What is the penalty for late submission of the January 2025 PIT return in Vietnam?

When is the deadline to submit the January 2025 PIT return in Vietnam?

Pursuant to the provisions of Clause 1, Article 8 of Decree 126/2020/ND-CP, taxes declared on a monthly basis include:

(1) Value-added tax, personal income tax. Taxpayers meeting the criteria stipulated in Article 9 of Decree 126/2020/ND-CP can opt for quarterly declaration.

(2) Special consumption tax.

(3) Environmental protection tax.

(4) Resource tax, excluding the resource tax stipulated at Point e, Clause 1, Article 8 of Decree 126/2020/ND-CP

Pursuant to Article 44 of the Law on Tax Administration 2019, the deadline to submit the January 2025 personal income tax declaration is as follows:

Deadline for submission of tax declaration dossiers

1. The deadline for submission of tax declaration dossiers for monthly and quarterly tax declarations is specified as follows:

a) No later than the 20th day of the following month for monthly declarations and payments;

b) No later than the last day of the first month of the subsequent quarter for quarterly declarations and payments.

...

Accordingly, the deadline for submitting the personal income tax declaration on a monthly basis is no later than the 20th day of the month following the month when the tax obligation arises.

Thus, the deadline for submitting the personal income tax return for January 2025 is no later than Thursday, February 20, 2025.

What is the penalty for late submission of the January 2025 PIT return in Vietnam?

Based on Article 13 of Decree 125/2020/ND-CP, penalties for late submission of the January personal income tax return are as follows:

(1) Warning for late submission of the PIT return from 1 to 5 days with mitigating circumstances.

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

(3) A fine from 5,000,000 VND to 8,000,000 VND for late submission of the VAT tax return from 31 to 60 days.

(4) A fine from 8,000,000 VND to 15,000,000 VND for the following acts:

- Late submission of the PIT return from 61 to 90 days;

- Late submission of the PIT return from 91 days but no tax is due;

- No submission of the PIT return but no tax is due;

(5) A fine from 15,000,000 VND to 25,000,000 VND for late submission of the PIT return over 90 days from the deadline when taxes are due, and the taxpayer has paid the full tax and late payment into the state budget before the tax authority issues a tax inspection or audit decision or before the tax authority prepares a record of the late submission under Clause 11, Article 143 of the Law on Tax Administration 2019.

If the penalty applied under this clause is greater than the tax amount arising on the tax declaration dossier, the maximum fine in this case shall be equal to the arising tax amount on the tax declaration dossier but not less than the average fine frame prescribed in Clause 4, Article 13 of Decree 125/2020/ND-CP.

Additionally, individuals committing such violations must implement measures to mitigate the consequences:

- Must pay the full amount of late tax into the state budget for the violation under Clauses 1, 2, 3, 4, and 5, Article 13 of Decree 125/2020/ND-CP in case the taxpayer's late submission of the VAT tax return leads to late tax payment;

- Must submit tax declaration dossiers, appendices attached to tax declaration dossiers for acts specified at Points c, d Clause 4, Article 13 of Decree 125/2020/ND-CP

Note: The fines for late submission of the PIT return mentioned above apply to violations committed by organizations. For individuals committing the same violations, the fine shall be 1/2 of the fine for organizations (according to Clause 5, Article 5 of Decree 125/2020/ND-CP)

Penalty for late submission of the January 2025 PIT return in Vietnam (Image from the Internet)

Is it possible to extend the submission deadline for the January 2025 PIT return in Vietnam?

Pursuant to Article 46 of the Law on Tax Administration 2019, extending the submission of tax declaration dossiers is stipulated as follows:

Extension for submission of tax declaration dossiers

1. Taxpayers who are unable to submit tax declaration dossiers on time due to natural disasters, calamities, epidemics, fires, or unexpected accidents are granted an extension by the head of the directly managing tax authority.

2. The extension period shall not exceed 30 days for monthly, quarterly, annual tax declarations, and tax declarations for each arising tax obligation; 60 days for submission of tax finalization declaration dossiers from the deadline for submission.

3. Taxpayers must send a written request for extension to the tax authority before the deadline for submission, specifying the reason for the extension with confirmation from the commune-level People's Committee or Local Police where the extension case arises as stipulated in Clause 1 of this Article.

4. Within 3 working days from the receipt of the extension request, the tax authority must respond in writing to the taxpayer on whether or not the extension is accepted.

Thus, an extension for the submission of the January 2025 PIT return may be granted if the taxpayer is unable to submit the tax declaration on time due to natural disasters, calamities, epidemics, fires, or unexpected accidents.

Furthermore, the extension period for the January 2025 PIT return is not to exceed 30 days for the monthly tax declaration deadline for each arising tax obligation.

Note: Taxpayers must send a written extension request to the tax authority before the deadline for submission, specifying the reason for the extension with confirmation from the commune-level People's Committee or Local Police where business operations incurring tax obligations take place.