Vietnam: Will the deadline for submitting tax declarations for 04 types of taxes due in January 2025 be postponed?

Vietnam: Will the deadline for submitting tax declarations for 04 types of taxes due in January 2025 be postponed?

In January 2025, it is anticipated that the tax submission deadlines for the following types of taxes will be postponed due to coinciding with the 2025 Lunar New Year holidays for the general public.

To be specific:

Additionally, according to Article 86 of Circular 80/2021/TT-BTC as follows:

Deadline for Filing Tax Declarations and Tax Payments

The deadline for filing tax declarations shall comply with the provisions from Clauses 1, 2, 3, 4, 5 of Article 44 of the Law on Tax Administration and Article 10 of Decree No. 126/2020/ND-CP. The deadline for tax payment is stipulated in Clauses 1, 2, 3 of Article 55 of the Law on Tax Administration and Article 18 of Decree No. 126/2020/ND-CP. If the deadline coincides with official holidays as prescribed, the submission and payment deadlines shall be considered as the next working day following the holiday in accordance with the Civil Code.

According to these regulations, the deadlines for submitting and paying the above-mentioned taxes will be moved to the first working day following the 2025 Lunar New Year holiday.

What is the penalty for failing to submit tax declarations in Vietnam?

Pursuant to Article 13 of Decree 125/2020/ND-CP, the regulations are as follows:

Penalties for Late Submission of Tax Declarations

1. A warning is issued for late submission of tax declarations up to 5 days later with extenuating circumstances.

2. A fine ranging from VND 2,000,000 to VND 5,000,000 for late submission of tax declarations from 1 day to 30 days, except for cases specified in Clause 1 of this Article.

3. A fine ranging from VND 5,000,000 to VND 8,000,000 for late submission of tax declarations from 31 days to 60 days.

4. A fine ranging from VND 8,000,000 to VND 15,000,000 for any of the following actions:

a) Submission of tax declarations from 61 days to 90 days late;

b) Submission of tax declarations from 91 days late or more without any taxes payable;

c) Failure to submit tax declarations when no taxes are payable;

d) Failure to submit annexes according to tax management regulations along with corporate income tax settlement declarations for enterprises with associated transactions.

5. A fine ranging from VND 15,000,000 to VND 25,000,000 for late submission of tax declarations over 90 days from the due date, with taxes payable, and after the taxpayer has paid all due taxes and late payment charges into the state budget before the tax authority announces the tax inspection or audit decision or before the tax authority records the late submission violation according to Clause 11 Article 143 of the Law on Tax Administration.

If the penalty calculated under this section exceeds the amount of tax due on the tax declaration, the maximum penalty shall equal the tax due but not less than the average of the fine range specified in Clause 4 of this Article.

6. Remedial Measures:

a) Mandatory Payment of Late Tax Payment into the state budget for violations specified in Clauses 1, 2, 3, 4, and 5 of this Article where the late submission leads to late payment of taxes;

b) Mandatory submission of tax declarations and annexes for violations specified in points c and d of Clause 4 of this Article.

Therefore, in cases where individuals or organizations must submit tax declarations but fail to do so by the deadline, penalties will be applied according to the regulations mentioned.

Depending on the delay duration, different penalties will apply, with the maximum being VND 25,000,000. Additionally, measures to ensure full payment of late taxes into the state budget will be enforced for violations.

Note: Based on Article 4, Article 7 of Decree 125/2020/ND-CP, the mentioned penalties are applicable to organizations, while the penalty for individuals is half that for organizations.

What are cases where it is not required to submit tax declarations in Vietnam?

According to Clause 3 Article 7 of Decree 126/2020/ND-CP, supplemented by Clause 2 Article 1 of Decree 91/2022/ND-CP, taxpayers are not required to submit tax declarations in the following cases:

- Taxpayers only engage in activities not subject to tax as stipulated by tax laws for each type of tax.

- Individuals with income exempt from tax according to personal income tax laws and as stipulated in point b of Clause 2 Article 79 of Law on Tax Administration 2019 except for individuals receiving inheritance or gifts of real estate; transferring real estate.

- Export processing enterprises with export-only activities are not required to submit value-added tax declarations.

- Taxpayers who temporarily cease operations or business according to the provisions of Article 4 of Decree 126/2020/ND-CP.

- Taxpayers submitting a dossier to terminate the tax identification number, except in cases of cessation of operations, contract termination, corporate restructuring as per Clause 4 of Article 44 of Law on Tax Administration 2019.