Who Must Pay Business License Tax? What is the Deadline for Paying Business License Tax in 2024?

Hello,

The editorial board would like to respond as follows:

1. Who has to pay the business license tax?

According to Clause 1 and Point e, Clause 2, Article 23 of the Fees and Charges Law 2015, effective from January 1, 2017, which abolishes Chapter IV-A on business license tax stipulated in Resolution 200/NQ-TVQH.

Additionally, to guide the business license fee, the Government of Vietnam issued Decree 139/2016/ND-CP, effective from January 1, 2017.

Therefore, from January 1, 2017, the term “business license tax” is replaced by “business license fee”.

Article 2 of Circular 302/2016/TT-BTC stipulates that those who have to pay the business license fee are organizations and individuals engaged in production and business activities of goods and services specified in Article 2 of Decree 139/2016/ND-CP, excluding cases stipulated in Article 3 of Decree 139/2016/ND-CP and guided in Article 3 of Circular 302/2016/TT-BTC.

2. What is the deadline for paying the business license tax for the year 2024?

According to Clause 9, Article 18 of Decree 126/2020/ND-CP regarding the deadline for paying the business license fee:

- The deadline for paying the business license fee is no later than January 30 annually.

Additionally:

- For small and medium enterprises transitioning from household businesses (including dependent units and business locations of enterprises) when the exemption period for the business license fee ends (the fourth year since the establishment), the deadline for paying the business license fee is as follows:

+ If the exemption period ends in the first 6 months of the year, the deadline is no later than July 30 of the year the exemption ends.

+ If the exemption period ends in the second 6 months of the year, the deadline is no later than January 30 of the year following the year the exemption ends.

- Household businesses and individual businesses that have ceased production and business activities and then resumed, the deadline for paying the business license fee is as follows:

+ If the resumption happens in the first 6 months of the year: No later than July 30 of the year of resumption.

+ If the resumption happens in the second 6 months of the year: No later than January 30 of the year following the year of resumption.

Therefore, the deadline for paying the business license tax for the year 2024 is no later than January 30, 2024. However, in certain special cases, the deadline may be extended to July 30 or into the following year, depending on the end of the exemption period or the start of resumption of business activities for enterprises/household businesses.

3. What is the deadline for submitting the business license fee declaration for the year 2024?

According to Clause 1, Article 10 of Decree 126/2020/ND-CP regarding the deadline for submitting the business license fee declaration:

- Those required to pay the business license fee (excluding household businesses and individual businesses) newly established (including small and medium enterprises transitioning from household businesses) or establishing dependent units, business locations or beginning production and business activities must submit the business license fee declaration no later than January 30 of the year following the year of establishment or start of production, business activities.

If there is a capital change during the year, the business license fee declaration must be submitted no later than January 30 of the year following the year the change occurs.

- Household businesses and individual businesses are not required to submit the business license fee declaration. The tax authority will base on the tax declaration documents, the tax management database to determine the revenue as the basis for calculating the business license fee payable and notify the fee payer according to the provisions of Article 13 of Decree 126/2020/ND-CP.

Thus, the deadline for submitting the business license fee declaration for the year 2024 is January 30, 2025, for enterprises and organizations. Household businesses and individual businesses are not required to submit the declaration; the tax authority will determine the payable tax based on the tax declaration records.

Respectfully!

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