VCN- In order to help taxpayers to comply with the law on license fee, the Tax authority has introduced the latest provisions at the time for submitting declaration, payment and notices of license fee 2018.
The license fee is the direct tax. Taxpayers submit their declaration to the Tax authority directly managing them. The declaration and payment will be implemented under Circular 302/2016/TT-BTC of the Ministry of Finance and Decree 139/ND-CP of the Government.
For the declaration and payment of license fee, tax payers only declare once when they start business. Organizations engaging in production and business goods, services that change their charter capital or capital investment shall be exempted from submitting declaration of license fee.
Representative offices or business locations engaging in production and business goods and service must pay license fee; in contrast, representative offices or business locations not engaging in production and business must not pay the license fee.
For start-up businesses engaging in production and business, the time for submitting declaration of license fee is not later than the last day of the month.
Businesses not yet engaged in business and production, the time for submitting declaration of license fee is not later than 30 days since the day of receiving the business registration certificate.
For operating businesses, if they do not change their charter capital or increase or reduce their branches, they do not need to submit declaration of license fee, but must pay fee no later than 31st January 2018.
If they change charter capital or number of their branches, leading to an increase or reduction of license fee amount, they must submit declaration of license fee no later than 31st December, and pay license fee amount no later than 31st January.
For license fee calculation, if a business is established within the first sixth months of the year, it must pay the license fee for the whole year.
It a business is established within the last six month of the year (from 1st June to the end of the year), it must pay 50% of the whole year.
If Tax payers engaging in business and production do not declare license fee, they must pay the license fee for the whole year without distinguishing the time they were detected in the first sixth months or the last sixth months of a year.
For the amounts of license fee, the law on fees stipulates that individuals and households must pay license fee under 3 grades as follows:
If their revenue is over 500 million per year, they must pay VND 1 million/ year.
If their revenue is from VND 300 million to VND 500 million, they must pay VND 500,000/year.
If their revenue is from VND 100 million to VND 300 million per year, they must pay VND 300,000/ year.
Businesses also pay under 3 grades, but the amount is higher. If their revenue is over VND 10 billion, they must pay VND 3 million for the whole year. If their revenue is less than VND 10 billion, they must pay VND 2 million. For branches, representative offices, business locations, non-business units and other economic organizations, they must pay VND 1 million/year.
When any organization, individual, group of individuals, or household engaging in business notifies a tax authority of business suspension for the full calendar year, it is not required to pay the license fee for year of business suspension. If the business is not suspended for the full calendar year, it must pay license fee for the whole year.