Are household businesses with annual revenues of 300 million VND exempt from licensing fees in Vietnam?

Are household businesses with annual revenues of 300 million VND exempt from licensing fees in Vietnam?

In Article 3 of Decree 139/2016/ND-CP supplemented by Point c, Clause 1, Article 1 of Decree 22/2020/ND-CP, the licensing fee exemption is stipulated 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 licensing 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 licensing 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 licensing 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 licensing 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 licensing 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 licensing 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 licensing fee.

c) SMEs transformed from household businesses before this Decree takes legal effect shall be exempted from the licensing 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

Thus, according to the above regulations in Vietnam, if your household has an annual revenue of 300 million VND, your household is not one of the subjects exempted from licensing fees.

Are household businesses with annual revenues of 300 million VND exempt from licensing fees in Vietnam? (Image from the Internet)

How much is licensing fee for household businesses in Vietnam?

According to Clause 2, Article 4 of Decree 139/2016/ND-CP supplemented by Point a, Clause 2, Article 1 of Decree 22/2020/ND-CP regulating licensing fee collection rates for individuals and households having the production and business of goods and services are as follows:

2. The rate of licensing fees for the individuals and households having the production and business of goods and services is as follows:

a) The individuals, groups of individuals and households with revenues over 500 million dong/year: 1,000,000 dong/year;

b) The individuals, groups of individuals and households with revenues between 300 and 500 million dong/year: 500,000 dong/year;

c) The individuals, groups of individuals and households with revenues between 100 and 300 million dong/year: 300,000 dong/year;

d) Revenues used as the basis for determining the license fees payable by individuals, groups of individuals and household businesses shall be determined according to guidance given by the Ministry of Finance.

Therefore, the level of licensing fees for household businesses depends on the annual revenue in Vietnam. The lowest fee is 300,000 VND/year and the highest fee is 1,000,000 VND/year.

In your case, if your household does business with an annual revenue of 300 million VND, the licensing fee is 300,000 VND/year in Vietnam.

What is the 2022 licensing fee declaration form in Vietnam?

Pursuant to the Appendix issued with Decree 139/2016/ND-CP stipulating the licensing fee declaration form as follows:

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

Licensing Fee Declaration Form

[01] Fee calculation period: year………………

[0 4] Fee payer: ............................................. ................................................................ ........

[05] Tax code: .............................................. ................................................................ ...................

[06] Address: .............................................. ................................................................ ..........................

[07] District:……………………… [08] Province/City: .......................... ................

[09] Phone:……………………… [10] Fax: …………………… [11] Email: .................

[12] Tax agent (if any): ................................................ ................................................................ ......

[13] Tax code: ............................................. ................................................................ ...................

[14] Address: .............................................. ................................................................ ..........................

[15] District: …………………………[16] Province/City: .......................... .............

[17] Phone: …………………… [18] Fax: ……………… [19] Email: .................. .......

[20] Tax agent contract number: …………………………… date .......................... ............

□ [21] Additional declaration for newly established establishments during the year (mark "X" if any)

Currency unit: Vietnamese Dong

I certify that the above declared data is true and take responsibility before the law for the declared data./.

Best regards!