Vietnam: What is the fine for late submission of PIT declarations?

What is the fine for late submission of PIT declarations in Vietnam?

Under the provisions of Article 13 of Decree 125/2020/ND-CP, the fines for late submission of tax declarations corresponding to the delayed submission period and the arising tax amount are as follows:

- Warning for submitting tax declaration dossiers late from 1 day to 5 days under mitigating circumstances. (In this case, there will be no financial penalty.)

- A fine ranging from VND 2,000,000 to VND 5,000,000 for submitting tax declaration dossiers late from 1 day to 30 days, except as stipulated in Clause 1, Article 13 of Decree 125/2020/ND-CP.

- A fine ranging from VND 5,000,000 to VND 8,000,000 for submitting tax declaration dossiers late from 31 days to 60 days.

- A fine ranging from VND 8,000,000 to VND 15,000,000 for any of the following acts:

+ Submitting tax declaration dossiers late from 61 days to 90 days;

+ Submitting tax declaration dossiers late for 91 days or more without arising tax payable;

+ Not submitting tax declaration dossiers but without arising tax payable;

+ Not submitting appendices according to tax management regulations for enterprises with associated transactions attached to the corporate income tax finalization dossier.

- A fine ranging from VND 15,000,000 to VND 25,000,000 for submitting tax declaration dossiers late more than 90 days from the deadline for submitting tax documents, with arising tax payable, and the taxpayer has paid the full amount of tax, late payment interest to the state budget before the tax authority announces the tax inspection and audit decision or before the tax authority makes a record of the late submission of tax declaration dossiers as per the stipulations of Clause 11, Article 143 of the Tax Administration Law 2019.

Additionally, individuals and organizations committing violations must take remedial measures as follows:

- Pay the full amount of late payment tax to the state budget for violations stipulated in Clauses 1, 2, 3, 4, and 5, Article 13 of Decree 125/2020/ND-CP, in case late submission of tax declaration dossiers leads to late payment of tax;

- Submit tax declaration dossiers and appendices attached to tax declaration dossiers for acts stipulated in points c, d, Clause 4, Article 13 of Decree 125/2020/ND-CP.

Note: The above fines apply to organizations. Penalties for individuals are half of the penalties for organizations.

What is the fine for late submission of PIT declarations in Vietnam? (Image from Internet)

Is It Possible to Extend the Deadline for Submitting PIT Declarations?

The provisions of Article 46 of the Tax Administration Law 2019 stipulating the extension of the deadline for submitting tax declaration dossiers are as follows:

Deadline extension

1. In case a taxpayer is unable to submit the tax declaration dossier by the deadline due to a natural disaster, epidemic, fire or accident, the head of the supervisory tax authority will consider extending the deadline for submission.

2. The deadline shall be extended for up to 30 more days for monthly, quarterly, annual declarations and declaration upon tax incurrence; 60 more days for terminal tax declaration.

3. The taxpayer shall send a written request for deadline extension to the tax authority before the deadline, provide explanation and confirmation by the People’s Committee or police authority of the commune in which the event mentioned in Clause 1 of this Article occurred.

4. Within 03 working days from the day on which the taxpayer’s request is received, the tax authority shall inform the taxpayer in writing of whether such request is granted.

Thus, taxpayers are granted an extension of the deadline for submitting tax declarations in circumstances where they are unable to submit on time due to natural disasters, calamities, epidemics, fires, or unexpected accidents by the direct managing tax authority head.

Note: The extension period shall not exceed 30 days for monthly, quarterly, and annual tax declarations, or each occurrence of taxable obligations; 60 days for submitting tax finalization documents from the deadline of submission.

What is the deadline for submitting monthly PIT declaration dossiers in Vietnam?

Point a, Clause 1, Article 44 of the Tax Administration Law 2019 stipulates the deadline for submitting tax declaration dossiers 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.

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Thus, the deadline for taxpayers to submit monthly PIT declaration dossiers is no later than the 20th day of the month following the month in which taxable obligations arise.