Our September 2020 publication of Tax and Accounting Updates covers Business License Fee exemptions for the first year of establishment, and looks at a range of Official Letters released by Vietnamese Authorities, including guidance on tax declarations for foreign contractor capital transfer taxes, relaxed quarantine requirements for experts entering Vietnam for less than 14 days, discussion on applying import tax exemptions under international treaties, and Proof of Origin under the EVFTA.
BUSINESS LICENSE FEE EXEMPTION FOR FIRST YEAR OF ESTABLISHMENT
On 9 July 2020, the Ministry of Finance released Circular 65/2020/TT-BTC amending Circular 302/2016/TT-BTC from 15 November 2016 covering annual Business License Fees.
Accordingly, during the first year of establishment (or doing business), parties are exempt from Business License Fees for that first year (the period from 1 January to 31 December), covering:
- Newly established organisations (ie, a new tax code or new enterprise code).
- Households, individuals, or groups of individuals, doing business for the first time.
During the exemption period, if an organisation, household, individual or group of individuals establish a new branch, representative office or business location, those affiliated units shall be also exempted from the Business License Fee over the same exemption period granted to the organisation, household, individual or group of individuals.
If the new organisation, household, individual or group of individuals commenced their production/business for the first time before 25 February 2020 and establishes a branch, representative office or business location after 25 February 2020, the organisation, household, individual, group of individuals, branch, representative office or business location is still required to pay their Business License Fee for that branch, representative office or business location.
The Circular took effect from 23 August 2020.
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