How much is the maximum fine for late submission of personal income tax returns in Vietnam?

How much is the maximum fine for late submission of personal income tax returns in Vietnam?

Based on Article 13 of Decree 125/2020/ND-CP, the regulation is as follows:

Penalties for violations of the tax return submission deadline

1. A warning for late submission of tax returns from 01 day to 05 days with mitigating circumstances.

2. A fine ranging from VND 2,000,000 to VND 5,000,000 for late submission of tax returns from 01 day to 30 days, except for the cases specified in Clause 1 of this Article.

3. A fine ranging from VND 5,000,000 to VND 8,000,000 for late submission of tax returns from 31 days to 60 days.

4. A fine ranging from VND 8,000,000 to VND 15,000,000 for one of the following acts:

a) Late submission of tax returns from 61 days to 90 days;

b) Late submission of tax returns over 91 days without any payable tax arising;

c) Failure to submit tax returns without any payable tax arising;

d) Failure to submit appendices as prescribed for tax management regarding enterprises engaged in related transactions accompanying corporate income tax finalization returns.

5. A fine ranging from VND 15,000,000 to VND 25,000,000 for the late submission of tax returns over 90 days from the deadline, when there is an arising amount of payable tax and the taxpayer has fully paid the tax amount, late payment interest to the state budget before the tax authority announces the tax inspection, tax audit decision or before the tax authority makes a record of the late tax return submission act according to Clause 11 Article 143 of the Law on Tax Administration.

In the case where the fine amount as prescribed in this clause is greater than the arising tax amount in the tax return file, the maximum fine for this case shall be equal to the arising tax amount but not less than the median level of the fine range specified in Clause 4 of this Article.

6. Remedial measures:

a) Compulsorily pay the late payment interest into the state budget for violations specified in Clauses 1, 2, 3, 4, and 5 of this Article if the taxpayer delays submitting the tax returns leading to late tax payments;

b) Compulsorily submit the tax returns, appendices accompanying tax returns for violations specified at points c, d of Clause 4 of this Article.

Depending on the length of delay in submitting the tax returns, the administrative penalty level will be determined according to the law's regulations. The fine can be up to VND 25,000,000.

Additionally, the taxpayer will also be required to pay the late payment interest into the state budget.

Note: The above fine applies to organizations. The penalty for individuals is 1/2 the penalty for organizations.

How much is the maximum fine for late submission of personal income tax returns in Vietnam? (Image from the Internet)

What are the deadlines for submitting monthly and quarterly personal income tax returns in Vietnam?

According to Article 8 of Decree 126/2020/ND-CP on types of taxes declared monthly, quarterly, annually, on an ad-hoc basis, and for tax finalizations, the regulation is as follows:

Types of taxes declared monthly, quarterly, annually, on an ad-hoc basis, and for tax finalizations

1. Types of taxes and other state budget revenues managed by tax authorities that are declared monthly include:

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

....

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 explore secured assets during the waiting period for processing on behalf of the taxpayer with secured assets.

.....

According to Article 44 of the Law on Tax Administration 2019 on deadlines for submitting tax returns, the regulation is as follows:

Deadlines for submitting tax returns

1. The deadline for submitting tax returns for types of taxes declared monthly, quarterly is as follows:

a) No later than the 20th day of the following month for tax obligations arising in the case of monthly declarations and payments;

b) No later than the last day of the first month of the following quarter for tax obligations arising in the case of quarterly declarations and payments.

...

Thus, the deadlines for submitting monthly and quarterly personal income tax returns are determined as follows:

- For monthly tax declarations: No later than the 20th day of the following month for tax obligations arising.

- For quarterly tax declarations, if meeting the criteria for quarterly tax declaration: No later than the last day of the first month of the following quarter for tax obligations arising.

Vietnam: Do individuals have to declare personal income tax if there is no tax payable?

According to Section 2 of Official Dispatch 2393/TCT-DNNCN 2021 of the General Tax Department, the guideline is as follows:

Regarding the declaration of personal income tax by organizations and individuals without taxable income

- According to Clause 6, Article 1 of the Law amending and supplementing certain articles of the Law on Personal Income Tax dated November 22, 2012, it is regulated:

“6. Article 24 is amended and supplemented as follows:

“Article 24. Responsibilities of organizations, individuals paying income, and responsibilities of individual taxpayers who are residents

1. Responsibilities to declare, withhold, pay taxes, and finalize taxes are regulated as follows:

a) Organizations and individuals paying income are responsible for declaring, withholding, paying taxes into the state budget, and finalizing taxes concerning taxable income paid to taxpayers;

…”

- According to point 9.9, Clause 9, Appendix I - List of tax declaration dossiers issued with Decree No. 126/2020/ND-CP of the Government of Vietnam dated October 19, 2020, it is regulated:

“9.9. Tax declaration dossiers for organizations and individuals paying income withholding tax on wages and salaries

a) Monthly, quarterly tax declaration dossiers

Personal income tax declaration form (applied to organizations and individuals paying wages and salaries) form No. 05/KK-TNCN.”

Based on the above regulations, only in the case where organizations and individuals have taxable income payment arise will they be required to declare personal income tax. Therefore, if organizations and individuals do not have taxable income payment arising in a particular month/quarter, they do not need to declare personal income tax for that month/quarter.