What is the maximum penalty for late submission of tax declaration dossiers in Vietnam?

What is the maximum penalty for late submission of tax declaration dossiers in Vietnam?

Based on Article 13 of Decree No. 125/2020/ND-CP, the sanctions for violations related to the late submission of tax declaration dossiers are stipulated as follows:

Penalties for violations related to the deadline for submitting tax declaration dossiers

1. A warning shall be imposed for submitting tax declaration dossiers 1 to 5 days late with mitigating circumstances.

2. A fine ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for submitting tax declaration dossiers 1 to 30 days late, except for the cases specified in Clause 1 of this Article.

3. A fine ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for submitting tax declaration dossiers 31 to 60 days late.

4. A fine ranging from VND 8,000,000 to VND 15,000,000 shall be imposed for one of the following acts:

a) Submitting tax declaration dossiers 61 to 90 days late;

b) Submitting tax declaration dossiers 91 days late or more without any tax liability arising;

c) Not submitting tax declaration dossiers without any tax liability arising;

d) Not submitting the annexes according to tax management regulations for enterprises with associated transactions along with the corporate income tax finalization dossiers.

5. A fine ranging from VND 15,000,000 to VND 25,000,000 shall be imposed for submitting tax declaration dossiers more than 90 days late from the deadline for submitting tax declaration dossiers, having tax liability arising, and the taxpayer has paid the full amount of tax and late payment into the state budget before the tax authority issues the tax inspection or tax audit decision or before the tax authority makes an official record of the act of late submission of tax declaration dossiers as stipulated in Clause 11, Article 143 of the Law on Tax Administration.

If the penalty amount prescribed in this clause exceeds the tax amount arising on the tax declaration dossier, the maximum penalty in this case shall be equal to the arising tax amount payable on the tax declaration dossier but not less than the average level of the fine frame prescribed in Clause 4 of this Article.

6. Measures to remedy consequences:

a) Compelling the payment of the late-paid tax amount into the state budget for violations stipulated in Clauses 1, 2, 3, 4, and 5 of this Article if the taxpayer's late submission of tax declaration dossiers leads to late payment of taxes;

b) Compelling the submission of tax declaration dossiers and annexes accompanying the tax declaration dossiers for the acts specified in Points c and d Clause 4 of this Article.

Thus, in the case of late submission of tax declaration dossiers, the taxpayer may be fined up to VND 25,000,000.

What is the maximum penalty for late submission of tax declaration dossiers in Vietnam? (Image from Internet)

Is it possible to extend the deadline for submitting tax declaration dossiers in Vietnam?

Based on Clause 1, Article 46 of the Law on Tax Administration 2019, provisions for extending the deadline for submitting tax declaration dossiers are as follows:

Extension of the deadline for submitting tax declaration dossiers

1. Taxpayers who are unable to submit tax declaration dossiers on time due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents may be granted an extension for submitting tax declaration dossiers by the head of the directly managing tax administration agency.

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Thus, taxpayers may be granted an extension for submitting tax declaration dossiers if they are unable to submit them on time due to natural disasters, catastrophes, epidemics, fires, or unexpected accidents.

When is a taxpayer exempt from submitting tax declaration dossiers in Vietnam?

Based on Clause 3, Article 7 of Decree No. 126/2020/ND-CP, supplemented by Clause 2, Article 1 of Decree No. 91/2022/ND-CP, the regulations and cases where taxpayers are not required to submit tax declaration dossiers include:

- Taxpayers who only have activities or businesses not subject to tax according to the tax law provisions for each type of tax.

- Individuals with income exempt from tax according to the law on personal income tax and as stipulated in Point b, Clause 2, Article 79 of the Law on Tax Administration 2019 except for individuals receiving inheritance or gifts in the form of real estate; transferring real estate.

- Export-only enterprises are not required to submit value-added tax declarations.

- Taxpayers temporarily suspending operations or businesses as regulated in Article 4 of Decree No. 126/2020/ND-CP.

- Taxpayers submitting dossiers to terminate tax code validity, except for termination of operations, termination of contracts, or reorganization of enterprises as stipulated in Clause 4, Article 44 of the Law on Tax Administration 2019.

- Individual income taxpayers who are organizations or individuals paying income and are subject to monthly or quarterly personal income tax declarations with no occurrence of personal income tax withholdings for income recipients during such months or quarters.