On February 24, 2020, the Government issued Decree No. 22/2020 / ND-CP amending and supplementing a number of articles of Decree No. 139/2016 / ND-CP dated October 4, 2016 on license tax.
Accordingly, adding 03 subjects will be exempted from new license tax, including:
Exempting license tax in the first year of establishment or production and business (from January 1 to December 31) for:
+ Newly established organizations (to be granted new tax identification numbers and new enterprise identification numbers);
+ Households, individuals and groups of individuals that are first engaged in production and business activities;
Exempting license tax for 03 years from the date of issuance of the first business registration certificate for small and medium-sized enterprises transferred from business households;
Waiver of license tax for the entire operation process of public general education institution and public preschool education institution.
During the license tax exemption period, if the above-mentioned organizations, households, individuals, groups of individuals, small and medium-sized enterprises establish branches, representative offices and business locations, these locations license tax are also exempted for the duration of organizations, households, individuals, groups of individuals, small and medium-sized businesses are exempt from license tax.
Branches, representative offices, business locations of small and medium-sized enterprises (exempted from licensing fees as prescribed in Article 16 of the Law on Support for Small and Medium-sized Enterprises) established before February 25 / In 2020, the time of license tax exemption for branches, representative offices and business locations is calculated from February 25, 2020 until the end of the time when small and medium enterprises are exempt from licensing fees.
It can be said that the new points in Decree 22/2020 / ND-CP on cases of exemption from new license tax have created opportunities for businesses, reduced input costs, promoted the development of newly established businesses, small and medium enterprises, business households, individuals, groups of individuals, especially the education sector. This Decree officially takes effect from February 25, 2020.