On July 9th ,2020, The Ministry of Finance issued Circular No. 65/2020/TT-BTC amending, supplementing a number of contents on guidelines for license fees, details are as follows:
Supplementing 05 more cases that are exempted from licensing fees, which are:
The first case: the cooperative and the union of cooperative (including branches, representative offices, places of business) operating in the field of agriculture sector in accordance with the law on agriculture cooperative;
The second case: the People’s Credit Funds; representative offices, and business locations of the cooperative, the union of cooperative and sole proprietorships operating in mountainous areas. The mountainous areas shall be determined according to regulations of the Committee for Ethnic Affairs;
The third case: applying the exemption from licensing fees for the first year of establishment or starting production and business activities (from January 1st to December 31st ) for the following entities: New establishment of the organization (being granted new tax code, a new business code); Individuals, groups of individuals, and households engage in production and business activities for the first time;
The fourth case: the small and medium-sized enterprise converted from the business households (as regulated in Article 16 of the Law on supporting for Small and Medium enterprises) shall be exempted from license fees for a period of 03 years from the date of the enterprise registration certificate’s first issuance;
The fifth case: public institutions of general education and public institutions of preschool education.
Amending, supplementing the license fees for individuals, groups of individuals, and households that participate in production and business activities for goods and services at the following contribution level: For Individuals, groups of individuals, and households with their turnover exceed 500 Million Dong per year: 1 Million Dong per year; For Individuals, groups of individuals, and households with their turnover is from over 300 Million Dong to 500 Million Dong: 500 Thousand Dong per year; For Individuals, groups of individuals, and households with their turnover from over 100 to 300 Million Dong per year: 300 Thousand Dong per year.
Supplementing the license fees rate for the following cases:
The Small and Medium-sized enterprise converted from the business household (including branches, representative offices, places of business) at the end of license fees exemption term (the fourth year from the year of establishment): If the term matures within the first 6 months of the year, the annual licensing fees shall have to be paid in full; while if the term ends within the last 6 months of the year, only 50% of the annual licensing fees shall have to be paid.
The active license fee payers who submitted the written request to the supervisory tax authority or to the business registration authority on the temporary suspension of production and business activities in the calendar year (from January 1st to December 31st ) shall not have to pay the annual license fee for business suspension, provided that the written request for the business temporary suspension must be submitted to the supervisory tax authority or business registration authority before the deadline for payment of license fee as regulated (every year on January 30th ) and the payers have not yet paid the license fee of the year applying for business and production suspension. If the business and production suspension does not meet the above conditions, the annual license fee shall have to be paid in full.
This Circular shall take effect on August 23rd ,2020.
