Establishing a Company in November 2020: Is It Exempt from Business License Fees?

Point c Clause 1 Article 1 Decree 22/2020/ND-CP (Effective from February 25, 2020) stipulates as follows:

Exemption from business license tax in the first year of establishment or commencement of production and business activities (from January 01 to December 31) for:

- Newly established organizations (granted a new tax code, new enterprise code).

- Households, individuals, and groups of individuals that commence production and business activities for the first time.

- During the business license tax exemption period, if organizations, households, individuals, and groups of individuals establish branches, representative offices, and business locations, then these branches, representative offices, and business locations shall also be exempted from business license tax for the duration that the organizations, households, individuals, and groups of individuals are exempted from business license tax.

Based on the above regulations, newly established companies will be exempt from business license tax for the first year of establishment (from January 01 to December 31).

Therefore, if your company was established in November 2020, it will be exempt from business license tax in 2020.

Respectfully!