Are individuals late in submitting PIT finalizations subject to administrative penalties if there is a refund amount in Vietnam?

Are individuals late in submitting PIT finalizations subject to administrative penalties if there is a refund amount in Vietnam?

According to Clause 4, Article 9 of Decree 125/2020/ND-CP, which stipulates cases where there is no administrative penalty for tax, invoices, as follows:

Cases where there is no administrative penalty for tax, invoices

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3. No administrative penalty for tax violations in cases where there is an incorrect declaration, but the taxpayer has supplemented the tax declaration dossier and has voluntarily paid the full amount of tax due before the tax authority announces the tax inspection decision at the taxpayer’s office or before the tax authority detects the error without inspection at the taxpayer’s office, or before another competent authority discovers it.

4. No penalty for tax procedure violations against individuals who directly finalize personal income tax late in submitting the PIT finalization resulting in a refund amount; business households, and business individuals who have been subjected to tax imposition as stipulated in Article 51 of the Law on Tax Administration.

5. No penalty for violations of the deadline for submitting tax declaration dossiers during the period when the taxpayer is granted an extension for submitting such tax declaration dossiers.

Thus, individuals who directly finalize personal income tax late in submitting the PIT finalization that results in a refund amount will not be subject to administrative penalties.

Are individuals late in submitting PIT finalizations subject to administrative penalties if there is a refund amount in Vietnam? (Image from Internet)

When is the deadline for individuals who directly finalize PIT to submit their tax finalization in Vietnam?

According to Clause 2, Article 44 of the Law on Tax Administration 2019, the deadlines for submitting tax declaration dossiers are stipulated as follows:

Deadline for submitting tax declaration dossiers

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2. The deadline for submitting tax declaration dossiers for taxes calculated annually is stipulated as follows:

a) No later than the last day of the third month from the end of the calendar year or fiscal year for the annual tax finalization; no later than the last day of the first month of the calendar year or fiscal year for the annual tax declaration dossier;

b) No later than the last day of the fourth month from the end of the calendar year for the PIT finalization of individuals who directly finalize tax;

c) No later than December 15 of the preceding year for the estimated tax declaration dossier of business households and individuals submitting tax under the estimated method; in the case of new business individuals, the deadline is within 10 days from the start of business.

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According to the above regulation, the deadline to submit the PIT finalization for the year 2025 of individuals who directly finalize tax is no later than April 30, 2025.

However, April 30, 2025, coincides with the holiday following May 1, 2025 (Reunification Day April 30 and International Labor Day May 1). Therefore, the deadline for submitting the PIT finalization for individuals who directly finalize tax is no later than May 2, 2025.

What does the PIT finalization of individuals who directly finalize tax include?

According to the provisions in Subsection 1.1, Section 4 of Official Dispatch 2783/CTTPHCM-TTHT of 2024, the tax finalization declaration dossier for individuals directly finalizing PIT with the tax authority includes:

- The personal income tax finalization declaration form No. 02/QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC

- The appendix for declaring dependent family reductions Form No. 02-1/BK-QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC

- A copy (photocopy from the original) of documents proving the tax withheld or temporarily paid during the year, tax paid abroad (if any). In cases where the income-paying organization does not provide tax withholding documents for individuals because the organization has ceased operations, the tax authority will base on its data to consider processing the tax finalization for individuals without requiring the tax withholding certificate. If the income-paying organization or individual uses electronic PIT withholding documents, taxpayers must use the physical version of the electronic PIT withholding document (the paper version printed by the taxpayer converted from the original electronic PIT withholding document sent by the income-paying organization or individual).

- A copy of the Tax Withholding Certificate (stating the tax paid according to which tax return) issued by the income-paying entity or a copy of the bank document showing tax paid abroad, with the taxpayer's confirmation in cases where foreign law does not provide a confirmation of tax paid.

- A copy of invoices or documents proving contributions to charitable funds, humanitarian funds, or study promotion funds (if any).

- Documents proving the amount paid by foreign income-paying organizations in case individuals receive income from international organizations, embassies, consulates, and income from abroad.

- Documents for registering dependents as guided at Point a, Clause 3, Section 3 of Official Dispatch 2783/CTTPHCM-TTHT of 2024 (if it recalculates dependents at the time of tax finalization for dependents who have not yet registered).