Is there a fime imposed for late payment of corporate income tax for the third quarter of 2024 in Vietnam?

What is the deadline for paying corporate income tax for the third quarter of 2024 in Vietnam?

Based on Clause 1, Article 55 of the 2019 Law on Tax Administration, the tax payment deadline is regulated as follows:

Tax Payment Deadline

1. In the case where a taxpayer calculates tax by themselves, the latest payment deadline is the final day of the deadline for submitting the tax declaration dossier. In case of supplementary tax declaration, the tax payment deadline is the deadline for submitting the tax declaration dossier for the tax period with errors or omissions.

For corporate income tax, it is estimated and paid quarterly, and the latest tax payment deadline is the 30th day of the first month of the subsequent quarter.

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Therefore, the deadline for paying estimated corporate income tax for the third quarter of 2024 is October 30, 2024.

Is there a fime imposed for late payment of corporate income tax for the third quarter of 2024 in Vietnam? (Image from the Internet)

What are regulations on handling of late payment of corporate income tax for the third quarter of 2024 in Vietnam?

Based on Clause 1, Article 59 of the 2019 Law on Tax Administration, which regulates late tax payment cases:

Handling of Late Tax Payment

1. Cases required to pay late tax fees include:

a) Taxpayers delayed in paying taxes beyond the prescribed deadline, extended deadline, deadline stated in tax authorities' notifications, or deadlines in tax determination or handling decisions by tax authorities;

b) Taxpayers who make supplementary declarations that increase the payable tax or if tax authorities or authorized state agencies discover underreported tax, must pay late fees on the increased payable amount from the next day after the final deadline of the erroneous tax period, or from the deadline of the initial customs declaration;

c) Taxpayers who make supplementary declarations that reduce refunded tax amounts or if tax authorities or authorized state agencies find that the refunded tax amount is lower than what was refunded, will have to pay late fees on the refundable amount to be reclaimed from the date of receipt from the state budget;

d) Cases eligible for installment debt payment as prescribed in Clause 5, Article 124 of this Law;

dd) Cases not subject to administrative violations for tax management due to expiry of sanctioning time but are subject to additional tax collection as stipulated in Clause 3, Article 137 of this Law;

e) Cases not subject to administrative violations for tax management for acts stipulated in Clause 3 and Clause 4, Article 142 of this Law;

g) Agencies or organizations authorized by tax authorities to collect taxes and delay transferring tax, late fees, and fines to the state budget must pay late fees for delayed transfers as prescribed.

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Simultaneously, based on point b, Clause 6, Article 8 of Decree 126/2020/ND-CP, amended by Clause 3, Article 1 of Decree 91/2022/ND-CP, which regulates types of taxes declared monthly, quarterly, annually, per taxation occurrence, and annual tax finalization:

Types of Taxes Declared Monthly, Quarterly, Annually, Per Each Occurrence of Tax Obligation, and Tax Finalization

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6. Types of taxes and revenues subject to annual finalization and finalization at the time of dissolution, bankruptcy, termination of operation, contract termination, or business reorganization. In cases of business transformation (excluding state-owned enterprises' equitization) where the transformed enterprise inherits all tax obligations from the predecessor, it is not required to finalize tax until the decision on business transformation is made, with the final tax declaration made at the year's end.

b) Corporate Income Tax (excluding corporate income tax from foreign contractor capital transfer; corporate income tax declared by the rate method on revenue per occurrence or monthly as prescribed in point đ, Clause 4 of this Article). Taxpayers must self-determine the estimated quarterly corporate income tax (including provisional distribution of corporate income tax to provincial localities where the dependent unit, business location, or real estate transfer is different from the taxpayer's headquarters) and can deduct the estimated tax paid from the annual final tax.

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The total estimated corporate income tax paid for 04 quarters must not be less than 80% of the corporate income tax payable according to the annual finalization. If a taxpayer underpays in terms of estimated tax for the 04 quarters, they must pay late fees on the unpaid amount from the day following the last day of the estimated corporate income tax payment deadline for Q4 until the day before the day the missing tax amount is supplemented to the state budget.

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Corporate income tax is estimated and paid quarterly and requires annual finalization.

Therefore, late payment of corporate income tax for Q3 does not fall within the regulated cases for handling late tax payment and does not necessitate filing or submitting corporate income tax declaration dossiers quarterly, and the estimated corporate income tax amount is self-determined by the enterprise.

Thus, the act of late payment, non-payment of estimated corporate income tax is not subject to penalization.

However, if the taxpayer's payment is delayed (underpaid) compared to the estimated tax for 04 quarters, they must pay late fees on the underpaid amount from the next day following the final estimated payment deadline for Q4 up until the day before the missing tax is paid to the state budget.

In that, the total corporate income tax estimated for 04 quarters must not be less than 80% of the corporate income tax payable according to the annual finalization.

What are cases of exemption of late payment interests in Vietnam

Cases where late payment interests are not calculated are specifically stated in Clause 5, Article 59 of the 2019 Law on Tax Administration:

- Taxpayers supplying goods or services being paid from state budget sources, including subcontractors as stipulated in contracts with investors, and receiving direct payments from investors but have not yet been paid, are exempt from late payment penalties.

The total tax debt not subject to late fees is the total tax debt to the state budget, not exceeding the outstanding payment from the state budget;

- Cases specified in point b, Clause 4, Article 55 of the 2019 Law on Tax Administration are exempt from late fees during the period awaiting results of analysis and appraisal; during the period without official pricing; during the period when definite payment, additional adjustments to customs value have not been determined.

Note: Taxpayers must pay late fees and are exempt from late fees in force majeure circumstances as stipulated in Clause 27, Article 3 of the 2019 Law on Tax Administration, including:

- Taxpayers suffering physical damage due to natural disasters, calamities, epidemics, fires, unexpected accidents;

- Other force majeure cases as regulated by the Government of Vietnam.