Can business licensing fee be refunded if the enterprise is dissolved in Vietnam?

Can business licensing fee be refunded if the enterprise is dissolved in Vietnam?

In Clause 3, Article 4 of Decree 139/2016/ND-CP, as amended by Point b, Clause 2, Article 1 of Decree 22/2020/ND-CP, rate of licensing fees are as follows:

3. Upon the end of the period of exemption from the license fee (from the fourth year from the date of establishment), a SME transformed from a household business (including its branches, representative offices and/or business locations) shall pay the license fee for the whole year if its exemption period ends in the first 6 months of the year or pay 50% of the license fee payable for the whole year if its exemption period ends in the last 6 months of the year.

A household business, an individual or a group of individuals engaging in production/business that resumes its production/business after a suspension period shall pay the license fee for the whole year if it resumes its production/business in the first 6 months of the year or pay 50% of the license fee payable for the whole year if it resumes its production/business in the last 6 months of the year.

Thus, at present, there is no regulation on the dissolution of the enterprise in Vietnam, the paid licensing fee will be refunded. 

If your sole proprietorship is dissolved, the licensing fee you have paid will not be refunded. However, you dissolve your business in the last 6 months of the year, so the license fee you pay is only 50% of the license fee payable for the whole year in Vietnam.

What are cases of exemption from licensing fees in Vietnam?

According to Article 3 of Decree 139/2016/ND-CP supplemented by Point c, Clause 1, Article 1 of Decree 22/2020/ND-CP stipulating exemption from licensing fees as follows:

The cases of exemption from licensing fees are:

1. The individuals, groups of individual and households that have their trade/production activities with annual revenues of less than 100 million dong.

2. The individuals, groups of individual and households that have their irregular trade/production activities without fixed location as guided by the Ministry of Finance.

3. The individuals, groups of individual and households that produce salt.

4. The organizations, individuals, groups of individual and households that do the aquaculture, fisheries and fishing logistic services.

5. The commune cultural post offices and press agencies (printed, radio, television and online newspapers).

6. Cooperatives and cooperative unions (including their branches, representative offices and business locations) operating in the field of agriculture as regulated in the law on agricultural cooperatives.

7. People’s credit funds; branches, representative offices and business locations of cooperatives/cooperative unions and of sole proprietorships operating in mountainous regions. Mountainous regions are determined according to regulations of the Committee for Ethnic Affairs.

8. Exemption of license fees for the first year from the date of establishment or official commencement of production/business (from January 01 to December 31) shall be granted to:

a) New organizations (issued with new TINs/enterprise ID numbers).

b) Household businesses, individuals or groups of individuals engaging in production/business.

c) During the exemption period, if an organization, household business, individual or group of individuals establishes a new branch, representative office or business location, the new branch, representative office or business location shall be also exempted from the license fee for the same exemption period granted to that organization, household business, individual or group of individuals.

9. Small- and medium-sized enterprises (SMEs) transformed from household businesses (as prescribed in Article 16 of the Law on assistance for small- and medium-sized enterprises) shall be exempted from the license fee within 03 years from the date of issuance of initial enterprise registration certificate.

a) During the exemption period, if a SME establishes a new branch, representative office or business location, the new branch, representative office or business location shall be also exempted from the license fee for the same exemption period granted to that SME.

b) The branch, representative office or business location of a SME (that is eligible to be exempted from the license fee as prescribed in Article 16 of the Law on assistance for small- and medium-sized enterprises) established before this Decree takes legal effect shall be exempted from the license fee for the period commencing from the effective date of this Decree to the end of the period for which that SME is exempted from the license fee.

c) SMEs transformed from household businesses before this Decree takes legal effect shall be exempted from the license fee according to Article 16 and Article 35 of the Law on assistance for small- and medium-sized enterprises.

10. Public general education schools and public pre-schools

Therefore, the above are cases of exemption from licensing fees in Vietnam.

Best Regards!