How to determine the tax payment date in case of non-cash payment in Vietnam?

How to determine the tax payment date in case of non-cash payment in Vietnam?

According to Article 58 of the Law on Tax Administration 2019, the regulation on determining the tax payment date is as follows:

Determining the tax payment date

1. In case of non-cash tax payment, the tax payment date is the date the State Treasury, commercial bank, other credit institution, or service organization debits the taxpayer’s account or the account of the person paying on behalf of the taxpayer and is recorded on the tax payment document.

2. In the case of direct cash tax payment, the tax payment date is the date the State Treasury, tax management agency, or authorized tax collection organization issues the tax payment receipt.

Thus, according to the aforementioned regulation, in the case of non-cash tax payment, the tax payment date is determined as the date the State Treasury, commercial bank, other credit institution, or service organization debits the taxpayer’s account or the account of the person paying on behalf of the taxpayer and is recorded on the tax payment document.

What are 7 cases where late payment interest is charged in Vietnam in 2024? (Image from the Internet)

7 cases where late payment interest is charged in Vietnam in 2024

According to Clause 1 of Article 59 of the Law on Tax Administration 2019, the 7 cases where late payment interest is charged in 2024 include:

[1] The taxpayer delays paying taxes beyond the prescribed deadline, the extended deadline, the deadline stated in the tax management agency’s notification, the deadline in the tax assessment decision, or the tax management agency’s handling decision;

[2] The taxpayer supplements their tax declaration dossier, increasing the amount of tax payable, or the tax management agency, or competent state agency's inspection or audit reveals additional tax amounts payable. In such cases, late payment is required for the increased tax amount from the day after the last tax payment deadline of the incorrect or omitted tax period or from the deadline of the initial customs declaration;

[3] The taxpayer supplements their tax declaration dossier, reducing the refunded tax amount, or the tax management agency, or competent state agency's inspection or audit reveals a refund amount smaller than what was reimbursed. Late payment is required for the refund amount, which must be recovered from the date the taxpayer received the refund from the state budget;

[4] Cases permitted to pay tax debts in instalments as prescribed in Clause 5, Article 124 of the Law on Tax Administration 2019;

[5] Cases not subject to administrative penalties for tax management violations due to the expiration of the statute of limitations but are subject to the recovery of underpaid taxes as prescribed in Clause 3, Article 137 of the Law on Tax Administration 2019;

[6] Cases not subject to administrative penalties for tax management violations related to the acts specified in Clause 3 and Clause 4, Article 142 of the Law on Tax Administration 2019;

[7] Agencies or organizations authorized by the tax management agency to collect taxes that delay transferring tax payments, late payments, or fines collected from taxpayers to the state budget must pay late payment amounts on the delayed transfers.

What is the late tax payment rate in Vietnam?

According to Clause 2 of Article 59 of the Law on Tax Administration 2019, the regulation on late payment rate and duration is as follows:

Handling of Late Tax Payments

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2. The late payment rate and duration are regulated as follows:

a) The late payment rate is 0.03%/day calculated on the overdue tax amount;

b) The late payment period is calculated continuously from the day following the due date specified in Clause 1 of this Article to the day before the overdue tax amount, recovered refund, increased tax amount, assessed tax amount, or delayed tax transfer is paid to the state budget.

3. Taxpayers must determine the late payment amounts according to Clauses 1 and 2 of this Article and pay them into the state budget as regulated. If taxpayers have overpaid taxes, late payment amounts, or fines, they will follow the procedure set out in Clause 1, Article 60 of this Law.

4. If, after 30 days from the tax payment deadline, taxpayers have not paid the overdue taxes, late payment amounts, or fines, the tax management agency will notify them of the outstanding amounts and the number of overdue days.

5. Late payment amounts are not calculated in the following cases:

a) Taxpayers supplying goods or services paid by state budget funds, including subcontractors specified in contracts signed with the investor and directly paid by the investor, are not subject to late payment if they have not been paid.

The outstanding tax amount not subject to late payment shall not exceed the unpaid amount from the state budget.

b) Cases specified in point b, Clause 4, Article 55 of this Law are exempt from late payment during the time awaiting assessment results, during the period without official prices, or when the actual payment amount and adjustments added to the customs value are yet to be determined.

6. Late payment amounts are not calculated for cases under debt suspension as regulated in Article 83 of this Law.

7. Taxpayers supplementing their tax declaration dossier to reduce the payable tax amount or the tax management agency or competent state agency determining that the payable tax amount is reduced will have their late payment amounts adjusted accordingly.

8. Taxpayers subject to late payment as prescribed in Clause 1 of this Article are exempt from late payment in cases of force majeure specified in Clause 27, Article 3 of this Law.

9. The Minister of Finance prescribes the procedure for handling late tax payments.

Thus, according to the aforementioned regulation, the late tax payment rate is 0.03%/day calculated on the overdue tax amount.