Decree No. 139/2016/ND-CP on business license fees

DECREE

Regulations on Business License Fees

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On the basis of Law on Government Organization dated June 19, 2015;

On the basis of the Law on Fees and Charges dated November 25, 2015;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on business license fees.

Article 1. Scope of Regulation

This Decree stipulates the persons liable for business license fees; exemptions from business license fees; rates of collection and declaration and payment of business license fees.

Article 2. Persons Paying Business Registration Fees

Persons liable for business license fees are organizations and individuals engaged in production and business activities of goods and services, except for cases provided for in Article 3 of this Decree, including:

1. Enterprises established in accordance with the law.

2. Organizations established under the Law on Cooperatives.

3. Public service units established in accordance with the law.

4. Economic organizations of political organizations, political-social organizations, social organizations, social-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 organizations specified in Clauses 1, 2, 3, 4, and 5 of this Article (if any).

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

Article 3. Exemptions from Business Registration Fees

Cases exempted from business license fees include:

1. Individuals, groups of individuals, and households engaged in production and business activities with annual revenue not exceeding 100 million VND.

2. Individuals, groups of individuals, and households engaged in occasional production and business activities without fixed business locations as guided by the Ministry of Finance.

3. Individuals, groups of individuals, and households producing salt.

4. Organizations, individuals, groups of individuals, and households breeding, catching aquatic and marine products, and providing post-harvest fisheries services.

5. Rural postal and cultural centers; press agencies (print media, broadcast media, online media).

Article 4. Amount of Business License Fee Collection

1. The amount of business license fee collection for organizations engaged in production and business activities of goods and services shall be as follows:

a) Organizations with registered capital or investment capital over 10 billion VND: 3,000,000 VND/year;

b) Organizations with registered capital or investment capital up to 10 billion VND: 2,000,000 VND/year;

c) Branches, representative offices, business locations, public service units, and other economic organizations: 1,000,000 VND/year.

The rate of business license fees for organizations specified in Point a and Point b of this Clause shall be based on the registered capital recorded in the business registration certificate; if there is no registered capital, it shall be based on the investment capital recorded in the investment registration certificate.

2. The rate of business license fees for individuals, households engaged in production and business activities of goods and services is as follows:

a) Individuals, groups of individuals, and households with annual revenue over 500 million VND: 1,000,000 VND/year;

b) Individuals, groups of individuals, and households with annual revenue between 300 million VND and 500 million VND: 500,000 VND/year;

Organizations, individuals, groups of individuals, and households engaged in production and business activities but failing to declare business license fees shall pay the full annual business license fee regardless of whether the violation is discovered during the first six months or the last six months of the year.

4. Organizations specified in Points a and b of Clause 1 of this Article that change their registered capital or investment capital shall base the determination of the business license fee rate on the registered capital or investment capital of the preceding year immediately before the year in which the business license fee is calculated.

In cases where the registered capital or investment capital recorded in the business registration certificate or investment registration certificate is denominated in foreign currency, it shall be converted into Vietnamese dong at the buying exchange rate of the commercial bank or financial institution where the person liable for the business license fee has an account at the time of payment to the state budget.

Article 5. Declaration and Payment of Business Registration Fee

a) Declare business license fees once when the person liable for the fee starts business operations, no later than the last day of the month in which business operations commence;

b) In cases where the person liable for the fee establishes a business unit but has not yet commenced business operations, they must declare business license fees within thirty days from the date of issuance of the business registration certificate or investment registration certificate and tax registration.

2. The declaration form for business license fees is the Business License Fee Declaration Form issued together with this Decree.

3. The person liable for the business license fee submits the declaration form for business license fees to the direct tax authority.

a) In cases where the person liable for the fee has dependent units (branches, representative offices, business locations) operating in the same province-level administrative area, the person liable for the fee shall submit the declaration forms for business license fees of these dependent units to the direct tax authority managing the person liable for the fee;

b) In cases where the person liable for the fee has dependent units (branches, representative offices, business locations) operating in different province-level administrative areas from the main office location of the person liable for the fee, the dependent unit shall submit the declaration form for business license fees of the dependent unit to the direct tax authority managing the dependent unit.

5. Business license fees collected must be fully remitted to the state budget in accordance with the provisions of the law.

Article 6. Effective Date.

1. This Decree takes effect from January 1, 2017.

2. In cases where taxpayers who have been operating businesses have declared and paid the business registration fee before January 1, 2017, they shall not be required to submit declaration forms for the business registration fee for subsequent years if there are no changes in factors determining the amount of the business registration fee payable.

Based on capital or revenue and the rate of the business registration fee, tax authorities shall review and establish a list of business registration fees, notify organizations, individuals, groups of individuals, households of the business registration fees payable, and implement the collection of business registration fees in accordance with this Decree.

3. From the date this Decree takes effect, Decree No. 75/2002/NĐ-CP dated August 30, 2002 of the Government on adjusting the business registration fee rates and Article 18 of Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government detailing certain provisions of the Law on Tax Administration and the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration shall cease to be effective.

Article 7. Responsibility for Implementation              

1. The Ministry of Finance shall provide guidance on implementing Articles 2, 3, 4, and 5 of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, and entities subject to this Decree shall be responsible for its implementation./.