What is license tax? Tax levels and license tax payment due date of 2023

License tax, also known as the license fee, refers to the annual tax that businesses are required to pay based on their charter capital as indicated on their business license. The regulations governing license tax are comprehensive and transparent. However, not all businesses are well-informed about the tax rates, payment deadlines, and penalty regulations for excise tax.

1.    What is License Tax?

1.1 Definition

License tax is a form of direct tax typically imposed on businesses and business households holding operational licenses. Put simply, it represents the annual corporate tax paid directly to the tax authorities. The specific tax amount is determined based on factors such as registered capital, previous year’s revenue, or the previous year’s value added, depending on the country or locality’s regulations.

License tax for the year 2023: Who is required to pay, and how much do they need to pay?

>>>Find out more: The trend of top labor outsourcing companies in Vietnam is getting popular

1.2 Declaration for License Fee Submission

As per Clause 1, Article 10 of Decree 126/2020ND-CP, entities subject to the license fee (except for business households and individual businesses) that are newly established (including small and medium-sized enterprises transferring from business households) or have established additional dependent units, business locations, or commenced production and business activities are required to submit their license fee declaration documents no later than January 30th of the year following the year of establishment.

2.    The deadline for submitting the license fee declaration in 2023

2.1 Enterprises established before 2022 are exempt from submitting a license fee declaration in 2023.

2.2 Enterprises, branches, representative offices, and business locations established in 2022 must submit their license fee declarations no later than January 30, 2023.

2.3 Enterprises and their dependent units (branches, representative offices, business locations) newly established in 2023 must submit a license fee declaration no later than January 30, 2024.

2.4 Business individuals and business households are not obliged to submit license fee declarations. The tax authorities will determine their revenue based on tax declaration dossiers and tax administration databases as a basis for calculating the license fees payable by individuals and business households.

3.    The deadline for paying license fee in 2023

According to Clause 9, Article 18 of Decree 126/2020/ND-CP, the deadline for paying license fees is January 30 every year.

Thus, the deadline for paying license fees in 2023 is detailed as follows:

3.1 For business households, enterprises, branches, business locations, representative offices established in 2022 or earlier, license fees must be paid by January 30, 2023;

3.2 For business households, enterprises and their dependent units (branches, business locations, representative offices) jointly established in 2023, the license fee in 2023 is not required;

tax audit

 How to pay license fee (tax) 2023 is important for business

>>>Reference: Payment assistance services for Businesses

3.3 For small and medium-sized enterprises converted from business households (including dependent units and business locations of the enterprise) if the license fee exemption period ends in 2023 (ie the enterprise is established in 2020 or earlier), the deadline for paying license fees is as follows:

  • In case the license fee exemption period ends within the first 6 months of the year, the deadline for paying the license fee is July 30, 2023;
  • If the license fee exemption period ends within the last 6 months of the year, the deadline for paying the license fee is January 30, 2024.

3.4 Business households and individuals that have terminated production and business activities and then resumed operations, the deadline for paying license fees is as follows:

  • In case of operation in the first 6 months of the year: No later than July 30, 2023, the license fee must be paid;
  • In case of operation in the last 6 months of the year: No later than January 30, 2024, business households must pay license fees.

4. How to pay license fee (tax) 2023

There are 2 ways to pay the license fee as follows:

  • Pay cash to the State Treasury of the district at the Bank for Industry and Trade of Vietnam (Vietinbank).
  • Withdraw from the Company’s bank account for electronic tax payment. With this form, the enterprise submits with a digital signature.

5. How much will business be fined for late filing of the initial tax return?

In case of late submission of tax declaration dossiers, enterprises may be administratively sanctioned from VND 2,000,000 to VND 25,000,000 depending on the severity.

6. Which reputation tax service company can help businesses to handle license tax and tax return?

At S4B.com.vn, we offer a comprehensive suite of services designed to assist businesses in fulfilling their tax obligations effortlessly, including the license tax 2023. Our primary focus is on providing seamless solutions for paying and declaring license tax, ensuring that businesses stay compliant with regulatory requirements.

But that’s not all! Our expertise extends far beyond license tax. We also provide a wide range of services that cover various aspects of taxation, facilitating smooth operations for businesses. These include:

  • VAT Declaration & Payment: We handle all your Value Added Tax (VAT) declarations and payments, streamlining the process for you.
  • Corporate Income Tax Declaration & Payment: Let us take care of your Corporate Income Tax (CIT) declarations and payments, enabling you to concentrate on your core business.
  • Personal Income Tax Declaration & Payment: Our services also extend to managing Personal Income Tax (PIT) declarations and payments, ensuring compliance for both businesses and individuals.
  • Foreign Contractor Withholding Tax Declaration & Payment: We assist with Foreign Contractor Withholding Tax (FCWT) declarations and payments, simplifying the complexities associated with international transactions.
  • Tax Audit Assistance: In the event of a tax audit, our team will provide professional support to navigate the process smoothly.
  • Monthly Bookkeeping Services: Our expert bookkeeping services ensure accurate and up-to-date financial records, enabling better financial management for your business.
  • Payment Assistance Services: We help facilitate various tax-related payments, ensuring timely and accurate transactions.

With S4B.com.vn, you can rely on our dedicated team of professionals to handle your tax-related tasks efficiently, allowing you to focus on driving your business forward. Partner with us and experience a seamless and hassle-free approach to tax management.


  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

We Will Show You The Way To Success!