How to finalize personal income tax for branches

License tax, also known as license fee, is a tax that companies must pay annually. License fees are based on the charter capital of that company’s business license. The phrase “license tax” is commonly used and the collection rate is clearly regulated in Ordinance 10-LCT/HDNN7 of 1983. From January 1, 2017 to present, the term “license tax” is no longer available. used in state legal documents; Instead, use the term “license fee”. However, out of habit, people still often use the word license tax. It is easy to see that the number of searches for the keyword “license tax” on Google is much higher than the phrase “license fee”.

License tax levels

License tax levels and license fee levels are divided into cases. One is the tax rate applicable to production and business organizations; The second is for individuals and households. Individuals, groups of individuals, households, production and business locations (in cases not exempt from license fees); If doing business in the first 6 months of the year, pay the license fee for the whole year; If doing business in the last 6 months of the year, pay 50% of the license fee for the whole year.