FREE MODEL FEE FOR ENTERPRISES ESTABLISHED IN 2020 AND BUSINESS HOUSEHOLDS MOVED TO ENTERPRISES

GOVERMENT
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 22/2020 / ND-CP

Hanoi, February 24, 2020

DECREE

AMENDMENT AND ADDITION TO A NUMBER OF ARTICLES OF THE GOVERNMENT'S DECREE NO. 139/2016 / ND-CP DATED OCTOBER 4, 2016 ON MODEL FEES

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Fees and Charges dated November 25, 2015;

Pursuant to the Law on Support for Small and Medium Enterprises dated June 12, 2017;

At the request of the Minister of Finance;

The Government promulgates the Decree amending and supplementing a number of articles of the Government's Decree No. 139/2016 / ND-CP dated October 4, 2016, on license fees.

Article 1. Amending and supplementing a number of articles of the Government's Decree No. 139/2016 / ND-CP dated October 4, 2016 on licensing fees

1. Article 3 is amended and supplemented as follows:

a) Clause 6 Article 3 is amended as follows:

“6. Cooperatives and unions of cooperatives (including branches, representative offices and business locations) operating in the agricultural sector in accordance with the law on agricultural cooperatives. ”

b) Clause 7, Article 3 is amended as follows:

“7. People's Credit Fund; branches, representative offices, business locations of cooperatives and unions of cooperativesss and of private enterprises doing business in mountainous areas. The mountainous area is determined according to the regulations of the Committee for Ethnic Minorities. ”

c) To add Clauses 8, 9 and 10 to Article 3 as follows:

"8. Exemption from license fees in the first year of establishment or operation of production and business (from January 1 to December 31) for:

a) A newly established organization (to be granted a new tax code or a new enterprise identification number).

b) Households, individuals, groups of individuals that are engaged in production and business for the first time.

c) During the period of license fee exemption, if the organization, household, individual or group of individuals establish a branch, representative office or business location, the branch, representative office or business location business licensees are exempted while organizations, households, individuals and groups of individuals are exempt from license fees.

9. Small and medium-sized enterprises transferred from business households (as prescribed in Article 16 of the Law on Support for Small and Medium Enterprises) are exempt from license fees for a period of 03 years from the date of being granted business registration certificates business for the first time.

a) During the period of license fee exemption, if small and medium enterprises establish branches, representative offices or business locations, the branch, representative office or business location is exempt from the license fee. Timely SMEs are exempt from license fees.

b) Branches, representative offices, business locations of small and medium enterprises (subject to exemption from license fees as prescribed in Article 16 of the Law on Support for Small and Medium Enterprises) were established before the time of the Decree. If this Decree takes effect, the period for exemption from license fees of branches, representative offices or business locations shall be counted from the effective date of this Decree until the end of the period when the SME is granted. license fee waiver.

c) Small and medium-sized enterprises converted from business households before the effective date of this Decree shall apply for exemption from license fees as prescribed in Articles 16 and 35 of the Law on Support for Small and Medium Enterprises.

10. Public general education institutions and public preschool education institutions ”.

2. Article 4 is amended and supplemented as follows:

a) To add Point d to Clause 2 of Article 4 as follows:

"D) Turnover serving as a basis for determining license fee rates for individuals, groups of individuals and households under the guidance of the Ministry of Finance."

b) Clause 3 Article 4 is amended and supplemented as follows:

“3. Small and medium-sized enterprises transforming from household businesses (including branches, representative offices, business locations) when the period of license fee exemption expires (the fourth year since the year of establishment of the enterprise) : for cases ending within the first 6 months of the year, paying the annual license fee rates, for cases ending within the last 6 months of the year, 50% of the annual license fee rate shall be paid.

Households, individuals and groups of individuals that have been dissolved and have resumed production and business activities within the first 6 months of the year, pay the annual license fee for the last 6 months. the year to pay 50% of the license fee for the whole year. "

c) Clause 5 Article 4 is amended and supplemented as follows:

“5. The active fee payer sends a written request to the supervisory tax authority of the suspension of production and business activities within the calendar year, which is not required to pay the annual license fee of the business suspension, provided that: the application for suspension of production and business activities, sent to the tax agency before the prescribed fee payment deadline (January 30 every year) and the license fee of the year applying for suspension of production is not yet paid. business.

In case of suspension of production or business activities that do not satisfy the above conditions, the annual license fee rate shall be paid. "

3. Clause 1 Article 5 is amended and supplemented as follows:

"first. License fee is declared once when the fee payer is new to production, business or newly established.

a) Fee payers newly engaged in production, business or newly established; small and medium-sized enterprises transferred from business households shall declare license fees and submit declarations to their supervisory tax authorities before January 30 of the year after the year they start their operations or are newly established. .

b) Households, individuals, groups of individuals that pay tax by the presumption method are not required to declare license fees. The tax authority shall base itself on the tax return and tax database to determine business revenue as a basis for calculating the license fee payable by households, individuals or groups of individuals paying tax by the presumption method. . "

4. Clause 4 Article 5 is amended and supplemented as follows:

“4. The deadline for paying license fees is January 30 every year.

a) Small and medium-sized enterprises converted from business households (including branches, representative offices, business locations) end the period of license fee exemption (the fourth year since the year of establishment of the business). business) pay the license fee as follows:

- In case the period of license fee exemption ends within the first 6 months of the year, the deadline for paying license fees is July 30 of the year when the exemption period ends.

- In case the period of license fee exemption ends within the last 6 months of the year, the deadline for payment of license fees is January 30 of the year immediately preceding the year the exemption period expires.

b) Households, individuals, groups of production and business individuals that have dissolved or resumed production and business activities shall pay license fees as follows:

- In case of operating in the first 6 months of the year, the deadline for paying license fees is July 30 of the year of operation.

- In case of commencing operation within the last 6 months of the year, the deadline for paying license fees is January 30 of the year immediately preceding the year of operation. "

Article 2. Implementation organization and implementation effect

1. This Decree takes effect from February 25, 2020.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of People's Committees of provinces and centrally-run cities and organizations, individuals, groups of individuals and households Relevant are responsible for the implementation of this Decree.

Recipients:
- Secretariat of the Party Central Committee;
- Prime Minister, Deputy Prime Ministers;
- Ministries, ministerial-level agencies, Government-attached agencies;
- People's Councils, People's Committees of provinces and centrally-run cities;
- Central Office and Committees of the Party;
- Office of the General Secretary;
- Office of the President;
- Ethnic Council and Committees of National Assembly;
- Congress office;
- Supreme People's Court;
- People's Procuratorate of the Supreme;
- State Audit;
- National Financial Supervisory Commission;
- Bank for Social Policy;
- Vietnam Development Bank;
- Central Committee of Vietnam Fatherland Front;
- Central offices of unions;
- VPCP: Chairman, Deputy Chairmen, TT Assistant, General Director of the Portal, departments, agencies, units, Official Gazette;
- Save: VT, KTTH (2).

TM. GOVERMENT
PRIME MINISTER