What are cases of exemption from licensing fees in 2024? What are the chapter codes of licensing fees in Vietnam in 2024?
What are cases of exemption from licensing fees in Vietnam in 2024? What are cases of licensing fee payments in Vietnam 2024?
(1) Cases of exemption from licensing fees in 2024
Pursuant to Article 3 of Decree 139/2016/ND-CP supplemented by Point c, Clause 1, Article 1 of Decree 22/2020/ND-CP, the cases of exemption from licensing fees in 2024 are:
- The individuals, groups of individual and households that have their trade/production activities with annual revenues of less than 100 million dong.
- The individuals, groups of individual and households that have their irregular trade/production activities without fixed location as guided by the Ministry of Finance.
- The individuals, groups of individual and households that produce salt.
- The organizations, individuals, groups of individual and households that do the aquaculture, fisheries and fishing logistic services.
- The commune cultural post offices and press agencies (printed, radio, television and online newspapers).
- Cooperatives and cooperative unions (including their branches, representative offices and business locations) operating in the field of agriculture as regulated in the law on agricultural cooperatives.
- People’s credit funds; branches, representative offices and business locations of cooperatives/cooperative unions and of sole proprietorships operating in mountainous regions. Mountainous regions are determined according to regulations of the Committee for Ethnic Affairs.
- Exemption of license fees for the first year from the date of establishment or official commencement of production/business (from January 01 to December 31) shall be granted to:
+ New organizations (issued with new TINs/enterprise ID numbers).
+ Household businesses, individuals or groups of individuals engaging in production/business.
+ During the exemption period, if an organization, household business, individual or group of individuals establishes a new branch, representative office or business location, the new branch, representative office or business location shall be also exempted from the license fee for the same exemption period granted to that organization, household business, individual or group of individuals.
- Small- and medium-sized enterprises (SMEs) transformed from household businesses (as prescribed in Article 16 of the Law on assistance for small- and medium-sized enterprises) shall be exempted from the license fee within 03 years from the date of issuance of initial enterprise registration certificate.
+ During the exemption period, if a SME establishes a new branch, representative office or business location, the new branch, representative office or business location shall be also exempted from the license fee for the same exemption period granted to that SME.
+ The branch, representative office or business location of a SME (that is eligible to be exempted from the license fee as prescribed in Article 16 of the Law on assistance for small- and medium-sized enterprises) established before this Decree takes legal effect shall be exempted from the license fee for the period commencing from the effective date of this Decree to the end of the period for which that SME is exempted from the license fee.
+ SMEs transformed from household businesses before this Decree takes legal effect shall be exempted from the license fee according to Article 16 and Article 35 of the Law on assistance for small- and medium-sized enterprises 2017.
- Public general education schools and public pre-schools
(2) Cases of licensing fee payments in 2024
Pursuant to the provisions of Article 2 of Decree 139/2016/ND-CP, cases of licensing fee payments in 2024 include:
- 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.
What are cases of exemption from licensing fees in 2024? What is the chapter code of licensing fees in Vietnam in 2024?
What are the rates of licensing fees in Vietnam in 2024?
Pursuant to Article 4 of Decree 139/2016/ND-CP (amended and supplemented by Clause 2, Article 1 of Decree 22/2020/ND-CP), regulations on the rates of licensing fees in 2024 are as follows:
For organizations having business of goods and services:
No | Organizations | Rate |
1 | The organizations with charter capital and investment capital over 10 billion dong | 3,000,000 dong/year; |
2 | The organizations with charter capital and investment capital of less than 10 billion dong | 2,000,000 dong/year; |
3 | The branches, representative offices, business location, public service providers and other business organizations | 1,000,000 dong/year; |
Notes:
- The rate of licensing fees for the organizations is based on the charter capital written in the certificate of business registration or on the investment capital written in the certificate of investment registration in case of no charter capital.
- If the organizations change their charter capital or investment capital, the ground for determining the rate of licensing fees is their charter capital or investment capital of the year preceding the year of calculation of licensing fees.
Where the charter capital or investment capital written in the certificate of business registration or certificate of investment registration is in foreign currency, it shall be converted into Vietnamese dong as a basis for determining the rate of licensing fees in accord with the buying rate of commercial banks or credit institutions where the licensing fee payers open their accounts at the time they make payment to the state budget
For the individuals and households having the production and business of goods and services:
No. | Individuals and households having the production and business of goods and services | Rates |
1 | The individuals, groups of individuals and households with revenues over 500 million dong/year | 1,000,000 dong/year; |
2 | The individuals, groups of individuals and households with revenues between 300 and 500 million dong/year | 500.000 dong/year; |
3 | The individuals, groups of individuals and households with revenues between 100 and 300 million dong/year | 300.000 dong/year; |
Notes:
- Revenues used as the basis for determining the license fees payable by individuals, groups of individuals and household businesses shall be determined according to guidance given by the Ministry of Finance.
- Upon the end of the period of exemption from the license fee (from the fourth year from the date of establishment), a SME transformed from a household business (including its branches, representative offices and/or business locations) shall pay the license fee for the whole year if its exemption period ends in the first 6 months of the year or pay 50% of the license fee payable for the whole year if its exemption period ends in the last 6 months of the year.
A household business, an individual or a group of individuals engaging in production/business that resumes its production/business after a suspension period shall pay the license fee for the whole year if it resumes its production/business in the first 6 months of the year or pay 50% of the license fee payable for the whole year if it resumes its production/business in the last 6 months of the year
What are the chapter codes of licensing fees in Vietnam in 2024?
The chapter code is a code that identifies the type of business and the level of business management.
The chapter code of licensing fees is the code of the business classified by the tax administration
Pursuant to Appendix I of Circular 324/2016/TT-BTC, the common types of businesses currently have the following chapter codes of licensing fees:
Chapter code | Name | Management level |
151 | Economic units with 100% foreign investment in Vietnam | Central |
152 | Units with foreign capital from 51% to below 100% of the charter capital or with a majority of members being foreign individuals in partnership companies | Central |
153 | Vietnamese economic units with investment abroad | Central |
154 | Mixed economy with foreign non-state ownership | Central |
158 | Mixed economic units with state ownership from over 50% to below 100% of the charter capital | Central |
159 | Units with state ownership from 50% of the charter capital downwards | Central |
160 | Other budget-related relationships | Central |
161 | Foreign main contractors | Central |
162 | Foreign subcontractors | Central |
551 | Economic units with 100% foreign investment in Vietnam | Provincial |
552 | Units with foreign capital from 51% to below 100% of the charter capital or with a majority of members being foreign individuals in partnership companies | Provincial |
553 | Economic units with investment abroad | Provincial |
554 | Mixed economy with foreign non-state ownership | Provincial |
555 | Private enterprises | Provincial |
556 | Cooperatives | Provincial |
557 | Households, individuals | Provincial |
558 | Mixed economic units with state ownership from over 50% to below 100% of the charter capital | Provincial |
559 | Units with state ownership from 50% of the charter capital downwards | Provincial |
560 | Other budget-related relationships | Provincial |
561 | Foreign main contractors | Provincial |
562 | Foreign subcontractors | Provincial |
563 | Local General Corporations | Provincial |
564 | Units with state ownership holding 100% of the charter capital (excluding the managing agencies, Chapters of Corporations, General Corporations) | Provincial |
754 | Mixed economy with foreign non-state ownership (limited liability companies, joint stock companies) | District |
755 | Private enterprises | District |
756 | Cooperatives | District |
757 | Households, individuals | District |
758 | Mixed economic units with state ownership from over 50% to below 100% of the charter capital | District |
759 | Units with state ownership accounting for 50% of the charter capital downwards | District |
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