Do business households have to pay license tax?

To know if business households have to pay license tax? License tax payment rate for business households? What is the process and deadline for paying business license tax? We invite readers to join Smart Solutions For Business Company Limited(S4B Vietnam) to learn about business license tax in the article below.

1. Do business households have to pay license tax?

Pursuant to the provisions of law in Clause 2, Article 4 of Decree 139/2016/ND-CP and Clause 3, Article 1 of Circular 65/2020/TT-BTC, business households do not have to pay license tax when belonging to these cases.

  • Business households with production activities with revenue of less than 100 million VND/year
  • Business households have intermittent, irregular production business or an unstable operating location
  • Business households operating in the field of agriculture are under the management of cooperatives or cooperatives
  • Business households, households, groups of individuals or individuals with productive business activities such as: fishing, farming, salting or providing fishing services
  • Business households are exempt from license tax in the first year of founding or starting production business activities from January 1 to December 31.

Business households do not have to pay license tax when their revenue is 100 million VND/year or less

2. License tax payment for business households

Pursuant to Clause 2, Article 4 of Decree 139/2016/ND-CP and According to Point c, Clause 1, Article 1 of Decree 22/2020/ND-CP issued and effective on February 25, 2020, regulations The regulations on license tax payment for business households are as follows:

Annual revenue License tax payable
Over 500 million VND/year 1,000,000 VND/year
Over 300 to 500 million VND/year 500,000 VND/year
Over 100 to 300 million VND/year 300,000 VND/year
Under 100 million VND/year TAX FREE

Business license tax payment rates range from 300,000 VND/year – 1,000,000 VND/year

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3. Instructions on the process of paying license tax for individual business households

Below is the process of preparing license tax declaration documents for individual business households after understanding the tax value that needs to be paid annually as follows:

  • Step 1: Determine the license tax level that needs to be paid during the year
  • Step 2: Choose the appropriate way to declare license tax
  • Step 3: Pay license tax at the Tax Authority
  • Step 4: Complete the application to submit the license tax declaration

Note: According to Decree 139/2016/ND-CP, Decree No. 20/2020, Decree 126/2020 in Circular 302/2016 and Circular 80/2021 specifically as follows:

Taxpayers submit business license tax declarations directly to the previously registered and managed tax agency
In case the taxpayer has more than one business location in many areas of the Province => the tax payment location is the Tax Authority at the unit belonging to the business location.

4. Deadline for paying business license tax 2023

The specific deadline for paying 2023 license tax is January 30, 2023 at the latest. Business households that have just converted to small and medium-sized enterprises at the end of the license tax exemption period (from the fourth year of founding the business) have a specific payment deadline:

  • In case the tax exemption period ends in the first 6 months of the year => the latest payment deadline is July 30 in the year the exemption period expires.
  • In case the tax exemption period expires in the last 6 months of the year => the payment deadline is January 30 in the year following the year the exemption period ends.

For business households that have stopped production and business activities and then resumed operations, there are specific payment deadlines as follows:

  • In case of resuming business activities in the first 6 months of the year => payment deadline is July 30 of the following year.
  • In case of return to business during the last 6 months of the year => the latest payment time is January 30 of the consecutive year of return to business.

Above is all the information to answer and guide business households to pay license tax for individual business households. Smart Solutions For Business Company Limited(S4B Vietnam) is pleased to assist readers in providing the most useful and accurate reference information and knowledge!

S4B Vietnam

  • Address: Unit 701B-701C, Tower A, Handi Resco, 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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