What are regulations on handling late tax payments in Vietnam?

What are regulations on handling late tax payments in Vietnam?

According to Article 21 of Circular 80/2021/TT-BTC, the handling of late tax payments is stipulated as follows:

- Determination of Late Payment Amount

The determination of the late payment amount is based on the unpaid tax amount, the number of days late, and the interest rate for late payments as stipulated in Article 59 of the Law on Tax Administration 2019.

The period of late payment interest is continuously calculated from the day following the day the late payment arises until the day immediately preceding the day the taxpayer pays the overdue tax to the state budget.

- Notification of Late Payment Amount

Every month, the tax authorities notify taxpayers of the late payment amount along with the overdue tax notice (according to form No. 01/TTN issued together with Appendix 1 of Circular 80/2021/TT-BTC) for taxpayers who have overdue tax payments exceeding 30 days.

For non-agricultural land use tax, the tax authorities notify the taxpayer, whether an individual or a household, of overdue tax payments and late payment amounts through authorized collection organizations.

For administrative procedures resolution or at the request of competent state agencies, the tax authorities determine and notify of overdue tax payments up to the time the tax authorities issue the notice (according to form No. 02/TTN issued together with Appendix 1 of Circular 80/2021/TT-BTC).

- Adjustment to Reduce Late Payment Interest

+ In cases where taxpayers submit supplementary tax declarations that reduce the tax liability, taxpayers self-determine the adjusted reduction in late payment interest on the supplementary declaration. Based on the taxpayer's obligation management information, the tax authorities determine the adjusted reduction in late payment interest and notify the taxpayer according to form No. 03/TTN issued together with Appendix 1 of Circular 80/2021/TT-BTC).

+ In cases where the tax authorities or competent state agencies discover upon inspection or audit that the payable tax amount is reduced, or the tax authorities or competent state agencies issue a decision or notice to reduce the payable tax amount, then the tax authorities will adjust the reduction in late payment interest corresponding to the reduced tax amount and notify the taxpayer according to form No. 03/TTN issued together with Appendix 1 of Circular 80/2021/TT-BTC).

What are regulations on handling late tax payments in Vietnam? (Image from Internet)

What are cases required to pay late payment interest in Vietnam?

According to clause 1 of Article 59 of the Law on Tax Administration 2019, the cases required to pay late payment interest include:

- Taxpayers who are late in paying tax compared to the prescribed deadline, the extended tax payment deadline, the deadline specified in the notice of the tax administration agency, the deadline in the tax decision or the tax handling decision of the tax administration agency;

- Taxpayers who submit supplementary tax declarations increasing the payable tax amount or the tax administration agency, competent state agencies discover upon inspection or audit that the taxpayer underreported the payable tax amount must pay late payment interest on the additional payable tax amount since the day following the last day of the tax payment deadline for the period in which the error was made, or since the expiration date of the original customs declaration's tax payment deadline;

- Taxpayers who submit supplementary tax declarations reducing the reimbursed tax amount, or the tax administration agency, competent state agencies discover upon inspection or audit that the reimbursed tax amount is less than the previously reimbursed amount must pay late payment interest on the reimbursed tax amount that needs to be recovered since the day they received the reimbursement from the state budget;

- Cases where tax debt payment in installments is allowed as stipulated in clause 5 of Article 124 of the Law on Tax Administration 2019;

- Cases where administrative penalties for tax administration violations are not imposed because the statute of limitations has expired, but the taxpayer is still required to pay the outstanding tax amount as stipulated in clause 3 of Article 137 of the Law on Tax Administration 2019;

- Cases where administrative penalties for tax administration violations are not imposed for the acts stipulated in clauses 3 and 4 of Article 142 of the Law on Tax Administration 2019;

- Agencies or organizations authorized by the tax administration agency to collect taxes that delay in transferring the taxpayers' tax, late payment interest, penalty amounts to the state budget must pay late payment interest on the delayed transferred amount according to regulations.

What are cases exempted from late payment interest in Vietnam?

According to clause 5 of Article 59 of the Law on Tax Administration 2019, late payment interest is not applied in the following cases:

- Taxpayers providing goods and services paid by the state budget, including subcontractors as specified in the contract with the investor and directly paid by the investor but have not yet been paid, are exempt from late payment interest.

The overdue tax amount excluded from late payment interest is the total overdue tax amount of the taxpayers but not exceeding the unpaid amount from the state budget;

- Cases stipulated at point b clause 4 of Article 55 of the Law on Tax Administration 2019, where late payment interest is not calculated during the period awaiting analysis or assessment results, during the time the official price has not yet been determined, or during the period when the actual payment amount and the amounts to be added to customs value have not yet been identified.