Branch established in July 2020: Is it exempt from license tax?

Based on the provisions specified in Article 1 of Decree 22/2020/ND-CP:

Newly established organizations (issued with new tax identification numbers, new enterprise codes) are exempt from business license fees in their first year of establishment (from January 1 to December 31, 2020). During the period of business license fee exemption, if the organization establishes branches, representative offices, or business locations (collectively referred to as Dependent Units), the Dependent Units shall also be exempt from business license fees during the period the organization is exempt from business license fees.

Thus, under this regulation, in cases where an enterprise is established after February 25, 2020, and that same enterprise establishes a branch after February 25, 2020, both the enterprise and the new branch are exempt from business license fees.

Referring to your case, your company was established in 2014. Therefore, even though the branch was established after February 25, 2020, it does not satisfy the condition of being a branch of an enterprise established after February 25, 2020, and hence, is not eligible for business license fee exemption.

Your company must still fulfill the obligation of declaring and paying business license fees when establishing a branch as stipulated in Clause 3 Article 1 of Decree 22/2020/ND-CP, specifically: submit the declaration form to the directly managing tax authority before January 30 of the year following the year in which production, business activities or establishment took place.

Sincerely!