What are penalties for late submission of personal income tax declaration for the third quarter of 2024 in Vietnam?

What is the deadline for submitting personal income tax declaration for the third quarter of 2024 in Vietnam?

According to Clause 1, Article 44 of the Law on Tax Administration 2019 regarding the deadline for quarterly tax declaration, the deadline for the third quarter is as follows:

Deadline for Tax declaration

...

1. The deadline for filing tax declaration for monthly and quarterly tax declarations is specified as follows:

a) No later than the 20th day of the month following the month in which the tax obligation arises for cases of monthly declaration 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 cases of quarterly declaration and payment.

...

Thus, based on the above regulation, the last day of the first month of the third quarter of 2024 is October 31, 2024.

Deadline for submitting personal income tax declaration in Vietnam (Image from the Internet)

What are penalties for late submission of Q3 personal income tax declaration in Vietnam?

According to Article 13 of the Decree 125/2020/ND-CP regarding penalties for violations of the submission deadline for tax declaration, the penalties are as follows:

- A warning for submitting tax declaration 1 to 5 days late with mitigating circumstances.

- A fine from 2,000,000 VND to 5,000,000 VND for submitting tax declaration 1 to 30 days late, except cases specified in Clause 1 of this Article.

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

- A fine from 8,000,000 VND to 15,000,000 VND for one of the following actions:

+ Submitting tax declaration 61 to 90 days late;

+ Submitting tax declaration 91 days late or more without incurring tax payable;

+ Not submitting tax declaration but no tax payable arises;

+ Not submitting appendices as required for tax management involving enterprises with related transactions attached to corporate income tax finalization documents.

- A fine from 15,000,000 VND to 25,000,000 VND for submitting tax declaration more than 90 days late from the deadline, with payable tax, and the taxpayer has paid the full tax amount and late payment interest to the state budget before the tax authority announces the tax inspection or examination decision, or before the tax authority records the late document submission as stipulated in Clause 11, Article 143 of the Tax Management Law.

Note: The above penalties apply to organizations. The penalty for individuals is half of the penalty for organizations.

What types of income are exempt from personal income tax in Vietnam?

According to Article 4 of the Personal Income Tax Law 2007 as amended by Clause 2, Article 1 of the Amended Personal Income Tax Law 2012, the following types of individual income are exempt from tax:

- Income from real estate transfers between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents, and grandchildren; siblings.

- Income from the transfer of residential houses, rights to use homestead land, and properties attached to homestead land of individuals in cases where individuals have only one residential house or homestead land.

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

- Income from inheritance, gifts which are real estate between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents, and grandchildren; siblings.

- Income of households and individuals directly engaged in agricultural production, forestry, salt production, aquaculture, fishing that has not been processed into other products or has only been subject to normal preliminary processing.

- Income from the conversion of agricultural land assigned by the state to households and individuals for production.

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

- Income from overseas remittances.

- Night shift and overtime wages paid at a higher rate than for day work and official working hours as prescribed by law.

- Pension payments made by the Social Insurance Fund; pension payments from voluntary pension funds paid monthly.

- Income from scholarships, including:

+ Scholarships from the state budget;

+ Scholarships from domestic and foreign organizations under their scholarship aid programs.

- Income from compensation for life and non-life insurance contracts, labor accident compensation, state compensation, and other compensation payments as prescribed by law.

- Income received from charitable organizations approved or recognized by competent state authorities, operating for charitable, humanitarian purposes, not for profit.

- Income received from foreign aid for charitable, humanitarian purposes in the form of governmental or non-governmental and approved by competent state authorities.