Declaration and payment of Business license fee in Vietnam

Hi DMS Attorney in Vietnam! Could you advise me about new provisions in relation to business license fee in 2020 for newly established companies ? What are the new cases exempted from business license fee in Vietnam ? Deadline for filing of business license fee return, for payment of business license fee ?

Hi!

Exemption of business license fee:

Exemption of business license fee in the first year of establishment or doing business (from January 01 to December 31) is applicable to: newly established organizations (issued a new tax identification number, new enterprise code number); business households, individuals, groups of individuals doing business for the first time; during the period of business license fee exemption, if organizations, households, individuals, groups of individuals establishes branches, representative offices or a business locations, such branches, representative offices, business locations shall also be exempted business license fee (Point c Clause 1 Article 1 Decree No. 22/2020/NĐ-CP dated 02/24/2020).

Time-limit for declaration of business license fee:

Declaration of business license fee shall be done once when the fee payers have just started their business activities or incorporated.

Fee payers who have just started doing business or been incorporated; small and medium-sized enterprises (SMEs) converted from business households shall declare license fees to the tax authorities in charge before the January 30 of the year subsequent to the year of establishment or the first year of operations.

Households, individuals, groups of individuals engaging in business which pay fixed taxes shall not be required to declare license fees. The tax authority shall use their own database of total revenues declared of households, individuals, groups of individuals, determine the amount of license fee for each household, individual, group of individuals (Clause 3 Article1 Decree No. 22/2020/NĐ-CP dated 02/24/2020).

The deadline to pay business license fee:

The deadline to pay business license fee is 30th January annually.

Small and medium-sized enterprises (SMEs) that were changed from household businesses (including branches, representative offices, business locations) ending license fee exemption period (the fourth year from the enterprise establishment) shall pay business license fees as below:

– If the license fee exemption period ending is within the first 6 months of a year, the deadline for license fee payment is July 30 of such year.

– If the license fee exemption period ending is within the second 6 months of a year, the deadline for license fee payment is January 30 of the succeeding year.

Households, individuals, groups of individuals which restart business after suspension shall pay license fees as below:

– If the business restarting is within the first 6 months of a year, the deadline for license fee payment is July 30 of such year.

– If the business restarting is within the second 6 months of a year, the deadline for license fee payment is January 30 of the succeeding year (Clause 4 Article 1 Decree No. 22/2020/NĐ-CP dated 02/24/2020).

Declaration form of business license fee:

Declaration form of business license fee is the form prescribed in this Decree (Clause 2 Article 5 Decree No. 139/2016/NĐ-CP dated April 10, 2016): Download

Business license fee payers shall submit declaration forms to the tax authorities in charge.

Where the fee payers have their subordinate units (branch, representative office, business location) that carry on their business in the same provincial-level locality, the license fee payers shall submit the license fee declaration of such subordinate units to the tax authority in charge of the license fee payers;

Where the fee payers have their subordinate units (branch, representative office, business location) that carry on their business in different provincial-level locality where the head office of license fee payers is located, the subordinate units shall submit the license fee declaration to the tax authority in charge of the subordinate units (Clause 3 Article 5 Decree No. 139/2016/NĐ-CP dated April 10, 2016).

Related topics:

Corporate Income Tax (CIT) rates in Vietnam.

Responsibility to submit VAT declaration in Vietnam

Conditions for input VAT deduction

Consulting services:

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