Who are the business license fee payers? What is the deadline for license fee payment?

Who are the business license fee payers?

Pursuant to Article 2, Decree No. 139/2016/N-CP and Clause 1, Article 1, Circular No. 65/2020/TT-BTC, business license fee payers are organizations and individuals engaged in goods production and service provision activities, except the exemption from the business license fee, including:

(1) Enterprises established under Vietnamese law.

(2) Organizations established under the Law on Cooperatives;

(3) Non-business units established under Vietnamese law.

(4) Economic organizations of political organizations, social-political organizations, social organizations, socio-professional organizations, and people’s armed forces units.

(5) Other organizations engaged in production and business activities.

(6) Branches, representative offices, and business locations of the organizations specified in (1), (2), (3), (4), and (5) (if any).

(7) Individuals, groups of individuals, and households engaged in production and business activities.

It is important to note that individuals, groups of individuals, and households engaged in production and business activities that have an annual turnover not exceeding VND 100 million must not pay the business license fee. Annual turnover not exceeding VND 100 million serves as a basis for determining business license fees for individuals, groups of individuals, and households who are exempted from the business license fee.

Besides, individuals, groups of individuals, and households that irregularly carry out production and business activities or have no permanent business locations are exempted from the business license fees.

Note: Business license fee payers are organizations and individuals engaged in goods production and service provision activities.

What is the deadline for license fee payment?

+ The deadline for business license tax 2023

Pursuant to Clause 9, Article 18, Decree No. 126/2020/ND-CP, The deadline for license fee payment is January 30, 2023.

Besides, it is necessary to pay attention to some cases, in particular:

- For small- and medium-sized enterprises transformed from business households (including also their subsidiaries and business locations), upon the expiration of the license fee grace period (the fourth year from the year of establishment)

+ In case the license fee grace period expires in the first half of a year, the deadline for license fee payment is July 30 of that year.

+ In case the license fee grace period expires in the second half of a year, the deadline for license fee payment is January 30 of the year following that year.

- For business households and business individuals that have terminated their production or business operations but later resume such operations:

+ In case they resume their operations in the first half of a year: The deadline for license fee payment is July 30 of that year.

+  In case they resume their operations in the second half of a year: The deadline for license fee payment is January 30 of the year following that year.

Deadlines for submission of license fee declaration dossiers

Pursuant to Clause 1, Article 10, Decree No. 126/2020/ND-CP, the deadline for submission of license fee declaration dossiers:

License fee payers (except business households and business individuals) newly established (including also small- and medium-sized enterprises transformed from business households) or additionally establishing dependent units or business locations or having just commenced production and business activities shall submit license fee declaration dossiers no later than January 30 of the year following the year when they are established.

 

If having a change in the capital in a year, business license fee payers shall submit a license fee declaration dossier no later than January 30 of the year following the year when the change occurs.

Business households and business individuals are not required to submit license fee declaration dossiers.  Based on tax declaration dossiers and tax administration databases, tax offices shall determine turnover for use as a basis for calculating payable license fee amounts and notify license fee payers for payment.

In conclusion, the deadline for submission of license fee declaration dossiers is January 30, 2023. Besides, the business license fee payers must understand the deadlines for some other cases to implement in accordance with law provisions and avoid administrative violations.

(The fine for the submission of a business license fee declaration dossier can be up to VND 25 million in accordance with Article 13, Decree No. 125/2020/ND-CP; the fine for late payment of administrative violations on tax is defined as 0.05% multiplied by the fine for late payment in accordance with the law provisions prescribed in Article 42, Decree No. 125/2020/ND-CP).