In which cases are taxpayers not required to submit tax declaration dossiers? What are the penalties for not submitting tax declaration dossiers?
In Which Cases Does a Taxpayer Not Have to File a Tax Return?
Pursuant to Clause 3, Article 7 of Decree 126/2020/ND-CP, the cases where a taxpayer is not required to file a tax return are specified as follows:
- The taxpayer is engaged in activities or businesses subject to tax exemption according to tax laws for each type of tax.
- Individuals with income exempt from tax as regulated by personal income tax laws and as specified in Point b, Clause 2, Article 79 of the Law on Tax Management, except for individuals receiving inheritance or gifts that are real estate; transferring real estate.
- Export processing enterprises that only engage in export activities are not required to file value-added tax returns.
- Taxpayers temporarily ceasing operations or businesses in accordance with Article 4 of this Decree.
- Taxpayers submitting dossiers to terminate tax identification number efficacy, except in cases of ceasing operations, terminating contracts, or reorganizing businesses as prescribed by Clause 4, Article 44 of the Law on Tax Management.
However, pursuant to Clause 2, Article 1 of Decree 91/2022/ND-CP, an additional case is added where the taxpayer is not required to file a tax return:
Amending and supplementing several provisions of Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing several articles of the Law on Tax Management
...
Taxpayers of personal income tax who are organizations or individuals paying income, subject to monthly or quarterly tax declarations, and there is no personal income tax withholding arising in that month or quarter
In cases where there is no arising personal income tax withholding in the month or quarter, the organization or individual paying income, subject to monthly or quarterly tax declarations, will not have to file a personal income tax return for that month or quarter.
In which cases does a taxpayer not have to file a tax return? What is the penalty for not filing a tax return?
What Are the Penalties for Not Filing a Tax Return?
Pursuant to Article 13 of Decree 125/2020/ND-CP, handling of violations for failing to file a tax return is regulated as follows:
Penalties for Violations of Tax Return Submission Deadlines
1. A warning for late submission of tax returns from 01 day to 05 days with mitigating circumstances.
2. Fines ranging from VND 2,000,000 to VND 5,000,000 for late submission of tax returns from 01 day to 30 days, except for cases specified in Clause 1 of this Article.
3. Fines ranging from VND 5,000,000 to VND 8,000,000 for late submission of tax returns from 31 days to 60 days.
4. Fines ranging from VND 8,000,000 to VND 15,000,000 for the following violations:
a) Late submission of tax returns from 61 days to 90 days;
b) Late submission of tax returns from 91 days or more without tax payable;
c) Non-submission of tax returns without tax payable;
d) Non-submission of annexes as prescribed in tax management for enterprises with associated transactions accompanying the annual tax settlement return.
5. Fines ranging from VND 15,000,000 to VND 25,000,000 for late submission of tax returns for over 90 days from the due date, arising tax payable, and the taxpayer has paid the full tax amount and late payment interest before the tax authority announces the tax inspection decision or before the tax authority records the late submission in a report per Clause 11, Article 143 of the Law on Tax Management.
If the penalty amount calculated per this clause is greater than the arising tax on the tax return, the maximum penalty amount will equal the arising tax amount but not lower than the average of the penalty range prescribed in Clause 4 of this Article.
6. Remedies:
a) Requiring the taxpayer to pay the full late tax amount into the state budget for violations specified in Clauses 1, 2, 3, 4, and 5 of this Article in case late submission of tax returns leads to late payment of the tax;
b) Requiring the taxpayer to submit tax returns, annexes accompanying the tax returns for violations specified in Points c, d, Clause 4 of this Article.
According to the above regulations, the administrative penalty amount is determined based on the delayed submission time of the tax returns.
Organizations and individuals violating must also comply with remedial measures.
Note: The administrative penalty per the above regulations only applies to organization violations. If an individual violates, the administrative penalty is half compared to the organization.
In Which Cases Can a Taxpayer Supplement Their Tax Declaration?
Pursuant to Clause 4, Article 7 of Decree 126/2020/ND-CP about supplementing tax declarations:
Tax Return Filing
...
4. Taxpayers may submit supplementary tax returns for any erroneous or incomplete tax returns per Article 47 of the Law on Tax Management and the forms prescribed by the Minister of Finance. Taxpayers shall supplement as follows:
a) If the supplement does not change the tax obligation, only submit the Explanatory Declaration and relevant documents. There is no need to submit a Supplementary Declaration.
If the annual tax settlement return has not been submitted, taxpayers supplement monthly or quarterly erroneous tax returns and compile the supplementary data into the annual tax settlement return.
If the annual tax settlement return has been submitted, only supplement the annual tax settlement return. Specifically, if supplementing the annual personal income tax settlement return for organizations and individuals paying income from wages, salaries must also supplement the corresponding monthly or quarterly declaration with errors.
b) If the supplementary declaration results in increased payable tax or reduced refunded tax, the taxpayer must pay the additional tax or repay the refunded tax and the late payment interest to the state budget (if any).
If the supplement only affects the amount of creditable value-added tax transferred to the next period, declare it in the current tax period. Taxpayers may supplement the increased creditable value-added tax amount for refund when they have not submitted the next tax period’s return or refund request.
Thus, taxpayers may supplement tax declarations in the cases mentioned above.
LawNet
