On February 24, 2020, the Government issued Decree 22/2020/ND-CP, takes effect as of February 25, 2020

1. Cases of exempting license fees

Accordingly, from the date of entry into force of the decree, there will be three cases of free license (Point c, Clause 1, Article 1), namely:

First of all, exempting license fees in the first year of establishment or production (from January 1 to December 31) for: Newly established organizations (granted new tax identification numbers, new enterprise identification numbers) ; households, individuals and groups of individuals that are first engaged in production and business activities; exempt from license fees.

Secondly, small and medium-sized enterprises moving from business households business (under the provisions of Article 16 of the Law on Support for Small and Medium-sized Enterprises) are exempted from license fees for 03 years from the date of being granted the first business registration certificate.Finally, general education institutions and public preschools are added to the group of subjects that are exempted from license fees. During the license fee exemption period, if organizations, households, individuals, groups of individuals, small and medium-sized enterprises establish branches, representative offices and business locations, this venue is also exempted. license fees. The remarkable point in Decree 22/2020/ND-CP is that the exemption from licensing fees (prescribed in Clause 3, Article 1) for groups of households, individuals and groups of individuals will be paid under the lump sum method. Tax authorities will base on tax returns and tax databases to determine business turnover as a basis for calculating payable license fees. This helps households, individuals and groups of individuals reduce procedures and save time.

2. License payment deadline

• In addition, the Decree 22/2020/ND-CP also amended the regulations on the deadline to pay license fees no later than January 30 every year. Accordingly, for small and medium-sized enterprises transformed from business households (including branches, representative offices, business locations) (at Point c, Clause 2, Article 1);
• In case of expiry of the license fee exemption period within the first 6 months, the deadline for paying license fees is the 30 July of the end of the exemption period at the latest; In case of ending the license fee exemption period within the last 6 months, the deadline for paying license fee is January 30 th of the year preceding the year of ending the exemption period.
• For households, individuals, groups of individuals, production and business dissolved, production activities, business back to the case of operating in the first 6 months of the year, the deadline to pay license fees slowly especially on 30/7 years of operation; In case of commencement of operation within the last 6 months of the year, the deadline for paying license fees is January 30, the year preceding the year of operation.

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