Who are licensing fee payers in 2023 in Vietnam? What are the fines for late submission of application for declaration of licensing fee in 2023 in Vietnam?

Who are licensing fee payers in 2023 in Vietnam?

Pursuant to Article 2 of the Decree 139/2016/NĐ-CP and Clause 1 Article 1 of the Circular 65/2020/TT-BTC stipulating as follows:

The licensing fee payers are the organizations and individuals that operating their trade/production of goods and services except the cases below:

- 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).

- The branches, representative offices and business locations of the cooperatives that have direct technical service activities in service of agriculture.

- The communal people’s credit fund; cooperatives specialized in service business for agricultural production; branches, representative offices and business locations of cooperatives and private enterprises carrying on their business in the mountainous areas which are determined by the regulations of the Committee for Ethnic Minorities.

As regulations above, if you are not in one of the cases below: have trade/production activities with annual revenues of less than 100 million dong, have their irregular trade/production activities, have activities without fixed location as guided by the Ministry of Finance, do the aquaculture, fisheries and fishing logistic services, you must pay licensing fee in 2023.

What are the fines for late submission of application for declaration of licensing fee in 2023 in Vietnam?

Pursuant to Article 13 of the Decree 125/2020/NĐ-CP stipulating as follows:

Penalties for violations against regulations on time limits for submission of tax returns

1. Penalties imposed in form of cautions shall be imposed for violations arising from filing tax returns from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances.

2. Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for the act of submitting tax returns from 01 to 30 days after expiration of the prescribed time limits, except the cases specified in clause 1 of this Article.

3. Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for the act of submitting tax returns from 31 to 60 days after expiration of the prescribed time limits.

4. Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following violations:

a) Filing tax returns from 61 to 90 days after expiration of the prescribed time limits;

b) Filing tax returns at least 91 days after expiration of the prescribed time limits if none of additional taxes is incurred;

c) Failing to submit tax returns if none of additional taxes is incurred;

d) Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.

5. Fines ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing tax returns more than 90 days after the prescribed deadline if such act results in additional taxes to be paid, and the taxpayer has fully paid taxes, deferred amounts into the state budget before the time of the tax authority’s announcement of the decision on tax inspection and examination, or before the time of the tax authority’s issuance of the report on the deferred submission of tax returns under the provisions of clause 11 of Article 143 in the Law on Tax Administration.

In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax return, the maximum amount of fine for this act shall be equal to the tax amount payable specified in the tax return and shall not be less than the average of fine amounts in the range prescribed in clause 4 of this Article.

6. Remedies:

a) Compelling the full payment of deferred tax amounts into the state budget with respect to the commission of the acts prescribed in clause 1, 2, 3, 4 and 5 of this Article if the taxpayer delays filing their tax return, leading to the late payment of taxes;

b) Compelling the submission of tax returns, enclosing annexes, in case of committing the acts specified in point c and d of clause 4 of this Article.

As regulations above, the fines for late submission of application for declaration of licensing fee in 2023 in Vietnam are:

- Depending on the time that is late for payment, a fine up to VND 25,000,000 shall be imposed for late submission of application for declaration of licensing fee in 2023 in Vietnam.

- In case the fine amount, if applied under this Clause, is larger than the tax amount incurred on the tax return, the maximum fine amount in this case is equal to the incurred tax payable on the tax return, but not less than the average level of the fine bracket from 8,000,000 VND to 15,000,000 VND.

- The violator shall face remedial measures such as: Compelling the full payment of deferred tax amounts and compelling the submission of tax returns.

The above fine level is applicable to the organization. In case business households and individuals violate, the sanction level is 1/2 of that of organizations.

What are regulations on rate of licensing fees in 2023 in Vietnam?

The rate of licensing fees for the organizations having the production and business of goods and services

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

- The organizations with charter capital and investment capital over 10 billion dong: 3,000,000 dong/year;

- The organizations with charter capital and investment capital of less than 10 billion dong: 2,000,000 dong/year;

- The branches, representative offices, business location, public service providers and other business organizations: 1,000,000 dong/year;

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.

The rate of licensing fees for the individuals and households having the production and business of goods and services

Pursuant to Clause 2 Article 4 of the Decree 139/2016/NĐ-CP stipulating as follows:

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

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

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

Best regards!