What is November 20? How long may the tax be deffered in Vietnam?

What is November 20?

November 20, 2024, is commonly remembered as Vietnamese Teachers' Day; however, in the tax domain, this date marks the deadline for filing tax declarations for October 2024.

According to Clause 1, Article 44 of the Law on Tax Administration 2019, specific regulations regarding the tax declaration submission timeline are outlined as follows:

Deadline for submitting a tax declaration

1. The deadline for submitting a tax declaration with monthly or quarterly tax obligations is stipulated as follows:

a) No later than the 20th of the subsequent month following the month when a tax obligation arises, for cases of monthly declaration and submission;

b) No later than the last day of the first month of the following quarter from when a tax obligation arises, for cases of quarterly declaration and submission.

2. The deadline for submitting a tax declaration for taxes measured annually is stipulated as follows:

a) No later than the end of the third month following the end of the calendar year or fiscal year for the annual tax finalization dossier; no later than the end of the first month of the calendar year or fiscal year for the annual tax declaration dossier;

b) No later than the end of the fourth month following the end of the calendar year for the personal income tax finalization dossier of an individual directly finalizing taxes;

c) No later than December 15 of the preceding year for the presumptive tax declaration dossier of business households, individuals paying tax under the presumptive method; in case of a new business household or individual, the tax declaration submission deadline is no later than 10 days from the date of business commencement.

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Therefore, under this regulation, specifically, November 20, 2024, is the deadline for filing Value Added Tax (VAT) and Personal Income Tax (PIT) declarations for October 2024.

What is November 20? How long may the tax be deffered in Vietnam? (Image from the Internet)

How long may the tax be deffered in Vietnam?

According to Article 46 of the Law on Tax Administration 2019, specific regulations on tax declaration submission extensions are as follows:

- Taxpayers unable to file a tax declaration on time due to natural disasters, catastrophes, epidemics, fires, or unforeseen accidents are granted extensions by the head of the directly managing tax authority.

- The extension period is not more than 30 days for monthly, quarterly, annual tax declarations, or each occurrence of tax obligation; 60 days for tax finalization declarations from the tax filing deadline.

- Taxpayers must submit a written extension request to the tax authority before the tax declaration deadline, clearly stating the reason for the extension request with confirmation from the commune People's Committee or police at the place where the extension case occurs as stipulated in Clause 1 of Article 46.

- Within three working days from the receipt of the extension request, the tax authority must respond in writing to the taxpayer concerning the acceptance or denial of the tax declaration submission extension.

What is the penalty for late submission of the tax declaration for October 2024 in Vietnam?

According to Article 13 of Decree 125/2020/ND-CP, regulations on penalties for offences regarding the tax declaration submission timeline are as follows:

- A warning is issued for late tax declaration submission from 01 to 05 days with mitigating circumstances.

- A fine from VND 2,000,000 to VND 5,000,000 applies for late tax declaration submission from 01 to 30 days, except as provided in Clause 1 of this Article.

- A fine from VND 5,000,000 to VND 8,000,000 applies for late tax declaration submission from 31 to 60 days.

- A fine from VND 8,000,000 to VND 15,000,000 applies for:

- Late tax declaration submission from 61 to 90 days;

- Late tax declaration submission from 91 days or more without tax obligation;

- Non-filing of tax declaration with no tax obligation;

- Not submitting related appendices under tax management regulations for enterprises with linked transaction tax finalization records.

- A fine from VND 15,000,000 to VND 25,000,000 applies for late tax declaration submission over 90 days past the deadline with a tax obligation, where the taxpayer has fully paid the tax and late payment into the state budget before the tax authority announces the inspection decision or compiles minutes on late tax declaration submission under Clause 11, Article 143 of the Law on Tax Administration.

Note: For the same administrative tax or invoice violation, the organizational fine is twice the individual fine.