Licensing fees in 2019 in Vietnam
I'm learning about license fees but I don't understand some information. Please provide me with the regulations on licensing fees in 2019 in Vietnam. Which documents stipulate this issue? Thank you!
Quynh Nhu (quynh_nhu***@gmail.com)
Licensing fees in 2019 in Vietnam - image from internet
Legal basis:
- Article 2 and Article 4 of the Circular 302/2016/TT-BTC;
- Official dispatch 1279/TCT-CS in 2017.
1. Licensing fee payers are the organizations and individuals engaging in business operation in Vietnam, including:
1. The enterprises which are established under the regulations of law.
2. The organizations which are established under the Law on Cooperatives.
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 of this Article (if any).
7. The individuals, groups of individuals and households that have their trade/production activities.
2. Amounts of licensing fees for organizations engaging in business in Vietnam
| Charter capital and investment capital |
Amounts of licensing fees |
| Greater than VND 10 billion | 3.000.000 VND/year |
| Less than or equal to VND 10 billion | 2.000.000 VND/year |
| Branches, representative offices, business premises, public service providers, other business entities | 1.000.000 VND/year |
The amounts of licensing fees for the organizations specified in this Clause 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 prescribed in Point a, b of this Clause 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.
According to the guidance in Official Dispatch 1279/TCT-CS in 2017, representative offices and business locations engaged in production and trading of goods and services are required to pay the licensing fee. However, if the representative office or business location is not engaged in the production and trading of goods and services, then they are not required to pay the licensing fee.
3. Amounts of licensing fees for individuals, households engaging in business in Vietnam
| Annual revenues |
Amounts of licensing fees |
| Greater than VND 500 million | 1.000.000 VND/year |
| Greater than VND 300 million to less than and equal to VND 500 million | 500.000 VND/year |
| Greater than VND 100 million to less than and equal to VND 300 million | 300.000 VND/year |
The annual revenue used to determine the amount of license fees an individual, a group of individuals, or a household eligible for exemption from license fees is the total assessable revenue with regard to personal income tax in accordance with regulations of law on personal income tax.
If the individuals, groups of individuals and households specified in this Clause change their revenues, the ground to determine the amounts of licensing fees is the revenues of the year preceding the year of calculation of licensing fees.
With regard to individuals, groups of individuals, or households engaging new business within the year, the revenue used to determine the amount of license fees shall be the revenue of the tax year as prescribed in law on personal income tax.
4. Amounts of licensing fees for entities engaging in business or newly-incorporated in Vietnam
- Organizations, individuals, groups of individuals, or households engaging in business or newly-incorporated that are issued with tax registration and TINs, business identification numbers within the first six months shall pay license fees for the whole year;
- Those are incorporated or issued with tax registration and TINs, business identification numbers within the last six months shall pay 50% of license fees for the whole year.
- If any organization, individual, group of individuals, or household engaging in business without declaration of license fees, it must pay the amount of license fee for the whole year, irrespective of the time of detection which is in the first 6 months or the last 6 months.
- When any organization, individual, group of individuals, or household engaging in business notifies a tax authority of the business suspension for the full calendar year, it is not required to pay the license fee for year of business suspension. If the business is not suspended for the full calendar year, it must the license fee for the whole year.
Best regards!
