Decree No. 139/2016/NĐ-CP dated 04/10/2016 prescribing license fees

Under this Decree, levels of license fee applicable to business, production organizations include only 3 levels: VND 3 million/year (for organizations having charter capital/ investment capital over 10 billion VND), VND 2 million/year (for organizations having charter capital/ investment capital of 10 billion VND or less) and VND 1 million/year (for branches, representatives, business locations, non-business units and other economic organizations). Therefore, the level of VND 1.5 million/year as currently shall not be available.

In case the first 2 subjects change their charter capitals or investment capitals then the determination of license fees shall be based on charter capitals or investment capitals in the latest year.

The levels of license fee applicable to business, production households and individuals shall also be applied at 3 levels as VND 1 million/year, VND 500,000/year, VND 300,000/year based on their turnover instead of 6 levels as currently.

Taxpayers have dependent units (branches, representative offices, business locations) in the same provinces with the taxpayers’ head offices then the taxpayers must submit license fee declaration dossiers, if in other provinces, the dependent units must submit themselves the license fee declaration dossiers to the direct taxation agencies.

Deadline for license fee payment shall be January 30 every year; for newly established organizations, it shall be the deadline for submitting license fee declaration dossier.

The taxpayers who declare, pay license fee before January 01, 2017 shall not be required to submit declaration dossiers for the next years unless there are factors that cause the license fee levels’ changes.

This Decree also regulates 7 cases subject to license fee exemption and issues new form of license fee declaration.

This Decree shall take effect from 01/01/2017 and replace Decree No. 75/2002/NĐ-CP and Article 18 of Decree No. 83/2013/NĐ-CP.