Circular No. 96/2002/TT-BTC guides the implementation of Decree No. 75/2002/NĐ-CP dated August 30, 2002 of the Government on adjusting the stamp tax rate.

CIRCULAR

Guidelines for Implementing Decree No. 75/2002/NĐ-CP dated August 30, 2002 of the Government on Adjusting the Rate of Business License Tax

of the Government on adjusting the business license tax rate

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Pursuant to the Regulations on Commercial and Industrial Taxes issued together with Decision No. 200/NQ-TVQH dated January 18, 1996 of the Standing Committee of the National Assembly;

Pursuant to the Ordinance dated March 3, 1989 of the State Council amending and supplementing certain articles in the Ordinances and Regulations on commercial and industrial taxes and commodity taxes;

Pursuant to the Ordinance dated March 3, 1989 of the State Council amending and supplementing certain provisions of the Ordinances and Regulations on Commercial and Industrial Taxes and Goods Tax;

Pursuant to the Decree No. 75/2002/NĐ-CP dated August 30, 2002 of the Government on adjusting the business license tax rate.

The Ministry of Finance hereby issues guidelines for implementing Decree No. 75/2002/NĐ-CP of the Government as follows:

I - BUSINESS LICENSE TAX RATES:

1 - Organizations conducting business shall pay the Business License Tax at four levels including:

a - A unified rate of VND 3,000,000 per year for independent economic accounting units comprising state-owned enterprises, joint-stock companies, limited liability companies, private businesses, foreign-invested enterprises operating under the Law on Investment, organizations and individuals from foreign countries conducting business in Vietnam, economic units of administrative agencies, political parties, mass organizations, armed forces, and other independent economic accounting units.

b - A rate of VND 2,000,000 per year for branches, shops, and stores that are dependent accounting units or report books and production and business complexes.

c - A rate of VND 1,500,000 per year for Cooperatives (except those specified in subpoint d below).

d - A rate of VND 1,000,000 per year for:

- Cooperatives engaged in direct technical service activities serving agricultural production, salt-making cooperatives, fishing cooperatives, credit cooperatives.

- Branches, shops, stores, and service points of entities mentioned in subpoints b and c above located at different locations from the main unit must each pay a Business License Tax of VND 1,000,000 per year.

2 - Other subjects, individual business households shall pay the Business License Tax at six levels including:

- Individual business households.

- Workers in enterprises (state-owned enterprises, enterprises operating under the Law on Foreign Investment...) who undertake contracts to cover all expenses and bear responsibility for the results of production and business operations.

- Groups of workers in enterprises undertaking joint business operations shall collectively pay the Business License Tax according to the provisions in point 1.d above. In cases where groups of employees, workers undertaking contracts but individually engaging in separate business operations, each individual within the group still has to pay the Business License Tax separately.

- Business units nominally being state-owned enterprises, enterprises operating under the Law on Foreign Investment, joint-stock companies, limited liability companies... but whose members conduct independent business operations, only paying a fixed amount to the unit for common management purposes, the Business License Tax shall be collected from each member.

Specifically, cooperative members, groups of cooperative members (collectively referred to as cooperative members) receiving tasks assigned by the cooperative if they meet the conditions stipulated in subpoint c of point 1 of Part II of Circular No. 44/1999/TT-BTC dated April 26, 1999 of the Ministry of Finance guiding tax incentives for cooperatives, shall not have to pay separate Business License Tax; if they do not meet the full conditions stipulated, they must pay separate Business License Tax.

The Business License Tax rates applicable to the aforementioned subjects are as follows:

Unit: dong

II - PAYMENT OF BUSINESS LICENSE TAX:

1 - Time of payment of Business License Tax:

Businesses currently operating or newly established and registered for tax and assigned a tax code during the first six months of the year shall pay the annual Business License Tax rate; if established and registered for tax and assigned a tax code during the last six months of the year, they shall pay 50% of the annual Business License Tax rate. Existing businesses shall pay the Business License Tax immediately in the first month of the calendar year; newly established businesses shall pay the Business License Tax immediately upon registration for tax and assignment of a tax code.

Businesses actually operating but not declaring tax registration shall pay the full annual Business License Tax rate regardless of whether the discovery occurs in the first six months or the last six months of the year.

2 - Businesses registering to pay taxes with a tax authority shall pay the Business License Tax at that tax authority. If a business has multiple branches, shops, or stores located in different areas within the same locality, the business shall pay the Business License Tax for itself and simultaneously pay the Business License Tax for its branches, shops, or stores located in the same locality. Branches, shops, or stores located in other localities shall pay the Business License Tax at the tax authority where the branch, shop, or store operates.

After paying the Business License Tax, businesses, shops, or stores shall be issued a Business License Tax card or a certificate proving payment of the Business License Tax (tax receipt or bank deposit slip with confirmation from the treasury) clearly stating the name of the business, shop, or store, address, business activity... as evidence to present when inspected by competent authorities.

Businesses without a fixed location such as itinerant traders, mobile traders, construction households, transportation, and other freelance occupations... shall pay the Business License Tax at the tax authority where they reside or where they are registered for business.

III - IMPLEMENTATION

1 - In the last months of the year, provincial and municipal tax bureaus must review and grasp all businesses operating in production and business activities within their jurisdiction, investigate actual revenue and income to classify and rank according to the provisions of the Business License Tax Table. Based on this, they shall establish tax registers, approve tax registers, and publicize them for implementation. The review of business subjects, establishment, approval, and issuance of annual Business License Tax notifications must be completed before December 31 of the previous year.

2- Business entities shall be responsible for paying the full and timely Business Registration Fee as notified by the tax authority. If payment is delayed, a fine of 0.1% (one thousandth) of the amount due will be imposed for each day of delay. If there is evasion of the Business Registration Fee, upon inspection, in addition to being required to pay the full prescribed Business Registration Fee, business entities may also be subject to fines ranging from one to five times the amount of evaded taxes, depending on the nature and severity of the violation.

3- This Circular takes effect from January 1, 2003, replacing Circular No. 69 TC/TCT dated November 5, 1996, issued by the Ministry of Finance, guiding the collection and payment of the Business Registration Fee. During implementation, if any difficulties arise, organizations and individuals are requested to promptly report them to the Ministry of Finance for supplementary guidance.