The license fee is the amount of money that production and business organizations and individuals must pay annually. Compared to previous years, the current license fee has changed after the Government issued Decree 22/2022. Today, LSX Lawfirm will give you an article about “The latest license fees and license tax rates in Vietnam in 2022“, as follows:
Legal grounds
Enterprise Law 2022
What is the course fee?
The license fee is a direct tax and is usually a quota levied on business licenses (licenses) of businesses and business households. Simple to understand; This is the annual corporate/corporate tax payable to the tax authority directly.
So The level of collection by tier, based on the registered capital; the revenue of the previous business year, or the added value of the previous business year, depending on the country/locality.
Subjects paying license fees
- Enterprises established in accordance with the law.
- The organization is established under the Law on Cooperatives.
- Non-business units established in accordance with law.
- Economic organization of political organizations, socio-political organizations; social organizations, socio-professional organizations, people’s armed forces units then.
- Other organizations engaged in production and business activities then.
- Branches, representative offices and business locations of the above organizations (if any).
- Individuals, groups of individuals, households engaged in production and business activities then.
License fees: The latest 2022 license tax rates!
Subjects exempt from license fees
- Individuals, groups of individuals and households engaged in production activities; business with annual revenue of 100 million VND or less.
- Individuals, groups of individuals and households engaged in irregular production and business activities; does not have a fixed location according to the guidance of the Ministry of Finance then.
- Individuals, groups of individuals and households producing salt.
- Organizations, individuals, groups of individuals; households farming, fishing, seafood and fishery logistics.
- 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 then.
- People’s Credit Fund; branch; representative office; business location of the cooperative; unions of cooperatives and of private enterprises doing business in mountainous areas. Mountainous areas are determined according to regulations of the Committee for Ethnic Minorities then.
In addition
Exemption of license fees in the first year of establishment or production operation; business (from January 1 to December 31) for:
- Newly established organization (granted a new tax code; new enterprise code).
- Households, individuals, groups of individuals doing business for the first time.
- During the license fee exemption period; organizations, households; personal; groups of individuals establish branches or representative offices; business locations, branches, representative offices; business locations are exempt from license fees during the organization; family; individuals, groups of individuals are exempt from license fees.
- Small and medium-sized enterprises that move from household businesses (as prescribed in Article 16 of the Law on Support for 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. head then.
- During the license fee exemption period; small and medium enterprises set up branches; representative office; business location, branch; representative office; Business locations are exempt from license fees while small and medium-sized enterprises are exempt from license fees.
- Branches, representative offices; business locations of small and medium-sized enterprises (which are exempt from license fees as prescribed in Article 16 of the Law on Support for Small and Medium-sized Enterprises) established before the effective date of this Decree, license fee exemption period of the branch; representative office; The business location is counted from the effective date of this Decree until the end of the time when the small and medium-sized enterprises are exempt from license fees.
- Small and medium enterprises converted from business households before the effective date of this Decree shall exempt license fees as prescribed in Article 16; and Article 35 of the Law on Supporting Small and Medium Enterprises.
Public general education institutions and public preschool educational institutions
- License fee payment rate in 2021
- License fees for businesses:
- Charter capital or investment capital License fee level for the whole year
- Over 10 billion VND 3,000,000/year
- From 10 billion VND or less 2,000,000 VND/year
- Branches, representative offices, business locations; non-business units, other economic organizations 1,000,000 VND/year then.
- License fees for individuals and households:
- Average annual revenue License fee for the whole year
- Revenue over 500 million VND/year 1,000,000 VND/year
- And Revenue over 300 to 500 million VND/year 500,000 VND/year
- Revenue over 100 to 300 million VND/year 300,000 VND/year.
- Time of submission
- Submit license fee declaration.
- License fee payers (except business households; business individuals) newly established (including small and medium-sized enterprises transferred from business households) or have established additional dependent units, business locations or commencing production and business activities shall submit license fee declaration dossiers no later than January 30 of the year following the year of establishment or commencement of production activities; business.
- In case there is a change in capital during the year, the license fee payer shall submit the license fee declaration dossier no later than January 30 of the year following the year in which the change information arises.
- Business households and individuals are not required to submit license fee declaration dossiers. Tax authorities shall base themselves on tax declaration dossiers and tax administration databases to determine revenue as a basis for calculating the amount of license fees payable and notify license fee payers to comply with regulations then.
Deadline for annual fee payment
Declare license fees
Pursuant to Clause 1, Article 5 of Decree 139/2016/ND-CP as amended; supplemented by Clause 3, Article 1 of Decree 22/2020/ND-CP; The fee declaration is prescribed as follows:
One-time declaration when the fee payer is new to production, business, or newly established.
– Firstly, The fee payer has just started production, business, or just established; small and medium enterprises moving from household businesses shall declare and submit declarations to the tax authorities directly managing them before January 30 of the year following the new year when they start production activities; business or newly established.
– Secondly, Households, individuals, groups of individuals paying tax by the presumptive method are not required to declare fees. Tax authorities shall base themselves on tax declarations and tax industry databases to determine business revenue as a basis for calculating the payable fee level of households; personal; groups of individuals paying tax according to the presumptive method.
Deadline for submission
Accordingly to Clause 4, Article 5 of Decree 139/2016/ND-CP as amended and supplemented by Clause 4, Article 1 of Decree 22/2020/ND-CP; the deadline for paying license fees is January 30 of each year.
– Firstly, Small and medium enterprises converted from business households (including branches, representative offices, business locations) at the end of the exemption period (fourth year from the year of business establishment) pay fees as follows:
- In case the fee exemption period ends within the first 6 months of the year, the deadline for payment is July 30 of the year in which the exemption period ends.
- In case the exemption period ends within the last 6 months of the year, the deadline for payment is January 30 of the year adjacent to the year in which the exemption period ends.
– Secondly, Households, individuals, groups of individuals producing; The business that has been dissolved, resumes production and business activities and pays the following fees:
- In case of commencement of operation in the first 6 months of the year, the deadline for submission is July 30 of the year of commencement of operation.
- In case of commencement of operation within the last 6 months of the year, the deadline for payment is January 30 of the year preceding the year of commencement of operation.
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Related questions
In accordance with the law; Persons with business activities of renting rooms can do so by either setting up an enterprise or registering as an individual business household. However; In fact, it is often carried out to register individual business households.
Household business run by an individual; a group of people or a household (a household business owned by one or more owners). Then; This individual or household is granted a business registration certificate to conduct business activities. Household businesses usually do business with a small business scale: have a business location; employ no more than 10 employees.
According to the provisions of Clause 22, Article 3 of Decree 96/2016/ND-CP; activities of renting inns that are not part of the conditional business group in the field of accommodation (such as meeting the conditions on fire prevention and fighting; having a Certificate of satisfaction of security and order conditions issued by the police agency granting authority…); but to ensure safety, the inn owner needs to take into account fire prevention measures for the rental property. This not only protects the health and lives; Of the tenant’s property but also protects the lessor’s own property as well as avoids the landlord’s legal entanglement due to fire.
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