Business license fees are an annual levy applied to organizations, individuals, and households engaged in production and business activities in Vietnam. However, not all entities are required to pay this fee. Under Decree No. 22/2020/ND-CP (amending and supplementing certain provisions of Decree No. 139/2016/ND-CP), the government has clearly defined cases eligible for exemption from business license fees.
Below is a list of entities and conditions qualifying for a business license fee exemption:
1. Individuals and households with low revenue or irregular business activities
- Individuals, groups of individuals, and households engaged in production or business activities with annual revenue of 100 million VND or less.
- Individuals and households engaged in irregular business activities without a fixed business location (as guided by the Ministry of Finance).
2. Production and aquaculture activities, salt production
- Individuals, groups of individuals, and households involved in salt production.
- Entities engaged in aquaculture, fishing, or providing fishing logistics services.
3. Specific organizations and facilities
- Cultural post offices in communes.
- Press agencies, including print newspapers, radio, television, and online newspapers.
- Public primary and secondary schools and public preschools.
4. Cooperatives and enterprises supporting agricultural production
- Branches, representative offices, and business locations of cooperatives providing technical services directly supporting agricultural production.
- People’s credit funds in communes or cooperatives specializing in services for agricultural production.
5. Exemption for the first year of establishment
Exemption from business license fees in the first year (from January 1 to December 31) applies to:
- Newly established organizations (granted a new tax code or enterprise registration code).
- Households, individuals, and groups of individuals engaging in production or business activities for the first time.
- During the exemption period, branches, representative offices, and business locations of these entities are also exempt.
6. Small and medium enterprises transitioning from household businesses
- Small and medium enterprises transitioning from household businesses are exempt from business license fees for the first three years from the date of issuance of their enterprise registration certificate.
- During the exemption period, their branches, representative offices, and business locations are also exempt.
7. Mountainous areas
Branches, representative offices, and business locations of cooperatives and private enterprises operating in mountainous areas (as defined by the Committee for Ethnic Minority Affairs) are exempt.
8. Conclusion
The Business License Fee Exemption Policy in Vietnam supports disadvantaged groups, newly established businesses, and specific industries by reducing financial burdens and encouraging growth. We assist businesses, including FDI enterprises, in understanding and applying these exemptions to optimize costs and ensure compliance with legal regulations.
At PLF Law Firm
We assist clients in understanding these exemptions, to ensure compliance with tax regulations. This is one of our responsibilities in Corporate and Tax Advisory services, to help you effectively manage taxes. From tax planning at every stage to identifying tax risks to optimizing ROI through personalized tax solutions, our lawyers help your business save more costs in the short, mid, and long-term.
If you need further assistance with the procedures for business license fee exemptions, don’t hesitate to contact PLF Law Firm today via email at inquiry@plf.vn or +84913 902 906 or Zalo | Viber | WhatsApp to receive a free 30-Initial Minute Consultation.
Article completion date: January 21st, 2025.
Ms. Le Vo
