License fees exemption for businesses established in 2021

Create at: 29/12/2020 15:06

✨License fee exemption for the first year of establishment or production and business activities (from January 1 to December 31), license fee exemption for companies and enterprises established from 25/02/2020 from the time this Decree takes effect. License fees are exempted in some cases:

✅ Newly established organization (with new tax code, new enterprise code).

✅Households, individuals, groups of individuals doing business for the first time.

During the period of license fee exemption, when an organization, household, individual, or group of individuals establishes a branch, representative office, or business location/

✅Small and medium-sized enterprises converted from household businesses (as prescribed in Article 16 of the Law on Supporting Small and Medium-sized Enterprises) shall be exempt from business license fees for a period of 03 years from the date of the initial enterprise registration certificate.

During the period of license fee exemption, when a small and medium-sized enterprise establishes a branch, representative office, or business location.
Branches, representative offices, and business locations of small and medium-sized enterprises (who are exempt from license fees as prescribed in Article 16 of the Law on Support for Small and Medium-sized Enterprises) established before the date of Decree takes effect.
Small and medium enterprises converted from business households before the date of this Decree takes effect, shall be exempt from business license fees as prescribed in Articles 16 and 35 of the Law on Support for Small and Medium Enterprises.

✅ Public general education and public preschool educational establishments.

✨ Conclusion: For businesses established in 2021, the license fee will be exempted for the whole year of 2021, so if you have an idea and want to start production and business operations, please contact to TASCO Tax Agent for advice and establish a business in 2021.

⭕ Time for declaring license fees and submitting declarations:

License fee payers have just started production and business operations, newly established; Small and medium-sized enterprises converted from household businesses shall declare license fees and submit declarations to the tax authorities before January 30 of the following year.

⭕ In addition, there is a case of not having to declare license fees:

According to Clause 3, Article 1 of Decree 22/2020/ND-CP stipulates that households, individuals, and groups of individuals paying tax by the presumptive method are not required to declare license fees. The tax authorities will base on tax returns and tax databases to determine business revenue as a basis for calculating license fees payable.
This is one of the notable provisions of Decree 22, which helps households, individuals, and groups of business individuals pay tax by the presumptive method to reduce procedures and save time.
For organizations and individuals engaged in production and business operations must declare license fees as prescribed.

✨ If customers have questions about regulations and policies on taxes, please contact TASCO Tax Agent in the following ways for free advice and use service at TASCO: