Decree No. 22/2020/ND-CP amends and supplements certain provisions of Decree No. 139/2016/ND-CP dated October 4, 2016, of the Government on business registration fees.

DECREE

Amending and supplementing some articles of Decree No. 139/2016/NĐ-CP dated October 4, 2016 of the Government on business registration fees
The Government promulgates this Decree to amend and supplement some articles of Decree No. 139/2016/NĐ-CP dated October 4, 2016 of the Government on business registration fees.

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Fees and Charges dated November 25, 2015;

Pursuant to the Law on Supporting Small and Medium Enterprises dated June 12, 2017;

At the proposal of the Minister of Finance;

Article 1. Amending and supplementing some articles of Decree No. 139/2016/NĐ-CP dated October 4, 2016 of the Government on business registration fees

1. Article 3 shall be amended and supplemented as follows:

a) Clause 6 of Article 3 shall be amended as follows:

"6. Cooperatives and cooperative unions (including branches, representative offices, and business locations) operating in agriculture according to the laws on agricultural cooperatives."

b) Clause 7 of Article 3 shall be amended as follows:

"7. People's credit funds; branches, representative offices, and business locations of cooperatives and cooperative unions and of private enterprises operating in mountainous areas. Mountainous areas are determined according to the regulations of the Committee for Ethnic Minorities."

c) Clause 8, 9, and 10 of Article 3 shall be added as follows:

"8. Exemption from business registration fees for the first year of establishment or commencement of production and business activities (from January 1 to December 31) for:

a) Newly established organizations (issued new tax code or new enterprise code).

b) Households, individuals, and groups of individuals commencing production and business activities for the first time.

c) During the exemption period, if the organization, household, individual, or group of individuals establishes branches, representative offices, or business locations, these branches, representative offices, or business locations will be exempted from business registration fees during the exemption period of the organization, household, individual, or group of individuals.

9. Small and medium-sized enterprises transitioning from individual businesses (as stipulated in Article 16 of the Law on Supporting Small and Medium-Sized Enterprises) shall be exempted from business registration fees for a period of three years from the date of issuance of the first business registration certificate.

a) During the exemption period, if small and medium-sized enterprises establish branches, representative offices, or business locations, these branches, representative offices, or business locations will be exempted from business registration fees during the exemption period of the small and medium-sized enterprises.

b) Branches, representative offices, or business locations of small and medium-sized enterprises (eligible for exemption under Article 16 of the Law on Supporting Small and Medium-Sized Enterprises) established before the effective date of this Decree shall have their exemption period calculated from the effective date of this Decree until the end of the exemption period of the small and medium-sized enterprises.

c) Small and medium-sized enterprises transitioning from individual businesses before the effective date of this Decree shall implement exemptions from business registration fees according to Articles 16 and 35 of the Law on Supporting Small and Medium-Sized Enterprises.

10. Public secondary schools and public kindergartens."

a) Point d of Clause 2 of Article 4 shall be added as follows:

2. Clause 4 shall be amended and supplemented as follows:

"d) Revenue used as the basis for determining the level of business registration fees for individuals, groups of individuals, and households, in accordance with the guidance of the Ministry of Finance."

b) Clause 3 of Article 4 shall be amended and supplemented as follows:

"3. Small and medium-sized enterprises transitioning from individual businesses (including branches, representative offices, and business locations), upon the expiration of the exemption period for business registration fees (fourth year from the year of establishment of the enterprise): if the period ends within the first six months of the year, they must pay the full annual business registration fee; if it ends within the last six months of the year, they must pay half of the annual business registration fee.

Households, individuals, and groups of individuals engaged in production and business activities that have been dissolved and resume operations within the first six months of the year must pay the full annual business registration fee; within the last six months of the year, they must pay half of the annual business registration fee."

c) Clause 5 of Article 4 shall be amended and supplemented as follows:

"5. Individuals who are currently operating and submit a written request to the direct tax authority regarding the temporary cessation of production and business activities during the calendar year are not required to pay the business registration fee for the year of temporary cessation provided that the written request is submitted before the deadline for payment (January 30 each year) and no business registration fee has been paid for the year of temporary cessation.

If the temporary cessation of production and business activities does not meet the above conditions, the full annual business registration fee must be paid."

3. Clause 1 of Article 5 shall be amended and supplemented as follows:

"1. Business registration fees shall be declared once when the payer starts production and business activities or is newly established.

a) New payers starting production and business activities or newly established; small and medium-sized enterprises transitioning from individual businesses shall declare the business registration fee and submit the declaration form to the direct tax authority before January 30 of the year following the start of production and business activities or establishment.

b) Households, individuals, and groups of individuals paying taxes through the fixed-rate method are not required to declare the business registration fee. The tax authority will determine the revenue from business operations based on the tax declaration form and tax industry database to calculate the business registration fee payable by households, individuals, and groups of individuals paying taxes through the fixed-rate method."

4. Clause 4 of Article 5 shall be amended and supplemented as follows:

"4. The latest date for payment of business registration fees is January 30 each year.

a) Small and medium-sized enterprises transitioning from individual businesses (including branches, representative offices, and business locations) ending the exemption period for business registration fees (fourth year from the year of establishment of the enterprise) shall pay the business registration fee as follows:

- If the exemption period ends within the first six months of the year, the latest date for payment of the business registration fee is July 30 of the year ending the exemption period.

- If the exemption period ends within the last six months of the year, the latest date for payment of the business registration fee is January 30 of the following year ending the exemption period.

b) Households, individuals, and groups of individuals engaged in production and business activities that have been dissolved and resumed operations shall pay the business registration fee as follows:

b) Households, individuals, groups of individuals who have ceased production and business activities and resume such activities shall pay the business registration fee as follows:

- In the case of commencing operations within the first six months of the year, the latest deadline for paying the business registration fee is July 30 of the year of commencement.

- In the case of commencing operations within the last six months of the year, the latest deadline for paying the business registration fee is January 30 of the following year.

Article 2. Implementation and effectiveness

1. This Decree takes effect from February 25, 2020.

2. The Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies, Chairpersons of provincial people's committees under central cities, and related organizations, individuals, groups of individuals, and households shall be responsible for implementing this Decree./.