Vietnam: How many months is the VAT payment deadline for the tax period of August 2024 extended?

What is the deadline for submitting the tax declaration form for the tax period of August 2024 in Vietnam?

Pursuant to Article 8 of Decree 126/2020/ND-CP on taxes declared monthly, quarterly, annually, according to each occurrence of tax obligations, and finalizing tax declarations as follows:

Taxes declared monthly, quarterly, annually, according to each occurrence of tax obligations, and finalizing tax declarations

1. Taxes, other revenues of the state budget managed by the tax administration are declared monthly, including:

a) VAT (VAT) and Personal Income Tax. If the taxpayer meets the criteria specified in Article 9 of this Decree, they can opt for quarterly declarations.

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According to Article 44 of the Law on Tax Administration 2019, the deadline for submitting tax declarations is stipulated as follows:

Deadline for submitting tax declarations

1. The deadline for submitting tax declarations for taxes declared monthly or quarterly is specified as follows:

a) No later than the 20th day of the following month for monthly declarations;

b) No later than the last day of the first month of the following quarter for quarterly declarations.

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Pursuant to Clause 1, Article 55 of the Law on Tax Administration 2019:

Tax payment deadlines

1. For taxpayers calculating their own taxes, the tax payment deadline is the last day of the deadline for submitting tax declarations. In case of supplementary tax declarations, the tax payment deadline is the deadline for submitting tax declarations for the period with errors.

For Corporate Income Tax, temporary quarterly payments must be no later than the 30th day of the first month of the following quarter.

For crude oil, the deadline for paying resource tax and Corporate Income Tax for each crude oil sale is 35 days from the sale date for domestic sales or from the customs clearance date for exports.

For natural gas, the resource tax and Corporate Income Tax are paid monthly.

It can be seen that the deadline for submitting the tax declaration form for the tax period of August 2024 is September 20, 2024.

Vietnam: How many months is the VAT payment deadline for the tax period of August 2024 extended? (Image from the Internet)

Vietnam: How many months is the VAT payment deadline for the tax period of August 2024 extended?

According to Article 4 of Decree 64/2024/ND-CP, the extension of VAT payment deadlines is regulated as follows:

Extension of tax and land rent payment deadlines

1. For VAT (excluding VAT on imports)

a) The payment deadlines are extended for the VAT amounts arising from May to September 2024 (for monthly declarations) and the second and third quarters of 2024 (for quarterly declarations) for businesses and organizations mentioned in Article 3 of this Decree. The extension is 5 months for the VAT of May 2024, June 2024, and the second quarter of 2024; 4 months for July 2024; 3 months for August 2024; and 2 months for September 2024 and the third quarter of 2024. The extension time is calculated from the end of the statutory tax payment deadline.

Businesses and organizations eligible for the extension shall submit their monthly or quarterly VAT declarations according to current regulations but are not required to pay the declared tax amounts. The extended deadlines for VAT payments are as follows:

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The VAT for the tax period of August 2024 is extended by 3 months. The extended payment deadline is December 20, 2024.

Vietnam: How is the late payment interest calculated if the deadline is exceeded?

According to Clause 2, Article 59 of the Law on Tax Administration 2019:

Handling late tax payments

1. Cases subject to late payment interest include:

a) The taxpayer pays tax later than the statutory deadline, the extended deadline, the deadline stated in the notification from the tax administration, or the deadline in the tax assessment or penalty decision from the tax administration;

b) The taxpayer submits supplementary tax declarations that increase the tax payable or if the tax administration or competent authority discovers additional tax due, then late payment interest is applicable from the day following the statutory deadline of the period with errors;

c) The taxpayer submits supplementary tax declarations reducing the tax refundable or if the tax administration or competent authority discovers that the refundable tax amount is less than the previously refunded amount, then late payment interest is applicable from the date the refund was received;

d) Gradual tax debt payment as prescribed in Clause 5, Article 124 of this Law;

đ) Cases not subject to administrative penalties for tax management due to the expiration of the penalty period but are subject to tax collection as prescribed in Clause 3, Article 137 of this Law;

e) Cases not subject to administrative penalties for tax management related to acts prescribed in Clauses 3 and 4, Article 142 of this Law;

g) Agencies and organizations authorized by the tax administration to collect taxes delay transferring tax collections, late payment interest, or penalties to the state budget and are subject to late payment interest for the delayed amount according to regulations.

2. The calculation of late payment interest and the timeframe are as follows:

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

b) The timeframe for calculating late payment interest starts from the day following the overdue date outlined in Clause 1 until the day preceding the actual payment into the state budget.

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Late payment interest is calculated from the day following the overdue date until the day preceding the actual payment of the overdue tax into the state budget.