Guidelines for exemption of license fees for small and medium enterprises according to Decree 22/2020/ND-CP?

What criteria are small and medium-sized enterprises determined based on?

In Article 4 of the Law on Support for Small and Medium-sized Enterprises 2017, the criteria for determining small and medium-sized enterprises are specified as follows: after:

– Small and medium-sized enterprises include micro enterprises, small enterprises and medium enterprises, with an average annual number of employees participating in social insurance of no more than 200 people and meeting one of the following two criteria:

+ Total capital not exceeding 100 billion VND;

+ Total revenue of the preceding year is not more than 300 billion VND.

– Micro enterprises, small enterprises and medium enterprises are identified according to the fields of agriculture, forestry and fisheries; industry and construction; trade and services.

– The Government regulates this Article in detail.

Regulations on exemption of license fees for small and medium-sized enterprises

At point c, Clause 1, Article 1 of Decree 22/2020/ND-CP amending and supplementing a number of articles of Decree 139/2016/ND-CP stipulating license fees, according to that:

“c) Add Clauses 8, 9 and 10, Article 3 as follows:

9. Small and medium-sized enterprises converted from household businesses (as prescribed in Article 16 of the Law on Support for Small and Medium-sized Enterprises) are exempted from license fees for a period of 03 years from the date of issuance of the first business registration certificate. head.

a) During the license fee exemption period, small and medium-sized enterprises establish branches, representative offices, and business locations, the branches, representative offices, and business locations are exempt from license fees during the period when small and medium-sized enterprises are exempt from license fees.

b) Branches, representative offices, and business locations of small and medium-sized enterprises (subject to license fee exemption). license fees according to the provisions of Article 16 of the Law on Support for Small and Medium-sized Enterprises established before the effective date of this Decree, the license fee exemption period of branches, representative offices, and business locations is calculated from the effective date of this Decree until the end of the time that small and medium-sized enterprises are exempt from license fees.

c) Small and medium-sized enterprises converting from business households before the effective date of this Decree shall exempt license fees according to the provisions of Article 16 and Article 35 of the Law on Support for Small and Medium Enterprises.

How to support small and medium-sized enterprises converting from business households?

Pursuant to Article 16 of the Law on Support? Small and medium enterprises 2017 specific regulations:

– Small and medium-sized enterprises converting from business households are supported if they meet the following conditions:

+ Before establishing an enterprise, the business household has registered and operates according to the provisions of law;

+ Business households have continuous production and business activities for at least 01 year up to the date of issuance of the first Business Registration Certificate.

– Support content includes:

+ Free consultation and guidance on documents and procedures for establishing a business;

+ Exemption from business registration fees and fees for providing business information for the first time; Free appraisal, fees and charges for first-time business licenses for conditional business lines; Exemption from license fees for a period of 03 years from the date of issuance of the first Business Registration Certificate;

+Free consultation and guidance on tax administrative procedures and accounting regimes within 03 years from the date of issuance of the first Business Registration Certificate;

+ Exemption or reduction of corporate income tax for a limited period according to the provisions of law on corporate income tax;

+ Exemption or reduction of land use fees for a limited period according to the provisions of land law.

– Small and medium-sized enterprises converted from business households inherit all legal rights, obligations and interests of business households according to the provisions of law. In case a limited liability company or joint stock company is established on the basis of conversion from a business household, the business household owner must be responsible with all of his or her assets for the unpaid debts of the business household, unless otherwise agreed upon according to the provisions of law.

– The business household terminates its operations from the time the small and medium-sized enterprise converted from a business household is granted a Business Registration Certificate.

– The Government shall detail Clause 2 of this Article.

Besides, Article 35 of the Law on Support for Small and Medium Enterprises 2017 regulates transition

– From the effective date of this Law, activities to support small and medium-sized enterprises before the effective date of this Law will continue to be implemented according to the approved content, programs and plans; In cases where small and medium-sized enterprises meet the support conditions prescribed by this Law, they will be implemented according to the provisions of this Law.

Thus, based on the above regulations, not all small and medium-sized enterprises are exempt from license fees, but only small and medium-sized enterprises converted from business households that meet the conditions according to the above regulations are exempt from license fees.

In cases where small and medium-sized enterprises do not convert from business households, small and medium-sized enterprises convert from business households and do not meet the conditions prescribed in Clause 1, Article 1 of Decree No. 22/2020/ND-CP, the license fee will not be exempted.