How much is the fine for submitting tax returns more than 90 days after expiration of the prescribed time limits in Vietnam?

How much is the fine for submitting tax returns more than 90 days after expiration of the prescribed time limits in Vietnam?

Pursuant to the provisions of Article 13 of Decree 125/2020/ND-CP on sanctions for late submission of tax returns, the fines and remedial measures are as follows:

Sanctions for violations of tax return submission deadlines

1. A warning will be issued for submitting tax returns 1 to 5 days late, provided there are mitigating circumstances.

2. A fine of 2,000,000 VND to 5,000,000 VND will be imposed for submitting tax returns 1 to 30 days late, except as specified in Clause 1 of this Article.

3. A fine of 5,000,000 VND to 8,000,000 VND will be imposed for submitting tax returns 31 to 60 days late.

4. A fine of 8,000,000 VND to 15,000,000 VND will be imposed for the following acts:

a) Submitting tax returns 61 to 90 days late;

b) Submitting tax returns more than 91 days late without incurring tax payable;

c) Failing to submit tax returns without incurring tax payable;

d) Failing to submit annexes according to tax management regulations for affiliated enterprises with tax finalization files.

5. A fine of 15,000,000 VND to 25,000,000 VND will be imposed for submitting tax returns more than 90 days late from the deadline, with tax payable, if the taxpayer has paid the full amount of tax and late payment interest prior to the tax authority's announcement of tax inspection or audit decisions, or prior to the tax authority documenting the late submission.

If the fine under this clause exceeds the tax amount on the tax return, the maximum fine will be equivalent to the tax amount but not lower than the average level of the fine bracket specified in Clause 4 of this Article.

6. Measures to remedy consequences:

a) The taxpayer must pay the full amount of late payment interest to the state budget for violations specified in Clauses 1, 2, 3, 4, and 5 of this Article if late submission of tax returns causes delayed tax payment;

b) The taxpayer must submit tax returns and annexes as specified in points c and d of Clause 4 of this Article.

For submitting tax returns more than 90 days after expiration of the prescribed time limits, the penalties are as follows:

A fine of 8,000,000 VND to 15,000,000 VND will be imposed for submitting tax returns more than 91 days late without any tax payable;

A fine of 15,000,000 VND to 25,000,000 VND will be imposed for submitting tax returns more than 90 days late from the deadline, with tax payable, provided the taxpayer has paid the full amount of tax and late payment interest to the state budget prior to the tax authority's decision announcement or documentation on late submission as stipulated.

If the fine under this clause exceeds the tax amount on the tax return, the maximum fine will be equivalent to the tax amount but not lower than the average level of the fine bracket specified in Clause 4, Article 13 of Decree 125/2020/ND-CP.

Additionally, remedial measures include paying the full amount of late payment interest to the state budget in case of late submission of tax returns leading to delayed tax payment.

How much is the fine for submitting tax returns more than 90 days after expiration of the prescribed time limits in Vietnam? (Image from the Internet)

How to calculate late payment interest due to late submission of tax returns in Vietnam?

According to Article 59, Clause 2 of the Law on Tax Administration 2019, the method of calculating interest on late tax payments is as follows:

Handling Late Payment of Tax

...

2. The interest rate and interest calculation period are as follows:

a) The interest rate for late payment is 0.03% per day on the amount of tax payable;

b) The calculation period for late payment interest is from the day after the due date until the day before the full payment is made to the state budget.

The interest for one day of late payment is calculated as follows:

Late payment interest for 1 day = 0.03% x Amount of tax payable

What are the submission deadlines for monthly and quarterly tax return in Vietnam?

Pursuant to Article 8 of Decree 126/2020/ND-CP, on the types of tax return by month, quarter, year, by each occurrence of tax obligation, and tax finalization, the regulations are as follows:

Types of tax return by Month, Quarter, Year, Each Occurrence of Tax Obligation, and Tax Finalization

1. Types of taxes and other state budget revenues under tax administration declared monthly include:

a) Value-added tax, personal income tax. In cases where taxpayers meet certain criteria specified in Article 9 of this Decree, they may choose to declare quarterly.

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2. Types of taxes and other state budget revenues declared quarterly include:

...

b) Value-added tax, corporate income tax, personal income tax for credit institutions or third parties authorized by credit institutions to manage secure assets while awaiting handling declared on behalf of taxpayers with secure assets.

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According to Article 44 of the Law on Tax Administration 2019 on the deadlines for submission of tax returns, the deadlines are specified as follows:

Deadlines for Submission of tax returns

1. The deadlines for submitting tax returns for monthly and quarterly declarations are as follows:

a) No later than the 20th day of the following month for monthly declarations;

b) No later than the last day of the first month of the following quarter for quarterly declarations.

...

Thus, the deadlines for monthly and quarterly tax return submissions are as follows:

- For monthly tax returns: No later than the 20th day of the following month.

- For quarterly tax returns (if meeting criteria for quarterly declarations): No later than the last day of the first month of the following quarter.