What is the deadline for submission of tax declaration dossiers for enterprises shutting down their operation in Vietnam?

What is the deadline for submission of tax declaration dossiers for enterprises shutting down their operation in Vietnam?

Under Article 44 of the Tax Administration Law 2019:

Deadlines for submission of tax declaration dossiers

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

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

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

2. For taxes declared annually:

a) 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

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

c) 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.

...

Thus, the deadline for submission of tax declaration dossiers for enterprises shutting down their operation in Vietnam is no later than the 45th day from the date the event occurs.

What is the deadline for submission of tax declaration dossiers for enterprises shutting down their operation in Vietnam? (Photo from Internet)

May enterprises shutting down their operation in Vietnam apply for extension of the deadline for tax payment?

Pursuant to Article 62 of the Law on Tax Administration 2019, the regulations on tax payment extensions are as follows:

Tax deferral

1. A taxpayer may apply for tax deferral in one of the following cases:

a) The taxpayer’s business suffers damage due to a force majeure events specified in Clause 27 Article 3 of this Law;

b) The taxpayer has to relocate the business location as requested by a competent authority and such relocation affects the business performance.

2. A taxpayer eligible for tax deferral mentioned in Clause 1 of this Article may have part or all of the tax deferred.

...

Thus, enterprises shutting down their operation in Vietnam are eligible to apply for extension of the deadline for tax payment.

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

According to Article 13 of Decree 125/2020/ND-CP, the penalties for late submission of tax declaration dossiers under the delayed period and the tax due are as follows:

- Penalties imposed in form of cautions shall be imposed for violations arising from submission of tax declaration dossiers from 01 to 05 days after expiration of the prescribed time limits under mitigating circumstances.

- A fine from VND 2,000,000 to VND 5,000,000 for late submission of tax declaration dossiers from 01 to 30 days, except for the case specified in Clause 1 Article 13 of Decree 125/2020/ND-CP.

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

- A fine from VND 8,000,000 to VND 15,000,000 for the following acts:

+ Late submission of tax declaration dossiers from 61 to 90 days;

+ Late submission of tax declaration dossiers from 91 days onwards but no tax payable;

+ Failure to submit tax declaration dossiers but no tax payable;

+ Failure to submit appendices as required by tax management regulations for enterprises with related-party transactions attached to the corporate income tax finalization dossier.

- A fine from VND 15,000,000 to VND 25,000,000 shall be imposed for the act of filing tax returns 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 returns under the provisions of clause 11 of Article 143 of the Law on Tax Administration 2019.

In addition, individuals or organizations that violate are forced to take remedial measures as follows:

- 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 Article 13 of Decree 125/2020/ND-CP if the taxpayer delays filing their tax return, leading to the late payment of taxes;

- 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 Article 13 of Decree 125/2020/ND-CP.

Note: The above-mentioned fine rates apply to organizations. The sanction rate for individuals is equal to 1/2 of the rate for organizations.