Will I be penalized for providing supplementary documents for tax declaration dossier in Vietnam? When is the deadline for submission of tax declaration dossiers of taxes declared quarterly?
- In case tax declaration dossier submitted to the tax authority is erroneous, what is the time limit for taxpayers to provide supplementary documents?
- Will I be penalized for providing supplementary documents for tax declaration dossier in Vietnam?
- When is the deadline for submission of tax declaration dossiers of taxes declared quarterly?
In case tax declaration dossier submitted to the tax authority is erroneous, what is the time limit for taxpayers to provide supplementary documents?
Pursuant to Article 47 of the 2019 Law on Tax Administration in Vietnam stipulating as follows:
- In case the tax declaration dossier submitted to the tax authority is erroneous or inadequate, supplementary documents may be provided within 10 years from the deadline for submission of the erroneous or inadequate tax declaration dossier but before the tax authority or a competent authority announces a decision on tax document examination.
- When the tax authority or a competent authority has announced the decision on tax inspection or tax audit on the taxpayer’s premises, the taxpayer is still allowed to provide supplementary documents; the tax authority shall impose administrative penalties for the violations specified in Article 142 and 143 of the 2019 Law on Tax Administration in Vietnam.
- After the tax authority or competent authority issues a conclusion or tax decision when the inspection is done:
+ The taxpayer may provide supplementary tax documents if they increase the tax payable or reduce the deductible tax, exempted tax or refundable tax, and shall face administrative penalties for the violations specified in Article 142 and Article 143 of the 2019 Law on Tax Administration in Vietnam;
+ If the supplementation leads to a decrease in the tax payable or an increase in the deductible tax, exempted tax or refundable tax, the taxpayer shall follow procedures for filing tax-related complaints.
- Supplementary documents include:
+ The supplementary tax return;
+ The explanation for the supplementation and relevant documents.
- Supplementary tax documents on exports and imports shall be provided in accordance with customs laws.
Will I be penalized for providing supplementary documents for tax declaration dossier in Vietnam? When is the deadline for submission of tax declaration dossiers of taxes declared quarterly?
Will I be penalized for providing supplementary documents for tax declaration dossier in Vietnam?
Pursuant to Article 16 of Decree No. 125/2020/ND-CP, a fine which equals 20% of the underpaid tax amount or the higher-than-prescribed amount of tax exemption, reduction or refund shall be imposed for any of the following violations:
- Case 1: Making false declaration of tax bases or deductible tax amounts or incorrectly determining cases of tax exemption, reduction or refund, resulting in any deficiency in tax amounts payable or any increase in amounts of tax exemption, reduction or refund though economic activities have already been fully recorded in legitimate accounting books, invoices and evidencing documents;
- Case 2: Making false declaration causing any reduction in payable tax amounts or any increase in amounts of tax exemption, reduction or refund, which does not fall into the case specified at point a of this clause though the violating taxpayer has voluntarily made a supplementary declaration and fully paid unpaid back taxes or tax arrears to the state budget prior to the deadline for the tax authority’s tax inspection and examination at taxpayers' offices or premises;
- Case 3: Making false declarations leading to any reduction in payable tax amounts or any increase in amounts of tax exemption, reduction or refund which have been determined by competent agencies’ tax inspection and examination or administrative violation records as an act of tax evasion if the violating taxpayer commits the first administrative violation regarding tax evasion, has made additional declarations and fully paid tax amounts owed to the state budget before the time of the competent agency’s issuance of the sanctioning decision, and the tax authority has made a written record stating that this act is an act of false declaration leading to any deficiency or underpayment of taxes payable;
However, according to Clause 3, Article 9 of Decree No. 125/2020/ND-CP, the act of false declaration committed in this situation shall be exempted from any tax-related administrative penalties if after making the false declaration, the taxpayer has supplemented tax returns and, of their own accord, has paid taxes:
- Before the time of the tax authority’s announcement of their decisions to conduct tax inspections or examinations at the taxpayer’s offices, or
- Before the time of the tax authority’s discovery thereof without needing to carry out these inspections or examinations, or
- Before the time of other competent authorities’ discovery thereof.
When is the deadline for submission of tax declaration dossiers of taxes declared quarterly?
Pursuant to Clause 1, Article 44 of the 2019 Law on Tax Administration in Vietnam stipulating as follows:
Deadlines for submission of tax declaration dossiers in Vietnam
1. Deadlines for submission of tax declaration dossiers of taxes declared monthly and quarterly:
a) For taxes declared monthly: the 20th of the month succeeding the month in which tax is incurred;
b) For taxes declared quarterly: the last day of the first month of the succeeding quarter.
Thus, for submission of tax declaration dossiers of taxes declared quarterly: the last day of the first month of the succeeding quarter.
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