Vietnam: Shall late payment interest be charged if the supplementation of the tax declaration dossier are submitted?

Vietnam: Shall late payment interest be charged if the supplementation of the tax declaration dossier are submitted?

According to Clause 1, Article 59 of the Law on Tax Administration 2019, taxpayers who file supplementation of the tax declarations are required to pay late payment interest in the following cases:

Handling Late Tax Payment

1. Cases requiring payment of late payment interest include:

a) Taxpayers who pay taxes late compared to the stipulated deadline, extended payment deadline, the period mentioned in the tax authority's notice, or the deadline in the tax authority's assessment decision or handling decision;

b)** Taxpayers filing supplementary tax declaration dossiers **that increase the payable tax amount, or if the tax authority or competent state agency discovers underreported tax, must pay late payment interest on the additional tax amount starting from the day after the final tax payment deadline of the erroneous tax period or the deadline of the initial customs declaration;

c)** Taxpayers filing supplementary tax declaration dossiers **leading to a reduced refunded tax amount, or if the tax authority or competent state agency discovers that the refunded tax amount is less than previously refunded, must pay late payment interest on the returned amount to be recovered starting from the receipt date of the refund from the state budget;

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Taxpayers filing supplementation of the tax declarations must pay late payment interest when subject to the aforementioned regulations.

Additionally, if taxpayers file supplementary returns that decrease the payable tax amount or if the tax authority or competent state agency verifies a reduction in the payable tax, they are entitled to adjust the calculated late payment interest proportional to the reduced difference.

The rate of late payment interest as stipulated in Clause 2, Article 59 of the Law on Tax Administration 2019 is 0.03% per day on the late tax amount.

The duration for calculating late payment interest is continuous from the day following the occurrence of late payment until the day immediately preceding the settlement of the tax debt, recovery of refunded tax, additional tax, assessed tax, or delayed transferred tax into the state budget.

Shall late payment interest be charged if the supplementation of the tax declaration dossier are submitted in Vietnam? (Image from Internet)

What is the deadline for tax dossier supplementation in Vietnam?

Pursuant to Article 47 of the Law on Tax Administration 2019, the following is stipulated:

Amending tax declaration dossiers

1. Taxpayers discovering errors in submitted tax declaration dossiers to tax authorities are allowed to amend them within 10 years from the due date of filing the returns of the tax period in which errors were detected, but before the tax authority or competent agency announces inspection or audit decisions.

2. After the tax authority or competent agency announces a tax inspection or audit decision at the taxpayer's premises, the taxpayer is still permitted to amend tax declaration dossiers; the tax authority will impose administrative penalties on tax management violations as prescribed in Articles 142 and 143 of this Law.

3. Once the tax authority or competent agency issues conclusions or handling decisions on tax post-inspection or audit at the taxpayer's premises, the amendment of tax declaration dossiers is stipulated as follows:

a) Taxpayers are allowed to amend tax declaration dossiers in cases where it increases the payable tax amount, reduces deductible tax, or decreases tax exemptions, reductions, and refunds, and are subject to administrative penalties on tax management violations as outlined in Articles 142 and 143 of this Law;

b) In cases where taxpayers find errors in tax declaration dossiers resulting in a reduced payable tax amount or increased deductible tax, exemptions, reductions, and refunds, the required action follows the regulations on tax complaint resolution.

4. The files for amending tax declaration dossiers include:

a) An amended tax declaration;

b) An explanatory statement for the amendments and related documents.

5. For export and import goods, the amendment of tax declaration dossiers is done according to customs laws.

Within the 10-year period from the final due date of filing the tax declaration dossier for the erroneous tax period, taxpayers are allowed to amend tax declaration dossiers, provided the amendments occur before the tax authority or competent agency announces inspection or audit decisions.

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

Under Article 13 of Decree 125/2020/ND-CP, the penalties for late submission of tax declaration dossiers are as follows:

Penalty for late submission of tax declaration dossiers

1. A warning is issued against the act of submitting tax declaration dossiers late from 01 to 05 days, given extenuating circumstances are present.

2. A monetary penalty ranging from 2,000,000 VND to 5,000,000 VND is applied for late submission of tax declaration dossiers from 01 to 30 days, except for cases stated in Clause 1 of this Article.

3. A monetary penalty ranging from 5,000,000 VND to 8,000,000 VND is applied for late submission of tax declaration dossiers from 31 to 60 days.

4. A monetary penalty ranging from 8,000,000 VND to 15,000,000 VND is applied for:

a) Submitting tax declaration dossiers late from 61 to 90 days;

b) Submitting tax declaration dossiers more than 91 days late without incurring payable tax;

c) Not submitting tax declaration dossiers without incurring payable tax;

d) Not submitting appendices stipulated by tax management for enterprises with related transactions attached to the corporate income tax finalization return.

5. A monetary penalty ranging from 15,000,000 VND to 25,000,000 VND is applied for submitting tax declaration dossiers more than 90 days late from the due date with payable tax, provided that the taxpayer has fully paid the tax amount, late payment interest to the state budget before the tax authority announces an inspection or audit decision or before the tax authority drafts a report on late submission of tax declaration dossiers as per Clause 11, Article 143 of the Law on Tax Administration.

If the penalty calculated under this clause exceeds the incurred tax amount on the tax declaration dossier, the maximum penalty shall be equal to the incurred tax amount, but not less than the average penalty bracket as stated in Clause 4 of this Article.

6. Measures to remedy consequences:

a) Compel the full payment of late payment interest to the state budget for the violations specified in Clauses 1, 2, 3, 4, and 5 of this Article when the late submission of tax declaration dossiers leads to late tax payment;

b) Compel the submission of tax declaration dossiers and appendices attached to tax declaration dossiers for actions stated in points c, d of Clause 4 of this Article.

In cases where tax declaration dossiers are filed 01 to 05 days late under extenuating circumstances, there will be no monetary penalty, but only a warning will be issued for such actions.