What are cases of exemption from licensing fees in Vietnam? What is the licensing fee rate for organizations having the production and business of goods and services in Vietnam?
What are cases of exemption from licensing fees in Vietnam?
Pursuant to Article 3 of Decree 139/2016/ND-CP as amended and supplemented by Clause 1 Article 1 of Decree 22/2020/ND-CP, the cases exempt from licensing fees in Vietnam include:
[1] Individuals, groups of individuals, and households engaged in production and business activities with annual revenue of 100 million VND or less.
[2] Individuals, groups of individuals, and households engaged in non-regular business activities; without a fixed location as guided by the Ministry of Finance.
[3] Individuals, groups of individuals, and households engaged in salt production.
[4] Organizations, individuals, groups of individuals, and households engaged in aquaculture cultivation, fishing, and post-fishing logistics services.
[5] Cultural post offices in communes; press agencies (printed, radio, television, electronic).
[6] Cooperatives, cooperative unions (including branches, representative offices, business locations) operating in the agricultural sector as prescribed by the agricultural cooperative law.
[7] People's credit funds; branches, representative offices, business locations of cooperatives, cooperative unions, and private enterprises operating in mountainous areas. Mountainous areas are determined according to regulations of the Committee for Ethnic Minority Affairs.
[8] Exemption from licensing fees in the first year of establishment or business activities (from January 1 to December 31) for:
- New establishments (granted new tax codes, new enterprise codes).
- Households, individuals, and groups of individuals initially engaged in production and business activities.
- During the exemption period, if organizations, households, individuals, and groups of individuals establish branches, representative offices, or business locations, these entities are also exempt from licensing fees for the same period.
[9] Small and medium enterprises transformed from household businesses are exempt from licensing fees for 3 years from the date of obtaining the first business registration certificate.
[10] Public primary, secondary, and nursery educational institutions.
What are cases of exemption from licensing fees in Vietnam? What is the licensing fee rate for organizations having the production and business of goods and services in Vietnam? (Image from the Internet)
Who is subject to licensing fees in Vietnam?
Pursuant to Article 2 of Decree 139/2016/ND-CP, the subjects liable for licensing fees include:
Article 2. Subjects liable for licensing fees
Entities subject to licensing fees are organizations and individuals engaged in goods and service production and business activities, except for cases stipulated in Article 3 of this Decree, including:
- Enterprises established according to law regulations.
- Organizations established according to the Cooperative Law.
- Public service units established according to law regulations.
- Economic organizations of political organizations, political-social organizations, social organizations, social-professional organizations, and people's armed units.
- Other organizations engaged in production and business activities.
- Branches, representative offices, and business locations of the organizations specified in Clauses 1, 2, 3, 4, and 5 of this Article (if any).
- Individuals, groups of individuals, and households engaged in production and business activities.
Thus, those subject to licensing fees are organizations and individuals engaged in goods and service production and business activities, except for those exempt from licensing fees, including:
- Enterprises established according to law regulations.
- Organizations established according to the Cooperative Law.
- Public service units established according to law regulations.
- Economic organizations of political organizations, political-social organizations, social organizations, social-professional organizations, and people's armed units.
- Other organizations engaged in production and business activities.
- Branches, representative offices, and business locations of the above organizations.
- Individuals, groups of individuals, and households engaged in production and business activities.
What is the licensing fee rate for organizations having the production and business of goods and services in Vietnam?
Pursuant to Article 4 of Decree 139/2016/ND-CP, the licensing fee rates for organizations having the production and business of goods and services in Vietnam are as follows:
[1] Organizations with charter capital or investment capital over 10 billion VND: 3,000,000 VND/year.
[2] Organizations with charter capital or investment capital of 10 billion VND or less: 2,000,000 VND/year.
[3] Branches, representative offices, business locations, public service providers, other economic organizations: 1,000,000 VND/year.
The licensing fee rate for organizations under [1] and [2] is based on the charter capital recorded in the business registration certificate; in cases without charter capital, it is based on the investment capital recorded in the investment registration certificate.
