Establishment of Business Locations: Is Payment of License Tax Required?

Pursuant to Article 2 of Decree 139/2016/ND-CP regulating the subjects liable to business license tax:

Subjects liable to business license tax are organizations and individuals engaged in the production and trading of goods and services, except as provided in Article 3 of this Decree, including:

1. Enterprises established under the law.

2. Organizations established under the Cooperative Law.

3. Public service units established under the law.

4. Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, and people's armed forces units.

5. Other organizations engaged in production and business activities.

6. Branches, representative offices, and business locations of the organizations specified in Clauses 1, 2, 3, 4, and 5 of this Article (if any).

7. Individuals, groups of individuals, and households engaged in production and business activities.

Thus, according to the above regulations, the business location of an enterprise engaged in the production and trading of goods and services is subject to business license tax.

And according to the provisions of Clause 3, Article 5 of this Decree, the subjects liable to business license tax shall submit business license tax declaration dossiers to the directly managing tax authority as follows:

- In case the taxpayer has dependent units (branches, representative offices, business locations) operating in the same provincial-level area, the taxpayer shall file business license tax declaration dossiers of those dependent units with the directly managing tax authority of the taxpayer;

- In case the taxpayer has dependent units (branches, representative offices, business locations) operating in a different provincial-level area from the location of the taxpayer's head office, the dependent unit shall file business license tax declaration dossiers with the directly managing tax authority of the dependent unit.

Based on the above regulations, in the event that your company has a business location in a different district from the head office (in the same provincial-level area), the business license tax shall be declared and paid to the directly managing tax authority of the taxpayer.

Sincerely!