INSTRUCTIONS FOR PAYING LICENSING FEES IN 2022
License tax is simply understood as the annual tax payable by the business based on the charter capital recorded on the business license. The regulations on license tax are quite numerous and clear, but not all businesses know well about tax levels, payment time and regulations on fines for license tax.
SUBMISSION FOR LICENSING FEES DECLARATION
According to Clause 1, Article 10 of Decree 126/2020ND-CP: " Licensing fees payers (except for business households and business individuals) newly established (including small and medium-sized enterprises moving from household businesses) or has established additional dependent units, business locations or commenced production and business activities, the licensing fees declaration documents must be submitted no later than 30th January of the year following the year of establishment or commencement of production and business activities".
So:
⚡️ Enterprises established before 2021, do not need to submit a licensing fees declaration for 2022.
⚡️ Enterprises, branches, representative offices, business locations established in 2021 must submit licensing fee declaration no later than 30th January, 2022.
⚡️ Enterprises and their dependent units (branches, representative offices, business locations) that are established in 2022 must submit a licensing fees declaration no later than 30th January, 2023.
⚡️ Business individuals and business households are not required to submit licensing fees declaration. Tax authority base on tax declaration documents and tax administration databases to determine revenue as a basis for calculating licensing fees payable to individuals/business households.
Note: In case there is a change in charter capital during the year, the enterprise must submit a licensing fees declaration no later than 30th January of the year following the year in which the changed information arises.
LICENSING FEES PAYMENT DEADLINE IN 2022
According to Clause 9, Article 18 of Decree 126/2020/ND-CP, the deadline for paying license fees is 30th January every year.
Thus, the deadline for paying licensing fees in 2022 is detailed as follows:
💥 For business households, enterprises, branches, business locations, representative offices established in 2021 or earlier, the licensing fees must be paid by 30th January, 2022.
💥 For business households, enterprises and their dependent units (branches, business locations, representative offices) jointly established in 2022, the licensing fees in 2022 is not required.
💥 For small and medium-sized enterprises converted from business households (including dependent units, business locations of the enterprise) if the licensing fees exemption period ends in 2022 (it means establishing a business in 2019 or earlier), the deadline for paying license fees is as follows:
◾ In case the licensing fees exemption period ends within the first 6 months of the year, the deadline for paying the license fee is 30th July, 2022.
◾ If the licensing fees exemption period ends within the last 6 months of the year, the deadline for paying the license fee is 30th January, 2023.
💥 Business households and individuals that have terminated production and business activities and then resumed operations, the deadline for paying licensing fees is as follows:
◾ In case of starting operation in the first 6 months of the year: No later than 30th July, 2022, the licensing fees must be paid.
◾ In case of starting operation in the last 6 months of the year: No later than 30th January, 2023, business households must pay licensing fees.
HOW TO PAY THE LICENSING FEES?
Have 2 ways:
1️⃣ Deposit cash into the State Treasury of the district at Vietinbank.
2️⃣ Pay taxes electronically from the company's bank account. For this form of payment, the enterprise submits it through a digital signature.
Currently, some tax departments require electronic tax payment through digital signature to process tax declaration documents. Therefore, opening a company’s bank account and purchasing digital signature is necessary for businesses.
FINES FOR LICENSING FEES LATE PAYMENT AND LICENSING FEES DECLARATION LATE PAYMENT
According to Article 13 of Decree 125/2020/ND-CP issued on October 19, 2020, the administrative fines for late submission of tax declaration documents is as follows:
✔️ A warning will be imposed for submitting tax declaration documents beyond the deadline from 01 day to 05 days and there are extenuating circumstances.
✔️️ A fine ranging from 2,000,000 VND to 5,000,000 VND shall be imposed for submitting tax declaration documents beyond the deadline from 01 day to 30 days, except for the case specified in item (1) above.
✔️️ A fine ranging from 5,000,000 VND to 8,000,000 VND shall be imposed for submitting tax declaration documents beyond the deadline from 31 days to 60 days.
✔️️ A fine ranging from 8,000,000 VND to 15,000,000 VND shall be imposed for one of the following acts: Submitting tax declaration documents beyond the deadline from 61 days to 90 days or submitting tax declaration documents beyond the deadline from 91 days or more but no tax payable is generated.
✔️️ A fine ranging from 15,000,000 VND to 25,000,000 VND shall be imposed for submitting tax declaration documents over 90 days from the deadline for submitting tax declaration documents, generating tax payable and the taxpayer has fully paid the tax amount and late payment to the state budget before the time the tax authority announces the decision on tax inspection or before the tax authority make a record of late submission of tax declaration documents according to the provisions of Clause 11 Article 143 of the Tax Management Law.
In case the enterprise pays the licensing fees later than the deadline, the fine for late payment is calculated as follows:
|
Late payment |
= |
Licensing fees rate |
x |
0.03% |
x |
Number of days of late payment |
The above are some information on the instructions for paying licensing fees that businesses, companies and organizations need to complete by 2022. If you still have questions and concerns around this issue, please contact us to receive the best answers and receive dedicated advices.
Immediately contact TASCO Tax Agent in the following ways for a completely free consultation!!!
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