License fee exemption for the 1st year after establishment

On 24th February 2020, the Government issued Decree No. 22/2020/ND-CP, which amends and supplements several articles of Decree No. 139/2016/ND-CP dated 14th October 2016 about license fee. The Decree has some highlighted contents as follows:

Firstly, the cases for license fee exemption are supplemented by 3 cases:

– Newly established companies shall be exempt from license fee for the 1st year.

– Small and medium-sized companies inclusive of households shall be exempt from license fee in 3 years from the initial license date.

– Public high school and public kindergarten.

Secondly, households, individuals, group of individuals paying flat-rate tax are exempt from license fee declaration.

Thirdly, companies are not subject to license fee payment in case of business termination.

The Decree comes into force from 25th February 2020.


The extention of deadline for paying VAT and land lease fee in 5 months for companies suffering from COVID-19

On 10th March 2020, the Ministry of Finance issued the draft decree to extend the deadline for tax and land lease fee payment, with an aim to support the businesses, households, individuals who are affected directly by the COVID-19 epidemic. Subjects of the application of this Decree includes businesses, organizations, households, individuals in:

Agriculture, forestry and aquaculture; food; textile and costume manufacturing; shoes and footware manufacturing; products manufacturing from rubber; electronic and computer products manufacturing; automobile manufacturing (except for cars from 9 seats and below);

Transportation service via railways, overland, waterway; airway; warehouse service and supporting activities for transportation;

Accommodation; food service; travel agency, tour operation and other related activities.

Moreover, small and super small companies also have extention in 5 months for the VAT payment.

Despite the extention for tax payment, the tax payers must declare and submit the tax returns on time according to current regulations.

The further information for the draft of Decree can be found at


Extension for tax payment due to COVID-19 must be approved case by case

On 03rd March 2020, the General Department of Taxation issued Official Letter No. 897/TCT-QLN (OL 897) about the extension for tax payment, exemption for penalty for late payment because of COVID-19. The OL requests the local tax office to instruct the companies and timely process the tax payment extension policy for companies suffering from the COVID -19.

Accordingly, companies suffering from the COVID-19 are subject to tax payment extension, based on Clause 1, Article 31 and are exempt from penalty for late payment, based on Clause 1, Article 35 of Circular No. 156/2013/TT-BTC (Circular 156).

Dossier for requesting the payment extension and penalty exemption should be prepared following the regulation of Clause 3, Article 31 and Clause 3, Article 35 of Circular 156.


Foreign employees who are “internally transferred” are exempt from health insurance from 01st February 2020

On 18th February 2020, Ho Chi Minh City Social Security Office issued OL 288/BHXH-QLT, which handles the case that the foreign employees who work in Vietnam as “internal transferee” shall be exempt from health insurance from 01 February 2020. Foreign employees who already used health insurance card in February 2020 shall stop paying health insurance from 01st March 2020.

Foreign employees in Vietnam as internal transferee are: director, manager, expat, technical employees of a foreign company which had subsidiary, representative office in Vietnam and that employees must have been recruited by the foreign companies for at least 12 months (according to Clause 1, Article 3, Decree No. 11/2016/ND-CP).


Change in the penalty for violation in labor contract and social insurance

On 01st March 2020, the Government issued Decree No. 28/2020/ND-CP guiding the penalty for violation in labor contract and social insurance, which amends and supplements several penalty rates for the violation in the abovementioned section.

The Decree 28 comes into force from 15th April 2020 and replaces Decree No. 95/2013/ND-CP and Decree No. 88/2015/NĐ-CP which amend and supplement Decree 95.