What is the licensing fee declaration form in Vietnam?

What is the licensing fee declaration form in Vietnam?

The licensing fee declaration form (or licensing tax) is Form 01/LPMB in Section 8, Appendix 2 of Circular 80/2021/TT-BTC. Here.

Some specified criteria in the licensing fee declaration form are guided as follows:

- Criterion [01]: Declare the year for calculating licensing fees.

- Criterion [02]: Only check for the first declaration.

- Criterion [03]: Check if the taxpayer (hereinafter referred to as NNT) has submitted the form but later found changes in the declaration duty and needs to re-declare for the specified fee calculation period. Note, NNT should only select one of the two criteria [02] and [03], not both.

- Criterion [04] to criterion [05]: Declare information according to the NNT's taxpayer registration.

- Criterion [06] to criterion [08]: Declare information of the tax agent (if any).

- Criterion [09]: Check if NNT has submitted the LPMB declaration and subsequently established a new business location.

What is the licensing fee declaration form in Vietnam? (Image from the Internet)

When is the deadline for submitting the licensing fee declaration in Vietnam?

According to Clause 1, Article 10 of Decree 126/2020/ND-CP, taxpayers must comply with the deadline for submitting tax declaration dossiers as stipulated in Article 44 of the 2019 Tax Administration Law. The deadline for submitting a licensing fee declaration per the law on the management and use of public property, as specified in Clause 5, Article 44 of the 2019 Tax Administration Law, is as follows:

- New licensing fee payers (except for business households and individuals), including small and medium enterprises transitioning from business households or those establishing an additional dependent unit, business location, or beginning business operations, must submit the licensing fee declaration dossier no later than January 30 of the year following the year of establishment or beginning of business operations.

In cases where there are capital changes during the year, licensing fee payers must submit the dossier no later than January 30 of the year after the year the capital change occurred.

- Business households and individuals are not required to submit a licensing fee declaration. The tax authority will base the tax declaration dossier and tax management database to determine the revenue as the basis for calculating the payable licensing fee and inform the licensing fee payers to comply per Article 13 of Decree 126/2020/ND-CP.

Is the licensing fee declared monthly, quarterly, or annually in Vietnam?

According to Clause 3, Article 8 of Decree 126/2020/ND-CP:

Taxes declared monthly, quarterly, annually, upon each tax obligation arising, and tax settlement declaration

…

3. Taxes and other fees and charges declared annually include:

a) licensing fee.

b) Personal income tax for individuals acting as agents for lottery, insurance, multi-level marketing who have not had tax deducted because they were below the taxable threshold during the year but at year-end determine they are subject to tax.

c) Taxes and fees for business households and individuals paying tax under a presumptive method, individuals renting out property choosing to declare tax annually.

d) Non-agricultural land use tax.

Taxpayers must declare tax annually for each parcel and collectively for homestead land if they have land use rights in multiple parcels within the same district or various districts within the same province. Taxpayers do not have to declare collectively in the following cases:

d.1) Taxpayers with land use rights in one parcel or multiple parcels within the same district, where the total taxable land area does not exceed the homestead land limit at the place of land use rights.

d.2) Taxpayers with land use rights in multiple parcels in different districts but none of the parcels exceed the homestead land limit, and the total taxable area of all parcels does not exceed the homestead land limit at the place of land use rights.

dd) Agricultural land use tax.

e) Land and water surface lease fees paid annually.

Thus, the licensing fee is declared annually.

When is the deadline for paying the licensing fee in Vietnam?

According to Clause 9, Article 18 of Decree 126/2020/ND-CP, the deadline for paying the licensing fee is regulated as follows:

- The deadline for paying the licensing fee is no later than January 30 annually.

- For small and medium enterprises transitioning from household businesses (including dependent units, business locations of enterprises), upon the expiry of the licensing fee exemption period (the fourth year since the establishment year of the enterprise), the deadline for paying the licensing fee is as follows:

+ If the exemption period ends in the first 6 months of the year, the deadline for paying the licensing fee is no later than July 30 of the year the exemption period ends.

+ If the exemption period ends in the last 6 months of the year, the deadline for paying the licensing fee is no later than January 30 of the following year.

- For business households and individuals that have ceased business operations and then resumed, the deadline for paying the licensing fee is as follows:

+ If resuming operations in the first 6 months of the year: No later than July 30 of the year resuming operations.

+ If resuming operations in the last 6 months of the year: No later than January 30 of the following year resuming operations.