Vietnam’s new regulations on license fees applied from 2017

According to Circular No. 302/2016/TT-BTC of the Ministry of Finance of Vietnam, the amounts of annual licensing fees for organizations engaging in business as follows: Organizations with charter capital and investment capital of greater than VND 10 billion: VND 3,000,000/year; organizations with charter capital and investment capital of less than or equal to VND 10 billion: VND 2,000,000/year.

Branches, representative offices, business premises, public service providers, other business entities: VND 1,000,000/year.

The amount of licensing fees for the organizations specified above is based on the charter capital written in the certificate of business registration, the certificate of enterprise registration, or the charter of cooperatives. In case of absence of charter capital, it is based on the investment capital written in the certification of investment registration or decision on investment policies.

Circular No. 302/2016/TT-BTC also specifies the amounts of annual licensing fees for individuals, groups of individuals, households engaging in business as follows:

Specifically, individuals, groups of individuals, households with annual revenues of greater than VND 500 million: VND 1,000,000/year; individuals, groups of individuals, households with annual revenues of greater than VND 300 million to less than and equal to VND 500 million: VND 500,000/year; individuals, groups of individuals, households with annual revenues of greater than VND 100 million to less than and equal to VND 300 million: VND 300,000/year.

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.

Organizations, individuals, groups of individuals, or households engaging in business or newly-incorporated that are issued with tax registration and TINs, business identification numbers within the first six months shall pay license fees for the whole year; those are incorporated or issued with tax registration and TINs, business identification numbers within the last six months shall pay 50% of license fees for the whole year.

Exemption from licensing fees

Cases of exemption from license fees shall be consistent with Article 3 of Decree No. 139/2016/NĐ-CP of Vietnam’s Government on license fees.

With regard to cases of exemption from license fees prescribed in Clause 1, Clause 2 Article 3 of Decree No. 139/2016/NĐ-CP, the exempt license fees shall be determined as follows: The individuals, groups of individuals and households engaging in business with annual revenues of less than or equal to VND 100 million. 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.

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 of the Ministry of Finance of Vietnam.

The individuals, groups of individuals, and households without fixed locations in this Clause 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.

Circular No. 302/2016/TT-BTC of the Ministry of Finance of Vietnam takes effect from January 01, 2017.

Source: Government’s e-newspapers

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