What is December 31? Shall late payment interest be paid after the extension period ends in Vietnam?

What is December 31?

December 31 is the 365th day (366th in a leap year). It is the last day of the year before transitioning from the old year to the new year. According to the lunar calendar of 2024, December 31, 2024, is also the 1st day of the 12th lunar month.

Additionally, based on point a, clause 1, Article 4 of Decree 64/2024/ND-CP, the extension period for paying value-added tax is regulated as follows:

Extension of the time for paying tax and land rent

1. Regarding value-added tax (excluding value-added tax upon importation)

a) Extension of the deadline for paying value-added tax for the amount payable (including the amount allocated to other provincial locations where the taxpayer has their head office, and tax payable calculated per each occurrence) for the tax period from May to September 2024 (for monthly value-added tax declarations) and the tax period of the second quarter of 2024, the third quarter of 2024 (for quarterly value-added tax declarations) of the enterprises, organizations mentioned in Article 3 of this Decree. The extension period is 5 months for the value-added tax of May 2024, June 2024, and the second quarter of 2024; the extension period is 4 months for the value-added tax of July 2024; the extension period is 3 months for the value-added tax of August 2024; the extension period is 2 months for the value-added tax of September 2024 and the third quarter of 2024. The extension period at this point is calculated from the end date of the value-added tax payment deadline as prescribed by the law on tax administration.

Enterprises and organizations entitled to the extension must declare and submit monthly and quarterly value-added tax declarations according to current legal regulations but are not required to pay the value-added tax payable arising from the declared value-added tax declarations. The deadline for paying the extended value-added tax is as follows:

The deadline for paying value-added tax for the tax period of May 2024 is no later than November 20, 2024.

The deadline for paying value-added tax for the tax period of June 2024 is no later than December 20, 2024.

The deadline for paying value-added tax for the tax period of July 2024 is no later than December 20, 2024.

The deadline for paying value-added tax for the tax period of August 2024 is no later than December 20, 2024.

The deadline for paying value-added tax for the tax period of September 2024 is no later than December 20, 2024.

The deadline for paying value-added tax for the tax period of quarter II, 2024 is no later than December 31, 2024.

The deadline for paying value-added tax for the tax period of quarter III, 2024 is no later than December 31, 2024.

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Therefore, in the field of taxation, December 31, 2024, is also the deadline to pay the value-added tax for the tax periods of quarter 2 and quarter 3 of 2024 after extensions.

What is December 31? Shall late payment interest be paid after the extension period ends in Vietnam? (Image from Internet)

Shall late payment interest be paid after the extension period ends in Vietnam?

Based on point a, clause 1, Article 59 of the Law on Tax Administration 2019, regulations for handling late tax payments are as follows:

Handling of late tax payments

1. Cases requiring late payment interest include:

a) Taxpayers who pay taxes later than the stipulated deadline, extended deadline, deadline stated in tax authority notifications, decisions on tax assessment, or decisions on handling by tax authorities;

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Thus, if the extension period expires and the taxpayer has not yet paid the tax, they will have to pay late payment interest.

What are regulations on late payment interest rate in Vietnam from January 1, 2025?

Based on clause 2, Article 59 of the Law on Tax Administration 2019, amended by clause 6, Article 6 of the Law on Amendments to the Laws on Securities, Accounting, Independent Auditing, State Budget, Management, Use of Public Property, Tax Administration, Personal Income Tax, National Reserve, Handling Administrative Violations 2024 (effective from January 1, 2025), the regulations for calculating late payment interest are as follows:

Handling of late tax payments

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2. The rate of late payment interest and the period for calculating late payment interest are regulated as follows:

a) The late payment interest rate is 0.03%/day calculated on the overdue tax amount;

b) The period for calculating late payment interest is continuous from the day following the last day of the tax payment deadline, tax extension deadline, deadline stated in notifications or tax assessment decisions, or handling decisions by tax authorities until the day preceding the date on which the outstanding tax amount, refunded tax amount recovered, increased tax amount, assessed tax amount, delay in tax transfer amount is paid into the state budget.

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Thus, the late payment interest rate is 0.03%/day calculated on the overdue tax amount.