What is the list of subjects exempt from licensing fee in Vietnam?

What is the list of subjects exempt from licensing fee in Vietnam?

Licensing tax, also known as licensing fee

Based on Article 10 of Decree 10/2022/ND-CP, subjects exempt from licensing fee are as follows:

[1] Houses and land used as headquarters for diplomatic missions, consular offices, representations of international organizations within the UN system, and residences of the heads of those entities in Vietnam.

[2] Assets (excluding houses and land) of the following foreign organizations and individuals:

+ Diplomatic missions, consular offices, and representations of international organizations within the UN system.

+ Diplomatic officials, consular officials, administrative-technical staff of diplomatic missions, consular offices, representations of international organizations within the UN system, and their family members who are not Vietnamese citizens or not permanent residents in Vietnam, holding diplomatic or service ID cards issued by the Ministry of Foreign Affairs of Vietnam.

+ Foreign organizations and individuals not specified in points a and b of this section, but exempt or not required to pay the licensing fee according to international commitments to which the Socialist Republic of Vietnam is a party.

[3] Land allocated or leased by the State with a one-time land rent payment for the entire lease period used for the following purposes:

+ Public use as regulated by land law.

+ Mineral exploration, extraction; scientific research with permits or confirmations from competent state agencies.

+ Investment in infrastructure construction (regardless of whether the land is in or outside industrial zones, export processing zones), housing construction for transfer, including cases where organizations or individuals continue to invest in infrastructure construction, housing construction for transfer after receiving transfer. These cases must pay the licensing fee if registering ownership, use rights for leasing or self-use.

[4] Land allocated, leased, or recognized by the State for agricultural, forestry, aquaculture, or salt production purposes.

[5] Agricultural land transferred among households, individuals within the same commune, ward, or commune-level town to facilitate agricultural production as stipulated by the Land Law.

[6] Agricultural land reclaimed by households, individuals, suitable for land use planning approved by competent state agencies, without disputes, and certified by competent state agencies.

[7] Land leased by the State with annual land rent or leased from organizations, individuals with legitimate land use rights.

[8] Houses and land used for public purposes by religious organizations, recognized or permitted to operate by the State.

[9] Land used for cemeteries, graveyards.

[10] Houses and land inherited or gifted between: spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; siblings, when granted land use rights and ownership certificates of houses and other assets attached to land by competent state agencies.

[11] Residential houses of households, individuals created through individual housing development as stipulated by the Housing Law.

[12] Leased financial assets transferred to the lessee upon lease termination through asset transfer or sale are exempt from licensing fees; if financial leasing companies purchase assets that have already paid licensing fees and then lease back to the selling unit, the financial leasing company is exempt from licensing fees.

[13] Houses, land, special assets, specialized assets, management assets used for defense and security purposes.

[14] Houses, land as public assets used as headquarters by state agencies, people's armed forces units, public service providers, political organizations, socio-political organizations, socio-professional political organizations, social organizations, and socio-professional organizations.

[15] Houses, land compensated or resettled (including houses, land purchased with compensated or supported money) when the State recovers houses, land according to legal regulations.

licensing fee exemption stipulated in this clause applies to entities whose houses and land are recovered.

[16] Assets certified with ownership, usage rights upon re-registration of ownership and usage rights are exempt from licensing fees in the following cases:

+ Assets certified with ownership and usage rights by competent authorities of the Democratic Republic of Vietnam, the Provisional Revolutionary Government of the Republic of South Vietnam, the Socialist Republic of Vietnam, or former regime authorities are re-certified without changing asset ownership.

+ Assets of state enterprises, public service providers converted to joint-stock companies or rearranged according to legal regulations.

+ Shared ownership and usage rights assets of households or family members divided legally among family members for re-registration; assets unified by spouses after marriage; assets divided between spouses upon divorce according to legally effective court orders or decisions.

+ Assets certified with ownership and usage rights, recertified due to loss, tearing, staining, smearing, or damage of previous certificates. Organizations and individuals are not required to declare or undergo licensing fee exemption procedures for re-certification of ownership and usage rights in these cases.

+ If re-certification of land use rights results in an increased land area without changing the parcel boundary, the increased area is exempt from the licensing fee.

+ Organizations and individuals granted land use rights and certified, but changing to lease land with one-time payment for the entire lease period according to the Land Law from the effective date of this Decree.

+ Re-registration of land use rights due to state-permitted land use purpose changes without changing the land user and not subject to land levy when changing land use purposes according to land levy law regulations.

[17] Assets that previously paid the licensing fee (excluding cases exempt from licensing fee) transferred to other organizations, individuals for ownership, usage rights are exempt from licensing fees in the following cases:

+ Organizations, individuals, cooperatives contributing their assets as capital to enterprises, credit institutions, cooperatives; enterprises, credit institutions, cooperatives dissolving, dividing or withdrawing capital for contributing members.

+ Assets mobilized internally within an enterprise or within an administrative unit according to competent authority decisions.

[18] Assets of organizations, individuals previously paying licensing fees transferred due to division, merging, renaming organizations according to competent authority decisions.

[19] Assets of organizations, individuals previously paying licensing fees moved to another location without changing ownership.

[20] Charity houses, unity houses, humanitarian-supported houses (including associated land) registered under the donee's name.

[21] Fire engines, ambulances, X-ray vehicles, rescue vehicles (including tow trucks, vehicle carriers); garbage trucks, water spraying trucks, water tankers; specialized vehicles for disabled persons, registered under disabled person's name.

[22] Aircraft used for commercial freight and passenger transportation.

[23] Fishing vessels (including fishing and logistic vessels); hulls, main assembly engines, blocks replaced and registered with competent state agencies.

[24] Hulls, main frame assemblies, main engines, engine blocks specified in clause 8 of Article 3 of Decree 10/2022/ND-CP, replaced and registered within warranty period.

[25] Production facility factories; warehouses, canteens, garages of production facilities. Factories here are determined according to construction work grade laws.

[26] Residential houses, homestead land of poor households; residential houses, homestead land of ethnic minorities in difficult communes, Tay Nguyen; residential houses, homestead land of households, individuals in communes under the economic - social development program for especially difficult communes, mountainous, remote areas.

[27] Ships, boats without engines, full load up to 15 tons; ships, boats with engines with main engine capacity up to 15 horsepower; ships, boats with passenger capacity up to 12 persons; high-speed passenger ships (high-speed passenger vessels), garbage collecting ships, container transport ships and boats.

The aforementioned vehicles are determined by inland waterway transport laws and guiding documents (including hulls, main frame assemblies, main engines, engine blocks corresponding to replacement in these vehicle types).

[28] Houses, land of facilities with private investment in education and training; vocational education; healthcare; culture; physical training and sports; environment according to legal regulations registered for use rights, house ownership serving these activities.

[29] Houses, land of non-state facilities registered for use rights, house ownership serving education and training; healthcare; culture; physical training and sports; science and technology; environment; social affairs; population, family, and child protection according to legal regulations; excluding cases specified in clause 28 of Article 10 of Decree 10/2022/ND-CP.

[30] Houses, land of science and technology enterprises registered for use rights, house ownership according to legal regulations.

[31] Public passenger transport vehicles using clean energy.

These tax exemption subjects are further detailed in Article 5 of Circular 13/2022/ND-CP.

What is the list of subjects exempt from licensing fee in Vietnam? (Image from the Internet)

Where is the licensing fee paid in Vietnam?

Based on Article 12 of Circular 10/2022/ND-CP regarding the management of the licensing fee as follows:

Licensing fee management

The agency collecting the licensing fee must submit 100% of the collected licensing fee to the state budget as prescribed by law.

Thus, based on the above regulation, the licensing fee is submitted 100% to the state budget.

What are regulations on application of international treaties in resolving licensing fee issues in Vietnam?

Based on Article 5 of Circular 10/2022/ND-CP, it is regulated as follows:

Application of International Treaties

In cases where international treaties to which the Socialist Republic of Vietnam is a member have provisions different from those of this Decree, the provisions of the international treaty shall apply.

Therefore, in resolving licensing fee issues, if international treaties to which the Socialist Republic of Vietnam is a member have provisions different from those of this Decree, the provisions of the international treaty shall apply.