Which taxes are declared annually in Vietnam? What does the tax declaration dossier of taxes that are declared and paid annually include?

Which taxes are declared annually in Vietnam?

According to Clause 3, Article 8 of Decree 126/2020/ND-CP, specific provisions on taxes and fees declared annually that are part of the state budget include:

- License fees.

- Personal income tax for individuals acting as lottery agents, insurance agents, or multi-level sales agents who have not withheld taxes during the year but determine at the year's end that they are liable to pay taxes.

- Taxes and fees from business households, individual businesses paying taxes under the flat-rate method, individuals renting out property who choose to declare taxes that are declared and paid annually.

- Non-agricultural land use tax.

Note:

+ Taxpayers declare taxes that are declared and paid annually for each parcel and consolidate declarations for homestead land if having land use rights for multiple parcels within one district or across multiple districts within the same province. Taxpayers are not required to consolidate in the following cases:

+ Taxpayers have land use rights for one or multiple parcels within the same district, but the total taxable land area does not exceed the homestead land limit where the land rights exist.

+ Taxpayers have land use rights for multiple parcels in different districts, yet no parcel exceeds the limit, and the total taxable land area does not exceed the homestead land limit where the land rights exist.

- Agricultural land use tax.

- Land rent and water surface rent paid annually.

Which taxes are declared annually in Vietnam? What does the tax declaration dossier of taxes that are declared and paid annually include? (Image from the Internet)

When is the deadline for submitting tax declarations annually in Vietnam?

According to Clause 2, Article 44 of the 2019 Law on Tax Administration, the deadlines for submitting tax declarations for taxes that are declared and paid annually are as follows:

- No later than the last day of the third month from the end of the calendar year or fiscal year for annual tax settlement declarations; no later than the last day of the first month of the calendar year or fiscal year for annual tax declarations;

- No later than the last day of the fourth month from the end of the calendar year for individual personal income tax finalization declarations of individuals who directly finalize taxes;

- No later than December 15 of the preceding year for flat-rate tax declarations of business households and individual businesses paying taxes under the flat-rate method; if a business household or individual business starts a new business, the deadline for the flat-rate tax declaration is no later than 10 days from the start of the business.

What are penalties for late submission of tax declarations for taxes that are declared and paid annually in Vietnam?

As per Article 13 of Decree 125/2020/ND-CP on penalties for violations concerning the deadline for submitting tax declarations:

- A warning is issued for late submission of tax declarations from 01 to 05 days with mitigating circumstances.

- A fine ranging from VND 2,000,000 to VND 5,000,000 for late submission of tax declarations from 01 to 30 days, except for cases where warnings are issued for submissions from 01 to 05 days with mitigating circumstances.

- A fine ranging from VND 5,000,000 to VND 8,000,000 for late submissions beyond the stipulated period from 31 to 60 days.

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

+ Late submissions beyond the stipulated period from 61 to 90 days;

+ Late submissions beyond the stipulated period from 91 days or more but with no payable taxes arising;

+ Non-submission of tax declarations but with no payable taxes arising;

+ Non-submission of appendices as per tax management regulations for enterprises with associated transactions along with corporate income tax settlement declarations.

- A fine ranging from VND 15,000,000 to VND 25,000,000 for late submissions exceeding 90 days from the tax declaration submission deadline, with payable taxes arising, and the taxpayer has paid the full tax amount and late payment penalties into the state budget before the tax authority announces a decision to conduct a tax inspection or audit or before the tax authority prepares a report on late tax declaration submission behavior as prescribed in Clause 11, Article 143 of the 2019 Law on Tax Administration.

Note: The above penalties apply to organizations. The penalties for individuals will be 1/2 of the penalties for organizations.

Vietnam: What does the tax declaration dossier of taxes that are declared and paid annually include?

Based on Clause 3, Article 43 of the 2019 Law on Tax Administration, the specific components of the tax declaration dossier of taxes that are declared and paid annually include:

- The annual tax declaration dossier includes the annual tax return and other documents related to determining the amount of tax payable;

- The tax settlement declaration dossier at the end of the year includes the annual tax settlement return, annual financial statements, transfer pricing documentation; and other documents related to tax settlement.