Deadline for newly established business to pay license tax in Vietnam

by Quang Minh

Paying taxes, fees and charges are the basic financial obligations of enterprises, individuals, and households performing business operations. Especially for start-ups, they should pay attention to license tax and its due date. In this article, LSX legal firm would like to inform you with the information about: “Duration for new business to pay license tax in Vietnam”

  • Law on Fees and Charges 2015
  • Decree 139/2016/ND-CP

License tax

According to the current law, license tax is also known as license fee. The Law on Fees and Charges 2015 does not have a specific definition of the term “license fee”. However, based on the provisions of that Law and its guiding documents, we can understand the concept of license fees can as:
A license fee is a fee collected based on the charter capital registered in the business registration certificate/investment capital stated in the investment registration certificate (for organizations) or the annual revenue (for business households).
So, who must pay license tax, license tax rate, and deadline for paying license tax?

Deadline for newly established business to pay license tax

According to Clause 8, Clause 9 of Decree No. 139/2016/ND-CP, the time limit for exemption from payment of license fees for enterprises after business establishment is as follows:
The time limit for paying license tax for newly established enterprises is the last day of the month of starting production and business operations. Or within 30 days from the date of issuance of the certificate of business registration or the certificate of investment registration and tax registration.

NOTE

  • Exemption of license fees in the first year of establishment or production and business operations (from January 1 to December 31) for newly established organizations (granted a new tax code, enterprise identification number) new);
  • Small and medium-sized enterprises that coverted from household businesses (as prescribed in Article 16 of the Law on Support of Small and Medium-sized Enterprises) are exempt from license fees for a period of 03 years from the date of issuance of the first business registration certificate.

On the other hand, according to Clauses 1 and 4, Article 5 of Decree 139/2016/ND-CP, the license tax deadline for newly established enterprises is as follows:

“1. The declaration of licensing fees is done as follows:

a) The declaration of licensing fees is done once when the fee payers newly start their business activities no later than the last day of the month of commencement of business operation;

b) Where the fee payers newly establish their business facilities but have not yet come into operation, they have to make a declaration of licensing fees within 30 days from the date of issue of the certificate of business registration or certificate of investment registration and certificate of tax registration.

4. The time limit for payment of licensing fees is no later than the 30th date of January of each year. Where the licensing fee payers newly establish their business facilities, the time limit for payment of licensing fees is no later than the last day of the time limit for payment of licensing fees.”

Rate of licensing fees

According to the Decree 139/2016/ND-CP and Circular 302/2016/TT-BTC, license tax payment rates are as follows:

  • The organizations with charter capital and investment capital over 10 billion VND: 3,000,000 VND/year.
  • The organizations with charter capital and investment capital of less than 10 billion VND: 2,000,000 VND/year.
  • The branches, representative offices, business location, public service providers, and other business organizations: 1,000,000 VND/year.

Note: If the business established and received tax registration and tax identification number, business identification number within the last 6 months of the year(Established from July 1 to December 31 of the year). Then business only pays 50% of the license fee for the first year (the year of establishment).

LSX Law Firm’s Tax Identification Number Registration Service

With a team of experienced, reputable, and professional consultants; LSX has been trusted by many individuals and organizations. The firm is always ready to support and work with clients to solve legal difficulties. With thousands of requests to register for a personal tax number, LSX guarantee to provide a fast, reputable and accurate personal tax code registration service.
LSX’s service costs are highly competitive; depending particularly on the essence of the case. From 290,000 VND, a very reasonable price, LSX provides the service with the desire that customers can experience it the best way. Additionally, costs are guaranteed to be the most suitable and economical for customers.

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Can I search Tax Identification Number on social network?

Facebook users can look up for their tax identification number following these steps:
– Access https://www.facebook.com/masothuedotcom/
– Click “send message”
– Then, send your ID number
After all, the system will automatically return the user’s tax identification number information.

What to do when you forget your Tax Identification Number?

Access the linkĀ http://tracuunnt.gdt.gov.vn/tcnnt/mstcn.jsp.
Enter your ID/Citizen Identification Number on the box.
Enter the verification code.
Click “search”.
Receive the result.

Contact LSX

Finally, hope this article is useful for you to answer the question about “Deadline for new business to pay license tax in Vietnam”. If you need any further information, please contact  LSX Law firm+84846175333 or Email: hoangson@lsx.vn

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