Vietnam: Amount of license fees for business households

According to Clause 5 Article 4 of Decree No. 139/2016/NĐ-CP dated October 04, 2016 of Vietnam’s Government: “If the individuals, groups of individuals and households specified in Paragraph 2 of this Article change their revenues, the ground to determine the rate of licensing fees is the revenues of the year preceding the year of calculation of licensing fees.”

According to Clause 2 Article 4 of Circular No. 302/2016/TT-BTC dated November 15, 2016 of the Ministry of Finance of Vietnam: “The annual revenue used to determine the amount of license fees 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.”

If the individuals, groups of individuals and households change their revenues, the ground to determine the amounts of licensing fees is the revenues of the year preceding the year of calculation of licensing fees.

With regard to individuals, groups of individuals, or households engaging in new business within the year, the revenue used to determine the amount of license fees shall be the revenue of the tax year as prescribed in law on personal income tax. 

Based on the above regulations: the principle for determining revenue to calculate license fees for business households is the total revenue of the year preceding the tax year. Particularly for new business households, the revenue to determine the license fee rate is the revenue of the tax year. Determining license tax revenue based on the revenue of the year immediately preceding the tax year is appropriate to determine a stable license fee from the beginning of the year, avoiding having to adjust license fees during the year when there is a change in business revenue during the tax year.

Source: New Vietnam

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