Is it required to file a tax declaration during the period of tax debt enforcement by means of revoking the Business Registration Certificate?
How are tax declaration dossiers regulated?
According to Clause 1, Article 7 of Decree 126/2020/ND-CP regulating tax declaration dossiers as follows:
Tax Declaration Dossiers
1. A tax declaration dossier includes the tax return and related documents and materials that serve as a basis for determining the taxpayer's tax obligations to the state budget, compiled and sent by the taxpayer to the tax administration agency electronically or on paper. The taxpayer must declare the tax return, schedules, and appendices (if any) according to the form prescribed by the Minister of Finance and is responsible before the law for the accuracy, truthfulness, and completeness of the contents in the tax return, schedules, and appendices; and fully submit the documents and materials required in the tax declaration dossier to the tax administration agency. For certain types of documents in the tax declaration dossier for which the Ministry of Finance does not provide a form but related laws prescribe a form, the form prescribed by the related laws shall be adopted.
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Thus, the tax declaration dossier is regulated as above.
Is it required to submit tax declaration dossiers during the enforced debt collection period by revoking the enterprise registration certificate? (Image from Internet)
Is it required to submit tax declaration dossiers during the enforced debt collection period by revoking the enterprise registration certificate?
Based on the regulations in Clause 3, Article 7 of Decree 126/2020/ND-CP, it is prescribed as follows:
Tax Declaration Dossiers
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3. Taxpayers are not required to submit tax declaration dossiers in the following cases:
a) Taxpayers engage only in activities or business not subject to tax according to tax law regarding each type of tax.
b) Individuals have income exempt from tax as prescribed by personal income tax law and as stipulated in point b, Clause 2, Article 79 of the Tax Administration Law, except for individuals receiving inheritance, gifts which are real estate; transferring real estate.
c) Export processing enterprises engaging only in export activities are not required to submit VAT declaration dossiers.
d) Taxpayers temporarily suspend operations or business as prescribed in Article 4 of this Decree.
dd) Taxpayers submit dossiers to terminate the validity of the tax identification number, except for cases of terminating operations, contract termination, or business reorganization as prescribed in Clause 4, Article 44 of the Tax Administration Law.
On September 22, 2022, the General Department of Taxation issued Official Dispatch 3510/TCT-KK in 2022 regarding tax declarations during the period taxpayers are enforced to debt collection by revoking the enterprise registration certificate with the following guidance:
Based on legal provisions, taxpayers enforced debt collection by revoking the Enterprise Registration Certificate, Business Registration Certificate, Cooperative Registration Certificate do not fall under the cases not required to submit tax declaration dossiers as prescribed in Clause 3, Article 7 of Decree 126/2020/ND-CP.
In cases where taxpayers have not declared taxes during the period of enforced debt collection by revoking the Enterprise Registration Certificate, Business Registration Certificate, Cooperative Registration Certificate, they must declare the tax declarations for these periods and be penalized for late submission of tax declaration dossiers, including late payment interest (if any) according to regulations.
How are violations regarding the time limit for submitting tax declaration dossiers penalized?
According to Article 13 of Decree 125/2020/ND-CP, violations regarding the time limit for submitting tax declaration dossiers are penalized as follows:
Penalties for Violations Regarding the Time Limit for Submitting Tax Declaration Dossiers
1. A warning shall be issued for violations of submitting tax declaration dossiers past the deadline from 01 to 05 days and having extenuating circumstances.
2. A fine of 2,000,000 VND to 5,000,000 VND shall be imposed for violations of submitting tax declaration dossiers past the deadline from 01 to 30 days, except for cases specified in Clause 1 of this Article.
3. A fine of 5,000,000 VND to 8,000,000 VND shall be imposed for violations of submitting tax declaration dossiers past the deadline from 31 to 60 days.
4. A fine of 8,000,000 VND to 15,000,000 VND shall be imposed for one of the following acts:
a) Submitting tax declaration dossiers past the deadline from 61 to 90 days;
b) Submitting tax declaration dossiers past the deadline from 91 days or more without generating payable tax amounts;
c) Not submitting tax declaration dossiers but not generating payable tax amounts;
d) Not submitting appendices as prescribed by tax law for enterprises with related-party transactions accompanying the corporate income tax finalization dossier.
5. A fine of 15,000,000 VND to 25,000,000 VND shall be imposed for violations of submitting tax declaration dossiers more than 90 days past the deadline, generating payable tax amounts and the taxpayer has paid all the overdue tax, including late payment interest into the state budget before the tax agency announces the tax inspection or audit decision or before the tax agency records the act of late submission of tax declaration dossiers as prescribed in Clause 11, Article 143 of the Tax Administration Law.
In case the fine, if applied under this Clause, exceeds the tax amount generated on the tax declaration dossier, the maximum fine for this case shall equal the tax amount generated but no less than the average level of the fine frame specified in Clause 4 of this Article.
6. Remedial measures:
a) Forcing the taxpayer to pay all overdue tax amounts into the state budget for violations specified in Clauses 1, 2, 3, 4, and 5 of this Article in case the taxpayer's late submission of tax declaration dossiers leads to late payment of tax;
b) Forcing the taxpayer to submit tax declaration dossiers and appendices accompanying the tax declaration dossiers for violations specified in Points c and d, Clause 4 of this Article.
Thus, violations regarding the time limit for submitting tax declaration dossiers may result in a warning or fines up to 25,000,000 VND. In addition, violators must pay all overdue tax amounts into the state budget for violations specified in Clauses 1, 2, 3, 4, and 5 of this Article in case late submission leads to late payment of tax, and must submit the tax declaration dossiers, appendices accompanying the tax declaration dossiers for violations specified in Points c and d, Clause 4 of this Article.
The fines mentioned above apply to individuals, and the fines for organizations shall be twice the fines for individuals.
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