05 Decrees on Taxes, Fees, and Charges Effective from January 01, 2017

1. Guidelines on Declaration, Collection, Remittance, and Finalization of Fees and Charges

From January 01, 2017, the declaration, collection, remittance, and finalization of fees and charges will be implemented as stipulated in Decree 120/2016/ND-CP. Specifically:

- For taxpayers: Fees and charges shall be declared and paid monthly, quarterly, annually, or upon each occurrence based on the nature and characteristics of each type of fee or charge.- For collecting organizations (except organizations collecting road use fees and Vietnamese representative offices abroad):- Remit all collected charges and fees to the state budget, and declare and pay charges monthly and finalize annually as per tax management laws.- Deposit collected fees into the temporary fee collection account at the State Treasury on a daily, weekly, or monthly basis depending on the amount collected and proximity to the State Treasury.- Declare collected fees monthly and finalize annually according to tax management laws and remit the payable fees to the state budget after deducting the retained amount.

1. New Registration Fee Rates

According to Decree 140/2016/ND-CP on registration fees replacing Decree 45/2011/ND-CP, Decree 23/2013/ND-CP, the registration fee rates as percentages (%) are effective from January 01, 2017 as follows:

- Houses, land: 0.5%.- Hunting rifles, sports practice and competition guns: 2%.- Ships, barges, motorboats, tugboats, push boats, boats, yachts, airplanes: 1%.- Motorcycles: 2%.

Exceptions:- Motorcycles owned by organizations or individuals in centrally-managed cities, province-level cities, district-level towns where provincial People's Committees are headquartered for the first registration: 5%.- Motorcycles for the second and subsequent registrations: 1%. If the asset owner has declared and paid a 2% registration fee and subsequently transfers the motorcycle to an individual or organization in the aforementioned area, the registration fee is 5%.- Cars, trailers or semi-trailers pulled by cars, similar vehicles: 2%.

Exceptions:- Passenger cars with less than 9 seats for the first registration: 10%. If a higher rate is required, it can be adjusted up but not exceeding 50% of the standard rate.- Passenger cars with less than 9 seats for the second and subsequent registrations: 2%.

1. Specific Provisions for Adoption Registration Fee

From January 01, 2017, the adoption registration fee is specified in Decree 114/2016/ND-CP. Specifically:

- Domestic adoption: 400,000 VND/case.- Overseas Vietnamese, foreigners residing abroad adopting Vietnamese children: 9,000,000 VND/case.- Foreigners residing in Vietnam adopting Vietnamese children or foreigners in border areas of neighboring countries adopting Vietnamese children residing in border areas: 4,500,000 VND/case.- Adoption registration fee at Vietnamese representative offices abroad: 150 USD/case.

1. Business License Tax Fee in 2017

The Government of Vietnam issued Decree 139/2016/ND-CP that specifies the business license tax fee applicable from January 01, 2017 as follows:

- For production, business organizations:- With charter capital/invested capital > 10 billion VND: 3,000,000 VND/year.- With charter capital/invested capital ≤ 10 billion VND: 2,000,000 VND/year.- Branches, representative offices, business locations, public service providers, other economic organizations: 1,000,000 VND/year.- For individuals, groups of individuals, households engaged in production and business activities:- With annual revenue > 500 million VND: 1,000,000 VND/year.- With annual revenue between 300 and 500 million VND: 500,000 VND/year.- With annual revenue between 100 and 300 million VND: 300,000 VND/year.

Decree 139/2016/ND-CP is effective from January 01, 2017, replacing Decree 75/2002/ND-CP and Article 18 of Decree 83/2013/ND-CP.

1. 08 Cases of Environmental Protection Fee Exemption for Wastewater

This content is outlined in Decree 154/2016/ND-CP on environmental protection fees for wastewater, which specifies 08 cases of fee exemption as well as the fee rates for environmental protection on wastewater.

More details can be found in Decree 154/2016/ND-CP, effective from January 01, 2017, replacing Decree 25/2013/ND-CP.

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