What are cases where personal income late payment interest is charged in Vietnam?

What are cases where personal income late payment interest is charged in Vietnam?

According to Clause 1, Article 59 of the Law on Tax Administration 2019, specific regulations regarding cases where personal income late payment interest are required are as follows:

- Taxpayers who pay taxes later than the stipulated deadline, extended deadline for tax payment, the deadline stated in the notice from the tax administration authority, the deadline in the tax determination decision or the handling decision of the tax administration authority;

- Taxpayers who file supplementary tax returns that increase the payable tax amount or if the tax administration authority or competent state authority inspects, audits and discovers undeclared taxable amounts, must pay late payment interests for the additional payable tax from the day immediately following the last day of the tax payment period of the incorrect, erroneous tax period or from the expiration date of the initial customs declaration;

- Taxpayers who file supplementary tax returns that reduce the refundable tax amount or if the tax administration authority or competent state authority inspects, audits and finds the refundable tax amount is less than the refunded tax amount, must pay late payment interests for the recovered refunded tax from the date they receive the refund from the state budget;

- Cases where gradual payment of tax debt is allowed as stipulated in Clause 5, Article 124 of the Law on Tax Administration 2019.

- Cases not subject to administrative penalties for tax management due to the expiration of the penalty term but subject to tax collection for the underpaid tax amount as stipulated in Clause 3, Article 137 of this Law;

- Cases not subject to administrative penalties for tax management for actions stipulated in Clauses 3 and 4, Article 142 of the Law on Tax Administration 2019.

- Agencies and organizations authorized by the tax administration authority to collect taxes but delay transferring tax, late payment interests, and fines of the taxpayer into the state budget must pay late payment fees for the delayed transfer amount according to regulations.

How to calculate late payment interests and time for calculating late payment interests in Vietnam?

Based on Clause 2, Article 59 of the Law on Tax Administration 2019, specific provisions regarding late payment interests and time for calculating personal income late payment interest are as follows:

- The late payment penalty rate is 0.03% per day on the late amount of payable tax;

- The period for calculating late payment interests is continuous from the next day after the late payment arises as stipulated in Clause 1 of this Article until the day immediately before the tax debt amount, refund recovery amount, increased tax amount, determined tax amount, or delayed transferred tax amount is paid into the state budget.

What are cases where personal income late payment interest is charged in Vietnam? (Image from the Internet)

What income is exempt from personal income tax in Vietnam?

According to Article 4 of the Personal Income Tax Law 2007, supplemented by Clause 3, Article 2 of the Law Amending and Supplementing a Number of Articles of the Tax Laws 2014 and amended by Clause 2, Article 1 of the Amended Personal Income Tax Law 2012, the types of personal income exempt from personal income tax are as follows:

- Income from real estate transfers between spouses; birth parents and their biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and siblings with each other.

- Income from the transfer of residential housing, residence land use rights, and assets attached to residential land of an individual in cases where the individual only possesses one residential house or land.

- Income from the land use rights value assigned by the State to individuals.

- Income from inheritance or gifts being real estate between spouses; birth parents and their biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and siblings with each other.

- Income from households and individuals directly engaged in agricultural, forestry production, salt production, aquaculture without being processed into other products or only processed in a simple manner.

- Income from the transfer of agricultural land by families and individuals assigned by the State for production.

- Income from interest on deposits with credit institutions, interest on life insurance contracts.

- Income from remittances.

- The portion of night work wages, overtime wages that are higher than day work wages and work during designated hours according to the law.

- Pensions paid by the Social Insurance Fund; monthly pensions paid by voluntary retirement funds.

- Income from scholarships, including:

+ Scholarships received from the state budget;

+ Scholarships received from domestic and foreign organizations under their study promotion support programs.

- Income from compensation in life insurance contracts, non-life insurance, labor accident compensation, state compensation and other compensations as stipulated by law.

- Income received from charitable funds permitted or recognized by competent state agencies established and operating for non-profit, humanitarian, charitable purposes.

- Income received from foreign aids for charitable, humanitarian purposes under governmental and non-governmental forms approved by competent state agencies.

- Income from wages and remuneration of Vietnamese crew members working for foreign shipping companies or Vietnamese shipping companies on international routes.

- Income of individuals who are owners of ships, individuals having the right to use ships, and individuals working on ships from providing goods and services directly serving the activities of offshore fishing and capturing.