When is the time for calculating late payment interest in Vietnam?

When is the time for calculating late payment interest in Vietnam?

According to the provisions in Clause 2, Article 59 of the Law on Tax Administration 2019 regarding the determination of the date for calculating the tax payment penalty as follows:

Handling Late Tax Payments

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2. The rate and period for calculating the late payment interest are regulated as follows:

a) The rate for calculating the late payment penalty is 0.03%/day calculated on the delayed tax amount;

b) The period for calculating the late payment penalty is continuously calculated from the day following the day the late payment arises as stipulated in Clause 1 of this Article to the day immediately preceding the date the late tax amount, the tax amount to be recovered, increased tax, determined tax, delayed transfer tax amount are paid into the state budget.

The period for calculating the late payment penalty is continuously calculated from the day following the day the late payment arises to the day immediately preceding the date the delayed tax amount is paid into the state budget.

Additionally, the late payment penalty is calculated at 0.03%/day on the delayed tax amount.

When is the time for calculating late payment interest in Vietnam? (Image from the Internet)

Whem shall taxpayers pay late payment interest in Vietnam?

According to the provisions in Clause 1, Article 59 of the Law on Tax Administration 2019, taxpayers must pay the late payment penalty in the following cases:

- Taxpayers delay the tax payment compared to the specified deadline, the extended tax payment deadline, the deadline stated in the tax administration authority’s notice, the deadline in the tax determination decision or the handling decision of the tax administration authority;

- Taxpayers file supplementary tax declarations that increase the payable tax amount or the tax administration authority, the competent state authority discovers deficiencies in the declared payable tax amount, then the late payment penalty must be paid on the increased payable tax amount from the day following the last tax payment deadline of the faulty tax period or from the day following the tax payment deadline of the original customs declaration;

- Taxpayers file supplementary tax declarations reducing the refunded tax amount or the tax administration authority, the competent state authority discovers that the refunded tax amount is less than the refunded tax, then the late payment penalty must be paid on the refunded tax amount that must be recovered from the day of receipt of the refunded amount from the state budget;

- In case of gradual tax debt payment as stipulated in Clause 5, Article 124 of the Law on Tax Administration 2019;

- In case of non-administrative penalty on tax management due to the expiration of the penalty imposition time limit but are subject to additional collection of the deficient tax amount as stipulated in Clause 3, Article 137 of the Law on Tax Administration 2019;

- In case of non-administrative penalty on tax management for acts stipulated in Clauses 3 and 4, Article 142 of the Law on Tax Administration 2019;

- Agencies or organizations entrusted by the tax administration authority to collect taxes delay the transfer of tax, late payment amount, and fines of taxpayers to the state budget, must pay the late payment penalty on the delayed transferred amount as regulated.

When are taxpayers exempt from late payment interests in Vietnam?

According to the provisions in Clause 5, Article 59 of the Law on Tax Administration 2019 as follows:

Handling Late Tax Payments

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5. No late payment penalty is calculated in the following cases:

a) Taxpayers supplying goods and services paid by the state budget, including subcontractors stipulated in contracts signed with the investors and directly paid by the investors but not yet paid, do not have to pay late payment penalties.

The tax debt amount not calculated for late payment is the total state budget tax debt of the taxpayers but does not exceed the unpaid state budget amount;

b) Cases stipulated at Point b, Clause 4, Article 55 of this Law do not calculate late payment penalties during the waiting period for analysis, inspection results; during the period without an official price; during the period of undetermined actual payment amounts and adjustments added to customs value.

Hence, taxpayers are exempt from late payment penalties in the following cases:

- Taxpayers supplying goods and services paid by the state budget, including subcontractors stipulated in contracts signed with the investors and directly paid by the investors but not yet paid, do not have to pay late payment penalties.

The tax debt amount not calculated for late payment is the total state budget tax debt of the taxpayers but does not exceed the unpaid state budget amount;

- Cases stipulated at Point b, Clause 4, Article 55 of the Law on Tax Administration 2019 do not calculate late payment penalties during the waiting period for analysis, inspection results; during the period without an official price; during the period of undetermined actual payment amounts and adjustments added to customs value.