Who are exempt from licensing fees in Vietnam? What are the fines for providing insufficient in the licensing fee statement in Vietnam?

Who are exempt from licensing fees in Vietnam?

Pursuant to Article 3 of the Decree 139/2016/ND-CP (amended by Clause 1 Article 1 of the Decree 22/2020/ND-CP), entities that are exempt from licensing fees in Vietnam are:

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

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

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

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

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

- 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.

- 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.

- 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:

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

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

+ 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.

- 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 in 2017) shall be exempted from the license fee within 03 years from the date of issuance of initial enterprise registration certificate.

+ 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.

+ 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 in 2017) 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.

+ 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 in 2017.

- Public general education schools and public pre-schools.

Who are exempt from licensing fees in Vietnam? What are the fines for providing insufficient in the licensing fee statement in Vietnam? - Image from Internet

What are the fines for providing insufficient in the licensing fee statement in Vietnam?

Pursuant to Article 22 of the Decree 109/2013/ND-CP stipulating violations against regulations on free registration and fee statement as follows:

Violations against regulations on free registration and fee statement

1. A warning shall be issued for the first late registration or statement according to legislation on fees and charges.

2. A fine of from 500,000 VND to 1,000,000 VND shall be imposed for the subsequent late registration or statement according to legislation on fees and charges.

3. A fine of from 1,000,000 VND to 3,000,000 VND shall be imposed for making false statement or providing insufficient in the statement form or in accounting documents submitted to competent authorities.

4. A fine of from 3,000,000 VND to 5,000,000 VND shall be imposed for failing to registering or making statement of frees with competent authorities.

Pursuant to Clause 5.a Article 3 of the Decree 109/2013/ND-CP stipulating penalties and rules for imposition as follows:

Penalties and rules for imposition

...

5. The fine incurred by an organization is twice as much as the fine incurred by an individual for the same violation.

a) The fines prescribed in Articles 5 - 7, Article 20, Articles 22 - 32 of this Decree are applicable to individuals.

b) The fines for the violations from Article 33 to Article 40 of this Decree are applicable to organizations.

c) The fines for other violations are specified in this Decree.

As regulations above, a fine of from 1,000,000 VND to 3,000,000 VND shall be imposed for providing insufficient in the licensing fee statement in Vietnam.

Note: The above fine is imposed on individuals. The fine imposed on organizations shall be twice as much as the fine for individuals.

Who are subject to licensing fees in Vietnam?

Pursuant to Article 2 of the Decree 139/2016/ND-CP, entities that are subject to licensing fees in Vietnam are:

- The enterprises which are established under the regulations of law and the branches, the representative offices of such enterprises.

- The organizations which are established under the Law on Cooperatives and the branches, the representative offices of such organizations.

- The business organizations of the political organizations, the social – political organizations, the occupational – social organizations and people's armed units, and the branches, the representative offices of such organizations.

- The individuals, groups of individuals and households that have their trade/production activities.

Note: the entities that are exempt from licensing fees in Vietnam are stipulated in Article 3 of the Decree 139/2016/ND-CP.

Best regards!