determine the appropriate tax payment deadline according to the above provisions.

Note: In cases of small and medium enterprises converted from household businesses at the end of the business license fee exemption period, and household businesses or individuals restarting operations, the tax payment deadline for 2025 follows points b and c, Clause 9, Article 18 of Decree 126/2020/ND-CP.

What is the deadline for paying licensing tax in Vietnam in 2025? (Image from the Internet)

Who must pay and who is exempt from the licensing tax in Vietnam in 2025?

(1) Who is exempt from paying the licensing tax in 2025

Based on Article 3 of Decree 139/2016/ND-CP, amended and supplemented by Clause 1, Article 1, Decree 22/2020/ND-CP, the cases exempt from licensing tax in 2025 are specified as follows:

- Individuals, groups of individuals, households engaged in production or business activities with annual revenue of 100 million VND or less.

- Individuals, groups of individuals, households engaged in irregular production or business activities without a fixed location as guided by the Ministry of Finance.

- Individuals, groups of individuals, households engaged in salt production.

- Organizations, individuals, groups of individuals, households engaged in aquaculture, fishing, and fishery logistics services.

- Cultural post offices; press agencies (print, radio, television, electronic).

- Cooperatives, cooperative alliances (including branches, representative offices, business locations) engaged in agricultural activities according to the legal provisions on agricultural cooperatives.

- People's credit funds; branches, representative offices, business locations of cooperatives, cooperative alliances, and private businesses operating in mountainous regions. Mountainous regions are determined according to the regulations of the Committee for Ethnic Minorities.

- Exemption from business license fees in the initial year of establishment or production, business activities (from January 01 to December 31) for:

+ Newly established organizations (granted new tax or enterprise codes).

+ Households, individuals, groups of individuals starting production or business activities for the first time.

+ During the license fee exemption period, branches, representative offices, business locations established by the organization, household, individual, or group of individuals are also exempt.

- Small and medium enterprises converted from household businesses (under Article 16 of the Law on Supporting Small and Medium Enterprises 2017) are exempt from business license fees for 3 years from the date of first registration.

+ During the exemption period, branches, representative offices, business locations established by the enterprise are also exempt.

+ Branches, representative offices, business locations of small and medium enterprises (eligible for license fee exemption under Article 16 of the Law on Supporting Small and Medium Enterprises) established before the effective date of this Decree will have the exemption period calculated from the effective date until the end of the enterprise's exemption period.

+ Small and medium enterprises converted from household businesses before the effective date of this Decree shall be exempt from license fees according to Article 16 and Article 35 of the Law on Supporting Small and Medium Enterprises 2017.

- Public primary education institutions and public preschool education institutions.

(2) Who must pay the licensing tax in 2025

According to Article 2 of Decree 139/2016/ND-CP, the cases required to pay the licensing tax in 2025 include:

- Enterprises established under the law.

- Organizations established under the Law on Cooperatives.

- Public units established under the law.

- Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, and people’s armed forces units.

- Other organizations engaged in production and business activities.

- Branches, representative offices, and business locations of the organizations mentioned in paragraphs 1, 2, 3, 4, and 5 of Article 2 of Decree 139/2016/ND-CP (if any).

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

Is the licensing tax declared annually in Vietnam?

According to point a, clause 3, Article 8 of Decree 126/2020/ND-CP, the taxes declared annually are stipulated as follows:

Types of taxes declared monthly, quarterly, annually, each time a tax obligation arises, and tax finalization declaration

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3. The taxes and other collections belonging to the state budget declared annually include:

a) The business license fee.

b) Personal income tax for individuals acting as lottery agents, insurance agents, multi-level sales if not deducted yet due to not reaching the taxable amount but determined to be taxable at year-end.

c) Taxes and collections of household businesses, individuals paying taxes by the fixed method, and those opting for annual tax declaration.

d) Non-agricultural land use tax.

Taxpayers declare the tax annually for each parcel and collectively for homestead land where they have the right to use land for multiple parcels within the same district or in multiple districts in the same provincial area. Taxpayers are not required to declare collectively for the following cases:

d.1) Taxpayers having land use rights for one parcel or multiple parcels in the same district but the total taxed land area does not exceed the homestead land quota.

d.2) Taxpayers having land use rights for multiple parcels in different districts but no parcel exceeds the quota and the total taxed land area does not exceed the homestead land quota.

đ) Agricultural land use tax.

e) Land and water surface lease fees payable annually.

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Therefore, the licensing tax is declared on an annual basis.