Vietnam: What are the instructions for filling out the latest declaration form of licensing fees? Where will a taxpayer who has business operations in more than one province pay taxes?
What are the instructions for filling out the latest declaration form of licensing fees in Vietnam?
The latest declaration form of licensing fee in Vietnam is prescribed according to form 01/LPMB issued together with Circular 80/2021/TT-BTC as follows:
Download the latest declaration form of licensing fee in Vietnam here
In Form 01/LPMB, there are instructions for filling out the latest declaration form of licensing fee as follows:
- Target [01]: Declare the year of calculation of the licensing fee.
- Target [02]: Only mark in case of the first declaration.
- Target [03]: Only mark in cases where the fee payer has submitted a declaration form before detecting a change in information about the obligation to declare and re-declaring the information of the declared calculation period of licensing fee. Notably, taxpayers only choose one of the two targets [02] and [03].
- Target [04] to target [05]: Declare information according to taxpayers' tax registration.
- Target [06] to target [08]: Declare tax agent information (if any).
- Target [09]: Only mark in case the taxpayer has declared licensing fee, before establishing a new business location.
What is the time limit for paying licensing fees in Vietnam?
Pursuant to Clause 9, Article 18 of Decree 126/2020/ND-CP, the time limit for paying licensing fees in Vietnam is as follows:
- Licensing fee shall be paid annually by the 30th of January.
- 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):
+ 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.
+ 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.
- Household businesses and individual businesses that shut down and subsequently resume their business operation shall pay licensing fee as follows:
+ 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.
+ 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.
Where will a taxpayer who has business operations in more than one province pay taxes in Vietnam?
Pursuant to Clause 2, Article 11 of Decree 126/2020/ND-CP on tax declaration filing submission location as follows:
Tax declaration dossier submission location
Tax declaration dossiers shall be submitted at the locations specified in Clauses 1, 2 and 3 Article 45 of the Law on Tax administration and the following locations:
...
2. In case a taxpayer that has business operations in more than one province as prescribed in Point b Clause 4 Article 45 of the Law on Tax administration and do accounting in the province where the taxpayer is headquartered (except the cases specified in Clauses 1, 3, 4, 5 and 6 of this Article), tax declaration dossiers shall be submitted to the supervisory tax authority of the headquarters. The taxpayer shall also submit a document specifying taxes paid in each province to the same tax authority, except:
a) VAT on transport business where the routes go through provinces other than the province in which the taxpayer is headquartered.
b) VAT on insurance and reinsurance business.
c) VAT on construction business (including construction of roads, power lines, water pipelines, oil pipelines, gas pipelines) in provinces other than the province where the taxpayer is headquartered without establishment of dependent units or business locations in these provinces and the construction value inclusive of VAT is below 1 billion VND.
d) Corporate income tax of the dependent unit or business location whose income is eligible for corporate income tax incentives. In this case, the taxpayer shall separately declare the corporate income tax on the activities eligible for incentives with the supervisory tax authority of the dependent unit or business location and must not distribute this tax to other dependent units and business locations of the taxpayer.
d) VAT, corporate income tax of dependent units and business locations of taxpayers that are micro-enterprises defined by regulations of law on medium and small enterprises.
e) Post-tax profit that remains after making fund contributions (except post-tax profit from computerized lottery business).
Thus, in case a taxpayer that has business operations in more than one province, he/she shall pay taxes and do accounting at the headquarter of the supervisory tax authority of the headquarters.
Besides, taxpayers must submit a document specifying taxes paid in each province where state budget revenues are received (including dependent units, and business locations) to the same tax authority.
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