THE OBJECTS FOR PAYING LICENSING FEES IN 2022

Create at: 30/12/2021 16:36

WHAT IS THE LICENSE TAX?

✨ License tax can be understood as an annual tax payable based on the charter capital that the registered enterprise recorded on the business registration certificate. Previously, it was a license tax, but now it is actually a "licensing fee" according to the provisions of the Law on Fees and Charges 2015 and specifically in Decree 139/2016/ND-CP (amended by Decree 22/2020/ND-CP) and detailed instructions in Circular 302/2016/TT–BTC which specifies the number of issues.

SUBJECTS FOR PAYING LICENSING FEES IN 2022

Pursuant to Article 2 of Decree 139/2016/ND-CP, fee payers are organizations and individuals engaged in production and trading of goods and services, except for cases of exemption, including:

🍂 Enterprises established in accordance with the law.

🍂 The organization is established under the Law on Cooperatives.

🍂 Non-business units established in accordance with the law.

🍂 Economic organization of political organizations, socio-political organizations, social organizations, socio-professional organizations, people's armed forces units.

🍂 Other organizations engaged in production and business activities.

🍂 Branches, representative offices, and business locations of the above organizations (if any).

🍂 Individuals, groups of individuals, households engaged in production and business activities.

SUBJECTS FOR LICENSING FEES EXEMPTION

Pursuant to Article 3 of Decree 139/2016/ND-CP as amended and supplemented by Decree 22/2020/ND-CP, cases of licensing fees exemption include:

🍀 Individuals, groups of individuals, households engaged in production and business activities with annual revenue of 100 million VND or less.

🍀 Individuals, groups of individuals, and households engaged in non-regular business and production activities; do not have a fixed location according to the guidance of the Ministry of Finance.

🍀 Individuals, groups of individuals, and households producing salt.

🍀 Organizations, individuals, groups of individuals, households farming, fishing, seafood, and fishery logistics services.

🍀 Commune cultural post office; press agencies (print press, audio press, video press, electronic press).

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

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

🍀 Exemption of licensing fees in the first year of establishment or production and business activities (from January 1 to December 31) for:

Newly established organization (granted a new tax code, new enterprise code).
Households, individuals, and groups of individuals doing business for the first time.
During the licensing fees exemption period, organizations, households, individuals, groups of individuals establish branches, representative offices or business locations, the branches, representative offices, business locations licensing fees are exempted during the period when organizations, households, individuals, and groups of individuals are exempted from licensing fees.

🍀 Small and medium-sized enterprises converted from household businesses (as prescribed in Article 16 of the Law on Support for small and medium-sized enterprises) are exempted from licensing fees for a period of 03 years from the date of the first issuance of the business registration certificate.

During the licensing fees exemption period, if a small and medium-sized enterprise establishes branches, representative offices, or business locations, the branches, representative offices, business locations are exempted from licensing fees while small and medium-sized enterprises are exempted from licensing fees.
Branches, representative offices, and business locations of small and medium-sized enterprises (who are exempted from licensing fees as prescribed in Article 16 of the Law on Support for Small and Medium-sized Enterprises) were established before the effective date of this Decree, the licensing fees exemption period for branches, representative offices, and business locations shall be counted from the effective date of this Decree until the end of time the small and medium-sized enterprises are exempted from licensing fees.
Small and medium-sized enterprises converted from business households before the effective date of this Decree shall be exempt from licensing fees as prescribed in Articles 16 and 35 of the Law on Support for Small and Medium Enterprises.