What are amendments to the determination of the late payment period for tax payments in Vietnam from January 1, 2025?
What are amendments to the determination of the late payment period for tax payments in Vietnam from January 1, 2025?
Based on Clause 7, Article 6 of the Law amending the Law on Securities, Law on Accounting, Law on Independent Audit, Law on State Budget, Law on Management, Use of Public Property, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, Law on Handling of Administrative Violations 2024 (effective from January 1, 2025), the amendment and supplementation of certain articles of the Law on Tax Administration are stipulated as follows:
Amending and supplementing certain articles of the Law on Tax Administration
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- Amending and supplementing Point b, Clause 2, Article 59 as follows:
“b) The late payment period is calculated continuously from the day following the last day of the tax payment deadline, the tax payment extension period, the period specified in the notice or tax determination decision, or the handling decision of the tax administration agency until the day immediately preceding the day the overdue tax amounts, retrieved tax refunds, additional tax amounts, determined tax amounts, delayed transfer taxes are paid into the state budget.”
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Simultaneously, according to the provisions at point b, Clause 2, Article 59 of the Law on Tax Administration 2019 regarding the late payment period as follows:
Handling of late tax payments
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- The rate and period for calculating late payments are stipulated as follows:
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b) The late payment period is continuously calculated from the day following the day the late payment arises as stipulated in Clause 1 of this Article until the day immediately preceding the day the overdue tax amounts, retrieved tax refunds, additional tax amounts, determined tax amounts, late transferred taxes are paid into the state budget.
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Thus, the Law amending the Law on Securities, Law on Accounting, Law on Independent Audit, Law on State Budget, Law on Management, Use of Public Property, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, Law on Handling of Administrative Violations 2024 effective from January 1, 2025, has officially amended how to determine the late payment period for tax debts.
Specifically, the late payment period is continuously calculated from the day following the last day of the tax payment deadline, tax payment extension period, period specified in the notice or tax determination decision or handling decision of the tax administration agency until the day immediately preceding the day the overdue tax amounts, retrieved tax refunds, additional tax amounts, tax amounts determined, delayed transfer taxes are paid into the state budget. Instead of being calculated continuously from the day following the day the late payment arises as before.
What are amendments to the determination of the late payment period for tax payments in Vietnam from January 1, 2025? (Image from the Internet)
When shall taxpayers pay late payment interests in Vietnam?
Based on Clause 1, Article 59 of the Law on Tax Administration 2019, the cases in which taxpayers must pay late payment interests are stipulated as follows:
- Taxpayers pay taxes later than the specified deadline, the extended tax payment deadline, the deadline stated in the notice of the tax administration agency, the deadline in the tax determination decision, or handling decision of the tax administration agency;
- Taxpayers who supplement their tax declaration dossiers, resulting in an increase in the tax payable or when the tax administration agency, competent state agency discovers a missing declared tax amount, must pay late fees for the increased payable tax amount from the day following the last day of the tax payment period of the tax period with errors or from the date of expiry of the tax payment deadline of the original customs declaration;
- Taxpayers who supplement tax declaration dossiers reducing the refunded tax amount or when the tax administration agency or competent state agency discovers the refunded tax amount is less than the refunded amount, must pay late fees on the refunded amount to be recovered from the date of receiving the refund from the state budget;
- In cases of installment payment of tax debt as prescribed in Clause 5, Article 124 of the Law on Tax Administration 2019;
- In cases not subject to administrative penalties for tax management due to the expiration of the processing period but are subject to collection for the missing tax amount prescribed in Clause 3, Article 137 of the Law on Tax Administration 2019;
- In cases not subject to administrative penalties for tax management for acts stipulated in Clauses 3 and 4, Article 142 of the Law on Tax Administration 2019;
- Agencies, organizations authorized by the tax administration agency to collect taxes who delay transferring tax, late payment fees, fines of taxpayers into the state budget must pay late fees for the delayed amount as stipulated.
When is the time for determining tax payment in Vietnam?
Based on Article 58 of the Law on Tax Administration 2019, the determination of the date of tax payment is regulated as follows:
- In the case of non-cash tax payment, the date of tax payment is the date the State Treasury, commercial bank, other credit institution, or service organization deducts money from the taxpayer’s account or the account of the person paying on behalf and is recorded on the tax payment document.
- In the case of direct cash tax payment, the date of tax payment is the date the State Treasury, tax administration agency, or organization authorized to collect taxes issue the tax payment receipt.
