Vietnam: 7 cases of exemption from licensing fees

According to Decree No. 139/2016/NĐ-CP of Vietnam’s Government, the individuals, groups of individuals and households that have their trade/production activities with annual revenues of less than VND 100 million shall be exempted from licensing fees. Article 3 of Circular No. 302/2016/TT-BTC of the Ministry of Finance of Vietnam also specifies that: The annual revenue of less than or equal to VND 100 million used to determine an individual, a group of individuals, or a household eligible for exemption from license fees is the total assessable revenue with regard to personal income tax in accordance with regulations of law on personal income tax.

In cases of the individuals, groups of individuals and households engaging in irregular business or business without fixed locations: The engaging in irregular business or business without fixed locations shall be consistent with guidance in Point a Clause 1 Article 3 of Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance of Vietnam on guidelines for value-added tax and personal income tax in terms of residents engaging in business; on guidelines for personal income tax in the Law on amendments to Laws on taxation No. 71/2014/QH13 and Decree No. 12/2015/NĐ-CP dated February 12, 2015 on guidelines for Law on amendments to Laws on taxation and amendments to Decrees on taxation.

The individuals, groups of individuals, and households without fixed locations include individuals being members of cooperatives and cooperatives that have paid license fees as prescribed in regulations on cooperative; individuals who directly conclude contracts to act as lottery agents, insurance agents, or agents charging designated selling prices to withhold tax; individuals entering into business cooperation contracts with organizations as prescribed in law on personal income tax.

In addition to the above cases, the individuals, groups of individuals and households that produce salt; the organizations, individuals, groups of individuals 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 are also exempted from license fees.

Deadline for paying license fees is every January 30. If an organization has just engaged in business or has just established a business facility, the deadline for paying license fees is the deadline for submitting declaration for license fees.

In order to reduce procedures for license fee payers, Decree 139 also clearly stipulates: Where the licensing fee payers who are carrying on their business operation and have made declaration and paid their license tax before January 01, 2017, they shall not have to submit the licensing fee declaration for the subsequent years if there is no change of factors as the grounds for determining the rate of licensing fees to be paid.

Source: Dien Bien Phu Newspapers

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