When is the timeline for the corporate income tax payment in Vietnam in 2025?

When is the timeline for the corporate income tax payment in Vietnam in 2025?

Based on Article 55 of the Law on Tax Administration 2019 which stipulates the timing of corporate income tax payment as follows:

Tax Payment Deadline

1. In cases where taxpayers calculate tax, the tax payment deadline is no later than the last day of the deadline for tax declaration submission. In the case of additional tax declaration submissions, the tax payment deadline is the tax declaration submission deadline of the tax period with errors.

For corporate income tax, it is paid ly on a quarterly basis, with the tax payment deadline being the 30th of the first month of the following quarter.

For crude oil, the deadline for payment of resource tax and corporate income tax is 35 days from the sale date for domestically sold crude oil or from the customs clearance date for exported crude oil according to customs legislation.

For natural gas, the deadline for payment of resource tax and corporate income tax is on a monthly basis.

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Thus, the deadline for quarterly corporate income tax payment is no later than the 30th of the first month of the following quarter.

Below are the specific timelines for corporate income tax payment in 2025:

When is the timeline for the corporate income tax payment in Vietnam in 2025? (Image from the Internet)

Is there a penalty for late payment if corporate income tax is not paid in Vietnam?

Based on Point b, Clause 6, Article 8 of Decree No. 126/2020/ND-CP (amended by Clause 3, Article 1 of Decree No. 91/2022/ND-CP), the regulation on tax is as follows:

Taxes declared monthly, quarterly, annually, for each occurrence of tax obligation, and tax finalization declarations

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6. Types of taxes, declared payments, and finalizations up to the time of liquidation, bankruptcy, cessation of operations, contract termination, or reorganization of enterprises. In the event of a transformation of the type of enterprise (excluding the equitization of state-owned enterprises) where the transformed enterprise inherits all tax obligations of the converted enterprise, it is not required to finalize taxes until the time of the decision on enterprise transformation, and the enterprise finalizes when the year ends. Specifically, as follows:

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b) Corporate income tax (excluding corporate income tax from the transfer of capital by foreign contractors; corporate income tax declared on a percentage basis on revenue per occurrence or monthly as prescribed in point đ, clause 4 of this Article). Taxpayers must self-determine the corporate income tax for the quarter (including the allocation of corporate income tax to provincial locations where there are subsidiaries, business locations, or real estate transfers different from where the taxpayer's head office is located) and subtract the tax already paid with the tax payable according to the annual finalization.

Taxpayers required to prepare quarterly financial statements according to accounting laws, will determine their quarterly corporate income tax based on these financial statements and tax law provisions.

Taxpayers not required to prepare quarterly financial statements according to accounting laws, will determine their quarterly corporate income tax based on quarterly production and business results and tax law provisions.

The total corporate income tax ly paid for the 04 quarters must not be less than 80% of the corporate income tax payable according to the annual finalization. If taxpayers underpay compared to the tax payable for the 04 quarters, they must pay late payment interest on the underpaid tax from the day following the deadline for corporate income tax payment of quarter 04 to the day before the date of payment of the remaining tax to the state budget.

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Thus, taxpayers will incur late payment interest if the total corporate income tax paid for the 04 quarters is less than 80% of the corporate income tax due according to the annual finalization.

What are cases where the late tax payment interest is not calculated?

Cases where late tax payment interest is not calculated are specifically stipulated in Clause 5, Article 59 of the Law on Tax Administration 2019:

- Taxpayers providing goods and services paid from state budget funds, including sub-contractors defined in the contract with the investor and directly paid by the investor but have not been paid, shall not incur late payment interest.

The tax debt not subject to late payment interest is the total unpaid tax debt owed to the state budget by the taxpayer but not exceeding the unpaid state budget amount;

- Cases prescribed at point b, clause 4, Article 55 of the Law on Tax Administration 2019 do not calculate late payment interest while waiting for analysis or assessment results; during the time when official prices are not available; during the time when the real payment amount cannot be determined, and adjustments are added to the customs value.

Note: Taxpayers must pay late payment interest and may be exempt from late payment interest in force majeure cases prescribed in Clause 27, Article 3 of the Law on Tax Administration 2019, including:

- Taxpayers suffering material damage due to natural disasters, catastrophes, pandemics, fires, unexpected accidents;

- Other force majeure cases as regulated by the Government of Vietnam.