Is it necessary to pay license fees for individuals doing business with the company according to regulations?

Regarding your issue, in Article 2 of Decree 139/2016/ND-CP, it is stipulated that The regulations on license fees state:

License fee payers

License fee payers are organizations and individuals engaged in production and trading of goods and services, except for the cases specified in Article 3 of this Decree, including:

1. The enterprise is established in accordance with the law.

2. The organization is established under the Cooperative Law.

3. The public service unit is established according to the provisions of law.

4. Economic organization of political organizations, socio-political organizations, social organizations, socio-professional organizations, people’s armed units.

5. Other organizations engaged in production and business activities.

6. Branches, representative offices and business locations of organizations specified in Clauses 1, 2, 3, 4 and 5 of this Article (if any).

7. Individuals, groups of individuals, households engaged in production and business activities.

The above regulations refer to fee payers. She noted that Clause 7 relates to individuals, groups of individuals, and households engaged in production and business activities. Therefore, in principle, an individual who signs a business cooperation contract has generated production and business activities and becomes subject to paying license fees.

However, because the nature of business cooperation activities is an agreement between a business and an individual and is not strictly managed by the state, the actual payment of fees is not guided in detail and will depend entirely on the tax authority’s notification.

What will the license fee declaration dossier of an individual doing business with the company include?

According to point b, clause 1, Article 10 of Decree 126/2020/ND-CP, it is stated:

Time limit for submitting tax declarations of land revenues, license fees, and advance fees Registration fees, licensing fees and other revenues according to the law on management and use of public assets

Taxpayers comply with the regulations on tax declaration submission deadlines as prescribed in Article 44 of the Law on Tax Administration. The deadline for submitting declarations of land revenues, license fees, registration fees, rights granting fees and other revenues according to the law on management and use of public assets as prescribed in Clause 5, Article 44 of the Law on Tax Administration is implemented as follows:

1. License fee

a) License fee payers (except business households and individual businesses) who are newly established (including small and medium-sized enterprises transferred from business households) or have established additional dependent units, business locations or start production and business activities must submit license fee declaration documents no later than January 30 of the year following the year of establishment or start of production and business activities. business.

In case there is a change in capital during the year, the license fee payer shall submit the license fee declaration no later than January 30 of the year following the year in which the change information occurs.

b) Business households and individual businesses do not have to submit license fee declaration documents. The tax authority bases on tax declaration records and tax management database to determine revenue as a basis for calculating the amount of license fee payable and notifies the person paying the license fee to comply with the provisions of Article 13 of this Decree.

According to the above regulations, business individuals do not have to submit license fee declaration documents but will pay the fees based on the tax authority’s notice.

What cases are exempt from license fees?

Cases where license fees are exempt are specified in Article 3 of Decree 139/2016/ND-CP, amended and supplemented by Clause 1, Article 1 of the Decree 22/2020/ND-CP includes:

(1) Individuals, groups of individuals, households engaged in production and business activities with annual revenue of 100 million VND or less.

(2) Individuals, groups of individuals, households engaged in irregular production and business activities; there is no fixed location according to the guidance of the Ministry of Finance.

(3) Individuals, groups of individuals, households producing salt.

(4) Organizations, individuals, groups of individuals, households farming, fishing, seafood and fisheries logistics services.

(5) Commune cultural post office; Press agencies (print press, audio press, visual press, electronic press).

(6) Cooperatives and cooperative unions (including branches, representative offices, and business locations) operating in the agricultural sector according to the provisions of law on agricultural cooperatives.

(7) People’s credit funds; branches, representative offices, business locations of cooperatives, cooperative unions and private enterprises doing business in mountainous areas. Mountainous areas are determined according to the regulations of the Committee for Ethnic Minorities.

(8) Exemption from license fees in the first year of establishment or production and business activities (from January 1 to December 31) for:

– Newly established organizations (issued with new tax codes, business codes new).

– Households, individuals, groups of individuals launching production and business activities for the first time.

– During the license fee exemption period, organizations, households, individuals, groups of individuals establish branches, representative offices, or business locations, then the branch, representative office, or business location is exempt from license fees during the period of organization, household, individual, Groups of individuals are exempt from license fees.

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

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

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

– Small and medium-sized enterprises converted from business households before the effective date of this Decree are exempted from license fees according to the provisions of Article 16 and Article 35 of the Law on Support for Small and Medium Enterprises medium.

(10) Public general education establishments and public preschool education establishments.