Form 01/LPMB: Latest licensing fee declaration form in Vietnam and instructions on filling out the form

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

Specifically, Article 4 of Decree 139/2016/ND-CP (amended in Decree 22/2020/ND-CP) stipulates the licensing fee collection rate in 2023 as follows:

(1) The rate of licensing fees for the organizations having the production and business of goods and services is 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;

The rate of licensing fees for the organizations specified under Point a and b of this Paragraph is based on the charter capital written in the certificate of business registration or on the investment capital written in the certificate of investment registration in case of no charter capital.

(2) The rate of licensing fees for the individuals and households having the production and business of goods and services is 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;

- Revenues used as the basis for determining the licensing fees payable by individuals, groups of individuals and household businesses shall be determined according to guidance given by the Ministry of Finance

(3) Upon the end of the period of exemption from the licensing fee (from the fourth year from the date of establishment), a SME transformed from a household business (including its branches, representative offices and/or business locations) shall pay the licensing fee for the whole year if its exemption period ends in the first 6 months of the year or pay 50% of the licensing fee payable for the whole year if its exemption period ends in the last 6 months of the year.

A household business, an individual or a group of individuals engaging in production/business that resumes its production/business after a suspension period shall pay the licensing fee for the whole year if it resumes its production/business in the first 6 months of the year or pay 50% of the licensing fee payable for the whole year if it resumes its production/business in the last 6 months of the year.

(4) If the organizations specified under the Points a and b, Paragraph 1 of Article 4 of Decree 139/2016/ND-CP change their charter capital or investment capital, the ground for determining the rate 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 rate of licensing fees in accord 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.

(5) An operating payer of the licensing fee that has notified its supervisory tax authority in writing of its suspension of production/business in a calendar year must not pay the licensing fee for that year of production/business suspension if it has sent a written notification of production/business suspension to its supervisory tax authority before the prescribed deadline for paying the licensing fee (January 30 annually) and has made no payment of the licensing fee for the planned year of suspension.

It must pay the licensing fee for the whole year if it does not meet the abovementioned conditions for production/business suspension.