What are regulations on deadline extension for personal income tax in Vietnam in 2024 according to Decree 64/2024?

What are regulations on deadline extension for personal income tax in Vietnam in 2024 according to Decree 64/2024?

The Government of Vietnam issued Decree 64/2024/ND-CP on June 17, 2024, regarding the extension of payment deadlines for value-added tax, corporate income tax, personal income tax, and land rent in 2024.

[*] For Value-Added Tax and Personal Income Tax of Business Households and Individuals

An extension is granted for the payment of value-added tax and personal income tax for the tax payable arising in 2024 for business households and individuals operating in economic sectors and fields mentioned in clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP. Business households and individuals must submit the deferred tax amount no later than December 30, 2024.

*Note: In cases where enterprises, organizations, business households, or individuals engage in multiple economic sectors, including those specified in clauses 1, 2, and 3 of Article 3 of Decree 64/2024/ND-CP, the entire value-added tax and corporate income tax due is extended for enterprises and organizations; the entire value-added tax and personal income tax due is extended for business households and individuals as guided in Decree 64/2024/ND-CP.

More details can be found in Decree 64/2024/ND-CP, effective from the date of issuance until December 31, 2024. After the extension period under Decree 64/2024/ND-CP, the deadline for tax and land rent payment will be according to prevailing regulations.

Thus, the deadline for the extension of personal income tax payment in 2024 according to Decree 64/2024 is December 30, 2024.

What are regulations on deadline extension for personal income tax in Vietnam in 2024 according to Decree 64/2024? (Image from the Internet)

What are cases where individuals must directly submit personal income tax finalization in Vietnam?

According to subsection 1, Section I of Official Dispatch 636/TCT-DNNCN in 2021, the regulations for individuals directly finalizing with the tax authorities are as follows:

- Resident individuals with income from wages and salaries directly declare personal income tax finalization with the tax authorities if additional tax is payable or there is an overpayment to be refunded or offset against the subsequent tax declaration period.

- Individuals present in Vietnam for less than 183 days in the first calendar year, but at least 183 days counted within 12 consecutive months from the first day of presence in Vietnam, the first tax finalization year is 12 consecutive months from the first day of presence in Vietnam.

- Foreign individuals whose employment contracts in Vietnam terminate must declare tax finalization with the tax authorities before leaving the country.

In case an individual has not yet finalized tax with the tax authorities, they can authorize the income-paying organization or another organization/individual to finalize taxes in accordance with tax finalization regulations for individuals.

If the income-paying organization or other organization/individual is authorized to finalize taxes, they are responsible for any additional personal income tax payable or the refund of the individual's overpaid tax.

- Resident individuals with income from wages and salaries who are also eligible for tax reduction due to natural disasters, fires, accidents, or serious illness affecting their ability to pay taxes should not authorize the income-paying organization/individual to finalize taxes on their behalf but must directly declare finalization with the tax authorities according to regulations.

How many times is the fine imposed on individuals who do not submit personal income tax finalization in Vietnam?

According to Article 17 of Decree 125/2020/ND-CP regarding sanctions for tax evasion acts:

Sanctions for Tax Evasion Acts

1. A fine equivalent to the amount of evaded tax is imposed on taxpayers who have one or more mitigating circumstances when committing one of the following acts:

a) Failure to submit a taxpayer registration dossier; failure to submit a tax declaration dossier or submission of a tax declaration dossier after more than 90 days from the deadline for submitting the tax declaration dossier or from the deadline for extending the submission of the tax declaration dossier, except for cases specified in points b, c of clause 4 and clause 5 of Article 13 of this Decree;

...

2. A fine of 1.5 times the amount of evaded tax is imposed on taxpayers who commit acts specified in clause 1 of this Article without aggravating or mitigating circumstances.

3. A fine of 2 times the evaded tax is imposed on taxpayers who commit acts specified in clause 1 of this Article with one aggravating circumstance.

4. A fine of 2.5 times the evaded tax is imposed on taxpayers who commit acts specified in clause 1 of this Article with two aggravating circumstances.

5. A fine of 3 times the evaded tax is imposed on taxpayers who commit acts specified in clause 1 of this Article with three or more aggravating circumstances.

...

To be specific, the aggravating circumstances applied to consider sanctions on individuals who do not submit personal income tax finalizations are as follows:

According to the provisions of clause 1, Article 6 of Decree 125/2020/ND-CP:

Mitigating and Aggravating Circumstances in the Field of Tax, Invoices

1. Mitigating and aggravating circumstances according to the law on handling administrative violations.

...

Referring to the provisions of Article 10 of Law on Handling Administrative Violations 2012, the aggravating circumstances applied to consider sanctions on individuals who do not submit personal income tax finalizations include:

(1) Organized administrative violations;

(2) Multiple administrative violations; repeat offenses;

(3) Inciting, enticing, using minors to violate; coercing those dependent on oneself materially or mentally to commit administrative violations;

(4) Using persons known to be mentally incapacitated or suffering from other conditions affecting their capacity to understand or control behavior to commit administrative violations;

(5) Insulting or defaming persons performing official duties; administrative violations with a hooligan nature;

(6) Exploiting position and authority to commit administrative violations;

(7) Exploiting circumstances of war, natural disaster, catastrophe, epidemic, or other special social difficulties to commit administrative violations;

(8) Violations during the serving of criminal sentences or while subject to administrative handling measures;

(9) Continuing to commit administrative violations despite the competent authority's request to cease such acts;

(10) Acts to evade or conceal administrative violations after committing them;

(11) Administrative violations on a large scale, high volume, or significant value of goods;

(12) Administrative violations against many persons, children, the elderly, persons with disabilities, or pregnant women.

*Note: If the aforementioned circumstances are stipulated as acts of administrative violations, they are not considered as aggravating circumstances.

Therefore, individuals who fail to submit personal income tax finalizations may be fined 1.5, 2, 2.5, or 3 times depending on the number of aggravating or mitigating circumstances.