How to calculate late payment interest for licensing fees in 2024? When is the deadline for payment of licensing fees in Vietnam?
How to calculate late payment interest for licensing fees in Vietnam in 2024?
Pursuant to Clause 2, Article 59 of the Law on Tax Administration 2019, the calculation of late payment interest for licensing fees is as follows:
Handling of late tax payment
1. Late payment interest shall be charged in the following cases:
a) The taxpayer pays tax behind deadline, the extended deadline, the deadline written in the tax authority’s notice, tax liability imposition decision or handling decision;
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2. Calculation of late payment interest:
a) The rate of late payment interest is 0,03% per day on the overdue amount;
b) The period over which late payment interest is charged is a continuous period from the day succeeding the day on which late payment interest is charged as specified in Clause 1 of this Article to the day preceding the date of payment of the outstanding tax, refunded tax, increase in tax, imposed tax.
Thus, when late payment of licensing fees 2024:
Amount of late payment = Overdue amount of licensing fees x 0.03% x Number of days of late payment
Note: The period over which late payment interest is charged is a continuous period from the day succeeding the day on which late payment interest is charged to the day preceding the date of payment of the outstanding tax, refunded tax, increase in tax, imposed tax.
How to calculate late payment interest for licensing fees in 2024? When is the deadline for payment of licensing fees in Vietnam?
When is the deadline for payment of licensing fees in Vietnam in 2024?
Pursuant to Clause 9, Article 18 of Decree 126/2020/ND-CP stipulates as follows:
Deadlines for payment of tax-related amounts, fees for grant of right to extraction of water resources and minerals, fees for grant of sea area usage, registration fees and licensing fees
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9. licensing fee:
a) Licensing fee shall be paid annually by the 30th of January.
b) For medium and small enterprises converted from household businesses (including their dependent units and business locations), upon expiration of the licensing fee exemption period (3 years from the establishment date):
b.1) If the expiration date is in the first 6 months of the year, licensing fee shall be paid by the 30th of July of the same year.
b.2) If the expiration date is in the last 6 months of the year, licensing fee shall be paid by the 30th of January of the succeeding year.
c) Household businesses and individual businesses that shut down and subsequently resume their business operation shall pay licensing fee as follows:
c.1) If the resumption date is in the first 6 months of the year, licensing fee shall be paid by the 30th of July of the same year.
c.2) If the resumption date is in the last 6 months of the year, licensing fee shall be paid by the 30th of January of the succeeding year.
Thus, according to regulations, the deadline for paying licensing fees is January 30, 2024 (Tuesday).
Note: Medium and small enterprises converted from household businesses, upon expiration of the licensing fee exemption period, and household businesses and individual businesses that shut down and subsequently resume their business operation shall pay licensing fee according to Points b and c, Clause 9, Article 18 of Decree 126/2020/ND-CP.
Which entity is licensing fee payer in Vietnam?
Pursuant to Article 2 of Decree 139/2016/ND-CP stipulates that the following subjects must pay licensing fees:
Licensing fee payers
The licensing fee payers are the organizations and individuals that operating their trade/production of goods and services except the cases specified in Article 3 of this Decree, including:
1. The enterprises which are established under the regulations of law.
2. The organizations which are established under the Law on Cooperatives.
3. The public service providers which are established under the regulations of law.
4. The business organizations of the political organizations, the social – political organizations, the occupational – social organizations and people's armed units.
5. Other organizations which have their trade/production activities.
6. The branches, the representative offices of organizations specified in Paragraphs 1, 2, 3, 4 and 5 of this Article (if any).
7. The individuals, groups of individuals and households that have their trade/production activities.
Thus, except for exemption of licensing fees, the following subjects must pay licensing fees:
- The enterprises which are established under the regulations of law.
- The organizations which are established under the Law on Cooperatives.
- The public service providers which are established under the regulations of law.
- The business organizations of the political organizations, the social – political organizations, the occupational – social organizations and people's armed units.
- Other organizations which have their trade/production activities.
- The branches, the representative offices of organizations specified in Paragraphs 1, 2, 3, 4 and 5 of Article 2 of Decree 139/2016/ND-CP (if any).
- The individuals, groups of individuals and households that have their trade/production activities.
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