DOES THE BRANCH HAVE TO PAY THE LICENSE FEES?
Question: Dear Lawyer, regarding the legal regulations on fees and taxes, do branches have to pay license fees?
Answer: Hi, for your question, Gattaca has the following advice
The license fee is a direct tax and is usually a quota levied on business licenses (licenses) of businesses and business households. To put it simply, this is the corporate/company tax rate that must be paid annually to the tax administration agency directly. The level of collection by tier, based on the registered capital; the revenue of the previous business year or the value added of the previous business year, depending on the country/locality.
Pursuant to Point a, Clause 1, Article 1 of Decree 22/2020/ND-CP stipulating license fee exemption as follows: “Cooperatives, unions of cooperatives (including branches, representative offices, business location) operating in the agricultural sector in accordance with the law on agricultural cooperatives”.
In addition, at Point c, Clause 1, Article 4 of Decree 139/2016/ND-CP stipulating license fees for organizations engaged in production and trading of goods and services as follows: branches, representative offices, business locations, non-business units, other economic organizations: 1,000,000 VND/year.
Thus, if the branch operates in the agricultural sector according to the provisions of the law on agricultural cooperatives, it is not required to pay this fee, otherwise, the branch, representative office, business location, application Non-business positions, other economic organizations: 1,000,000 VND/year.
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