In 2024: Which entities are subject to licensing fee in Vietnam? What is the amount of licensing fee in Vietnam?

Which entities are subject to licensing fee in 2024 in Vietnam?

Pursuant to Article 2 of the Decree 139/2016/ND-CP, the licensing fee payers are the organizations and individuals that operating their trade/production of goods and services, including:

1. The enterprises which are established under the regulations of law.

2. The organizations which are established under the Law on Cooperatives in 2012.

3. The public service providers which are established under the regulations of law.

4. The business organizations of the political organizations, the social – political organizations, the occupational – social organizations and people's armed units.

5. Other organizations which have their trade/production activities.

6. The branches, the representative offices of organizations specified in Paragraphs 1, 2, 3, 4 and 5 (if any).

7. The individuals, groups of individuals and households that have their trade/production activities.

The cases as prescribed under Article 3 of the Decree 139/2016/ND-CP are exempt from licensing fees in Vietnam.

In 2024: Which entities are subject to licensing fee in Vietnam? What is the amount of licensing fee in Vietnam? - Image from Internet

What is the amount of licensing fee in 2024 in Vietnam?

[1] The amounts of licensing fees for organizations in 2024

Pursuant to Clause 1 Article 4 of the Circular 302/2016/TT-BTC stipulating as follows:

The amounts of licensing fees in 2024 for organizations engaging in trade/production of goods and services as follows:

- Organizations with charter capital and investment capital of greater than VND 10 billion: VND 3,000,000;

- Organizations with charter capital and investment capital of less than or equal to VND 10 billion: VND 2,000,000;

- Branches, representative offices, business premises, public service providers, other business entities: VND 1,000,000.

The amounts of licensing fees for the organizations is based on the charter capital written in the certificate of business registration, the certificate of enterprise registration, or the charter of cooperatives.

In case of absence of charter capital, it is based on the investment capital written in the certification of investment registration or decision on investment policies.

If the organizations change their charter capital or investment capital, the ground for determining the amount 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 amount of licensing fees in accordance 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.

[2] The amounts of licensing fees for individuals, households in 2024

Pursuant to Clause 2 and 3, Article 4 of the Circular 302/2016/TT-BTC (amended by Clause 4 Article 1 of the Circular 65/2020/TT-BTC) stipulating as follows:

The amounts of licensing fees in 2024 for individuals, groups of individuals, households engaging in trade/production of goods and services as follows:

- Individuals, groups of individuals, households with annual revenues of greater than VND 500 million: VND 1,000,000;

- Individuals, groups of individuals, households with annual revenues of greater than VND 300 million to less than and equal to VND 500 million: VND 500,000;

- Individuals, groups of individuals, households with annual revenues of greater than VND 100 million to less than and equal to VND 300 million: VND 300,000.

What is the time limit for payment of licensing fees in 2024 in Vietnam?

Pursuant to Clause 9 Article 18 of the Decree 126/2020/ND-CP stipulating the time limit for payment of licensing fees in 2024 in Vietnam as follows:

- Licensing fee shall be paid annually by the 30^th of January.

Therefore, by January 30th, 2024, organizations and individuals must complete their payment of licensing fees.

Except for following cases:

- 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 30^th 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 30^th 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 30^th 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 30^th of January of the succeeding year.

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