What is the schedule for tax declaration submission in Vietnam in December 2024? What are penalties for late tax declaration submission in December 2024?

What is the schedule for tax declaration submission in Vietnam in December 2024?

In December 2024, household businesses, individual businesses, and enterprises are required to submit the following tax declarations:

(1) household businesses, individual businesses submit tax package declarations - December 15, 2024

According to point c, clause 2, Article 44 of the Law on Tax Administration 2019, the deadline for submitting tax package declarations for household businesses and individual businesses is regulated as follows:

No later than December 15 of the preceding year for the tax package declarations of household businesses and individual businesses paying tax on a package basis; in the case of new household businesses or individual businesses, the deadline for submitting the tax package declarations is no later than 10 days from the start of business activities.

(2) Submission of VAT declaration for November 2024 - December 20, 2024

According to clause 1, Article 44 of the Law on Tax Administration 2019, enterprises must submit VAT declarations no later than the 20th day of the month following the month when the tax obligation arises in case of monthly declaration and payment.

Thus, enterprises declaring and paying tax monthly must submit the VAT declaration for November 2024 no later than December 20, 2024.

(3) Submission of corporate income tax declaration for November 2024 - December 20, 2024

According to clause 1, Article 44 of the Law on Tax Administration 2019, enterprises must submit corporate income tax declarations no later than the 20th day of the month following the month when the tax obligation arises in case of monthly declaration and payment.

Thus, enterprises declaring and paying tax monthly must submit the corporate income tax declaration for November 2024 no later than December 20, 2024.

What is the schedule for tax declaration submission in Vietnam in December 2024? What are penalties for late tax declaration submission in December 2024? (Image from the Internet)

What is the penalty for late submission of tax declarations in Vietnam in December?

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

(1) A warning for submitting declarations 1 to 5 days late with mitigating circumstances.

(2) A fine ranging from 2,000,000 VND to 5,000,000 VND for submissions 1 to 30 days late.

(3) A fine ranging from 5,000,000 VND to 8,000,000 VND for submissions 31 to 60 days late.

(4) A fine ranging from 8,000,000 VND to 15,000,000 VND for the following actions:- Submissions 61 to 90 days late;- Submissions over 91 days late without any tax due;

(5) A fine ranging from 15,000,000 VND to 25,000,000 VND for submissions more than 90 days late from the deadline, with taxes due, provided taxes are paid in full before the tax inspection decision is announced or before the establishment of a record of late submission as stipulated in clause 11, Article 143 of the Law on Tax Administration 2019.

If the penalty under this clause exceeds the payable tax on the declaration, the maximum fine equals the tax payable but not less than the average penalty range between 8,000,000 VND and 15,000,000 VND.

Moreover, taxpayers must compensate by paying the late tax interest into the state treasury if the late submission leads to delayed tax payment.

Additionally, point a, clause 4, Article 7 of Decree 125/2020/ND-CP states:

Principles of Applying Penalties

a) Penalties prescribed in Articles 10, 11, 12, 13, 14, 15, clauses 1 and 2, Article 19, and Chapter III of this Decree apply to organizations.

For taxpayers who are households or household businesses, penalties similar to those for individuals are applied.

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Based on clause 5, Article 5 of Decree 125/2020/ND-CP, the principles for tax administrative penalty are as follows:

Principles for Penalties on Tax and Invoice Violations

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5. For the same tax or invoice administrative violation, the penalty for organizations is double that for individuals, except for penalties for actions stipulated in Articles 16, 17, and 18 of this Decree.

From these regulations, it's apparent that the fines stated in Article 13 of Decree 125/2020/ND-CP apply to organizations. Thus, late tax declaration submission by enterprises will incur a maximum fine of 25,000,000 VND, while household businesses or individuals face a maximum fine of 12,500,000 VND (half of the fine for enterprises).

When shall tax payment deadlines be extended in Vietnam?

As per clause 1, Article 46 of the Law on Tax Administration 2019, taxpayers are granted extensions for tax submission if they are unable to do so on time due to natural disasters, epidemics, fires, or unexpected accidents, subject to the tax authority granting the extension.

Additionally, the extension period is determined as follows:

- No more than 30 days for monthly, quarterly, or annual tax declarations, or declarations for each arising tax obligation, from the deadline.

- No more than 60 days for final settlement declarations, from the deadline.

Note: Taxpayers must submit a request for extension to the tax authority prior to the expiration of the tax declaration deadline, clearly stating the reason for the extension, confirmed by the People's Committee of the commune or Police of the commune, ward, or commune-level town where the extension is warranted.