Circular No. 65/2020/TT-BTC amends and supplements certain provisions of Circular No. 302/2016/TT-BTC dated November 15, 2016, issued by the Minister of Finance guiding the business registration fee.

CIRCULAR

Amending and supplementing certain Articles of Circular No. 302/2016/TT-BTC dated November 15, 2016, issued by the Minister of Finance on guiding fees for business licenses
Circular issued by the Minister of Finance on November 1, 2016, guiding the business registration fee

Pursuant to the Law on Fees and Charges No. 97/2015/QH13 dated November 25, 2015;

         On the basis of Decree No. 139/2016/NĐ-CP dated October 4, 2016, of the Government, stipulating the business registration fee;

Pursuant to the Government's Decree No. 139/2016/NĐ-CP dated October 4, 2016 on fees for business licenses;

         On the basis of Decree No. 87/2017/NĐ-CP dated July 26, 2017, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Government's Decree No. 22/2020/NĐ-CP dated February 24, 2020 amending and supplementing certain Articles of the Government's Decree No. 139/2016/NĐ-CP dated October 4, 2016 on fees for business licenses;

         The Minister of Finance issues this Circular amending and supplementing some articles of Circular No. 302/2016/TT-BTC dated November 15, 2016, guiding the business registration fee as follows:

         Pursuant to the Government's Decree No. 87/2017/NĐ-CP dated July 26, 2017 on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

         1. Article 2 shall be amended and supplemented as follows:

         At the proposal of the Director General of the Tax General Department;

The Minister of Finance issues this Circular amending and supplementing certain Articles of Circular No. 302/2016/TT-BTC dated November 15, 2016, issued by the Minister of Finance on guiding fees for business licenses as follows:

Article 1. Amending and supplementing certain Articles of Circular No. 302/2016/TT-BTC dated November 15, 2016, issued by the Minister of Finance on guiding fees for business licenses

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

"Clause 2. Persons paying fees for business licenses

The persons paying fees for business licenses are organizations, individuals, groups of individuals, households engaged in production and business activities of goods and services as prescribed in Clause 2 of the Government's Decree No. 139/2016/NĐ-CP dated October 4, 2016 on fees for business licenses, except for the cases prescribed in Clause 3 of the Government's Decree No. 139/2016/NĐ-CP dated October 4, 2016 and Clause 1 of Article 1 of the Government's Decree No. 22/2020/NĐ-CP dated February 24, 2020 amending and supplementing certain Articles of the Government's Decree No. 139/2016/NĐ-CP dated October 4, 2016 on fees for business licenses."

2. Amending and supplementing the first part of Clause 3 and adding Clause 3 as follows:

"The cases exempted from fees for business licenses shall be implemented according to the provisions of Clause 3 of the Government's Decree No. 139/2016/NĐ-CP dated October 4, 2016 on fees for business licenses and Clause 1 of Article 1 of the Government's Decree No. 22/2020/NĐ-CP dated February 24, 2020 amending and supplementing certain Articles of the Government's Decree No. 139/2016/NĐ-CP dated October 4, 2016 on fees for business licenses. Specifically, the cases exempted from fees for business licenses as prescribed in Clause 1 and Clause 2 of Clause 3 of the Government's Decree No. 139/2016/NĐ-CP and Clause 1 of Article 1 of the Government's Decree No. 22/2020/NĐ-CP are defined as follows:"

"3. Exemption from fees for business licenses as prescribed in Clause 1 of Article 1 of the Government's Decree No. 22/2020/NĐ-CP dated February 24, 2020 is as follows:

a) Cooperatives, cooperative unions (including branches, representative offices, business locations) operating in agriculture as prescribed by laws on agricultural cooperatives.

Cooperatives, cooperative unions (including branches, representative offices, business locations) must be established and operate in accordance with the Law on Cooperatives; the agricultural sector is determined according to the provisions of Circular No. 09/2017/TT-BNNPTNT dated April 17, 2017, issued by the Minister of Agriculture and Rural Development guiding the classification and evaluation of cooperatives operating in the agricultural sector, including cases where cooperatives, cooperative unions have business operations in multiple sectors, including agriculture.

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

c) Exemption from fees for business licenses in the first year of establishment or commencement of production and business activities (from January 1 to December 31) for:

- Newly established organizations (new tax code, new enterprise code).

- During the period of exemption from business registration fee, when a small and medium-sized enterprise establishes a branch, representative office, or place of business, such branch, representative office, or place of business shall be exempted from the business registration fee for the duration that the small and medium-sized enterprise is exempted from the business registration fee. In cases where the branch, representative office, or place of business of a small and medium-sized enterprise is established (receiving a Certificate of Registration for Operation) from February 25, 2020 (the date on which Decree No. 22/2020/NĐ-CP dated February 24, 2020 of the Government comes into effect), the period of exemption from the business registration fee for the branch, representative office, or place of business shall be calculated from the date the branch or representative office receives the Certificate of Registration for Operation to the end of the period during which the small and medium-sized enterprise is exempted from the business registration fee.

- For branches, representative offices, or places of business of small and medium-sized enterprises (eligible for exemption from the business registration fee according to Article 16 of the Law on Support for Small and Medium-Sized Enterprises) established before the effective date of Decree No. 22/2020/NĐ-CP dated February 24, 2020 of the Government, the period of exemption from the business registration fee for the branch, representative office, or place of business shall be calculated from the effective date of Decree No. 22/2020/NĐ-CP to the end of the period during which the small and medium-sized enterprise is exempted from the business registration fee.

- Small and medium-sized enterprises converted from individual businesses before the effective date of Decree No. 22/2020/NĐ-CP dated February 24, 2020 of the Government shall implement the exemption from the business registration fee according to Articles 16 and 35 of the Law on Support for Small and Medium-Sized Enterprises.

d) Public general education institutions and public kindergartens.

3. Clause 2 of Article 4 is amended and supplemented as follows:

"2. The amount of business registration fee for individuals, groups of individuals, households engaged in production and business activities of goods and services shall be as follows:

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

b) Individuals, groups of individuals, households with annual revenue between VND 300 million and VND 500 million: VND 500,000 (five hundred thousand) per year;

c) Individuals, groups of individuals, households with annual revenue between VND 100 million and VND 300 million: VND 300,000 (three hundred thousand) per year.

- Revenue for determining the amount of business registration fee for individuals, groups of individuals, households, new places of business of individual businesses shall be as follows: Revenue for determining the amount of business registration fee for individuals, groups of individuals, households (excluding individuals leasing assets) is the total income subject to personal income tax of the previous year of production and business activities (excluding leasing activities) of all business locations in accordance with Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Minister of Finance guiding the implementation of value-added tax and personal income tax for resident individuals engaged in business activities; guiding the implementation of certain provisions amended and supplemented by the Law Amending and Supplementing Certain Provisions of Laws on Taxation No. 71/2014/QH13 and Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of Laws on Taxation and amending and supplementing certain provisions of decrees on taxation.

- For individuals, groups of individuals, households that have been dissolved or temporarily ceased production and business operations and then resumed business but cannot determine the revenue of the previous year, the revenue for determining the amount of business registration fee is the revenue of the taxable year of a production and business operation unit of the same scale, area, and industry as stipulated in Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Minister of Finance.

- Revenue for determining the amount of business registration fee for individuals engaging in asset leasing activities is the income subject to personal income tax from asset leasing contracts in the taxable year. In cases where an individual generates multiple asset leasing contracts at one location, the revenue for determining the amount of business registration fee for that location is the total income from the asset leasing contracts in the taxable year. In cases where an individual generates asset leasing activities at multiple locations, the revenue for determining the amount of business registration fee for each location is the total income from the asset leasing contracts at those locations in the taxable year, including cases where there are multiple asset leasing contracts at one location.

- In cases where asset leasing contracts extend over multiple years, the business registration fee shall be paid annually corresponding to the number of years the individual, group of individuals, or household declares and pays value-added tax and personal income tax. In cases where an individual, group of individuals, or household declares and pays value-added tax and personal income tax once for an asset leasing contract extending over multiple years, they only pay the business registration fee for one year.

- For individuals, groups of individuals, households, places of production and business (in cases not eligible for exemption from the business registration fee) who start production and business operations within the first six months of the year, they shall pay the full annual business registration fee, and if they start production and business operations within the last six months of the year, they shall pay 50% of the annual business registration fee.

         4. Clause 3 of Article 4 is amended and supplemented as follows:

"3. Organizations, branches, representative offices, business locations (falling under the category not exempted from business registration fee in the first year of establishment or commencement of production and business activities) that are established, registered for tax purposes, and assigned tax identification number and business registration number within the first six months of the year shall pay the full annual business registration fee; if they are established, registered for tax purposes, and assigned tax identification number and business registration number within the last six months of the year, they shall pay fifty percent of the full annual business registration fee.

         Small and medium-sized enterprises transitioning from individual businesses (including branches, representative offices, business locations), upon expiration of the period exempted from the business registration fee (the fourth year following the year of enterprise establishment): In case the transition period ends within the first six months of the year, the full annual business registration fee shall be paid; if it ends within the last six months of the year, fifty percent of the full annual business registration fee shall be paid.

         Those who pay the business registration fee and are currently operating, upon submitting a notice to the direct tax management agency or the business registration agency regarding the temporary cessation of production and business operations during the calendar year (from January 1 to December 31) shall not be required to pay the business registration fee for the year of temporary cessation of operations provided that: The notice requesting the temporary cessation of production and business operations is submitted to the tax agency or the business registration agency before the deadline for payment as prescribed (January 30 each year) and no business registration fee has been paid for the year of temporary cessation of operations. If the temporary cessation of production and business operations does not meet the aforementioned conditions, the full annual business registration fee shall be paid.

5. Article 5 is amended as follows:

         "Article 5. Declaration and Payment of Business Registration Fee

         The declaration and payment of the business registration fee shall be carried out in accordance with the provisions of Decree No. 139/2016/ND-CP dated October 4, 2016 of the Government on business registration fees, Decree No. 22/2020/ND-CP dated February 24, 2020 of the Government amending and supplementing certain articles of Decree No. 139/2016/ND-CP dated October 4, 2016 of the Government on business registration fees, and laws on tax administration.

         Article 2. Effective Date

1. This Circular takes effect from August 23, 2020.

2. During implementation, if the related documents referred to in this Circular are amended, supplemented, or replaced, they shall be implemented according to the newly amended, supplemented, or replaced documents.

3. During implementation, if there are difficulties or obstacles, organizations and individuals are requested to promptly report to the Ministry of Finance for consideration and resolution.