License fees in 2020 should be paid on 30/1/2020 at the latest

Business households pay tax by the presumptive method by January 30, 2020 at the latest as informed. Photo: TL

Under the guidance of the Hanoi Tax Department, business households apply license fees as prescribed in the Decree No. 139/2016/ND-CP of the Government dated October 4, 2016 and Circular No. 302/TT-BTC of the Ministry of Finance dated November 15, 2016 guiding license fees.

Accordingly, business households which paid tax by the presumptive method are subject to exemptions from license fees, including: Business households with earnings of VND 100 million/year or less; irregular business households; and business households that do not have fixed business locations.

The fee rates for business households subject to license fees were prescribed as follows: business households with earnings of more than VND 500 million/year would pay VND1,000,000/year; business households with earnings from VND 300 and 500 million/year would pay VND 500,000/year; and business households with earnings from VND 100 and 300 million/year would pay VND 300,000/year.

According to the Hanoi Tax Department, business households paying tax by the presumptive method would not have to submit license fee declaration dossiers. The tax authority would use the database of revenue to determine gross revenue in 2019 from sources, business locations as a basis for determining license fee rates of 2020 for each business location. For a new business household that put into operation in 2020, the basis for determining the license fee rate would be the revenue of the household of the same size, same business line and the same locality.

In addition, business households that have operated or just started doing business for the first six months of 2020, they would pay licensing fees for the whole year; If the business household is put in to operation in the last six months of 2020, then they would pay 50 percent of the license fee for the year.

The Hanoi Tax Department requested business households pay tax by the presumptive method by January 30, 2020 at the latest as informed. The deadline for sending a notice of a tax authority would be January 20, 2020. For a new business household put into operation in 2020, the license fee would be paid by following the notice of the tax agency. The deadline for sending notices of tax authorities to new business households is the 20th of the next month.