Vietnam: Who has to pay the license fee? What is the level of payment of license fees in 2023 of organizations and individuals with business activities?
Who must pay the license fee in Vietnam, 2023?
Pursuant to Article 2 of Decree 139/2016/ND-CP stipulating that the following subjects must pay license 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 this Article (if any).
- The individuals, groups of individuals and households that have their trade/production activities.
Vietnam: Who has to pay the license fee? What is the level of payment of license fees in 2023 of organizations and individuals with business activities?
When will organizations and individuals be exempt from license fees in Vietnam, 2023?
Pursuant to Article 3 of Decree 139/2016/ND-CP (amended and supplemented by Points a, b, c, Clause 1, Article 1 of Decree 22/2020/ND-CP) stipulating the following cases of exemption from license fees:
- Individuals, groups of individuals, households engaged in production and business activities with annual revenue of VND 100 million or less.
- Individuals, groups of individuals and households engaged in irregular production and business activities; there is no fixed location according to the guidance of the Ministry of Finance.
- Individuals, groups of individuals, households producing salt.
- Organizations, individuals, groups of individuals, households aquaculture, fishing, seafood and fisheries logistics services.
- Commune cultural post office; press agencies (print, spoken, video, electronic).
- Cooperatives and cooperative associations (including branches, representative offices, business locations) operating in the agricultural sector in accordance with the law on agricultural cooperatives.
- People's Credit Fund; branches, representative offices, business locations of cooperatives, cooperative unions and private enterprises doing business in mountainous areas. Mountainous areas are determined according to the regulations of the Ethnic Minority Committee.
- Exemption from license fees in the first year of establishment or production and business activities (from January 1 to December 31) for:
+ Newly established organization (newly issued tax code, new enterprise code).
+ Households, individuals, groups of individuals for the first time in production and business activities.
+ During the license fee waiver period, organizations, households, individuals, groups of individuals establish branches, representative offices, business locations, branches, representative offices, business locations are exempt from license fees during the period of organization, households and individuals, groups of individuals are exempt from license fees.
- Small and medium-sized enterprises transferred from business households (as prescribed in Article 16 of the Law on Support of Small and Medium Enterprises) are exempt from license fees for a period of 03 years from the date of issuance of the first enterprise registration certificate.
+ During the license fee waiver period, small and medium-sized enterprises establish branches, representative offices, business locations, branches, representative offices, business locations are exempt from license fees during the period when small and medium-sized enterprises are exempt from license fees.
+ Branches, representative offices and business locations of small and medium-sized enterprises (subject to exemption from license fees as prescribed in Article 16 of the Law on Support for Small and Medium Enterprises) established before the effective date of this Decree, the period of exemption of license fees of branches, Representative offices and business locations shall be counted from the effective date of this Decree until the end of the period when small and medium-sized enterprises are exempt from license fees.
+ Small and medium-sized enterprises converted from business households before the effective date of this Decree shall waive license fees as prescribed in Articles 16 and 35 of the Law on Support for Small and Medium Enterprises.
- Public general education institutions and public preschool education institutions.
What is the level of payment of license fees in 2023 of organizations and individuals with business activities in Vietnam?
Pursuant to Article 4 of Decree 139/2016/ND-CP (amended and supplemented by Points a and b, Clause 2, Article 1 of Decree 22/2020/ND-CP) stipulating this content as follows:
For organizations trading goods and/or services, the license fee in 2023 will be as follows:
- Organizations with charter capital or investment capital of over VND 10 billion: VND 3,000,000/year;
- Organizations with charter capital or investment capital of VND 10 billion or less: VND 2,000,000/year;
- Branches, representative offices, business locations, non-business units, other economic organizations: 1,000,000 VND/year.
For individuals and business households engaged in production and business activities of goods and services, the license fee in 2023 will be as follows:
- Individuals, groups of individuals and households with a turnover of over 500 million VND/year: 1,000,000 VND/year;
- Individuals, groups of individuals and households with revenues of over 300 to 500 million VND/year: 500,000 VND/year;
- Individuals, groups of individuals and households with revenues of over 100 to 300 million VND/year: 300,000 VND/year.
- Revenue to serve as a basis for determining the level of license fees for individuals, groups of individuals and households according to the guidance of the Ministry of Finance.
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