License Fee is a new name for License Tax and is implemented in accordance with Decree 139/2016/ND-CP – Guided in Circular 302/2016/TT-BTC – Guidance on licensing fees. course fees.
Overview of license fees in 2020 :
| License fee declaration | Pay the license fee | |
| Businesses that have been operating before 2020 | No license tax return requiredEven if there is a change in charter capital or investment capital, there is no need to resubmit the license fee declaration because there is now a mechanism to exchange information between the business registration agency and the tax office. (According to Official Letter No. 1279/TCT-CS dated 4/4/2017 of the General Department of Taxation on license fees) |
Must pay license feePayment deadline is January 30, 2020 |
| Newly established businesses from January 1, 2020 | The time limit for declaring license fees when the enterprise is newly established is the last day of the month of starting production and business.If an enterprise is newly established but has not yet started production and business , it must declare the license fee within 30 days from the date of issuance of the certificate of business registration , tax registration or enterprise registration.
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The deadline for paying the license fee is the deadline for submitting the declaration |
- License fee: For enterprises and organizations engaged in production and trading of goods and services:
1. License fee payment rate in 2020:
In Article 4 of Decree 139/2016/ND-CP and Circular 302/2016/TT-BTC stipulating license fees for organizations engaged in production and trading of goods and services as follows: :
| Based on the charter capital stated in the business registration certificate (In case there is no charter capital, the investment capital stated in the investment registration certificate) |
The amount of license fee to pay | Subsection of payment |
| Over 10 billion VND | 3,000,000 VND/year | 2862 |
| From 10 billion VND or less | 2,000,000 VND/year | 2863 |
| Branches, representative offices, business locations, non-business units, other economic organizations | 1,000,000 VND/year. | 2864 |
The deadline for paying license fees of operating businesses is January 30, 2020
In case there is a change in the charter capital or investment capital, the basis for determining the license fee collection rate is the charter capital or investment capital of the year preceding the year in which the license fee is calculated.
In case the charter capital or investment capital stated in the business registration certificate or investment registration certificate is in a foreign currency, it shall be converted into Vietnamese dong as a basis for determining the license fee rate according to the regulations. buying rate of the commercial bank or credit institution where the license fee payer opens an account at the time the license fee payer pays into the state budget.
* For newly established companies, enterprises and organizations:
+ If granted tax registration and tax identification number and business identification number within the first 6 months of the year , the license fee for the whole year shall be paid.
+ If established and granted tax registration and tax identification number and enterprise identification number within the last 6 months of the year (Established from July 1 to December 31 of the year), the first year (year of establishment) pay 50% of the annual license fee.
=> Note: If you do not declare the license fee, you must pay the license fee for the whole year, regardless of the time of discovery in the first 6 months of the year or the last 6 months of the year.
In case the business is in production and business and there is a notice sent to the tax office about the business suspension for the whole calendar year, the license fee for the year of business suspension is not required. In case of business suspension for less than a calendar year, the license fee for the whole year must still be paid.
- Declare – Pay license fee 2020
The license fee declaration dossier is the license fee declaration according to the form promulgated together with Decree 139/2016/ND-CP. (Please see the bottom of the article)
2.1. Declare the course fee:
– Declare the one-time license fee when the new organization launches its business activities, no later than the last day of the month of starting its production and business activities;
– In case the fee payer has a dependent unit (branch, representative office, business location) doing business in the same locality of the province, the fee payer shall submit the license fee declaration dossier of the such dependent units to the tax authority for the direct management of the fee payer;
– In case the fee payer has a dependent unit (branch, representative office, business location) doing business in another province than the province where the head office of the fee payer is located, the dependent unit shall submit the license fee declaration dossier of the dependent unit to the tax agency directly managing the dependent unit.
– In case the fee payer has just established a business establishment but has not yet started production and business, he/she must declare the license fee within 30 days from the date of issuance of the business registration certificate or the date of issuance. certificate of investment registration and tax registration or the date of issuance of the enterprise registration certificate; date of issuance of branch operation registration certificate; date of issuance of the document approving the investment policy.
– In case the license tax payer is doing business and has declared and paid the license tax before January 1, 2020, he is not required to submit the license fee declaration dossier for the following years if there is no change in the following factors. as a basis for determining the amount of license fee to be paid.
2.2) Pay the license fee
– The deadline for paying license fees is January 30 every year.
In case the organization has just started production and business activities or has just established a production and business establishment, the deadline for paying license fees is the last day of the deadline for submitting the license fee declaration dossier as prescribed. in Clause 1, Article 5 of Decree No. 139/2016/ND-CP of the Government regulating license fees.
- License fee: For individuals, groups of individuals and households engaged in production and trading of goods and services License fees for individuals and households engaged in production and business of goods and services are as follows:
| Revenue level | The amount of license fee to pay | Subsection of payment |
| Over 500 million VND/year | 1,000,000 VND/year | 2862 |
| Over 300 to 500 million VND/year | 500,000 VND/year | 2863 |
| Over 100 to 300 million VND/year | 300,000 VND/year | 2864 |
ATTENTION :
The revenue used as a basis for determining license fee rates for individuals, groups of individuals and households in this Clause is the total revenue for calculating personal income tax in accordance with the law on personal income tax. core.
If individuals, groups of individuals or households mentioned in this Clause change their turnover, the basis for determining the license fee rate is the personal income taxable revenue of the year preceding the year in which the license fee is calculated. post.
Individuals, groups of individuals and households that have just started doing business in the year, the revenue level as the basis for determining the license fee rate is the revenue of the tax year according to the provisions of the law on personal income tax. .
– Individuals, groups of individuals, production and business households or newly established, granted tax registration and tax identification numbers, business identification numbers during the first 6 months of the year shall pay the license fee rate. whole year;
– If established and granted tax registration and tax identification number and enterprise identification number within the last 6 months of the year, 50% of the license fee for the whole year shall be paid.
– If the license fee is not declared, the license fee must be paid for the whole year, regardless of the time of discovery in the first 6 months of the year or the last 6 months of the year.
Declaration and payment of license fees for individuals , groups of individuals and households engaged in production and trading of goods and services
- a) Declare license fees
– Individuals, groups of individuals and business households paying tax by the presumptive method are not required to declare license fees. Tax authorities shall base themselves on the database of total turnover of individuals, groups of individuals and households to determine the license fee rates for each production and business location.
– Individuals, groups of individuals and households leasing real estate declare a one-time license fee according to each real estate rental contract. In case the real estate lease contract lasts for many years, the license fee shall be paid annually corresponding to the number of years an individual, group of individuals or household declares and pays value added tax and personal income tax. core. In case individuals, groups of individuals, households declare and pay value-added tax, one-time personal income tax for real estate lease contracts lasting for many years, they shall pay the license fee of the company. a year.
– In case individuals, groups of individuals, production and business households do not directly declare and pay tax with the tax agency but organize to declare and pay tax on behalf of tax, the organization responsible for paying tax on behalf of tax authorities is responsible for pay license fees for individuals, groups of individuals and households engaged in production and business activities when these individuals, groups of individuals and households have not yet paid.
- b) Pay the license fee
Individuals, groups of individuals and households must pay license fees by January 30 every year.
In case the license fee payer is an individual, group of individuals or household that has just started production or business and pays tax by the presumptive method, the deadline for paying the license fee is the last day of the following month. month in which there is an obligation to declare tax according to the provisions of the law on personal income tax.
III. Subjects to pay license fees:
Organizations and individuals engaged in production and trading of goods and services, including:
- Enterprises are established in accordance with the law.
- The organization was 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.
- Other organizations engaged in production and business activities.
- Branches, representative offices and business locations of the organizations specified in Clauses 1, 2, 3, 4 and 5 of this Article (if any).
- Individuals, groups of individuals and households engaged in production and business activities.
