Is it permissible for cooperative union of transportation to be exempt from licensing fees in Vietnam?

Is it permissible for cooperative union of transportation to be exempt from licensing fees in Vietnam?

Pursuant to Clause 6, Article 3 of the Decree 139/2016/NĐ-CP (supplemented by Clause 1, Article 1 of the Decree 22/2020/NĐ-CP) stipulating exemption from licensing fees in Vietnam as follows: 

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.

As regulations above, NT cooperative union of yours works in business of transportation, so it shall not be exempt from licensing fees in Vietnam.

What is the annual rate of licensing fees applied to enterprises in Vietnam?

Pursuant to Clause 1, Article 4 of the Decree 139/2016/NĐ-CP and Article 4 of the Circular 302/2016/TT-BTC stipulating rate of licensing fees in Vietnam as follows: 

1. The amounts of annual licensing fees for organizations engaging in business as follows:

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

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

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

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.

As regulations above, your cooperative union has a charter capital of 7 billion, so the annual licensing fee is VND 2,000,000.

Best regards!