What are penalties for violations against regulations on time limits for submission of fixed-tax returns in Vietnam?

What are penalties for violations against regulations on time limits for submission of fixed-tax returns in Vietnam?

Based on Article 13 of Decree 125/2020/ND-CP governing penalties for violations against regulations on time limits for submission of of the fixed-tax return, the handling procedures are as follows:

Penalties for violations against regulations on time limits for submission of tax returns

1. A warning shall be imposed for the act of submitting the tax return late by 1 to 5 days and there are mitigating circumstances.

2. A fine ranging from 2,000,000 VND to 5,000,000 VND shall be imposed for submitting the tax return late by 1 to 30 days, except for the case prescribed in clause 1 of this Article.

3. A fine ranging from 5,000,000 VND to 8,000,000 VND shall be imposed for submitting the tax return late by 31 to 60 days.

4. A fine ranging from 8,000,000 VND to 15,000,000 VND shall be imposed for any of the following acts:

a) Submitting the tax return late by 61 to 90 days;

b) Submitting the tax return late by 91 days or more without incurring payable tax;

c) Not submitting the tax return without incurring payable tax;

d) Failing to submit appendices as stipulated by tax management regulations for enterprises with associated transactions along with the corporate income tax finalization dossier.

5. A fine ranging from 15,000,000 VND to 25,000,000 VND shall be imposed for submitting the tax return late by more than 90 days from the expiry date, where payable tax arises and the taxpayer has paid the full tax amount, and late payment into the state budget before the tax authority announces the decision to inspect or audit taxes, or before it records the incident of late submission.

In cases where the fine, if applied according to this clause, is greater than the tax amount on the tax return, the maximum fine is equal to the tax amount but not lower than the average fine level as prescribed in clause 4 of this Article.

6. Remedies:

a) Compel the full payment of late tax into the state budget for violations under clauses 1, 2, 3, 4, and 5 where late tax return leads to late tax payment;

b) Compel the submission of the tax return and appendices with the tax return for violations in point c and d of clause 4.

Additionally, based on clause 5 of Article 5 of Decree 125/2020/ND-CP prescribing principles for penalties for violations against administrative violations on tax and invoices:

Principles for penalties for violations against Administrative Violations on Tax and Invoices

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5. For the same administrative violation on tax or invoices, the fine for organizations is double that for individuals, except for the fines stipulated in Articles 16, 17, and 18 of this Decree.

Moreover, as per point a, clause 4 Article 7 of Decree 125/2020/ND-CP:

Forms of penalties, Remedies, and Principles for Applying Fines in Administrative Violations on Tax and Invoices

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4. Principles for Applying Fines

a) The fines stipulated in Articles 10, 11, 12, 13, 14, 15, clauses 1, 2 of Article 19 and Chapter III are fines applied against organizations.

For taxpayers being households or business households, the fine applies as for individuals.

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Thus, in 2024, a household business unit delaying the submission of the fixed-tax return will face administrative penalties as stipulated by law, where the lightest penalty is a warning, and monetary fines range from 1,000,000 VND to 12,500,000 VND depending on the delay duration.

Additionally, when delaying the submission of the fixed-tax return, the business unit is obligated to adopt remedies such as fully paying the delayed tax amount into the state budget and submitting the fixed-tax return along with necessary appendices.

What are penalties for violations against regulations on time limits for submission of fixed-tax returns in Vietnam? (Image from the Internet)

What is the deadline for submitting tax return for household businesses in Vietnam in 2024?

According to clause 3 of Article 13 of Circular 40/2021/TT-BTC, the deadline for submitting tax returns for household businesses in 2024 is specified as follows:

- The latest deadline for submitting the tax return is December 15, 2024.

- For newly established household businesses (including those changing to the lump-sum method), or those switching to the declaration method, or changing industries, or altering business scale, the submission deadline is the 10th day from the commencement date of business or change.

- For cases where household businesses use invoices issued by the tax authority and sell retail per each transaction, the deadline is the 10th day from the revenue occurrence requiring invoice use.

What are regulations on determining revenue and fixed tax for household businesses in Vietnam?

Point a, clause 4 of Article 13 of Circular 40/2021/TT-BTC specifies the determination of revenue and fixed tax as follows:

- Revenue and fixed tax are calculated either per the calendar year or per month for seasonal or stable businesses within a year.

- Household businesses self-determine revenue for tax calculation in the year as per tax return Form No. 01/CNKD issued under Circular 40/2021/TT-BTC. If the household business is unable to determine revenue or submits no tax returns or has revenue calculations inconsistent with actual business activities, the tax authority will determine revenue and impose tax according to Article 51 of the Law on Tax Administration 2019.

Download Form No. 01/CNKD tax return for household and individual businesses.

- Based on the household business's tax dossiers and the tax authority's database, open public consultation and advice by the Tax Advisory Council serve as a basis for the Tax Department to guide and supervise the compilation of Tax Registers at each Tax Branch.