Subjects and conditions for exemption from business license fees

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. 

The policy of exempting business license fees aims to support disadvantaged groups, newly established enterprises, and specific business activities. Understanding these exemptions and conditions will help you reduce costs and ensure compliance with legal regulations. 

If you need further assistance with the procedures for business license fee exemptions, don’t hesitate to contact us!