What are the penalties for late submission of tax declaration dossiers in Vietnam?

What are the deadlines for submitting tax declaration dossiers in Vietnam?

According to Article 44 of the Law on Tax Administration 2019, the deadline for submitting tax declaration dossiers is specified as follows:

(1) Deadlines for submission of tax declaration dossiers of taxes declared monthly and quarterly:

- For taxes declared monthly: the 20th of the month succeeding the month in which tax is incurred;

- For taxes declared quarterly: the last day of the first month of the succeeding quarter.

(2) For taxes declared annually:

- For annual tax statement dossiers: the last day of the 3rd month from the end of the calendar year or fiscal year. For annual tax declaration dossiers: the last day of the first month from the end of the calendar year or fiscal year

- For annual personal income tax statements prepared by income earners: the last day of the 4th month from the end of the calendar year;

- For presumptive tax declarations prepared by household businesses and individual businesses: the 15th of December of the preceding year.

For new household businesses and individual businesses: within 10 days from the date of commencement of the business.

(3) For declaration of taxes that are declared and paid upon incurrence: the 10th day from the day on which tax is incurred.

(4)  For tax declaration dossiers upon shutdown, contract termination, business conversion or business re-arrangement: the 45th day from the occurrence of the event.

(5) The Law specifies deadlines for submission of customs dossiers of exports and imports on Customs.

(6) For land-related revenues, licensing fees, registration fees, rights granting fees and other revenues according to the law on management and use of public assets, the deadline for submitting tax declaration dossiers shall follow the provisions of Article 10 of Decree 126/2020/ND-CP.

Note: In case a taxpayer declares tax electronically on the last day of the time limit for declaration and the information portal of the tax authority is not functional, the taxpayer may submits the electronic declaration on the next day after the online portal is functional again.

What are the penalties for late submission of tax declaration dossiers in Vietnam? (Image from the Internet)

What are the penalties for late submission of tax declaration dossiers in Vietnam?

According to Article 13 of Decree 125/2020/ND-CP on the penalties for late submission of tax declaration dossiers in Vietnam:

(1) A warning for submission of tax declaration dossiers 1 to 5 days late with mitigating circumstances.

(2) A fine ranging from VND 2,000,000 to VND 5,000,000 for submission of tax declaration dossiers 1 to 30 days late, except for cases specified in (1).

(3) A fine ranging from VND 5,000,000 to VND 8,000,000 for submission of tax declaration dossiers 31 to 60 days late.

(4) A fine ranging from VND 8,000,000 to VND 15,000,000 for one of the following violations:

- Submission of tax declaration dossiers 61 to 90 days late;

- Submission of tax declaration dossiers over 90 days late without outstanding tax liabilities;

- Non-submission of tax declaration dossiers without outstanding tax liabilities;

- Non-submission of annexes as per tax management regulations for enterprises with related-party transactions accompanying corporate income tax finalization dossiers.

(5) A fine ranging from VND 15,000,000 to VND 25,000,000 for submission of tax declaration dossiers over 90 days late with outstanding tax liabilities, given that the taxpayer has paid the full tax amount and late payment interest to the state budget before the tax authority announces a tax inspection decision or before the tax authority records the late submission as per Clause 11, Article 143 of the Law on Tax Administration 2019.

If the fine amount exceeds the outstanding tax liabilities stated in the tax declaration dossier dossier, the maximum fine will be equal to the outstanding tax liabilities, but not lower than the average level of the fine range specified in (4).

Moreover, remedial measures include:

- Compelling the payment of late tax amounts into the state budget for violations specified in (1), (2), (3), (4), (5) resulting in late tax payments;

- Compelling the submission of tax declaration dossiers and annexes accompanying tax declaration dossier dossiers for certain violations specified in (4).

Note: According to Clause 4, Article 7 of Decree 125/2020/ND-CP, the above fines apply to organizations. For individual violations, the fines will be half of those for organizations.

What is the time limit for the execution of decisions on imposing the penalties for late submission of tax declaration dossiers in Vietnam?

Pursuant to Article 40 of Decree 125/2020/ND-CP, the regulations are as follows:

Time limit for execution of tax or invoice-related administrative penalty charge decisions

1. Time limit for execution of tax or invoice-related administrative penalty charge decisions shall be 01 year from the decision-issuing date. Upon expiry of the aforesaid execution time limit, if the tax authority has not yet transmitted or sent the administrative penalty charge decision to the violating entity or person under the provisions of Article 39 herein, that decision shall become inactive.

If the administrative penalty charge decision requires the enforcement of any remedy, such remedy shall be enforced as usual.

2. If the sanctioned entity or person deliberately evades or defers execution of the decision, the time limit for execution of the penalty charge decision shall start from the date of termination of the act of evasion or deferment.

3. If the tax authority has transmitted or sent the administrative penalty charge decision to the violating entity or person as provided in Article 39 herein, but the sanctioned entity or person has not yet paid or has not fully paid fines, back taxes or deferred amounts, tax authorities must track amounts not yet paid on tax administration systems and apply measures to enforce recovery of outstanding taxes under regulations in order to fully collect amounts payable into the state budget.

Thus, the time limit for the execution of decisions on imposing the penalties for late submission of tax declaration dossiers in Vietnam is 1 year from the date of the decision.

Note: If the administrative penalty charge decision requires the enforcement of any remedy, such remedy shall be enforced as usual.

Additionally, if the sanctioned entity or person deliberately evades or defers execution of the decision, the time limit for execution of the penalty charge decision shall start from the date of termination of the act of evasion or deferment.