Circular No. 42/2003/TT-BTC guides the new Business License Tax rates for economic organizations and business establishments, applicable from April 1, 2003. Enterprises are classified based on registered capital, with tax rates ranging from VND 1 million to VND 3 million per year. The Circular also stipulates tax exemptions and reductions for certain specific entities.
Đối tượng áp dụng
Economic organizations include State-owned enterprises, Joint-stock companies, Limited liability companies, Private enterprises, Cooperatives, and other business establishments.
Các điểm cốt lõi
- Economic organizations pay Business License Tax based on their registered capital: Class 1 (over VND 10 billion) - VND 3 million per year; Class 2 (from VND 5 billion to VND 10 billion) - VND 2 million per year; Class 3 (from VND 2 billion to under VND 5 billion) - VND 1.5 million per year; Class 4 (under VND 2 billion) - VND 1 million per year.
- New business establishments base their Business License Tax rate on their registered capital in the year of establishment.
- Enterprises operating on a full-industry accounting basis and branches have different Business License Tax rates: Enterprises operating on a full-industry accounting basis pay VND 2 million per year, while branches pay VND 1 million per year.
- Business establishments without a business registration certificate or without registered capital pay Business License Tax at a uniform rate of VND 1 million per year.
- Certain entities such as salt producers, village cultural postal stations, press, and businesses operating in mountainous areas temporarily enjoy a 50% reduction in Business License Tax.
🌐 Tác động xã hội từ văn bản này
- Enterprises may need to adjust their financial plans based on the new Business License Tax rates.
- Newly established business establishments will bear lower initial costs compared to before.
- Reduced Business License Tax rates for businesses operating in mountainous areas help support local economic development.
❓ Câu hỏi thường gặp
Which enterprises must pay Business License Tax?
All economic organizations including State-owned enterprises, Joint-stock companies, Limited liability companies, Private enterprises, Cooperatives, and other business establishments.
What are the new Business License Tax rates?
Class 1 (over VND 10 billion) - VND 3 million per year; Class 2 (from VND 5 billion to VND 10 billion) - VND 2 million per year; Class 3 (from VND 2 billion to under VND 5 billion) - VND 1.5 million per year; Class 4 (under VND 2 billion) - VND 1 million per year.
How do newly established business establishments pay Business License Tax?
Pay according to the tax rate based on the registered capital in the year of establishment.
Why are there tax exemptions and reductions for certain entities?
To support local economic development, promote agricultural production and service activities, and reduce cost burdens for small businesses.
What should business establishments established before April 1, 2003 do?
If the new Business License Tax rate is higher, no additional payment is required; if it is lower, the excess amount will be refunded or offset against the next year's tax.
Toàn văn
CIRCULAR
OF THE MINISTRY OF FINANCE NUMBER 42/2003/TT-BTC DATE 7 MAY 2003
GUIDING AMENDMENTS AND SUPPLEMENTS TO CIRCULAR NO. 96/2002/TT-BTC
DATE 24 OCTOBER 2002 OF THE MINISTRY OF FINANCE ON IMPLEMENTATION
DECREE NO. 75/2002/NĐ-CP DATE 30 AUGUST 2002 OF THE GOVERNMENT
REGARDING ADJUSTMENT OF THE BUSINESS LICENSE TAX RATE
To implement Decree No. 75/2002/NĐ-CP dated August 30, 2002 of the Government on adjustment of the business license tax rate and Circular No. 492/VPCP-KTTH dated January 29, 2003 of the Government Office regarding the Prime Minister's directive on taxes Business License Tax, the Ministry of Finance guides amendments and supplements to Circular No. 96/2002/TT-BTC dated October 24, 2002 guiding implementation of Decree No. 75/2002/NĐ-CP dated August 30, 2002 of the Government on adjustment of the Business License Tax rate and Circular No. 113/2002/TT-BTC dated December 16, 2002 supplementing Circular No. 96/2002/TT-BTC dated October 24, 2002 of the Ministry of Finance as follows:
1. Replace Point 1, Section I of Circular No. 96/2002/TT-BTC and Circular No. 113/2002/TT-BTC as follows:
"Economic organizations include:
- State-owned enterprises, joint-stock companies, limited liability companies, private businesses, businesses operating under the Law on Foreign Investment in Vietnam, foreign organizations and individuals conducting business in Vietnam not under the Law on Foreign Investment in Vietnam, economic organizations of political organizations, political-social organizations, social organizations, social-professional organizations, people's armed units, other public service organizations and independent economic accounting organizations;
- Cooperatives, Cooperative Unions, and People's Credit Funds (referred to collectively as cooperatives);
- Business establishments including branches, stores, shops (belonging to a company or branch)... dependent accounting or registered for record-keeping purposes and have been issued a business registration certificate (business registration), registered for tax payment, and have been assigned a tax code (13 digits);
The aforementioned economic organizations shall pay the Business License Tax based on the registered capital recorded in the business registration certificate or investment permit according to the following table: business license tax
Unit: dong
| Bracket tax on transfer of property rights stamp duty | Registered Capital
| Annual Business License Tax Rate |
| - Tier 1 | Over 10 billion VND | 3.000.000 |
| - Tier 2 | From 5 billion to 10 billion VND | 2.000.000 |
| - Tier 3 | From 2 billion to less than 5 billion VND | 1.500.000 |
| - Tier 4 | Less than 2 billion VND | 1.000.000 |
- The specific case of registered capital is determined as follows:
+ For state-owned enterprises, it is the charter capital.
+ For foreign-invested enterprises, it is the investment capital.
+ For limited liability companies, joint-stock companies, and cooperatives, it is the charter capital.
+ For private businesses, it is the investment capital.
In cases where the registered capital recorded in the business registration certificate or investment permit is denominated in foreign currency, it shall be converted into Vietnamese Dong at the actual average exchange rate for foreign currency buying and selling in the inter-bank foreign exchange market published by the State Bank of Vietnam at the time of tax calculation.
- The basis for determining the business license tax rate is the registered capital of the previous year before the tax year, for example: Company A Limited Liability has a registered capital of 6 billion VND in 2002, then the business license tax rate for 2003 will be determined based on a registered capital of 6 billion VND, and the business license tax payable for 2003 is 2 million VND/year. During 2003, if there is any adjustment in the registered capital, the business license tax rate for 2003 will still be determined based on the registered capital of 2002. The new registered capital at the end of 2003 will serve as the basis for classifying the business license tax tier for 2004.
Each time there is an increase or decrease in the registered capital, the business establishment must declare to the directly managing tax authority as the basis for determining the business license tax rate for the next year. If no declaration is made, administrative penalties for tax violations will be imposed and the business license tax rate will be determined by estimation."
2. Regulations on determining the business license tax tier for certain specific cases as follows:
- For newly established business establishments, the business license tax rate is determined based on the registered capital recorded in the business registration certificate of the establishment year.
- Member enterprises located in provinces and centrally-administered cities of nationwide accounting enterprises pay the business license tax uniformly at 2 million VND/year. Member enterprises mentioned above with branches in districts, towns, and other business points pay the business license tax uniformly at 1 million VND/year.
Example: Vietnam Insurance Corporation is a nationwide accounting enterprise with member enterprises located in provinces and centrally-administered cities. These member enterprises have branches in districts, towns, and counties. The Vietnam Insurance Corporation pays a business license tax of 3 million VND/year, member enterprises in provinces and centrally-administered cities pay a business license tax of 2 million VND/year, and branches in districts, towns, and counties pay a business license tax of 1 million VND/year.
- Business establishments that are dependent accounting branches or other economic organizations without a business registration certificate or with a business registration certificate but without registered capital shall uniformly pay the business license tax at 1 million VND/year.
- The following cases apply the business license tax rate for individual household businesses as stipulated in Point 2, Section I of Circular No. 96/2002/TT-BTC dated October 24, 2002 of the Ministry of Finance.
+ Stores, counters, shops directly belonging to independent economic accounting business establishments or dependent accounting branches.
+ Groups of workers belonging to business establishments operating on a contracted basis.
3. Regulations on exemption and reduction of the business license tax:
- Temporarily exempt from the business license tax:
+ Salt-producing households; village post offices; various types of newspapers (print, radio, television) according to Circular No. 237/CP-KTTH dated March 25, 1998 of the Government on taxation of the press.
+ Service groups and stores, shops directly serving agricultural production operated by cooperatives.
- Temporarily reduce the business license tax by 50% for fishing households; village credit funds; cooperatives specializing in providing services for agricultural production; stores, counters, shops... of cooperatives and private businesses operating in mountainous areas.
(The mountainous area for applying the tax reduction is defined according to the current regulations of the Government.)
This Circular takes effect from April 1, 2003, replacing Point 1, Section I of Circular No. 96/2002/TT-BTC dated October 24, 2002, and Circular No. 113/2002/TT-BTC dated December 16, 2002, of the Ministry of Finance on the Stamp Tax, and shall be immediately applicable to newly established businesses. In cases where production and business establishments established from April 1, 2003 have paid the Stamp Tax according to the provisions of Point 1, Section I of Circular No. 96/2002/TT-BTC dated October 24, 2002, of the Ministry of Finance, such payments will be adjusted according to the new Stamp Tax rate specified in this Circular; if the new Stamp Tax rate is higher than the amount already paid, the business establishment shall not need to pay the additional amount; if the amount already paid exceeds the new Stamp Tax rate, the excess tax shall be refunded by the tax authority or offset against the Stamp Tax for 2004 at the request of the business establishment. For production and business establishments established and operating before the effective date of this Circular (April 1, 2003), the Stamp Tax payable for 2003 shall still be implemented according to the provisions of Circular No. 96/2002/TT-BTC dated October 24, 2002, and Circular No. 113/2002/TT-BTC dated December 16, 2002, of the Ministry of Finance, guiding the implementation of Decree No. 75/2002/NĐ-CP dated August 30, 2002, of the Government on adjusting the Stamp Tax rate, from 2004, the Stamp Tax of production and business establishments shall be implemented according to the provisions of this Circular.
During the implementation process, if there are any difficulties, organizations and individuals are requested to promptly report them to the Ministry of Finance for research and resolution.
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