When is the deadline for paying the licensing fee after the 6-month fee exemption period ends in Vietnam?

When is the deadline for paying the licensing fee after the 6-month fee exemption period ends in Vietnam?

Based on the provisions in Clause 9, Article 18 of Decree 126/2020/ND-CP, the following regulations apply:

The licensing fee is paid annually. Specifically:

- The deadline for paying the licensing fee is January 30 of each year at the latest.

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

+ If the exemption period ends within the first 6 months of the year, the payment deadline for the licensing fee is July 30 of the year the exemption ends.

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

- For household businesses or individuals that have ceased production or business activities and then resumed, the fee payment deadlines are as follows:

+ If resuming activities within the first 6 months of the year: At the latest, July 30 of the year of resuming activities.

+ If resuming activities within the last 6 months of the year: At the latest, January 30 of the following year.

Therefore, according to the regulations, when the licensing fee exemption period ends in the first 6 months of the year, the payment deadline is July 30 of the year the exemption ends.

When is the deadline for paying the licensing fee after the 6-month fee exemption period ends in Vietnam? (Image from the Internet)

Where should household businesses submit their licensing fee declaration dossiers in Vietnam?

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

- Enterprises and household businesses submit their licensing fee declarations to the tax authorities directly managing them.

- For declarations for dependent units or business locations in provinces different from the main headquarters: The declaration is submitted to the tax authority where the dependent unit or business location is located.

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

Glossary of terms

Apart from the terms defined in the Law on Tax Administration and Decree No. 126/2020/ND-CP, several 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 office, except as defined in point c of this clause;

b) The tax authority managing the area where the taxpayer has dependent units in provinces different from the taxpayer's main office, but these units directly declare taxes with the local tax authority;

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

d) For individuals with income from wages, salaries, the directly managing tax authority is the tax authority issuing the taxpayer code and can change according to the tax authority handling tax finalization for individuals as per regulations;

e) For individuals receiving inheritances or gifts that are securities or capital contributions in economic organizations or businesses in Vietnam, subject to direct tax declaration with the tax authority, the directly managing tax authority is the authority managing the issuing unit; in cases with multiple tax authorities managing various issuing units, the directly managing tax authority is where the individual receiving inheritance or gifts resides.

The directly managing tax authority may be indicated on the Taxpayer Registration Certificate, taxpayer code notification, tax authority management notification, or tax authority assignment notification when assigning taxpayer codes, cooperative codes, tax codes, or when updating registration information or reassigning tax management as per legal provisions.

Therefore, according to the above regulations, household businesses should submit their licensing fee declaration dossiers to the directly managing tax authority, which is at the location of the household business's headquarters.

What is the final deadline for submitting the 2024 licensing fee declaration in Vietnam?

According to Clause 1, Article 10 of Decree 126/2020/ND-CP, the deadline for submitting licensing fee declarations is as follows:

- Newly established businesses (including small and medium enterprises transitioning from household businesses) or those setting up additional dependent units, business locations, or commencing business activities must submit their license fee declarations by January 30 of the year following the year of establishment or commencement of business activities.

In the event of a capital change during the year, businesses submit their declarations by January 30 of the year following the year the information was changed.

Businesses submit their licensing fee declaration once during their operation and are only required to resubmit if there is a change in capital.

- household businesses do not need to submit a licensing fee declaration. Tax authorities will base on tax declarations, tax management databases to determine revenue as a basis for calculating the license fee payable and will notify the fee payers according to the provisions of Article 13 Decree 126/2020/ND-CP.

Thus, the deadline for submitting the licensing fee declaration is January 30 of the year following the year of establishment or commencement of business operations.

Therefore, the final deadline to submit the licensing fee declaration for 2024 is January 30, 2025.