Vietnam: When shall a taxpayer failing to submit tax return be imposed penalties for tax evasion?

Vietnam: When shall a taxpayer failing to submit tax return be imposed penalties for tax evasion? 

According to the provisions in Clause 1, Article 17 of Decree 125/2020/ND-CP as follows:

Penalties for the act of tax evasion

1. A fine equal to the amount of the evaded tax for taxpayers with at least one mitigating circumstance when committing one of the following violations:

a) Failure to submit tax registration dossiers; failure to submit tax returns or submitting tax returns more than 90 days after the deadline for filing tax returns or the extended deadline for filing tax returns, except for cases specified in Points b, c Clause 4 and Clause 5, Article 13 of this Decree;

b) Failing to record in accounting books the revenues related to the determination of the payable tax amount, not declaring, incorrectly declaring leading to a deficiency in payable tax or an increase in refundable, exempted, or reduced tax amounts, except for acts specified in Article 16 of this Decree;

c) Not issuing invoices when selling goods or services, except where the taxpayer has declared tax on the value of sold or supplied goods and services corresponding to the tax period; issuing incorrect invoices on the quantity, value of goods or services for lower taxation and detected after the deadline for filing tax returns;

d) Using illegal invoices; using illegal invoices for tax declaration, reducing payable tax or increasing refundable, exempted, or reduced tax amounts;

dd) Using illegal documents; using illegal documents for tax declaration, determining wrongly the payable tax amount, the refundable, exempted, or reduced tax amount; making false records, submitting false documents for material and goods destruction procedures to reduce payable tax or increase refundable, exempted, or reduced tax amounts;

e) Using non-taxable, tax-exempt, tax-exempted goods for incorrect purposes without declaring the change of use purpose, declaring tax with the tax authorities;

g) The taxpayer has business activities during the suspension or temporary suspension period without notifying the tax authorities, except for cases specified in Point b, Clause 4, Article 10 of this Decree.

In the case of taxpayers failing to submit tax returns or submitting tax returns more than 90 days after the deadline for filing tax returns or the extended deadline for filing tax returns, they will be sanctioned for tax evasion acts unless there is no tax payable.

* For acts of submitting tax returns more than 90 days after the deadline for filing tax returns, with payable tax, and the taxpayer has fully paid the tax, late payment interest to the state budget before the tax authority announces the tax inspection decision or before the tax authority records the act of late tax return submission, the taxpayer will not be penalized for tax evasion acts but instead will face a fine ranging from VND 15,000,000 to VND 25,000,000.

If the fine amount is greater than the tax amount arising on the tax return, the maximum fine for this case will be equal to the arising tax amount payable on the tax return but not lower than the average fine amount of the range from VND 8,000,000 to VND 15,000,000.

** Submitting tax returns beyond the stipulated period from 91 days or more without tax liability; failure to submit tax returns without arising tax liability will be fined from VND 8,000,000 to VND 15,000,000.

(Clause 4, Clause 5, Article 13 of Decree 125/2020/ND-CP)

Note: (*) and (**) are penalty amounts for organizations; the penalty amount for organizations is twice that for individuals.

Vietnam: When shall a taxpayer failing to submit tax return be imposed penalties for tax evasion? (Image from the Internet)

What are the deadlines for submitting taxes declared monthly and quarterly in Vietnam?

According to Article 8 of Decree 126/2020/ND-CP on taxes declared monthly, quarterly, annually, separately of tax obligations, and tax finalization declarations as follows:

Types of taxes declared monthly, quarterly, annually, separately of tax obligations, and tax finalization declarations

1. Types of taxes and other amounts collected into the state budget managed by tax authorities declared monthly include:

a) Value-added tax, personal income tax. If the taxpayer meets the criteria specified in Article 9 of this Decree, they may choose to declare quarterly.

...

2. Types of taxes and other amounts collected into the state budget declared quarterly include:

...

b) Value-added tax, corporate income tax, personal income tax for financial institutions or third parties appointed by financial institutions to manage secured assets pending disposal, declaring on behalf of taxpayers with such secured assets.

...

Based on Article 44 of the Tax Administration Law 2019 stipulating tax return filing deadlines as follows:

Tax Return Filing Deadlines

1. The deadlines for filing tax returns for types of taxes declared monthly and quarterly are stipulated as follows:

a) No later than the 20th day of the month following the month in which the tax obligation arises for monthly filing and payment;

b) No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises for quarterly filing and payment.

...

Thus, the monthly and quarterly tax return filing deadlines are determined as follows:

- For monthly tax returns: No later than the 20th day of the month following the month in which the tax obligation arises.- For quarterly tax returns if meeting the quarterly declaration criteria: No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises.

What are the latest regulations on extension of tax return submission deadline in Vietnam?

Based on Article 46 of the Tax Administration Law 2019 stipulating the extension of tax return filing as follows:

- Taxpayers unable to submit tax returns on time due to natural disasters, catastrophes, epidemics, fires, unexpected accidents are allowed an extension for filing tax returns by the head of the direct tax administration agency.

- The extension period is not more than 30 days for monthly, quarterly, annual tax returns, tax returns for each tax obligation occurrence; 60 days for tax finalization returns from the deadline for filing tax returns.

- Taxpayers must submit a written request for an extension to the tax authority before the deadline for filing tax returns, stating the reasons for the extension with the confirmation of the commune-level People's Committee or the police of the commune, ward, where the extension case arises stipulated in Clause 1, Article 46 of the Tax Administration Law.

- Within 3 working days from the date of receipt of the written request for a deadline extension, the tax authority must respond in writing to the taxpayer regarding the acceptance or refusal of the extension request.