What are the regulations on PIT payment by mobile individual businesses in Vietnam?

What are the regulations on PIT payment by mobile individual businesses in Vietnam?

Under Clause 2, Article 6 of Circular 40/2021/TT-BTC on the method for calculating tax for individual businesses under separate declarations:

Method for calculating tax for individual businesses under separate declarations

1. Individual businesses who have casual business operation and do not have fixed business locations shall pay tax separately. The individual shall determine whether his/her business is “casual” according to its characteristics in each business line. Fixed business location means the place where the individual’s business operation is carried out such as: transaction location, store, factory, warehouse, depot or a similar location.

2. Individual businesses paying tax under separate declarations include:

a) Mobile traders;

b) Individuals that are private construction contractors;

c) Individuals transferring Vietnam’s top-level domains “.vn”;

d) Individuals earning incomes from digital information products and/or services that do not choose to pay tax under periodic declarations.

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Mobile individual businesses pay personal income tax under separate declarations.

What are the regulations on PIT payment by mobile individual businesses in Vietnam? (Image from the Internet)

What is the maximum fine for delaying the submission of PIT declaration dossiers by mobile individual businesses in Vietnam?

Under Article 13 of Decree 125/2020/ND-CP:

Penalties for violations against regulations on deadlines for submission of tax declaration dossiers

1. Penalties imposed in form of cautions shall be imposed for violations arising from filing tax declaration dossiers from 01 to 05 days after expiration of the prescribed deadlines under mitigating circumstances.

2. Fines ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for the act of submitting tax declaration dossiers from 01 to 30 days after expiration of the prescribed deadlines, except the cases specified in clause 1 of this Article.

3. Fines ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for the act of submitting tax declaration dossiers from 31 to 60 days after expiration of the prescribed deadlines.

4. Fines ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following violations:

a) Filing tax declaration dossiers from 61 to 90 days after expiration of the prescribed deadlines;

b) Filing tax declaration dossiers at least 91 days after expiration of the prescribed deadlines if none of additional taxes is incurred;

c) Failing to submit tax declaration dossiers if none of additional taxes is incurred;

d) Failing to submit annexes under regulations regarding tax administration by enterprises having related-party transactions, enclosing CIT finalization dossiers.

5. Fines ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing tax declaration dossiers more than 90 days after the prescribed deadline if such act results in additional taxes to be paid, and the taxpayer has fully paid taxes, deferred amounts into the state budget before the time of the tax authority’s announcement of the decision on tax inspection and examination, or before the time of the tax authority’s issuance of the report on the deferred submission of tax declaration dossiers under the provisions of clause 11 of Article 143 in the Law on Tax Administration.

In case where the fine amount prescribed in this clause is greater than the tax amount additionally incurred in the tax declaration dossier, the maximum amount of fine for this act shall be equal to the tax amount payable specified in the tax declaration dossier and shall not be less than the average of fine amounts in the range prescribed in clause 4 of this Article.

6. Remedies:

a) Compelling the full payment of deferred tax amounts into the state budget with respect to the commission of the acts prescribed in clause 1, 2, 3, 4 and 5 of this Article if the taxpayer delays filing their tax declaration dossier, leading to the late payment of taxes;

b) Compelling the submission of tax declaration dossiers, enclosing annexes, in case of committing the acts specified in point c and d of clause 4 of this Article.

The above fines apply to organizations, and the penalties for individuals are half of the above amounts. Based on the delay period of submission of tax declaration dossiers, administrative penalties shall be applied according to the provisions of law. The maximum fine for delaying the submission of PIT declaration dossiers by mobile individual businesses in Vietnam may be VND 12,500,000.

Additionally, the taxpayer is required to pay deferred tax amounts into the state budget.

What is the time limit for the imposition of the penalties on mobile individual businesses delaying the submission of PIT declaration dossiers in Vietnam?

Under Clause 2, Article 8 of Decree 125/2020/ND-CP, stipulating the time limit for administrative penalties regarding taxes as follows:

Time limits for imposition of tax and invoice-related administrative violations; duration for considering none of penalties is imposed; reversal period of back taxes

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2. Time limits for imposition of tax-related administrative penalties

a) Time limit for imposition of penalties for administrative violations against regulations on tax-related procedures shall be 02 years from the date of commission of these violations.

The date of commission of an administrative violation against regulations on tax procedures shall be the date succeeding the statutory deadline for completion of regulatory tax-related procedures under laws on tax administration, except the following cases:

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The time limit for the imposition of the penalties on mobile individual businesses delaying the submission of PIT declaration dossiers in Vietnam is 2 years.