The declaration and payment of the business license fee are mandatory financial obligations for organizations, enterprises, business households, and individuals engaged in production and business activities.
Below are the latest updated regulations according to Decree No. 139/2016/ND-CP (amended and supplemented by Decree No. 22/2020/ND-CP) for more details:
1. Business License Fee Declaration
One-time declaration:
- Applicable to fee payers who have newly established or commenced business operations.
- The business license fee declaration form must be submitted to the tax authority directly managing the taxpayer no later than January 30 of the year following the year of business commencement.
Business households, individuals, and groups of individuals paying tax under the lump-sum method:
- Not required to declare the business license fee.
- The tax authority will determine the payable fee based on the declared revenue.
Supplementary declaration due to changes in charter capital:
In case of a capital change within the year, the supplementary business license fee declaration must be submitted no later than January 30 of the following year.
2. Business License Fee Payment Deadlines
The deadline for business license fee payment is January 30 each year.
For small and medium-sized enterprises (SMEs) transitioning from business households:
If the exemption period ends within the first six months of the year:
Payment must be made by July 30 of the same year.
If the exemption period ends within the last six months of the year:
Payment must be made by January 30 of the following year.
For business households and individuals resuming operations after dissolution:
If resuming operations in the first six months of the year
Payment must be made by July 30 of the same year.
If resuming operations in the last six months of the year
Payment must be made by January 30 of the following year.
3. Regulations on Filing Business License Fee Declarations
- For businesses and organizations operating within the same province/city:
- Submit the business license fee declaration to the directly managing tax authority.
- For businesses and organizations operating in multiple provinces/cities:
- Dependent units must submit the business license fee declaration to the tax authority in the locality where they are based.
4. Management and Use of Business License Fees
The total collected amount of the business license fee:
Must be 100% remitted to the state budget in accordance with legal regulations.
5. Important Notes
- Newly established enterprises and dependent units must submit the business license fee declaration form.
- Business households and individual business operators are not required to submit declarations, as the tax authority will automatically determine the payable fee.
- Late submission or payment of the business license fee may result in penalties as stipulated by law.
Conclusion
Businesses, whether are in any scale, need to comply with these regulations. Since there are different requirements based on type of business, owners should understand their obligations to pay business license fees correctly. This will help businesses avoid potential penalties and uncalculated risks.
At PLF Law Firm
Our lawyers can provide you with comprehensive guidance so that you declare and pay the business license fees in a timely manner. Besides, our Corporate Tax & Advisory service also supports you to address further responsibilities that may arise during operations. It not only minimizes risks if there are unexpected changes in regulations, but also help you prepare for a better financial year.
If you need further assistance with business license fee declaration and payment, feel free to contact PLF Law Firm today via email at inquiry@plf.vn or +84913 902 906 or Zalo | Viber | WhatsApp to receive instant support.
Article completion date: February 24th, 2025.
Ms. Le Vo
