What is the deadline for submission of license fee declaration in Vietnam in 2024?

What is the deadline for submission of license fee declaration in Vietnam in 2024?

Based on Clause 1, Article 10 of Decree 126/2020/ND-CP, the deadline for submitting license fee declaration (also known as business license tax) is stipulated as follows:

- Newly established enterprises (including small and medium enterprises transitioning from household businesses) or those establishing additional dependent units, business locations, or commencing production and business activities must file their license fee declaration no later than January 30 of the year following the year of establishment or commencement of production and business activities.

In the case of capital changes within the year, the enterprise must file the license fee declaration no later than January 30 of the year following the year the change occurs.

Enterprises are required to file a license fee declaration once throughout their operation and only need to re-file if there is a change in capital.

- Household businesses are not required to file a license fee declaration. The tax authority, based on tax declaration dossiers and tax management databases, will determine the revenue as the basis for calculating the license fee amount and notify the license fee payer in accordance with Article 13 of Decree 126/2020/ND-CP.

Thus, it can be seen that the deadline for submitting the license fee declaration is no later than January 30 of the year following the year of establishment or commencement of production and business activities.

This means that if an enterprise is established in 2024, the deadline for submitting the license fee declaration is no later than January 30, 2025.

What is the deadline for submission of license fee declaration in Vietnam in 2024? (Image from the Internet)

Where to submit the license fee declaration in Vietnam?

According to Point k, Clause 1, Article 11 of Decree 126/2020/ND-CP, the place for submitting the license fee declaration is regulated as follows:

- Enterprises and household businesses submit the license fee declaration to the directly managing tax authority.

- For cases where the license fee declaration is submitted for a dependent unit, business location in a province different from the main headquarters: The declaration should be submitted to the tax authority where the dependent unit or business location is situated.

Additionally, based on Clause 5, Article 3 of Circular 80/2021/TT-BTC, the following is prescribed:

Definitions

Besides the terms already defined in the Law on Tax Administration and Decree 126/2020/ND-CP, certain terms in this Circular are understood as follows:

…

5. “Directly managing tax authority” includes:

a) The tax authority managing the area of the taxpayer's main headquarters, except as prescribed in point c of this clause;

b) The tax authority managing the area where the taxpayer has a dependent unit in a different province from the taxpayer's main headquarters but the dependent unit directly files taxes with the tax authority in that area;

c) The Large Enterprise Department under the General Department of Taxation established as per Decision No. 15/2021/QD-TTg dated March 30, 2021, by the Prime Minister of the Government of Vietnam;

d) For individuals earning income from wages, salaries, the directly managing tax authority is the tax authority that issues the tax code and can change according to the tax authority handling tax finalization for the individual as regulated;

dd) For individuals receiving inheritance or gifts in the form of securities or capital contributions in economic organizations or business establishments in Vietnam, which are subject to direct tax declaration with the tax authority, the directly managing tax authority is the tax authority managing the issuing entity; if multiple tax authorities manage different issuing entities, the directly managing tax authority is where the individual receiving the inheritance or gift resides.

The directly managing tax authority can be stated on the Certificate of taxpayer registration or the Tax code notification or Tax authority management notification or Management assignment notification when issuing enterprise codes, cooperative codes, tax codes, or when changing registration information or reassigning tax authority management as per legal provisions.

Thus, it can be seen that the place to submit the license fee declaration is the directly managing tax authority.

This means when an enterprise registers its business activities, it will file the license fee declaration at the tax authority directly managing it at that location.

What is the deadline for the license fee payment in Vietnam in 2024?

According to the provisions in Clause 9, Article 18 of Decree 126/2020/ND-CP is prescribed as follows:

The license fee is paid annually. To be specific:

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

- For small and medium enterprises transitioning from household businesses (including dependent units, business locations of the enterprise) at the end of the license fee exemption period (the fourth year from the year of establishment), the license fee submission deadline is as follows:

+ In case the license fee exemption period ends in the first 6 months of the year, the deadline for paying the license fee is no later than July 30 of the year in which the exemption period ends.

+ In case the exemption period ends in the last 6 months of the year, the deadline for paying the license fee is no later than January 30 of the year immediately after the year the exemption period ends.

- Household businesses and individual businesses that have ceased production and business activities and then resume, the license fee submission deadline is as follows:

+ For activities resumed in the first 6 months of the year: No later than July 30 in the year activities are resumed.

+ For activities resumed in the last 6 months of the year: No later than January 30 of the year following the year activities are resumed.