On February 24th 2020, Vietnamese Government enacted Decree 22/2020/ND-CP on Amendments to Government’s Decree 139/2016/ND-CP dated October 04th 2016 on license fee with some new noticeable following points:
Enterprises could be exempted from license fee as following cases:
“Exemption of license fees for the first year from the date of establishment or official commencement of production/business (from January 01st to December 31st).”
“Small- and medium-sized enterprises (SMEs) transformed from household businesses (as prescribed in Article 16 of the Law on assistance for small- and medium-sized enterprises) shall be exempted from the license fee within 03 years from the date of issuance of initial enterprise registration certificate.”
In addition, Public general education schools and public pre-schools are also new cases of exemption of license fee.
No need to pay license fee for the year of production/business suspension when already sent notification of production/business suspension and has not yet paid license fee for the planned year of suspension as follow:
“An operating payer of the license fee that has notified its supervisory tax authority in writing of its suspension of production/business in a calendar year must not pay the license 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 license fee (January 30 annually) and has made no payment of the license fee for the planned year of suspension.”
The declaration of license fee is adjusted: deadline for declaration is January 30th of the following year of commencement of production/business or the year of establishment and household businesses, individuals, groups of individuals paying fixed tax do not submit declarations of license fee.
“Payers of the license fee that have just started their production/business or established their business facilities and SMEs transformed from household businesses shall make and submit their declarations of license fee to their supervisory tax authorities by January 30 of the year following the year of commencement of production/business or the year of establishment.”
“Household businesses, individuals and groups of individuals paying fixed tax must not submit declarations of license fee. Based on received tax declarations and tax database, tax authorities shall determine revenues which are then used as the basis for determining the license fee amounts payable by household businesses, individuals and groups of individuals paying fixed tax.”
The new Decree came into force on February 25th 2020 encourages enterprises to operate business activities in Vietnam.
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