What is the licensing fee payable for individual and household businesses with an annual revenue over 500 million?
Where do individual and household businesses pay taxes in Vietnam?
According to Article 45 of the Law on Tax Administration 2019, the receiving authorities for individual and household businesses is stipulated as follows:
Receiving authorities
1. Taxpayers shall file tax declaration documents at the tax authority that directly manages them.
2. In cases where tax declaration documents are filed through a one-stop service mechanism, the location for filing tax declarations shall be in accordance with the provisions of that mechanism.
3. The location for filing tax declaration documents for exported and imported goods shall be as per the Customs Law.
4. The government specifies the location for filing tax declaration documents in the following cases:
a) Taxpayers with multiple production and business activities;
b) Taxpayers conducting production and business activities in multiple regions; taxpayers with tax obligations on taxes declared and paid per occurrence;
c) Taxpayers with tax obligations on revenues from land; granting water resource exploitation rights, mineral resources;
d) Taxpayers with obligations to settle personal income tax;
dd) Taxpayers filing taxes via electronic transactions and other necessary cases.
Thus, the receiving authorities for individual and household businesses is regulated as follows:
- Taxpayers shall file tax declaration documents at the tax authority that directly manages them.
- In cases where tax declaration documents are filed through a one-stop service mechanism, the location for filing tax declarations shall be in accordance with the provisions of that mechanism.
- The location for filing tax declaration documents for exported and imported goods shall be as per the Customs Law.
Additionally, in certain special cases, the location for filing documents shall be specified in detail by the government.
Where do individual and household businesses pay taxes in Vietnam? What is the licensing fee payable for individual and household businesses with an annual revenue over 500 million? (Image from the Internet)
Vietnam: What is the licensing fee payable for individual and household businesses with an annual revenue over 500 million?
Pursuant to Clause 4, Article 4 of Circular 302/2016/TT-BTC, amended by Clause 3, Article 1 of Circular 65/2020/TT-BTC, the licensing fee rates for individual and household businessess are as follows:
licensing fee Rates
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- The licensing fee rates for individuals, groups of individuals, and households engaged in producing and trading goods and services are as follows:
a) Individuals, groups of individuals, and households with annual revenue over 500 million VND: 1,000,000 (one million) VND/year;
b) Individuals, groups of individuals, and households with annual revenue over 300 to 500 million VND: 500,000 (five hundred thousand) VND/year;
c) Individuals, groups of individuals, and households with annual revenue over 100 to 300 million VND: 300,000 (three hundred thousand) VND/year.
The revenue used as the basis for determining the licensing fee rate for individuals, groups of individuals, and households, including new business locations of individual and household businessess, is as follows:
- The revenue used to determine the licensing fee rate for individuals, groups of individuals, and households (excluding individuals renting out properties) is the total personal income taxable revenue of the preceding year from production and business activities (excluding property rental activities) at business locations as stipulated in Circular No. 92/2015/TT-BTC dated June 15, 2015, by the Minister of Finance, which guides the implementation of value-added tax and personal income tax for resident individuals engaged in business activities; and guides on amendments and supplements concerning personal income tax stipulated in the Law amending and supplementing some articles of the Laws on Tax No. 71/2014/QH13 and Decree No. 12/2015/ND-CP dated February 12, 2015, of the Government detailing the implementation of the Law amending and supplementing some articles of the Laws on Tax and amending and supplementing some articles of the decrees on tax.
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Therefore, individual and household businesses with an annual revenue over 500 million VND is required to pay a licensing fee of 1,000,000 (one million) VND/year.
What documents are required for registering individual and household businesses in Vietnam?
According to Article 87 of Decree 01/2021/ND-CP, the registration dossier for individual and household businesses includes the following:
Registration for individual and household businesses
1. Registration for individual and household businesses is carried out at the district-level business registration authority where the household's business headquarters is located.
2. The registration dossier for individual and household businesses includes:
a) Application for business household registration;
b) Legal documents for the individual who is the household business owner, and for household members registering the business in cases where household members are registering the business;
c) A copy of the minutes of the household member’s meeting on the establishment of a business household in cases where household members are registering the business;
d) A copy of the written authorization from household members to a member acting as the owner of the business household in cases where household members are registering the business.
3. Upon receiving the dossier, the district-level business registration authority shall issue a receipt and issue a Business Household Registration Certificate to the business household within 3 working days from the date of receiving a complete and valid dossier.
Thus, based on the above regulations, the registration dossier for individual and household businesses shall include:
- Application for business household registration;
- Legal documents for the individual who is the household business owner, and for household members registering the business in cases where household members are registering the business.
- A copy of the minutes of the household member’s meeting on the establishment of a business household in cases where household members are registering the business.
- A copy of the written authorization from household members to a member acting as the owner of the business household in cases where household members are registering the business.
