Shall a taxpayer suffering an accident be eligible to extend the deadline for submission in Vietnam?

Shall a taxpayer suffering an accident be eligible to extend the deadline for submission in Vietnam?

Based on Article 46 of the 2019 Law on Tax Administration, the regulation on extending the deadline for submission is as follows:

Extension of Tax Return Submission

1. Taxpayers unable to submit tax returns on time due to natural disasters, catastrophes, epidemics, fires, or unforeseen accidents may be granted an extension for filing their tax returns by the head of the directly managing tax authority.

2. The extension period shall not exceed 30 days for monthly, quarterly, annual, or event-based tax return filings; 60 days for the submission of tax finalization documentation from the expiration date of the tax return filing deadline.

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Thus, based on the above regulation, taxpayers involved in an accident under the following circumstances are eligible for a tax return filing extension:

- Due to natural disasters

- Catastrophes

- Epidemics

- Fires

- Unforeseen accidents

Shall a taxpayer suffering an accident be eligible to extend the deadline for submission in Vietnam? (Image from the Internet)

What is the maximum duration for a tax extension in Vietnam?

According to Article 46 of the 2019 Law on Tax Administration, specific provisions for extending the filing of tax returns are outlined as follows:

- Taxpayers unable to submit tax returns on time due to natural disasters, catastrophes, epidemics, fires, or unforeseen accidents may be granted an extension for filing their tax returns by the head of the directly managing tax authority.

- The extension period shall not exceed 30 days for monthly, quarterly, annual, or event-based tax return filings; 60 days for the submission of tax finalization documentation from the expiration date of the tax return filing deadline.

- Taxpayers must submit a written request for an extension to the tax authority before the expiry of the tax return filing deadline, specifying the reason for the extension request, with confirmation from the commune-level People's Committee or the police of the commune, ward, or commune-level town where the incident occurs warranting the extension.

- Within 3 working days from receiving the extension request, the tax authority must respond in writing to the taxpayer regarding the acceptance or rejection of the tax return filing extension.

What are the penalties for violations against regulations on time limits for submission of tax returns in Vietnam?

According to Article 13 of Decree 125/2020/ND-CP on penalties for violations related to tax return filing deadlines:

- A warning shall be issued for filing tax returns beyond the deadline from 1 to 5 days with mitigating circumstances.

- A fine ranging from 2,000,000 VND to 5,000,000 VND shall be imposed for filing tax returns beyond the deadline from 1 to 30 days, excluding cases specified in Clause 1 of this Article.

- A fine ranging from 5,000,000 VND to 8,000,000 VND shall be imposed for filing tax returns beyond the deadline from 31 to 60 days.

- A fine ranging from 8,000,000 VND to 15,000,000 VND shall be imposed for the following actions:

- Filing tax returns beyond the deadline from 61 to 90 days;

- Filing tax returns beyond the deadline from 91 days or more without tax payable;

- Not filing tax returns but having no tax payable;

- Failing to submit annexes as prescribed for tax management for enterprises with associated transactions with corporate income tax finalization documentation.

- A fine ranging from 15,000,000 VND to 25,000,000 VND shall be imposed for filing tax returns beyond the deadline over 90 days from the tax return filing deadline, where tax is payable and the taxpayer has paid the tax and late payment interest into the state budget before the tax authority announces an inspection decision or before the tax authority drafts a violation report as per Clause 11, Article 143 of the Law on Tax Administration.

Note: For the same administrative violation related to tax and invoices, the penalty for organizations is twice that imposed on individuals.

Which types of taxes are declared quarterly in Vietnam?

Based on Clause 2, Article 8 of Decree 126/2020/ND-CP guiding the Law on Tax Administration, the types of taxes declared quarterly include:

- Corporate income tax for foreign airlines, foreign reinsurers.

- Value-added tax, corporate income tax, personal income tax for credit institutions or third parties authorized by credit institutions to dispose of secured assets pending handling, declaring on behalf of taxpayers with secured assets.

- Personal income tax for organizations and individuals paying income subject to tax deduction as prescribed by personal income tax law, where the organizations and individuals pay value-added tax quarterly and opt for quarterly personal income tax declaration; individuals with income from salaries or wages directly declaring personal income tax with the tax authority and opting for quarterly tax declaration.

- Other types of taxes and collections for the state budget declared and paid on behalf of individuals by organizations or individuals, where such organizations and individuals pay value-added tax quarterly and opt for quarterly tax declaration on behalf of individuals, except those specified at point g, clause 4 of this Article.

- Surcharge when crude oil prices fluctuate (excluding oil and gas activities of Vietsovpetro Joint Venture at Lot 09.1).