What is the licensing fee for household businesses iv in 2025? What are exemption cases of the licensing fee for household businesses in Vietnam in 2025?

What is the licensing fee for household businesses in Vietnam in 2025?

In accordance with Clause 2, Article 4 of Circular 302/2016/TT-BTC (as amended and supplemented by Clause 3, Article 1 of Circular 65/2020/TT-BTC) guiding the licensing fee, the tax rates for licensing fees in 2025 for individuals, groups of individuals, households engaging in the production, trading of goods, or services (household businesses) are as follows:

Note: The revenue used as a basis to determine the licensing fee for individuals, groups of individuals, households, and new business locations of household businesses is as follows:

- The revenue basis for determining the licensing fee for individuals, groups of individuals, households (excluding individuals leasing property) is the total personal income tax taxable revenue of the previous year from production, business activities (excluding property leasing operations) of business locations according to the regulations in Circular 92/2015/TT-BTC.

Individuals, groups of individuals, and households that have dissolved or temporarily ceased production and business activities, and then resumed operations without being able to determine the previous year's revenue, will use the revenue for the tax year of similar-scale, location, industry enterprises as the basis to determine the licensing fee, according to Circular 92/2015/TT-BTC.

- The revenue basis for determining the licensing fee for individuals engaging in property leasing is the personal income tax taxable revenue from property leasing contracts for the tax year. Additionally, the following cases arise:

+ If an individual has multiple property leasing contracts at one location, the revenue for determining the licensing fee for that location is the total revenue from property leasing contracts for the tax year.

+ If an individual leases property at multiple locations, the revenue used to determine the licensing fee for each location is the total revenue from all property leasing contracts at those locations for the tax year, including cases where multiple contracts arise at one location.

+ For property leasing contracts lasting multiple years, the licensing fee is paid annually corresponding to the years for which the individual, group of individuals, household declares and pays VAT and personal income tax.

+ For individuals, groups of individuals, households that declare and pay VAT and personal income tax in a single payment for long-term property leasing contracts, the licensing fee is paid for one year only.

- Individuals, groups of individuals, households, new production, and business locations (not exempt from licensing fees) that commence business in the first 6 months of the year must pay the full annual licensing fee, and if commencing in the last 6 months, they must pay 50% of the full annual fee.

What is the licensing fee for household businesses iv  in 2025? (Image from the Internet)

What are exemption cases of the licensing fee for household businesses in Vietnam in 2025?

In accordance with Article 3 of Decree 139/2016/ND-CP (supplemented by Clause 1, Article 1 of Decree 22/2020/ND-CP), the cases eligible for exemption from the licensing fee in 2025 include:

Exemption from licensing fee

Exemption applies to the following cases:

1. Individuals, groups of individuals, households operating in production and business with an annual revenue of 100 million VND or less.

2. Individuals, groups of individuals, households operating production and business activities infrequently; without fixed locations as guided by the Ministry of Finance.

3. Individuals, groups of individuals, households producing salt.

4. Organizations, individuals, groups of individuals, households involved in aquaculture, fishing, and fishery logistics services.

5. Cultural post offices in communes; press agencies (printed, spoken, visual, electronic).

6. Cooperatives, cooperative unions (including branches, representative offices, business locations) operating in the agricultural sector as per the legal framework for agricultural cooperatives.

7. Credit unions; branches, representative offices, business locations of cooperatives, cooperative unions, and private enterprises doing business in mountainous regions. Mountainous areas are determined according to the regulations of the Ethnic Committee.

8. Exemption from licensing fees in the first year of establishment or production, business commencement (from January 01 to December 31) for:

a) Newly established organizations (with newly assigned tax or business code).

b) Households, individuals, groups of individuals commencing production and business activities for the first time.

...

Thus, according to the above regulations, household businesses exempt from the licensing fee include:

- Household businesses in production and business with annual revenue of 100 million VND or less.

- Household businesses with infrequent production and business activities; without fixed locations as guided by the Ministry of Finance.

- Household businesses involved in salt production.

- Household businesses involved in aquaculture, fishing, and fishery logistics services.

Additionally, household businesses newly commencing production and business activities are exempt from the licensing fee in the first year of establishment or operation (from January 01 to December 31).

When do household businesses pay the licensing fee in Vietnam for 2025?

According to Clause 9, Article 18 of Decree 126/2020/ND-CP, the deadline for paying the licensing fee in 2025 is as follows:

Deadline for paying taxes on government revenue from land, water resource exploitation rights, mineral resources, marine area usage fees, registration fees, licensing fees

...

9. licensing fee:

a) The deadline for paying the licensing fee is January 30 annually at the latest.

b) For small and medium enterprises transitioning from household businesses (including dependent units, business locations of enterprises) upon ending the fee exemption period (fourth year from the establishment year), the licensing fee payment deadline is as follows:

...

Additionally, according to Article 86 of Circular 80/2021/TT-BTC regarding the deadlines for submitting tax declarations and payments:

Deadline for tax declaration submission and tax payment

The deadlines for tax declaration submissions comply with Clauses 1, 2, 3, 4, 5 of Article 44 of the Law on Tax Administration and Article 10 of Decree 126/2020/ND-CP. Tax payment deadlines follow Clauses 1, 2, 3 of Article 55 of the Law on Tax Administration and Article 18 of Decree 126/2020/ND-CP. If the tax declaration submission or payment deadline falls on a holiday, the deadline shifts to the next working day following the holiday, in accordance with the Civil Code.

Thus, the deadline for paying the licensing fee in 2025 is January 30, 2025. However, since January 30, 2025 coincides with the Tet holidays (Day 2 of the Lunar New Year of the Snake 2025), the deadline for the licensing fee payment 2025 will be moved to the next working day, February 3, 2025.

Note:

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

+ If the fee exemption period ends in the first 6 months of the year, the latest payment deadline is July 30 of the ended year.

+ If the exemption ends in the last 6 months of the year, the deadline is January 30 of the following year.

- For household businesses, individual businesses that have ceased operations and then resumed, the payment deadlines are:

+ If commencing activities in the first 6 months of the year: The latest deadline is July 30 of the year of activity.

+ If commencing in the last 6 months of the year: The latest deadline is January 30 of the following year.