When is the deadline for CIT payment for Q3, 2024 in Vietnam?

When is the deadline for CIT payment for Q3, 2024 in Vietnam?

Pursuant to Clause 1, Article 55 of the Law on Tax Administration 2019, the tax payment deadline is regulated as follows:

Tax Payment Deadline

1. In the case where the taxpayer calculates the tax, the latest tax payment deadline is the last day of the submission period for the tax return. In case of supplementary declaration of the tax return, the tax payment deadline is the submission period for the tax return of the tax period with errors or omissions.

For corporate income tax, which is provisionally paid on a quarterly basis, the latest tax payment deadline is the 30th of the first month of the following quarter.

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Q3 begins in July and ends in September.

Therefore, the deadline for submitting the CIT payment for Q3 (i.e., July, August, September) is the latest by the 30th of the first month after Q3, which is October 30, 2024.

In case the last day of the deadline falls on a weekend or public holiday, the deadline is extended to the end of the next working day following the holiday, as stipulated in Clause 5, Article 148 of the Civil Code 2015.

When is the deadline for CIT payment for Q3, 2024 in Vietnam? (Image from Internet)

What is the late payment interest for CIT payment in 2024 in Vietnam?

Based on Clause 2, Article 59 of the Law on Tax Administration 2019, the calculation of late payment interest for provisional CIT is regulated as follows:

Handling Late Tax Payments

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2. The calculation of late payment interest and the period for its calculation are specified as follows:

a) The late payment interest rate is 0.03% per day on the outstanding tax amount;

b) The period for calculating late payment interest is continuous from the day following the occurrence of the late payment specified in Clause 1 of this Article until the day preceding the day the tax debt, refund recovery, increased tax, imposed tax, or delayed transferred tax has been paid into the state budget.

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Therefore, the late payment interest for CIT is calculated at 0.03% per day on the outstanding tax amount.

The period for calculating late payment interest is continuous from the day following the occurrence of late payment until the day preceding the day the tax debt, refund recovery, increased tax, imposed tax, or delayed transferred tax has been paid into the state budget.

What are cases of payment of late tax payment interest in Vietnam?

According to Clause 1, Article 59 of the Law on Tax Administration 2019, the cases requiring the payment of late tax payment interest are specified as follows:

- The taxpayer delays tax payment compared to the prescribed timeframe, extended payment period, the deadline stated in the notices from the tax administration agency, the timeframe in the tax imposition decision or handling decision of the tax administration agency;

- The taxpayer makes supplementary filings of the tax return increasing the payable tax amount or the tax administration agency, or the competent state authority during inspection and audit finds under-declared payable tax amount, requiring the taxpayer to pay late payment interest on the additional payable tax amount from the day following the last day of the tax payment deadline for the period with errors until the tax deadline of the original customs declaration;

- The taxpayer makes supplementary filings of the tax return reducing the refunded tax amount or the tax administration agency, or the competent state authority during inspection and audit finds the refunded tax is less than the actual refunded amount, requiring the taxpayer to pay late payment interest on the refunded amount to be recovered from the date of receiving the refund from the state budget;

- In cases where installment tax debt payments are allowed under Clause 5, Article 124 of the Law on Tax Administration 2019;

- Cases which are not subject to administrative sanctions for tax management violations due to expiration of sanction time limit but are still subject to tax recovery under Clause 3, Article 137 of the Law on Tax Administration 2019;

- Cases which are not subject to administrative sanctions for tax management violations under Clauses 3 and 4, Article 142 of the Law on Tax Administration 2019;

- Agencies or organizations commissioned by the tax administration agency to collect taxes delay transferring taxpayer taxes, late payment interest, or fines to the state budget, requiring them to pay late payment interest on the delayed transferred amount as prescribed.

What are cases of exemption from late tax payment interest in Vietnam?

Based on Clause 27, Article 3, Clause 8, Article 59 of the Law on Tax Administration 2019, and Clause 1, Article 3 of Decree 126/2020/ND-CP, taxpayers are exempted from paying late tax payment interest in force majeure circumstances.

To be specific, force majeure circumstances include:

- Taxpayers suffer physical damage due to natural disasters, calamities, epidemics, fires, or unexpected accidents;

- Other force majeure cases as stipulated by the Government of Vietnam, including war, riots, strikes that halt or suspend production, business, or risks not caused by the subjective responsibility of the taxpayer, and the taxpayer lacks financial resources to contribute to the state budget.