What is the penalty for late submission of VAT returns of Quarter 4, 2024 in Vietnam?

What is the penalty for late submission of VAT returns of Quarter 4, 2024 in Vietnam?

According to Article 13 of Decree 125/2020/ND-CP stipulating sanctions for violations of the tax return submission deadlines as follows:

- A warning penalty for submitting tax returns 1 to 5 days late with mitigating circumstances.

- A monetary fine ranging from VND 2,000,000 to VND 5,000,000 for submitting tax returns 1 to 30 days late, except as stipulated in Clause 1 of this Article.

- A monetary fine ranging from VND 5,000,000 to VND 8,000,000 for submitting tax returns 31 to 60 days late.

- A monetary fine ranging from VND 8,000,000 to VND 15,000,000 for any of the following acts:

- Submitting tax returns 61 to 90 days late;

- Submitting tax returns 91 days or more late without incurring tax payable;

- Failing to submit tax returns without incurring tax payable;

- Failing to submit appendices as prescribed for tax management of businesses with associated transactions alongside the corporate income tax settlement dossier.

- A monetary fine ranging from VND 15,000,000 to VND 25,000,000 for submitting tax returns more than 90 days late from the due date, where tax is payable and the taxpayer has paid all taxes, interest on late payment into the state budget before the tax authority announces a tax inspection or audit decision, or before the tax authority drafts a report on the act of late submission of tax returns as stipulated in Clause 11, Article 143 of the Law on Tax Administration.

Note: For the same administrative tax violation, the penalty for an organization shall be double that for an individual.

What is the penalty for late submission of VAT returns of Quarter 4, 2024 in Vietnam? (Image from Internet)

What are regulations on VAT deferral in Vietnam?

According to Clause 1, Article 4 of Decree 64/2024/ND-CP, specific regulations are as follows:

- For value-added tax (excluding VAT at the import stage):

+ Extend the payment deadline for VAT liabilities (including tax amounts allocated to different provincial localities where the taxpayer has its headquarters, taxes paid per occurrence) for the tax period from May to September 2024 (for monthly VAT declarations) and for Q2 2024, Q3 2024 (for quarterly VAT declarations) for enterprises and organizations mentioned in Article 3 of this Decree. The extension period is 5 months for VAT of May 2024, June 2024, and Q2 2024, 4 months for VAT of July 2024, 3 months for VAT of August 2024, and 2 months for VAT of September 2024 and Q3 2024. The extension period in this point is calculated from the end of the statutory VAT payment deadline as prescribed by tax management regulations.

- Enterprises, organizations eligible for the extension shall submit monthly, quarterly VAT declarations according to current legal regulations, but do not need to pay the VAT due on the filed VAT declarations. The extended deadline for VAT payment is as follows:

+ The deadline for VAT of the May 2024 tax period is no later than November 20, 2024.

+ The deadline for VAT of the June 2024 tax period is no later than December 20, 2024.

+ The deadline for VAT of the July 2024 tax period is no later than December 20, 2024.

+ The deadline for VAT of the August 2024 tax period is no later than December 20, 2024.

+ The deadline for VAT of the September 2024 tax period is no later than December 20, 2024.

+ The deadline for VAT of the Q2 2024 tax period is no later than December 31, 2024.

+ The deadline for VAT of the Q3 2024 tax period is no later than December 31, 2024.

- In case enterprises, organizations specified in Article 3 of Decree 64/2024/ND-CP have branches, dependent units that file VAT separately with the tax authority managing the branch, dependent unit, such branches, dependent units are also eligible for the VAT payment extension.

- In case branches, dependent units of enterprises, organizations mentioned in Clauses 1, 2, and 3, Article 3 of Decree 64/2024/ND-CP do not engage in business activities in industries eligible for extension, such branches, dependent units are not covered by the VAT payment extension.

Where is the location for submission of personal income tax returns in Vietnam?

According to Article 45 of the Law on Tax Administration 2019 which provides specific regulations on the location to submit tax returns as follows:

- Taxpayers file tax returns at the tax authority managing them directly.

- For tax return submissions under the one-stop administrative procedure, the location for filing tax returns shall comply with the regulations of such procedure.

- The location for submission of tax returns for export and import goods shall comply with the Law on Customs.

- The Government of Vietnam stipulates the location for submission of tax returns for the following cases:

+ Taxpayers having multiple business activities;

+ Taxpayers conducting business activities in multiple locations; taxpayers incurring tax liabilities for taxes declared and paid per occurrence;

+ Taxpayers incurring tax liabilities for land-related revenues; licensing fees for water resources and mineral resources;

+ Taxpayers incurring tax liabilities for finalizing personal income tax;

+ Taxpayers submitting tax returns through electronic transactions and other necessary cases.