Vietnam: What is the fine for failing to submit a personal income tax declaration?
What is the deadline for submitting tax declaration dossiers in Vietnam
Under Clause 1, Article 44 of the Law on Tax Administration 2019, the provisions are as follows:
Deadlines for submission of tax declaration dossiers
1. Deadlines for submission of tax declaration dossiers of taxes declared monthly and quarterly:
a) For taxes declared monthly: the 20th of the month succeeding the month in which tax is incurred;
b) For taxes declared quarterly: the last day of the first month of the succeeding quarter.
The deadline for submitting tax declaration dossiers for monthly or quarterly tax declarations is regulated as follows:
- No later than the 20th day of the month following the month in which the tax obligation arises for monthly declarations and payments;
- No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises for quarterly declarations and payments.
What is the fine for failing to submit a personal income tax declaration in Vietnam? (Image from Internet)
What is the fine for failing to submit a personal income tax declaration in Vietnam?
According to the provisions of Article 13 of Decree 125/2020/ND-CP, the act of late submission or non-submission of personal income tax declaration will be fined from 2 million to 25 million VND, depending on the severity of the violation. To be specific:
| No. | Violation | Fine amount | Remedial measures |
|---|---|---|---|
| 1 | Late submission from 01 - 05 days with mitigating circumstances | Warning | Required to pay the full amount of tax late payment into the budget in case the taxpayer's late submission of tax declaration leads to late payment of tax |
| 2 | Late submission from 01 - 30 days, except case (1) | From 2 to 5 million VND | Required to pay the full amount of tax late payment into the budget in case the taxpayer's late submission of tax declaration leads to late payment of tax |
| 3 | Late submission from 31 - 60 days | From 5 to 8 million VND | Required to pay the full amount of tax late payment into the budget in case the taxpayer's late submission of tax declaration leads to late payment of tax |
| 4 | Late submission from 61 - 90 days | From 8 to 15 million VND | - Required to pay the full amount of tax late payment into the budget in case the taxpayer's late submission of tax declaration leads to late payment of tax |
| 5 | Late submission from 91 days or more but no tax amount payable arises | From 8 to 15 million VND | - Required to pay the full amount of tax late payment into the budget in case the taxpayer's late submission of tax declaration leads to late payment of tax |
| 6 | Non-submission of tax declaration, but no tax amount payable arises | From 8 to 15 million VND | - Required to pay the full amount of tax late payment into the budget in case the taxpayer's late submission of tax declaration leads to late payment of tax - Required to submit tax declaration dossiers in case of non-submission |
| 7 | - Late submission for more than 90 days - Tax amount payable arises and the taxpayer has paid the full amount of tax, late payment into the state budget before the tax authority announces the tax inspection, audit decision or records the violation of tax declaration late submission |
- From 15 to 25 million VND - If the fine amount is greater than the tax amount arising on the tax declaration, the maximum fine is equal to the tax amount arising payable on the tax declaration but not less than 11.5 million VND |
Required to pay the full amount of tax late payment into the budget in case the taxpayer's late submission of tax declaration leads to late payment of tax |
What are the instructions for filling out the PIT declaration form - Form 02/KK-TNCN for individuals directly with the tax authority?
Download the personal income tax declaration form 02/KK-TNCN here: Here
Instructions for completing the PIT declaration form - Form 02/KK-TNCN for salary earners directly finalizing taxes with tax authorities can be referenced as follows:
General information section:
[01] Tax period: Enter the month/quarter-year of the tax declaration period. In case of quarterly tax declaration that is not a full quarter, full details must be provided from month... to month... within the quarter of the declared tax period.
According to points a, b clause 2 Article 9 of Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam, individuals can choose to declare tax on a monthly or quarterly basis and maintain it throughout the calendar year at each tax authority. An individual who has chosen quarterly tax declaration may adjust to monthly declaration within the year if they change their choice.
[02] First time: If declaring tax for the first time, mark an “x” in the square box.
[03] Amended times: If declaring after the first time, it is considered an amendment and the number of amended declarations must be entered in the blank space. The number of amended declarations is written in natural numerical order (1, 2, 3…).
[04] Taxpayer's name: Clearly specify the individual's full name according to the tax code registration sheet or identity card/citizen identification/passport.
[05] Tax code: Clearly specify the individual's tax code according to the taxpayer registration certificate or tax notification issued by the tax authority or tax code card issued by the tax authority.
[06] Address: Clearly specify the full address of the house number, ward/commune where the individual resides.
[07] District: Specify the district, in the province/city where the individual resides.
[08] Province/City: Specify the province/city where the individual resides.
[09] Phone: Clearly specify the individual's phone number.
[10] Fax: Clearly specify the individual's fax number.
[11] Email: Clearly specify the individual's email address.
[12] Name of income-paying organization: Clearly specify the full name of the income payer(according to the establishment decision or business registration certificate or taxpayer registration certificate) where the individual receives taxable income.
[13] Tax code: Clearly specify the tax code of the income payerwhere the individual receives taxable income (if [12] is completed).
[14] Address: Clearly specify the address of the income payerwhere the individual receives taxable income (if [12] is completed).
[15] District: Clearly specify the district name of the income payerwhere the individual receives taxable income (if [12] is completed).
[16] Province/City: Clearly specify the province/city name of the income payerwhere the individual receives taxable income (if [12] is completed).
[17] Name of tax agent (if any): If the individual delegates tax declaration to a tax agent, clearly specify the full name of the tax agent according to the establishment decision or business registration certificate or taxpayer registration certificate.
[18] Tax code: Fully specify the tax code of the tax agent (if [17] is completed).
[19] Tax agent contract: Clearly specify the number and date of the active tax agent contract between the individual and the tax agent (if [17] is completed).
[20] Total taxable income accrued in the period: It is the total taxable income from salary, wages, and other taxable income of a similar nature received by the individual during the period, including income exempt from tax according to double taxation agreements (if any).
[21] Of which taxable income is exempt according to the agreement: It is the total taxable income from salary, wages, and other taxable income of a similar nature covered by double taxation agreements (if any).
[22] Total deductions: Indicator [22] = [23] + [24] + [25] + [26] + [27]
[23] For self: It’s the self-deduction according to the tax period regulations.
In case the individual submits tax declaration dossiers at different tax authorities within a tax period, the individual chooses to apply the self-family deduction at one place.
[24] For dependents: It’s the dependent deduction according to the tax period regulations.
[25] For charity, humanitarian, and educational sponsorship: According to the actual amount contributed to charity, humanitarian, and educational sponsorship during the tax period.
[26] Deductible insurance contributions: It’s the total contributions to social insurance, health insurance, unemployment insurance, professional liability insurance for certain professions according to the regulations in the tax period.
[27] Deductible voluntary pension fund contributions: It’s the total contributions to a voluntary pension fund not exceeding 1 million VND per month during the tax period.
[28] Total taxable income: Indicator [28] = [20]-[21]-[22]
[29] Total personal income tax accrued during the period: Indicator [29] = [28] x Tax rate according to the progressive tax schedule.
[30] Total taxable income: It’s the total income from salaries, wages, and other taxable income of a similar nature that non-resident individuals receive during the period.
[31] Tax rate: 20%
[32] Total personal income tax payable: Indicator [32] = [30] x 20% tax rate
Note: The above information is for reference only.
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