What is the fine for late payment of PIT in Vietnam?

When is the deadline for paying PIT in Vietnam?

According to Article 28 of Decree 65/2013/ND-CP, employees will be organized to declare provisional payments based on their income from salaries and wages.

Under Clause 1, Article 55 of the Tax Administration Law 2019, it is stipulated as follows:

Tax payment deadlines

1. In case tax is calculated by the taxpayer, the tax payment deadline is the deadline for submission of the tax declaration dossier. In case of submission of supplementary tax documents, the tax payment deadline is the deadline for submission of the erroneous tax declaration dossier.

The deadline for paying corporate income tax, which is paid quarterly, is the 30th of the first month of the next quarter.

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Furthermore, according to Clause 2, Article 44 of the Tax Administration Law 2019, the deadline for PIT finalization filing is stipulated as follows:

Deadlines for submission of tax declaration dossiers

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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.

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Thus, the deadline for PIT finalization is divided into two timing points for two cases as follows:

- No later than the last day of the third month from the end of the calendar year or fiscal year for tax finalization declarations made by enterprises on behalf of employees.

- No later than the last day of the fourth month from the end of the calendar year for personal finalization tax declarations of individuals directly finalizing tax.

What is the fine for late payment of PIT in Vietnam? (Image from the Internet)

What is the fine for late payment of PIT in Vietnam?

According to Clause 2, Article 59 of the Tax Administration Law 2019, it is stipulated as follows:

Handling for Late Tax Payment

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2. The calculation of late payment interest and the time to calculate late payment interest are stipulated as follows:

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

b) The time to calculate late payment interest is continuously from the day following the day of overdue tax as stipulated in Clause 1 of this Article until the day before the overdue tax, refunded tax, additional tax, and assessed tax are paid to the state budget.

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Thus, the calculation for late PIT payment is:

Late payment interest = 0.03% x Overdue tax amount.

What is the current personal income tax rate?

According to the Personal Income Tax Law 2007 and related guiding documents, specifically, the personal income tax rate for 2024 is as follows:

(1) Partially progressive tariff:

Under Article 22 of the Personal Income Tax Law 2007, the partially progressive tariff is as follows:

The partially progressive tariff applies to the taxable income from business activities, salaries, and remunerations:

Under Clause 1 Article 21 of the Personal Income Tax Law 2007 (amended by Clause 5 Article 1 of the Law on Amendments to Personal Income Tax 2012), taxable income from business activities, salaries, and remunerations is determined by the total taxable income specified in Article 10 of the Personal Income Tax Law 2007 (amended by Clause 4 Article 2 of the Law on amendments to laws on taxation 2014) and Article 11 of the Personal Income Tax Law 2007 less social insurance contributions, health insurance, unemployment insurance, professional liability insurance for certain mandatory insurance-enrolled professions, voluntary pension fund contributions, and deductions.

(2) Whole income tariff:

Under Article 23 of the Personal Income Tax Law 2007 (amended by Clause 7 Article 2 of the Law on amendments to laws on taxation 2014), the whole income tariff is as follows:

Note: The whole income tariff applies to taxable incomes specified in Clause 2 Article 21 of the Personal Income Tax Law 2007, including:

Taxable income from capital investment, capital transfers, real estate transfers, winnings, royalties, franchising, inheritances, gifts is determined as taxable income according to the provisions of the Personal Income Tax Law 2007.