What types of tax shall be declared separately in Vietnam?

What types of tax shall be declared separately in Vietnam?

Pursuant to Clause 4, Article 8 of Decree 126/2020/ND-CP, specific regulations on tax declared separately are as follows:

- Value-added tax of taxpayers as stipulated in Clause 3, Article 7 of Decree 126/2020/ND-CP or taxpayers declaring value-added tax using the direct method on added value as per regulations on value-added tax but having value-added tax obligations arising from real estate transfers.

- Special consumption tax for taxpayers engaged in export business who have not paid special consumption tax at the production stage, then do not export but sell domestically. Special consumption tax for businesses purchasing domestically manufactured cars, airplanes, yachts that are not subject to special consumption tax but later change the usage purpose to subject to special consumption tax.

- Tax on exported, imported goods includes: export tax, import tax, safeguard tax, anti-dumping tax, countervailing tax, special consumption tax, environmental protection tax, value-added tax. If exported, imported goods are not subject to declaration on each occurrence, implementation is as per the guidance of the Ministry of Finance.

- Natural resources tax of entities assigned to sell confiscated or seized resources; occasional resource exploitation granted permission or not requiring permission as per legal provisions.

- Value-added tax, corporate income tax not arising regularly from taxpayers applying a direct method on added value as per value-added tax laws and percentage on revenue as per corporate income tax laws; except if a taxpayer has multiple occurrences in a month, then can declare monthly.

- Corporate income tax from real estate transfer activities of taxpayers applying a percentage on revenue method as per corporate income tax laws.

- Personal income tax declared directly by individuals or by organizations, individuals declaring on behalf, and paying on behalf of income from real estate transfers; income from capital transfer; income from capital investment; income from royalties, franchise, winning from abroad; income from inheritance, gifts.

- Taxes, amounts for individuals renting assets, business households, individual businesses without a fixed business location and irregular business activities.

- Registration fee (including cases exempted from registration fee as per legal provisions on registration fees).

- Environmental protection fee for irregular mineral exploitation activities granted permission or not requiring permission as per legal provisions.

- Land use fees.

- One-time payment for land or water surface rental for the entire lease period.

- Value-added tax, corporate income tax of foreign organizations and individuals doing business in Vietnam or having income in Vietnam (hereinafter referred to as foreign contractors) applied according to the direct method; corporate income tax of foreign contractors applied according to the mixed method when Vietnamese parties make payments to foreign contractors. If Vietnamese parties make multiple payments to foreign contractors in a month, they can declare monthly instead of on each occurrence.

- Corporate income tax from capital transfer activities of foreign contractors.

- Corporate income tax on income from transferring rights to participate in oil and gas contracts.

Note:

The party transferring the rights to participate in oil and gas contracts is responsible for declaring and paying taxes on income from transferring participation rights in oil and gas contracts. In case the transfer changes the ownership of the contractor holding participation rights in oil and gas contracts in Vietnam, the contractor named in the oil and gas contract in Vietnam is responsible for notifying tax authorities when a transfer activity arises and declaring and paying taxes on behalf of the transferor for the income related to the oil and gas contract in Vietnam according to regulations.

- Oil, gas commission revenue; money collected from reading and using oil, gas documents.

- Additional levy and corporate income tax calculated on provisional profits from the surplus oil of the oil and gas activities of the Vietsovpetro joint venture in Lot 09.1 must be submitted no later than the 10th day from the date the Joint Venture Council decides the provisional profit amount of the surplus oil as per each session's Resolution but not later than December 31 annually.

- Provisional declaration of extracted oil and gas volume and provisional tax payment rate must be submitted no later than December 1 of the preceding tax year.

- Dividends and profits divided from state capital investment in joint stock companies, limited liability companies with more than two members for which a ministry, a ministerial agency, an agency under the Vietnamese Government, or a locality is the state capital representative, when such a company makes dividend and profit payments.

Note:

- State capital representatives in joint-stock companies, limited liability companies with more than two members with state capital contribution are responsible for voting on dividend and profit payments when meeting the conditions as per Enterprise Law 2020, and furthermore, propose and urge the joint stock company, limited liability company with more than two members to pay the dividend, profit divided from the state capital contribution to the state budget as per regulations.

- If a joint stock company, limited liability company with more than two members with state capital contribution violates the dividend, profit sharing deadlines as prescribed by the Enterprise Law 2020, the state capital representative must report to the Ministry of Finance and the state capital management agency at the joint-stock company, limited liability company with more than two members to handle it according to the law.

What types of tax shall be declared separately in Vietnam? (Image from Internet)

When is the deadline for submitting tax declarations for taxes declared separately in Vietnam?

Based on Clause 3, Article 44 of the Tax Management Law 2019, specific regulations on the deadline for submitting tax declarations are as follows:

Deadline for Submitting Tax Declarations

....

3. The deadline for submitting tax declarations for taxes declared and paid on each occurrence of tax obligation is no later than the 10th day from the date of tax obligation occurrence.

4. The deadline for submitting tax declarations in case of termination of activities, contract termination, or business reorganization is no later than the 45th day from the event occurrence.

...

Thus, according to the above regulations, for taxes declared separately, the deadline for submitting tax declarations is no later than the 10th day from the date the tax obligation arises.

What are penalties for late tax declaration submission for taxes declared annually in Vietnam?

According to Article 13 of Decree 125/2020/ND-CP, regulations on penalties for violations concerning the deadline for submitting tax declarations are as follows:

- Warning penalty for late submission of tax declarations from 1 day to 5 days with mitigating circumstances.

- A fine ranging from 2,000,000 VND to 5,000,000 VND for late submission of tax declarations from 1 day to 30 days, except for a warning penalty for late submission from 1 day to 5 days with mitigating circumstances.

- A fine ranging from 5,000,000 VND to 8,000,000 VND for late submission of tax declarations from 31 days to 60 days as prescribed.

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

+ Late submission of tax declarations from 61 days to 90 days as prescribed;

+ Late submission of tax declarations from 91 days or more but without tax payable arising;

+ Failing to submit tax declarations but no tax payable arising;

+ Failing to submit appendices as per tax management regulations for enterprises with affiliated transactions accompanying the corporate income tax finalization dossier.

- A fine ranging from 15,000,000 VND to 25,000,000 VND for submitting tax declarations late over 90 days from the deadline, with tax payable arising, and the taxpayer has fully paid the tax amount, late payment to the state budget before the tax authority announces the tax examination, inspection decision or before the tax authority prepares a record of late submission as regulated in Clause 11, Article 143 of the Tax Management Law 2019.

Note: The above penalties apply to organizations. Individual penalties will be half the level for organizations.