In case the tax declaration dossier submitted to the Vietnam's tax authority is erroneous or inadequate, may supplementary documents be provided?

In case the tax declaration dossier submitted to the Vietnam's tax authority is erroneous or inadequate, may supplementary documents be provided?

According to Clause 1, Article 47 of the Law on Tax Administration 2019, the supplementation of tax declaration dossiers for taxpayers is stipulated as follows:

Filing additional tax declaration dossiers

1. If a taxpayer discovers errors in the tax declaration already submitted to the tax authority, they are allowed to supplement the tax declaration dossier within 10 years from the due date for submission of the tax declaration for the tax period with errors, provided it is prior to the tax authority or authorized agency's announcement of the inspection or examination decision.

2. When the tax authority or authorized agency has announced the inspection or examination decision at the taxpayer's premises, the taxpayer is still allowed to supplement the tax declaration dossier; however, the tax authority will impose administrative penalties for tax management violations as stipulated in Articles 142 and 143 of this Law.

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A taxpayer discovering errors in the previously submitted tax declaration to the tax authority is allowed to supplement the tax declaration.

Specifically, if the taxpayer discovers errors in the submitted tax declaration to the tax authority, they are allowed to supplement the declaration within 10 years from the due date of submission for the tax period containing the errors, as long as this occurs before the tax authority or authorized agency announces the inspection or examination decision.

If the tax authority or authorized agency has announced the tax inspection or examination decision at the taxpayer's premises, the taxpayer is still allowed to supplement the tax declaration dossier; the tax authority will impose administrative penalties for tax management violations as specified in Articles 142 and 143 of the Law on Tax Administration 2019.

After the tax authority or the authorized agency has issued a conclusion or handled taxes post-inspection or examination at the taxpayer's premises, the supplementation of the tax declaration is regulated as follows:

- The taxpayer is allowed to supplement the tax declaration dossier if it increases the tax payable, decreases the deductible tax, or decreases the tax exempted, reduced, or refunded and will be subject to administrative penalties for tax management violations as specified in Articles 142 and 143 of the Law on Tax Administration 2019;

- If a taxpayer discovers errors in the tax declaration that, when supplemented, reduce the tax payable or increase the deductible tax, or increase the tax exempted, reduced, or refunded, it shall be handled following regulations on tax complaint resolution.

In case the tax declaration dossier submitted to the Vietnam's tax authority is erroneous or inadequate, may supplementary documents be provided?

Will there be a penalty for providing supplementary documents to the tax declaration dossier before a tax inspection in Vietnam?

Based on Clause 3, Article 9 of Decree 125/2020/ND-CP, the following is stipulated:

Cases not subject to administrative penalties for tax and invoice violations

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3. No administrative penalty shall be imposed for tax violations in cases of incorrect reporting if the taxpayer has supplemented the tax declaration dossier and voluntarily paid the correct amount of tax payable prior to the tax authority's announcement of the tax inspection or tax audit decision at the taxpayer's premises or prior to the tax authority detecting the error without inspection or audit at the taxpayer's premises, or before another competent agency's detection.

4. No penalty for procedural tax violations for individuals directly settling personal income tax returns late if they have a tax refund, or for business households or individuals imposed tax under Article 51 of the Law on Tax Administration.

5. No penalty for late filing of tax declaration dossiers during the taxpayer's granted extension period.

For cases of incorrect tax declarations, if the taxpayer has supplemented the declaration and voluntarily paid the correct amount of tax due before the tax authority's announcement of the tax inspection or audit decision at the taxpayer’s premises, or before the tax authority detects the error without inspection or audit, or before another competent agency detects it, there will be no penalty.

How many days late can a tax declaration be submitted without incurring a fine in Vietnam?

According to Article 13 of Decree 125/2020/ND-CP, the penalties for filing tax declaration dossiers late are regulated as follows:

Penalties for late submission of tax declaration dossiers

1. A warning is given for submitting a tax declaration dossier 1 to 5 days late under mitigating circumstances.

2. A fine ranging from VND 2,000,000 to VND 5,000,000 applies for submitting a tax declaration dossier 1 to 30 days late, excluding cases stipulated in Clause 1 of this Article.

3. A fine ranging from VND 5,000,000 to VND 8,000,000 applies for submitting a tax declaration dossier 31 to 60 days late.

4. A fine ranging from VND 8,000,000 to VND 15,000,000 applies in the following cases:

a) Submitting a tax declaration dossier 61 to 90 days late;

b) Submitting a tax declaration dossier 91 days or more late without tax payable;

c) Not submitting a tax declaration dossier where no tax is payable;

d) Not submitting annexes required by tax management regulations for enterprises with related party transactions, along with the corporate income tax finalization dossier.

5. A fine ranging from VND 15,000,000 to VND 25,000,000 applies for submitting a tax declaration dossier over 90 days late from the deadline with tax payable and the taxpayer has fully paid the tax and late payment to the state budget before the tax authority announces a tax inspection or audit decision or before the tax authority records the late submission according to Clause 11, Article 143 of the Law on Tax Administration.

If the fine amount according to this clause exceeds the tax amount arising on the tax declaration, the maximum fine equals the arisen tax amount payable but not lower than the average fine stipulated in Clause 4 of this Article.

6. Remedial measures:

a) Compelling the payment of late tax payment amounts to the state budget for violations stipulated in Clauses 1, 2, 3, 4, and 5 of this Article if late tax submission results from late tax declaration submission;

b) Compelling the submission of tax declaration dossiers and annexes for violations stipulated in Point c, d of Clause 4 of this Article.

In cases of submitting a tax declaration dossier 1 to 5 days late with mitigating circumstances, there will be no fine imposed; a warning will be administered.